By Christin Roby
The Board of Directors of the African Development Bank Group has approved a $34 million loan to Seychelles to strengthen economic resilience, improve public services, expand private sector opportunities, and advance the country’s transition towards greener and more inclusive growth.
Approved on 22 September, the loan will fund the third and final phase of the Economic Resilience and Green Recovery Support Programme (ERGRSP-III), supporting reforms across three connected areas: economic governance and public financial management, business environment, and climate resilience.
Abdoulaye Coulibaly, Director of the Bank’s Governance and Economic Reforms Department, said: “Seychelles has demonstrated that sustained reforms can deliver measurable results. This new financing will protect recent economic gains while supporting the next stage of reforms with a focus on stronger institutions. By improving public financial management, modernising government services through digital transformation, upgrading infrastructure and reducing barriers to investment, this programme will help create stronger conditions for private sector-led growth.”
Previous ERGRSP phases are already producing results. Business and other tax revenues increased from 6.4 per cent of GDP in 2023 to 8.2 per cent in 2025. Digital public services increased by 10 per cent from 2023 to 2024. Private sector credit growth also rose to 12.1 per cent in 2024, surpassing the 2026 programme target.
ERGRSP-III will build on this progress by supporting the modernisation of public financial management systems, including electronic invoicing for tax compliance and a national e-procurement system. Reforms will also establish a one-stop investment portal and Government Business Service Centre to make it easier for investors and entrepreneurs to access approvals and business services.
Green growth is another central pillar. The programme will support long-term electricity planning, marine spatial planning, stronger regulation of hazardous chemicals, and agricultural institutional reforms. ERGRSP-III will also advance employment and skills reforms, and the phased introduction of a national living wage framework.
The Bank has provided $25 million for each of the first two phases, in 2024 and 2025, bringing the Bank Group’s total financing across the three phases to $84 million.
“The objective is not simply to finance a national budget,” Coulibaly said. “It is to support reforms that strengthen the foundations of the economy and help translate sound policy into better services, stronger businesses and greater opportunity for the people of Seychelles.”