Seychelles has secured a $25 million loan from the African Development Bank Group (AfDB) to implement the three year Economic Resilience and Green Recovery Support Programme.
The funding which has gotten the approval of the bank’s board will help Seychelles implement the first phase of the programme running from 2024 to 2026 which involves improving tax revenues and enhance governance in the public sector, including efficiency of public spending and public service delivery as key pathways to advance governance and economic management reforms.
AfDB says the tax will play an important role in the country’s tax mobilisation efforts and provide funds for investment in circular economy projects.
“The programme will support current efforts of the Seychelles Ministry of Investment, Entrepreneurship and Industry to drive economic diversification and transformation in the key sectors of fishing and tourism. These initiatives include the revision of relevant legislative frameworks to promote growth of the private sector, supporting the recently approved industrial policy,” said AfDB.
The island nation will also use the financing to deepen reforms that promote environment and climate resilience, assisting the government’s efforts to integrate climate adaptation and mitigation into the National Development Strategy for 2024-2028.
The programme targets to contribute to Seychelles’ medium-term objectives of improving access to renewable energy, enhancing inclusive growth, and creating jobs, while leaving room for manoeuvre in the budget sphere and promoting debt sustainability.
This will enable the government to allocate resources to priority projects and programs while protecting more vulnerable social groups, the bank stated.
As of July 1, 2024, the AfDB’s approved and ongoing portfolio in Seychelles comprises seven operations for a total commitment of $33.7 million.
