06.15.08
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.â€
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 moneyâ€.
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06.09.08
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.
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05.15.08
Posted in Business and Economy, Foreign investments, Tourism industry at 9:36 pm by Robert Klien
A global leader in providing IT solutions for the hospitality industry, IDS SOFTWARES Pvt Ltd, has announced that it is entering Seychelles. The company has partnered Paradise Computer Services (PCS), one of the largest IT companies in Seychelles, in the venture that is expected to be successful.
As tourism is the mainstay of Seychelles contributing more than 21% of the GDP and accounting for more than 60% of the forex earnings, IDS products in Seychelles have a high potential. Entering Seychelles strengthens the presence of IDS in the African continent.
It should be noted that the above announcement closes in on company’s target of expanding into 40 countries by the end of the financial year 2008-2009.
Rajesh P Yadav, general manager of IDS, commented on the entry into Seychelles, noting that the company is happy to tie up with Paradise Computer Services for sales and support in the Seychelles market as far as Africa offers great opportunities for its products.
PCS is a leader in IT integration in Seychelles. Based in Victoria and Mahe, the company was established in 1995 with a view to provide an unparalleled level of service to the IT sector.
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05.03.08
Posted in Business and Economy, International Organisations, Seychelles government at 8:54 am by Robert Klien
Seychelles has launches a programme that is aimed at training people as regards their human rights and civil liberties.
On April 28, 2008, a 2-week workshop opened at the Police Academy. It is the 1st activities in a series under the human rights project launched to improve the skills of both governmental and non-governmental staff in this area.
The project was launched by Patrick Pillay, Minister for Foreign Affairs. Mr Pillay noted the launch of the project comes in a year when the world is celebrating the 60th anniversary of the United Nations’ Universal Declaration of Human Rights, the theme of which is Dignity and justice for all.
The whole project will last for 2 years. It is co-funded by the European Union and the United Nations Development Programme and based on an agreement signed that was signed by Seychelles in July 2006.
The project is expected to increase awareness of the great importance of human rights issues among the public. It is also hoped to strengthen respecting and adopting human rights practices by police and prison officers, while informing the judiciary, media and civil public on these issues.
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04.13.08
Posted in Business and Economy, Foreign investments, International Organisations at 11:52 am by Robert Klien
The visit by President Michel to Kuwait in February helped attract Kuwaiti investors to the Seychelles.
On April 8, 2008, three representatives of a major Kuwaiti business developer paid a visit to Seychelles’ President James Michel at State House. Later they said that they are going to make huge investments into the jurisdiction.
After discussions with the President, the managing director of the BluePrint company, Meshal Almelhem, told the local media that with assurances from the African Development Bank (ADB), the private sector represented by his firm has made a decision to invest in the African region. He said that having seen President Michel, the country and the people, he ans his colleagues from BluePrint need not look any further than Seychelles as they have understood that it is a very stable jurisdiction.
He also added the following: “We have realised that Seychelles is a goldmine and a haven for investors. There are many opportunities that will create mutual benefits for the government and the people of Seychelles and the investors as wellâ€.
BluePrint will work with the government of the Seychelles to develop potential projects in the finance, technology, and tourism as well as in other sectors.
Mr Almelhem was accompanied by Ahmed Alquraishi and Yousel Al Bader from BluePrint, and Peter Sinon, executive director of the ADB. Also, the Minister for Community Development, Jacquelin Dugasse; Secretary of State, Alain Butler Payet; principal secretary for Presidential Affairs, Jean-Paul Adam; and special adviser in the Ministry of Foreign Affairs, Vivienne Focktave, were present at the meeting.
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04.04.08
Posted in Business and Economy, International relations, Seychelles IBC, Seychelles companies at 10:28 pm by Robert Klien
Recently China urged the business community of Seychelles to its largest fair.
The Seychellois companies are invited to visit and take part in the 103rd China Import and Export Fair, which is known as the Canton Fair.
The Fair will be held in several phases. The 1st one will take place on April 15-20, 2008, while the 2nd will be held on April 25-30, 2008 in Guangzhou. The 1st session will focus on medicines and health products, industrial products, textiles and garments, while the 2nd will focus on consumer goods and gifts. The Canton Fair will be staged at the centre of the Pearl River Delta and it will manufacture powerhouse and exporting bases.
The Canton Fair is the largest trade fair in China held twice a year – in April and October. It provides with a rich variety of Chinese goods. The international sections of this 103rd Fair will be placed in the Pazhou and Liuhua complexes of China Import and Export.
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03.27.08
Posted in Business and Economy, International Organisations, International relations, Seychelles government at 12:22 pm by Robert Klien
The First Meeting of the Special COMESA Ministerial Sub-committee on Economic Partnership Agreement held on February 10, 2008 in Lusaka, Zambia, was attended by the Seychelles Minister of Foreign Affairs, Mr. Patrick Pillay. At the meeting, he was accompanied by his Special Adviser, Miss Vivianne Fock-Tave. Director General for Trade in the Ministry of Finance and Trade, Mr Charles Morin, also attended the meeting of COMESA Ministerial Sub-committee.
The Ministerial Sub-committee was established during the COMESA Council of Ministers in November 2007. It consists of Ministers who are responsible for the negotiation of Economic Partnership Agreements (EPA) from Seychelles, Mauritius, Kenya, Malawi, Rwanda, Zambia, Djibouti and Zimbabwe – 8 of the 16 countries that form the Eastern and Southern Africa (ESA) configuration, which are also member countries of the Common Market for Eastern and Southern Africa (COMESA).
The Ministerial Sub-committee primarily aims at overseeing the EPA negotiation process in order to ensure the progress in line with set negotiation objectives and agreed guidelines. Therefore the Sub-committee takes account of developments in the process on a regular basis and provides political advice and guidance on any issues contributing to the successful conclusion of the ESA negotiations. It also is worth noting that the Ministerial Sub-committee is a key-role player in working towards narrowing any substantial differences in the region.
At the 1st meeting in Zambia, the Sub-Committee discussed implementing the Interim Agreement and the need to convene a joint COMESA-SADC-EAC (East African Community) Meeting of Ministers responsible for Economic Partnership Agreements. Also, the negotiating structure of the ESA configuration was reviewed at the meeting in order to ensure that the EPA negotiations are both effective and efficient.
Besides the First Meeting of the Special COMESA Ministerial Sub-committee on Economic Partnership Agreement, Minister Pillay participated in the Ministerial Task Force on the COMESA Customs Union held in Lusaka, Zambia, on February 11, 2008.
It is expected that the COMESA Customs Union will be launched in December 2008.
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02.17.08
Posted in Business and Economy, International Organisations, Seychelles offshore jurisdiction at 3:12 am by Robert Klien
An International Monetary Fund (IMF) staff mission issued the Statement at the Conclusion of the 2008 Article IV Staff Mission to Seychelles. The statement was issued on January 30, 2008 in Victoria and published on IMF website on February 1, 2008.
The statement says that an IMF team, headed by Mr. Norbert Funke, visited Victoria, Seychelles on January 17-30, 2008 in order to conduct the Article IV consultation discussions with the jurisdiction. The team reviewed economic developments and prospects, as well as discussed the policies to achieve debt sustainability, external stability, and the goals of their “Strategy 2017″ with the Seychellois authorities. According to the statement, the mission met with President Michel, the Minister of Finance Danny Faure, the Minister of National Development Jaquelin Dugasse, the Governor of the Seychelles Central Bank Francis Chang Leng, as well as with other government officials, non-government organizations, private sector representatives, and the diplomatic community.
In accordance with the IMF statement, economic growth continued to be robust in the jurisdiction in 2007, at over 5%, which was supported by strong foreign direct investment (FDI), mainly in the tourism sector. The IMF mission concluded the following: “Unemployment is at an historic low. Inflation rose in response to the gradual realignment of the Seychelles rupee, which is aimed at increasing Seychelles’ international competitiveness. Fiscal policy remained expansionary as a result of higher-than-budgeted spending and lower revenues. The current account deficit widened, partly reflecting imports related to record inflows of new foreign direct investment and the purchase of another oil tanker. Growth may ease somewhat in 2008, reflecting high international oil prices, an expected slowdown in global growth, and local capacity constraints. Inflation is likely to remain elevated in the near term, as one-off factors due to price adjustments feed through.â€
The IMF mission welcomed the broad-based reform strategy of Seychelles authorities outlined in March 2007 and appreciated the positive steps towards closer relations with multilateral institutions. It noted that the 2008 budget breaks with the past and is an important step in the right direction being targeted at a sizeable primary surplus. It suggested that “a range of structural reforms are set to play an important complementary role in reducing macroeconomic imbalances†that include foreign exchange market liberalization measures, upward revisions of utility prices, and removal of price controls on imports. “The reforms will reduce subsidies to public enterprises, limit budgetary pressures, and improve market signals. The government’s announcement that privatization will continue strengthens the prospects for private sector development.â€
In order to put the economy of Seychelles on the path of a strong and sustainable growth for the medium term, the IMF mission found it important to broaden and deepen reform efforts to restore macroeconomic balance and improving competitiveness.
As a conclusion of the statement, the IMF press release pointed out the following: “The IMF stands ready to assist the authorities in refining and implementing their reform program, and looks forward to continuing a close and constructive dialogue.”
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02.12.08
Posted in Business and Economy, Seychelles government at 4:50 am by Robert Klien
Today, on February 12, 2008, Seychellois President James A. Michel will present his 4th State-of-the-Nation address as the President of the jurisdiction.
The President’s address will be presented to the 1st sitting of the National Assembly for the 1st term of 2008, and it will be broadcast live on both the radio and TV. Highlights of the State-of-the-Nation address is expected to be published on the pages of tomorrow’s papers.
To remind, in Seychelles, the State-of-the-Nation address is required by the Constitution and presented at the start of National Assembly sittings for the new year.
After hearing the President’s address at today’s sitting, National Assembly will reconvene on February 15, 2008 to give their views.
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02.03.08
Posted in Business and Economy, International Organisations, International relations at 11:52 pm by Robert Klien
The 4-day workshop on multilateral trade negotiation and regional integration opened on January 28, 2008. It is being organized by the Common Market for Eastern and Southern Africa (COMESA), a regional organisation promoting economic integration through trade and investment, in conjunction with the Trade Division within the Ministry of Finance of Seychelles.
The workshop was a meeting point of local representatives from different sectors related with trade. It aimed to enhance the understanding and awareness of trade issues as well as to strengthen the skills of trade negotiations and trade policy development.
The workshop on multilateral trade negotiation and regional integration falls within the framework of the COMESA work programme.
The work plan scheduled by COMESA for 2007-2008 has listed national workshops in selected member states that will deliver training and sensitization services to enhance trade policy capacity in the region.
When launching the workshop, Colin Jean Louis, the Legal Advisor in the Ministry of Finance, noted that Seychelles prepares for the 2nd phase of economic partnership negotiation with its regional and global partners.
As to participants of the workshop, these are representatives from the Ministry of Finance, Foreign Affairs, the Seychelles Tourism Board, the Seychelles Fishing Authority, and the Seychelles International Business Authority (SIBA).
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