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“We have embarked on a new era in which we want to position ourselves in the region as the centre for investment. Our ultimate vision is to become the investment centre of the world.” It’s clear that Sherin Renaud, chief executive of Seychelles Investment Bureau, and the Seychellois are not without ambition.
“It’s a very long term view,” but she insists “this is the area to focus on to do business. This is the place to invest money.”
The country is looking for assistance within its key tourism and fishing industries, its emerging financial services sector and in developing new innovative technologies, particularly those associated with the environment.
Communications are set to take a leap forward with the completion of a fibre-optic submarine cable linking Seychelles to mainland Africa, bringing the essential business tools of enhanced telecommunications and secure high speed internet.
According to the Civil Aviation Authority, the 40-year old airport terminal and facilities are in need of an estimated £96 million in upgrades. Concerning the form of investment, Transport Minister Joel Morgan assures that “we are open to any proposals but it has to be a win-win.”
Another big-ticket project is the extension of Victoria’s port with a 200-metre long quay to increase landing facilities for the country’s huge tuna processing plant. A new fish processing plant is also needed because new laws will require all catches to be utilised in order to add value. Here Morgan envisions “a combination of investors going into partnership with foreign partners.”
In the long term, the discovery of offshore oil and gas will spur the modernisation of all port facilities.
Tourism is Seychelles’ top revenue earner and new hotel projects are popping up alongside the remodelling of existing properties, “where investors can join local partnerships,” explains Alain St. Ange, chief executive of the Tourism Board.
To increase tourism yield “we need to offer things where visitors can spend their money, like water parks or aquariums or aviaries,” he notes.
But as Minister Morgan points out, preserving the islands’ environment and marine life is paramount. Developers must “follow procedures by planting endemics and helping to restore the wetlands and the environment,” he emphasises.
Huge potential
Minister for Investment Peter Sinon sees huge potential in the offshore financial sector. Alongside external investors, he plans for a stock and securities exchange that allows the listing of foreign companies.
Governor of Seychelles Central Bank, Pierre Laporte adds, “we need good household name banks – there’s room for three or four more domestically, and others offshore with a lot of funds flowing from Asia into Africa.”
Even the Savings Bank, now with 40 per cent private ownership, wants a strategic partner to increase its market share and delve into offshore business. “In two or three years’ time the share value will double or triple,” promises chief executive Michael Benstrong.
Lawyers, accountants, insurance firms, mutual and hedge funds are also being targeted, in addition to Islamic finance institutions, given the islands’ advantageous proximity to the Middle East.
Seychelles has much to offer prospective investors. Its corporate tax rate is low – nominally 15 per cent, but effectively 9 per cent after credits, with numerous double taxation agreements – and it’s on the OECD White List for tax transparency.
Sound legal and regulatory frameworks, such as anti-money laundering provisions, are also in place. Seychelles prides itself on its relatively easy, fast and cost-effective process to open an International Business Company, currently the most popular structure.
Furthermore 96 per cent of the adult population is literate, speaking French and English, which contributes to a stable political environment. |
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