Seychelles is strengthening the foundations of its economy after the African Development Bank approved a $34 million loan to support economic resilience, public services, private-sector development and the country’s transition towards greener growth. Approved on 22 September 2026, the financing represents the third and final phase of the Economic Resilience and Green Recovery Support Programme, bringing the Bank Group’s total financing under the three phases to $84 million since 2024.
The latest programme is designed to build on reforms already producing measurable results. According to the African Development Bank, business and other tax revenues increased from 6.4% of GDP in 2023 to 8.2% in 2025, while digital public services expanded by 10% between 2023 and 2024. Private-sector credit growth also reached 12.1% in 2024, exceeding the programme’s 2026 target.
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The new financing will focus on three connected areas: economic governance and public financial management, improvements to the business environment, and climate resilience. These reforms are intended to strengthen the country’s institutions while making it easier for businesses and investors to operate.
Digital transformation is a major part of the programme. Seychelles plans to modernise public financial management systems through measures such as electronic invoicing for tax compliance and a national e-procurement system. A one-stop investment portal and Government Business Service Centre are also planned to simplify access to approvals and government services for entrepreneurs and investors.
For a small island economy, climate resilience is equally important. The programme will support long-term electricity planning, marine spatial planning and stronger regulation of hazardous chemicals, while also backing agricultural institutional reforms. These measures reflect the need to strengthen economic growth while managing the environmental pressures faced by island states.
Employment and skills are another component of the programme. The financing will support reforms aimed at improving employment opportunities and skills development, alongside the phased introduction of a national living-wage framework. The broader objective is to ensure that economic reform translates into stronger opportunities for households and workers rather than remaining focused solely on public finances.
The programme also builds on earlier phases of African Development Bank support. The Bank provided $25 million in 2024 and another $25 million in 2025, with the latest $34 million taking total financing across the three phases to $84 million.
For Seychelles, the latest financing represents more than budgetary support. It is part of a longer reform programme aimed at improving how government works, reducing barriers to investment and strengthening the country’s capacity to withstand economic and climate-related pressures.
The next stage will be measured by implementation: faster public services, stronger businesses, improved investment conditions, better skills and greater resilience. For Seychelles, the combination of digitalisation, private-sector development and green reforms offers a pathway towards maintaining economic gains while building a more resilient and inclusive island economy.
