Chad and Algeria Forge 34 New Economic Deals, Including Major Oil Refinery Project
Chad and Algeria have taken a major step toward deepening their economic ties, signing 34 bilateral agreements during President Mahamat Idriss Déby’s official visit to Algiers. The deals, inked on Thursday, span energy, infrastructure, and security, marking a shift from long-standing diplomatic relations to a more ambitious strategic partnership.
Energy Takes Center Stage
The most significant agreement involves a joint refinery project between Algeria’s state-owned energy giant Sonatrach and Chad’s Société des Hydrocarbures du Tchad (SHT). The planned facility aims to produce up to 20,000 barrels of oil per day, a move that could bolster Chad’s domestic refining capacity and reduce reliance on fuel imports.
Economist Djimadoum Mendekor told RFI the refinery deal could be transformative for Chad’s job market. “This isn’t just about oil—it’s about creating industries where none exist,” he said. “For a country struggling with unemployment, attracting foreign investment is critical.”
Beyond Oil: A Broad Partnership
The agreements extend far beyond hydrocarbons. The two nations also struck deals in:
- Air transport, potentially opening new flight routes.
- Higher education, including student exchanges and research collaborations.
- Public works, likely targeting infrastructure development.
- Counterterrorism, with an interministerial pact to combat regional security threats.
Algeria further pledged to help Chad develop its mining and renewable energy sectors, signaling a push to diversify economic cooperation.
Geopolitical Rivalry with Morocco
Analysts suggest the flurry of agreements isn’t just about economics—it’s also a strategic play in North Africa’s diplomatic chessboard. Michael Ayari of the International Crisis Group noted that Algeria is countering Morocco’s growing influence in sub-Saharan Africa.
“Algeria is making a deliberate push into Chad, partly as a response to Morocco’s expanding footprint,” Ayari said. Morocco has recently invested heavily in Chad, including in cultural projects, and Chad opened a consulate in Dakhla, a contested region of Western Sahara—a move that angered Algeria.
Algeria’s African Ambitions
The Chad agreements follow a similar diplomatic offensive in Niger earlier this year, where Algeria secured mining and security deals. Observers say Algiers is repositioning itself as a key player in the Sahel, a region where Western influence has waned after recent coups.
President Abdelmadjid Tebboune, fresh off a landslide re-election in September, appears keen to expand Algeria’s economic and political reach. Meanwhile, Chad’s Déby framed the partnership as a “new-generation” alliance, moving beyond symbolic ties to concrete investments.
What’s Next?
With the refinery deal in motion, Chad hopes to attract more foreign investors to its underdeveloped energy sector. For Algeria, the agreements reinforce its role as a regional power broker—one willing to challenge Morocco’s ambitions.
As global energy markets remain volatile due to tensions in the Strait of Hormuz, both nations stand to gain from stronger energy collaboration. But whether these deals translate into real economic growth—and jobs—for Chad remains to be seen.
— Reported by Nexio News
