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The OPEC Fund for International Development has approved two concessional loans totalling $31 million to bolster Chad's power supply and rice production, tackling acute energy poverty and food insecurity in one of Africa's most climate-exposed countries.
Financing Breakdown
Energy Sector Support Project: $15 million to expand access to clean, affordable electricity through off-grid and renewable solutions. Rice Farming Development Project Chari-Logone III: $16 million to rehabilitate irrigation, introduce resilient seed varieties, and strengthen value chains.
Energy Component Essentials
The energy loan prioritises solar mini-grids, rural electrification, and renewable infrastructure to deliver reliable power outside major urban centres. Chad's electricity access is extremely low, leaving most households dependent on biomass for cooking and lighting, driving indoor pollution and deforestation. The Sahel's high solar potential offers a practical pathway for decentralised, low-carbon electrification that can support livelihoods and local industry.
Agricultural Component Essentials
The rice project targets the Chari-Logone basin to rehabilitate irrigation systems, promote climate-resilient high-yield varieties, and develop cooperatives and agro-processing. Lake Chad's dramatic shrinkage and rainfall variability have left domestic rice output well below national demand, increasing import dependence and exposure to global price swings. Improved water management and expanded irrigated areas aim to stabilise supplies and support rural incomes.
Development Rationale and Strategic Fit
The dual loans reflect an integrated approach linking energy and food security: electrification enables irrigation, cold storage, and processing, while stronger agriculture reduces import bills and supports resilience. The financing aligns with the OPEC Fund's climate and food security commitments and Chad's National Development Plan, which emphasise renewable energy and sustainable agriculture as pillars for poverty reduction.
Risks, Implementation Needs and Expected Outcomes
Success hinges on transparent project management, technical capacity, and coordination among local agencies. Potential gains include expanded electricity access, higher rice yields, reduced post-harvest losses, and strengthened rural value chains. Constraints include fiscal limits, governance challenges, and the need for sustained maintenance and community engagement to secure long-term benefits.
Strategic Significance
By pairing concessional finance for power and agriculture, the OPEC Fund's intervention offers a model for integrated climate-smart development in the Sahel, with potential to improve livelihoods, boost resilience, and catalyse broader low-carbon electrification across the region.