IMF completes the 3rd Review under the Extended Arrangement for Seychelles

Posted in Business and Economy, International Organisations at 4:33 pm by Robert Klien

The Executive Board of the International Monetary Fund (IMF) has completed the 3rd review under the 3-year Extended Arrangement, which became effective on December 23, 2009 in the amount of SDR 19.8 million.

As the review has been completed, it makes available to disburse SDR 3.52 million, which is about USD 5.6 million.

In 2010, the economy of Seychelles recovered strongly from the debt and balance of payments crisis in 2008 that was followed by global recession of 2009. Economic growth was driven by really high foreign direct investment (FDI) as well as a rebound in tourism. Inflation in the jurisdiction remained near 0. The offshore jurisdiction continued to rebuild its international reserves and reduce public debt. The economic program supported by the Extended Fund Facility (EFF) remains on track and all quantitative performance criteria at end-December 2010 were met.

In 2011, the policy mix under the program has been adjusted, which was in response to the global commodities price shock and the recent financial difficulties of Air Seychelles. The IMF expects that fiscal policy will be slightly looser to accommodate additional priority spending, while maintaining the targeted progress toward external stability and debt sustainability. The Fund stated that structural reforms are expected to concentrate on enhancing the financial sector by means of modernizing its legal and regulatory framework and restructuring and/or privatization of several state-owned financial institutions.


Single integrated market initiative approved by Seychelles

Posted in Business and Economy, International Organisations at 8:03 am by Robert Klien

A declaration has been signed by the government of Seychelles has signed to launch negotiations for establishing a single integrated market for the 26 countries of the Common Market for East and Southern Africa (Comesa), East African Community (EAC) and the Southern African Development Community (SADC).

The declaration was signed after the conclusion of the 2nd Comesa-EAC-SADC tripartite summit. The summit was held on June 12 in Johannesburg, South Africa, under the theme “Deepening Regional Integration”. A Seychelles delegation lead by Vice-President Danny Faure took part in strategy discussions and endorsed the plan of action at the event.

Mr Faure, who is not only Vice-President but also the Minister for Finance and Trade, said: “This landmark initiative is an important step towards simplifying trade in the region and easing some of the administrative obligations for countries like Seychelles, who are members of more than one of these regional economic communities”.

Setting up a tripartite free trade area will provide a possibility to create a larger, integrated market with a combined population of approximately 700 million people, effectively creating the largest free trade area worldwide. This will encourage intraregional trade by establishing a wider market to increase investment flows, enhance competitiveness as well as develop cross-regional infrastructure.

It should be noted that the initiative is the response to a call from the African Union for regional economic communities to harmonise and better coordinate policies and programmes, which includes contributing to poverty reduction, economic growth and sustainable development for the continent.

Also, the summit adopted a roadmap for the setting up of the free trade area, with phase 1 due to be achieved by 2015.


NBS completes one phase Population and Housing Census

Posted in Seychelles' statistics at 12:55 pm by Robert Klien

In December 2010, the Seychelles’ National Bureau of Statistics issued a summary on an important phase of the Population and Housing Census exercise.

The National Bureau of Statistics (NBS) has stated that, after more than 1 year of preparation in terms of mapping, other technical processes and putting in place the required logistics, the main enumeration or actual ‘counting’ was undertaken between August 26 and August 30, 2010.

At the end of the main enumeration which covered the 3 main islands (Mahe, Praslin and La Digue) and satellite inner islands simultaneously, there were still a considerable number of households that had been missed out. Members of these households were either out of their homes when data collectors visited them or were overseas for a short length of time. Also, additional visits were required for households that had not cooperated with census officers at the 1st visit. The Bureau undertook a callback exercise on all households to enumerate the remaining population, which took more than a month.

According to the preliminary results published by the NBS, a total population count of 88,311 with the following gender composition (51.3%) males and (48.7%) females. An age group breakdown shows that 22.3% of the population are aged less than 15 years and 77.7% are aged 15 years and above.

Of the total population, the labour force stands at 50,923, which is 57.7%. Of these people, 94.2% are in employment and 5.8 % are the unemployed.

It should be noted that the figures are subject to change after data cleaning. However, the overall distribution and subgroup representation are not expected to change significantly.

The Bureau is processing all the collected data to publish the final results of the census during the last quarter of 2011.


SIBA welcomes proposals for the setting up of a Securities Exchange in the Seychelles

Posted in Business and Economy at 8:15 am by Robert Klien

On April 20, 2011, the Seychelles International Business Authority (SIBA) published a press release to inform the public that the Securities Exchange Consultative Committee, through the SIBA is inviting proposals for the establishment of a Securities Exchange in the Seychelles.

A document with the conditions and specifications of the proposals may be collected from SIBA’s office or downloaded at its website. The proposals are to contain a cover letter, a detailed business proposal, license application forms and other required supporting documents. The proposal and all supporting documents are to be addressed to the Securities Exchange Consultative Committee.

The proposals are to be submitted until July 20, 2011.