Seychelles signs Agreement with Japan to help fisheries

Posted in Business and Economy, International relations at 9:32 am by Robert Klien

Yesterday, on June 24, 2008, a grant aid agreement for fisheries was signed between Seychelles and Japan. The agreement was described as “milestone” in the relations of the two countries.

The agreement was signed at Independence House by Minister for Environment, Natural Resources and Transport Joel Morgan from Seychelles side and by the Japanese ambassador to Seychelles, Shigeo Iwatani from Japanese side.

The agreement covers R83 million of aid from Japan. The funding will be used for building a new fishing quay at Providence and for improving the Bel Ombre fishing port. This project is in line with the 2017 fisheries strategy, and it is very important in the development of fishing industry in Seychelles.

The Japanese government is financing 5 fisheries projects worth more than R80 million,. It should be noted that Japan has already been supportive of Seychelles’s fishing industry, which had a positive impact on the industry’s development.

According to Mr. Morgan, the fishing industry is the 2nd most important sector for income generation, food security and employment.


Seychelles Central Bank opens bonds market

Posted in Business and Economy, Financial Services, Seychelles banking at 6:19 pm by Robert Klien

In order to increase investment flexibility, the Central Bank of Seychelles has announced the introduction of a new service.

The new service allows to sell and buy government-issued bonds. Those who hold government bonds will now be able to sell these bonds to the Central Bank of Seychelles before the bonds reach their maturity. This will allow them to access funds that would have been tied up otherwise. Then, the bonds bought by the Central Bank of Seychelles will be sold to people.

According to Central Bank governor Francis Chang Leng, before this new initiative has been launched people holding bonds faced the difficult prospect of trying to find a buyer if they wished to sell the bonds. This difficulty even increased if they wanted to sell large amounts of bonds. “The introduction of the Central Bank secondary market for bonds offers a fast, efficient and guaranteed market for people wishing to sell bonds and an easy access point for people who wish to use an investment in government bonds as an alternative to saving their money in the bank.”

Bond holders who intend to use the new service will have to visit the Central Bank of Seychelles, where they will be able to cash either in the full value of their bonds or a percentage of them.

The Central Bank will charge an administrative fee of 0.25% on the face value of the bonds in order to finance the new service.

As a secondary market will be introduced, bond holders will be allowed to exchange their bonds for currency, which will increase their financial liquidity. Nevertheless, the overall level of liquidity will not change because the bonds will stay in circulation.

Central Bank governor Francis Chang Leng hopes that the introduction of the secondary market for bonds will  increase people’s familiarity with trading in bonds and other investments, and with “providing an additional interest-earning opportunity for savers looking for the best return on their money”.


Food prices crisis gets to Seychelles

Posted in Business and Economy at 11:48 am by Robert Klien

The global rise in food prices has become an alarm for consumers in Seychelles. This is what the opposition of Seychelles has claimed. However, the speaker of one of Africa’s richest nations, Patrick Herminie, has rejected an opposition call to organize an emergency session in order to address this problem.

The opposition call was the result of a recent announcement by the Seychellois government that the price of rice, the Seychellois staple meal, will increase. This increase is a result of international food prices trend, however, it comes just after the Seychellois government had devalued its currency, which made price of basic food items too high for the average family.

Finance Minister Danny Faure presented the 2008 Budget that introduced excessive increases in the price of water, electricity and many other necessities.

It should be noted that the opposition has taken the speaker’s rejection as insensitive rejecting of important issues of the country, while the population becomes more vulnerable to price increases.