Seychelles

Economic Overview

The Republic of Seychelles is a high-income small island developing state (SIDS) and a model of economic success built on two primary pillars: high-end tourism and sustainable fisheries. With one of the highest GDP per capita figures in Africa, the country has leveraged its stunning natural beauty and commitment to environmental conservation to create a prosperous, service-driven economy. The 2025-2026 outlook is stable, supported by a fully recovered tourism sector and innovative financing linked to its "blue economy" strategy.

GDP Size & Growth Trajectory

Seychelles has a small but resilient economy. After a severe contraction during the pandemic due to the global travel shutdown, the tourism-dependent economy has made a full recovery. The IMF projects stable growth of around 3.9% in 2025, driven by steady tourist arrivals and a robust services sector.

Sector Composition

• Services: This is the overwhelmingly dominant sector, contributing over 70% of GDP. It is led by tourism, which is the main source of foreign exchange and employment. Financial services, ICT, and trade are also important contributors.
• Industry: The industrial sector accounts for about 15% of GDP, primarily driven by tuna processing. The country has one of the largest tuna canning factories in the world.
• Agriculture: This sector is very small, contributing less than 5% to GDP, constrained by limited arable land. The fisheries sub-sector, however, is a critical part of the economy and the second-largest source of export earnings after tourism.

Inflation Trends

Inflation is managed by the Central Bank of Seychelles (CBS). After a period of elevated prices, inflation has moderated and is expected to remain under control, supported by prudent monetary policy.

Fiscal & Monetary Policy Stance

• Monetary Policy: The CBS manages the Seychellois Rupee (SCR) and has pursued a proactive policy to control inflation while supporting economic recovery.
• Fiscal Policy: The government is focused on maintaining fiscal discipline and rebuilding fiscal buffers that were depleted during the pandemic.

Table 1: Key Macroeconomic Indicators (2023-2026F)

Market Size & Demand Potential

The domestic market is very small, but the country is a world-class destination for high-spending international tourists.

Population Size and Demographics

With a population of just over 100,000, Seychelles is one of Africa's smallest countries by population.

Urbanization and Consumer Hubs

The capital city, Victoria, on the main island of Mahé, is the country's only city and the center of all commercial and administrative activity.

Business Environment

Seychelles has a relatively friendly business environment, with a government that is keen to attract foreign investment, particularly in its priority sectors.

Ease of Doing Business & Regulatory Reforms

The country has a stable regulatory framework. The Seychelles Investment Board (SIB) is the national agency for promoting and facilitating investment.

Political Stability & Governance

Seychelles is a stable and peaceful multi-party democracy.

Political Environment

The country has a strong democratic tradition with a history of peaceful elections and transfers of power. This political stability is a key asset for attracting investment.

Rule of Law & Investor Protection

The legal system is a blend of English common law and French civil law. The country has an independent judiciary and a strong respect for the rule of law, providing a secure environment for investors.

Infrastructure Readiness

Infrastructure is well-developed, particularly to support the tourism and fisheries sectors.

Transport and Logistics

• Airport: Seychelles International Airport on Mahé is the main gateway, with good connectivity to major hubs in the Middle East, Europe, and Africa.
• Port: Port Victoria is the main port, crucial for imports and for serving the tuna fishing and processing industry.

Energy Sector

The country is heavily dependent on imported fossil fuels for electricity generation. To address this, the government is actively promoting investment in renewable energy, particularly solar power, to improve energy security and sustainability.

Sector-Specific Opportunities

1. Tourism (High-End & Eco-Tourism)

This remains the premier investment sector. Opportunities are focused on the luxury segment, including the development of exclusive resorts, private island getaways, and eco-lodges that align with the country's conservation ethos.

2. Blue Economy and Sustainable Fisheries

Seychelles is a global leader in the "blue economy." The country has pioneered innovative financing mechanisms, such as issuing the world's first sovereign blue bond, to fund sustainable marine and fisheries projects. This creates opportunities in sustainable aquaculture, fish processing, and marine biotechnology.

3. Financial Services

The country is developing its offshore financial services sector, offering a well-regulated jurisdiction for international business companies, investment funds, and private wealth management.

4. Renewable Energy

The high cost of imported diesel creates a strong business case for investment in solar power, both for utility-scale projects and for distributed generation on hotels and businesses.