Tourism has always been and remains the mainstay of the Seychelles’ economy and the industry is one that continues to go from strength to strength.
Since the arrival of Seychelles’ first inhabitants the country has relied on the surrounding rich fishing grounds to support it. In more recent years fishing in Seychelles’ waters has developed from an industry intended purely to sustain the local population to one able to compete internationally as a vital foreign currency earner for Seychelles.
Home to industrial fishing fleets from the European Union and Far East, Seychelles lies in centre of the western Indian Ocean tuna stock’s migratory routes, making it the region’s most efficient hub from which to fish, especially in the light of recent international fuel price rises, which have pushed up the cost of sailing to and from fishing grounds.
Today a thriving, Seychellois dominated artisanal and semi-industrial sector supplies the local market and sends high-value addition fisheries products overseas. Industrial fisheries are led by European purse-seiner tuna fishing boats and Japanese and Taiwanese long-line fishing boats, which maintain a steady supply to the world’s second largest tuna cannery, Indian Ocean Tuna (IOT) based in Victoria, and the fleet of tuna transhipment vessels moored off-shore.
While canned tuna is IOT’s principle export, the factory and fisheries sector in general, is beginning to move into fields such as tuna loins and other higher-value fisheries products, benefiting from the high quality of the fish caught and long-standing fisheries expertise available in Seychelles And while industrial tuna fishing in the North Atlantic has been accused of robbing local people of food and livelihoods and tuna fishing practices in the Mediterranean have been deemed unsustainable, fishing in Seychelles’ waters generates local employment and is viewed as sustainable.
Seychelles first recognised the potential revenue generating capabilities of off-shore financial services in the early 1990’s but the industry only began to take off in the early years of the following decade. Today the industry is rapidly becoming a third pillar (alongside tourism and fisheries) to the country’s economy.
Part of the reason for its success has been the stringency of the industry regulating Financial Services Authority Act, which ensures that all service providers in Seychelles adhere to strict professional standards and are subject to a high level of due diligence prior to the issuance and renewal of a licence.
But while the Act may have slowed the growth of the sector it also ensured the reputation of Seychelles’ off-shore industry, a key ingredient in guaranteeing its long-term viability and differentiating it from other, less scrupulous jurisdictions.Assisted by the Seychelles International Financial Authority (FSA), companies operating in Seychelles’ international financial sector today enjoy a range of fiscal advantages not generally available elsewhere. Together with its local and international partners, FSA is expending considerable resources in the continuous development of local professionals in order to maintain high levels of service delivery and continue to attract legitimate international business activity.
International business company (IBC):
Keen to establish itself as one of the world’s leading off-shore registries, Seychelles offers wide ranging benefits to investors choosing to register as International Business Companies (IBC’s) in the jurisdiction:
Speed of registrary
Competitive license fees fixed for life
No requirement to disclose the beneficial owners of an IBC
Directors may be elected at the first company board meeting
No minimum capital stipulation
Confidentiality guaranteed by law
Bearer shares allowed
Only one director or shareholder is required
No requirement to file accounts with the Registrar
All civil proceedings in respect of IBC's may be heard by a judge in chambers
An IBC may own/manage a vessel/aircraft registered in Seychelles
Register of directors need not be filed with the Registrar
Company Special Licenses (CSL):
Established in Seychelles of-shore sector, businesses operating under a CSL are eligible to pay a business tax rate of only 1.5%. CSL established in Seychelles are free to undertake operations in any other country.
Maintaining an offshore bank account permits investors to access funds internationally; carry out transfers and other transactions and build up a banking history which can move with the investor should they choose to relocate.
Non-domestic banking in Seychelles is regulated by the Central Bank of Seychelles and is administered under the Financial Institutions Act 2004 to cater for offshore as well as domestic banking. The Act makes provision for the licensing of offshore banks and incorporates the necessary flexibility to encourage growth in that sector. It also features full confidentiality with regards to information of its clients, with the obvious exception of criminal investigation cases.
Regulated by the independent Central Bank of Seychelles, the work of commercial and offshore banks is today a significant contributor to Seychelles GDP. Transparency of transactions and enhanced economic liberalisation of the national economy has been achieved through the establishment of the Non-Bank Financial Services Authority (NBFSA), charged with regulating insurance, mutual funds and stock exchange activities under the Mutual Funds Act and the Securities Act.
The vast majority of Seychelles’ electricity demand is met by the state-owned oil-fuelled power station at Roche Caiman on Mah?’s east coast. Experienced managerial and technical staff, combined with regular spending on equipment updates, ensures a constant supply of power.
The fuel which powers the country’s generators is imported from the Gulf and skilful long term planning by the state oil company SEPEC (Seychelles Petroleum Corporation) led to the development of large bunkerage capacity in the country, allowing Seychelles to become the major distribution hub for the east African seaboard.
Seychelles vast Exclusive Economic Zone (EEZ), which encompasses 1.3 million km? of the western Indian Ocean is being increasingly viewed as a potential source for as yet unexploited oil reserves. Initial exploration in some areas has already begun, but the potential for further exploration in so far unexamined areas remains.
On a number of the country’s outer islands resort owners and environmentalists are pioneering sustainable energy sources, most notably the use of solar energy.
Domestic energy consumers are also starting to adjust to the benefits of solar energy, with numerous household installing solar water heating equipment.
Seychelles’ year round sunshine makes it an ideal location for the development of solar energy projects and the many islands offer wide scope for tidal, wind and other renewable energy projects to be carried out.
Limited natural resources and labour supply has curtailed the development of a significant manufacturing base in Seychelles, but certain segments have exploited reliable niche markets both in Seychelles and internationally.
Companies such as Chelle Medical, which exports medical equipment from its factory in Seychelles to western Europe, have benefited from Seychelles’ educated work force and pro-business government policies. Today Seychelles offers wide ranging opportunities for innovative light industrial projects at the Providence Industrial estate, the focal point for the nation’s manufacturing sector. Located mid way between the country’s international airport and capital, Victoria, the industrial zone has been set aside for light industrial use, with all of the necessary support infrastructure on hand. And while the investment authorities are ready to giver consideration to any suggested industrial development, a number of fields present themselves as particularly suited to Seychelles, notably in recycling and product design and packaging.
The steep, wooded mountains of Seychelles’ inner islands provide only limited scope of large scale agricultural practices, but local farmers have learnt how to make the best of the country’s long hours of sunshine and plentiful rainfall to grow a wide variety of both tropical and more traditional fruits and vegetables.
High value, luxury food stuffs, such as premium quality tropical fruits and spices, grown to the highest environmental standards and marketed with the cache of Seychelles’ exclusivity are already fetching high prices in European supermarkets.
In order to meet their clients’ demands for a ready supply of high quality, fresh fruit and vegetables, a number of privately owned island resorts have invested heavily into agricultural projects on the islands, with some of the best results achieved using low-input, high yielding hydroponics techniques.