After notable success in beating Covid-19, the Seychelles reopened in early 2021, and the administration of recently-elected president Wavel Ramkalawan is now concentrating on modernizing and diversifying the country’s economy, developing sectors ranging from eco-tourism to sustainable fishing and fintech.
Sustainable tourism and digital nomads
Traditionally a mainstay of the economy, the tourism sector was hit hard by Covid-19, notwithstanding a generous state support package. While this experience has emphasised the need to diversify away from an over-reliance on tourism, the industry will remain a key source of GDP going forward, as well as a major driver of coronavirus recovery efforts. However, in order to retain a foothold in the more competitive, post-pandemic global panorama, the Seychelles is looking to boost sustainable tourism, doubling down on its ecological offerings as one of the world’s biodiversity hotspots. Further to this, like many other small island developing states, the Seychelles is moving to position itself as a competitive destination for a new generation of digital nomads and remote workers.
Fishing and the blue economy
After tourism, the fisheries sector is the country’s most important industry, and it is currently undergoing a broad-based transformation. In 2018, the Seychelles signalled its commitment to sustainable management of ocean resources by launching, in collaboration with the World Bank, the world’s first sovereign blue bond – a financial instrument designed to support sustainable marine and fisheries projects. The bond raised US$15 million from international investors, which is being used to drive the transition to sustainable fishing and the implementation of ‘blue economy’ principles. Alongside this, the government is looking to boost value-add at every step of the supply chain, as well as exploring new export markets. There are ample opportunities for the private sector, both within the industry and in terms of developing the infrastructure it needs to continue growing. Ongoing projects include the Mahé commercial port extension project – funded by two European banks and a grant from the European Union – and a new commercial port and two new fishing quays in Victoria.
Financial services and fintech
In recent years, the government and regulators have developed a well-respected and increasingly popular jurisdiction, which offers a number of competitive benefits relative to more well-known jurisdictions. With the opening of a new, state-of-the-art financial centre the Seychelles has broadcast its ambition of establishing itself as a world-leading financial services hub. In addition, following the recent launch of a regulatory sandbox to foster innovation across a broad range of digital assets and services, the nation is well placed to drive innovation in the fintech sector and leverage the so-called ‘new ABCD’ of financial services, namely automation, blockchain, cloud and digital.