Month: April 2023

Work to develop a national policy on virtual assets has started with the aim of putting in place a legal framework in Seychelles to help local authorities better supervise this activity and protect the public, said a top government official on Tuesday.

Seychelles’ finance minister, Naadir Hassan, made the statement to members of the National Assembly when answering questions on virtual assets and cryptocurrency.

He said that this follows a report on a national risk assessment done by the Financial Services Authority (FSA) which shows that complaints about activities using cryptocurrency are increasing in Seychelles.

He explained that the financial sector across the world in the last five to seven years has experienced a transformation in the way business is conducted especially where it concerns methods of payment.

“The transformation includes cryptocurrency, an instrument that takes a virtual form that represents the value of something that you are buying or keeping in your possession,” he said.

“We are aware that there are certain international business companies and businesses registered in Seychelles that are engaging in cryptocurrency activities,” said Hassan.

“Like any form of payment, it can also be used to finance illegal activities like money laundering. It is good to note that cryptocurrency is not recognised as legal tender by Seychelles’ Central Bank. Any individuals who trade in it are doing so at their own risk,” he added.

Seychelles has also recorded complaints about cryptocurrency that the Financial Services Authority receive from investors who have either lost their money or investment.

He said that in 2018, there were 28 complaints registered among which five were on activities using cryptocurrency. In 2019, among 27 complaints, nine were related to cryptocurrency. For 2020, 12 cases were recorded with eight for cryptocurrency and in 2021, 27 cases were recorded with 23 for cryptocurrency.

“This shows an increase in these activities by IBCs (International Business Companies) and Seychellois are looking at more ways to invest and the authorities is aware that there is more interest by the public and businesses to have activities using cryptocurrency,” he added.

Hassan said that there are also requests for information by local and international bodies made to different authorities such as Financial Intelligence Unit (FIU) or the unit that investigates financial crimes in the police force (FCIU) on companies registered in Seychelles that are conducting illegal activities by using cryptocurrency.

Between January 1, 2019, to March 31, 2021, FIU recorded 187 requests for information on companies. For the same period, FCIU recorded 44 requests for assistance with investigations of companies.

“Taking into consideration these concerns, the government, through FSA, did a national risk assessment on virtual assets and businesses that offer services using use virtual assets to understand the current state and the risk associated with it. The exercise was done in the first six months of 2022 with the assistance of an expert in that field recommended by the World Bank,” said Hassan.

He added that since there is no framework, there is no legal protection for investors or the people using these products.

The objectives of the national framework are to put in place legal provisions to register businesses doing virtual assets activities as soon as possible and make license provisions depending on what type of activities Seychelles will allow.

Source: Seychelles News Agency

New changes in the Seychelles Electronic Border System allow visitors to the island nation more time to submit their forms, ensuring that necessary approvals before traveling to Seychelles are acquired.

Previously a traveller had up to five days before travelling to make their application online. The pre-travel application window has been extended to 10 days as part of several changes to the immigration process made by Seychelles’ Department of Immigration following the lifting of COVID-19 travel restrictions.

The chief immigration officer, Erica Dufresne, told SNA that the extension in the pre-travel application window allows visitors to travel with confidence knowing they will not face any issues when boarding.

“The extended time frame removes any last-minute stress when using the Seychelles Electronic Border System. We also offer a save and exit feature when making an application, so travellers can save their progress if they need more time to gather all the necessary documentation required,” she added.

Seychellois citizens with valid Seychelles passports no longer require authorisation to travel to the island nation. Entrance is automatically approved upon the citizens’ submission of their disembarkation information form online.

“The information will be automatically reflected in our immigration system. All citizens and residents now have seven days to submit their disembarkation information form and 10 days to submit their embarkation information Form,” said Dufresne.

Talking about the need to increase the pre-travel application window, she shared that as the department is constantly looking to improve the system, it collects feedback from its customers.

“One major point that has been highlighted is the worry regarding the limited time window to submit their disembarkation information forms or travel authorisation. That is why we have doubled the pre-travel application window. Travelers can avoid any last-minute rush and this extra time will also help those who cannot submit the forms on their own, as they will have more time to seek out help from a travel agent, family member, or friend,” said Dufresne.

The department also increased the standard processing time for Travel Authorisation from 12 hours to 24 hours, as there is a need to accommodate the growing number of visitors arriving in the country.

She added that Seychelles’ immigration processes have gone digital not only to lessen the stress during travel and enhance the travel experiences to and from Seychelles but also to increase security at the borders and facilitate a speedy arrival.

The information submitted via the travel authorisation and disembarkation information forms allows for immigration officers to conduct advanced security screening, strengthening the control over Seychelles’ borders and blocking threats from entering the country.

“The right of entry is entirely dependent on the Immigration Department. This also provides individuals and carriers with more assurance at an earlier point in the journey about their ability to travel to Seychelles,” said Dufresne.

By going digital, Seychelles is also meeting international standards which are required for all countries by the United Nations (UN) and the International Civil Aviation Organisation (ICAO) resolutions.

Source: Seychelles News Agency

The first edition of Home Ownership Fair, due to take place on 27 and 28 April in Luanda, is expected to bring together over 100 exhibitors.

The event will gather builders, real estate agencies, insurance companies, construction material factories, banks and investors from the construction sector, as part of promotion by Linear Communication.

The event will take place under the motto “The importance of Social Housing and the Real Estate Sector in the fight against poverty and social exclusion”.

The objective is to bring young people (in particular) and national citizens (in general) closer to real estate agencies, as well as to provide assistance to families who seek to realize their dream of home ownership.

Alberto Domingos, director of the company Linear Communication – promoter of the event, launched on Wednesday, said the initiative is designed to provide the Angolan people with the opportunities and facilities the builders and real estate agents have for the families.

Source: Angola Press News Agency

Work on a floating solar farm in Seychelles is expected to begin this year, following the signing of three agreements for the project on Tuesday.

Once completed, Seychelles will have built the world’s largest salt-water floating solar plant.

The project, which has been seven years in the making, will see the installation of a 5-megawatt photovoltaic system in the lagoon at Providence, on the eastern coast of Mahe, which will help Seychelles move closer to its zero-emissions target.

The agreements for the project were signed in a ceremony on board the Energy Observer, which is a floating photovoltaic laboratory, which is an official partner with French renewable energy company Qair.

In fact, of the three agreements signed; one between the Seychelles government and Qair for government support on the project and another two – a power purchase agreement and grid connection agreement – was signed between the Public Utilities Corporation (PUC) and Qair.

“The government is determined to ensure energy security through the best investments and with the use of renewable energy in Seychelles,” said the Minister for Agriculture, Climate Change and Energy, Flavien Joubert, in his speech after the signing of the agreements.

He added that “just seven months separate us from this agreement and having a plant in operation in Seychelles.”

On his part, the regional director of Qair, Olivier Gaering, said that despite the many international issues that threatened the project, it is great that it finally reached this point.

“Qair started looking into the Seychelles market back in 2015, seven years ago and I am very happy that we have managed to get these agreements signed so that we can move forward with the first independent power production project in Seychelles,” said Gaering.

Qair is an independent power producer (IPP), operating 860 MW of power generation assets exclusively from renewable sources.

The group is in the construction and financing phase for 800 MW and is also developing 16 GW of assets for future deployment in the heart of the 20 territories in which it operates.

For the Seychelles project, the majority shareholder is a Seychellois company, Vetiver Tech, owned by businessman Radley Webber.

Webber explained that originally the plant was meant to produce less electricity than has now been agreed, but through their meetings and discussion, they managed to find a way to produce more, through the partnership with Qair.

“We also had some issues when we originally announced the project, with inhabitants of the surrounding area expressing concerns about the impact it would have on marine life, but we were able to show that as these panels will be on the surface of the water, it would have no effects on the underwater species,” said Webber.

Gaering explained that all the necessary environmental impact assessments were completed to ensure the project poses no danger to the surrounding environment.

The agreements signed last for 25 years, with Qair funding most of the project, while they will also be the ones providing all the necessary maintenance on the panels.

Source: Seychelles News Agency

Seychelles will receive more funding from the African Development Bank (AfDB) next year to maintain its economic stability, said a top official of the bank on Monday.

The statement was made to reporters by the executive director of the AfDB, Jonathan Nzayikorera, after meeting with Seychelles’ President Wavel Ramkalawan.

He said that AfDB is discussing how to further assist Seychelles with “around $100 million for the next coming year, which will support the economy to keep developing.”

The bank has already provided resources of $78 million, especially during the COVID-19 pandemic.

Ramkalawan thanked the AfDB for the continued assistance that it has provided in helping Seychelles forge ahead in its economic development and stability.

“The budget support that the AfDB provided helped us, especially during the COVID-19 pandemic. It was a challenging time but we managed to overcome the difficulties. We are committed to maintaining a diplomatic principle for the betterment and the goodwill of our nation. With all the assistance that the AfDB provides, we are sure to remain on the right track. Rest assured of our continuous support,” said Ramkalawan.

Nzayikorera commended the President for his leadership and Seychelles’ government for its top ranking in several aspects. These include being a fully vaccinated country that has set an example not only for Africa but also for the whole world, social governance, a well-based welfare protection programme for its citizens, and democracy.

Accompanied by the Seychellois senior adviser at the AfDB, Ronald Cafrine, told the press that he was in the country “as a representative of Seychelles on the AfBD Board of Directors to brief the authorities on the bank affairs and to seek guidance on strategic areas as the representative that I need to focus on.”

He added that the discussions with the President were quite impressive and he really appreciated the insights he received.

Another subject that was discussed was the economic diversification of the economy “as currently, Seychelles’ economy depends more on tourism and fisheries which are exposed to external shocks.”

Seychelles, an archipelago in the western Indian Ocean, heavily relies on tourism, which brought in a revenue of €221 million in the last three months of 2022.

The country began discussions to diversify its economy after a downturn in travel caused by the COVID-19 pandemic heavily affected the tourism industry.

A survey of the Seychelles Chamber of Commerce and Industry, conducted in 2021, showed that most businesses — 91 percent — reported operating on a partial basis or being temporarily closed. Fourty-nine percent reported operating partially with reduced capacity and 42 percent reported being temporarily closed.

Nzayikorera pointed out that there are many investment opportunities in Seychelles which include the digital economy and improving financial services, which will create jobs for the youth but also increase the value addition for local production.

He gave the example of tourists coming into the country and said: “They are not only staying in the hotel but also have some other opportunities so that their spending stays in the country.”

The AfDB has 81 member countries which include Seychelles and non-regional members such as the United States.

Source: Seychelles News Agency

Seychelles’ credit ratings remain at ‘BB-‘ with a stable outlook from Fitch Ratings 2023, reflecting solid tourism recovery, stable growth prospects, low inflation and stable economic framework of the country.

According to the Ratings released on Friday, “Seychelles’ tourism sector recorded a solid recovery in 2022, with tourist arrivals surging by 82 percent year-on-year and reaching 86.4 percent of 2019 levels.”

Fitch warns that global economic uncertainty and competition from other high-end tourism destinations should lead to a slowdown in visitor growth to an estimated 5 percent in 2023-2024.

However, despite continued visitor growth, Fitch expects “tourism receipts will decline by about 14 percent in 2023 and 7 percent in 2024, reaching 41.3 percent of GDP, given the expected tapering in arrivals of high-spending tourists from Russia and other countries. There is upside from a larger than expected fall in oil prices – translating into lower airfares – and shallower than projected recessions in major European economies.”

On the stable growth prospects, Fitch said that following real economic growth of 8.9 percent in 2022, it expects growth of 3.6 percent in 2023 and 4.2 percent in 2024, as tourism growth normalises.

It projects medium-term growth of about 4 percent and sees an upside mainly from investment, which has lagged in recent years due to execution challenges, rather than a boost to productivity or the labour force.

On inflation, the Ratings said a trend of currency appreciation since mid-2021 led to inflation falling to 2.6 percent on average in 2022 compared to 9.8 percent in 2021.

While macroeconomic and monetary policy is stable and largely predictable, in Fitch’s view, transmission of monetary policy is somewhat constrained by the high levels of dollarisation in the economy.

Fitch expects Seychelles’ current account deficit to continue to decline to 3.9 percent of GDP in 2023 and 3.5 percent in 2024 as tourism inflows continue to normalise. However, Seychelles’ exceptionally high reliance on tourism for foreign exchange inflows, and heavy reliance on imports for most basic goods, remain a key weakness.

As for vulnerabilities, Fitch said Seychelles is heavily exposed to risks from rising sea levels, although a significant impact will likely only be felt in the medium to long term.

“In the short term, Seychelles’ tourism industry faces constraints in expansion due to the saturation of coastal infrastructure, and various risks of environmental and biodiversity degradation. Climate-change adaptation measures are currently not factored into fiscal planning, although Seychelles receives technical assistance from international bodies in this regard,” it added.

The highest ever Fitch Ratings for Seychelles, an archipelago in the western Indian Ocean, was a grade of BB, in 2019.

Source: Seychelles News Agency