Seychelles increases effort to improve business environment
May 23, 2019
The Inception Workshop in preparation for the National Investment Policy Review, IPR, exercise was launched this week by the Minister for Finance, Trade, Investment and Economic Planning, Maurice Loustau Lalanne.
In his address, Ambassador Lalanne, spoke of the economic changes and reforms that have taken place in the country over the years and the development of the private sector. Programmes such as the reclaimed Providence Industrial Estate, SIDEC, the YES Scheme, the Investment Promotion Act as well as the more recent and current Tourism Incentives Act, Agriculture & Fisheries Incentives Act, the SME Scheme and the Seed Capital Grant Programme, to name a few, which he says are reminders of the government’s commitment towards developing the private sector.
“Despite all the good intentions and the various programmes, we may all agree that the outcomes, although positive have not necessarily met our expectations. It is true that the private sector is today the main driver of our economy and the first pillar of our economy, tourism, is purely run by the private sector with Government, primarily through the Department of Tourism and the Seychelles Tourism Board, playing a satisfactory supporting role”, Minister Lalanne noted.
But Ambassador Lalanne feels that Seychelles, despite its size, has a lot more to achieve.
This workshop, which is funded by the United Nations Conference on Trade and Development, UNCTAD, was at the request of the Ministry of Finance, Trade, Investment and Economic Planning.
The Chief, Investment Policy Reviews of UNCTAD, Chantal Dupasquier, noted in her address, at the launching that the IPR Programme launched 20 years ago have a played a key role to strengthen investment policies, and strategies in beneficiary countries, “This has enabled them to attract higher level of Foreign Direct Investment, FDI, and derive larger development gains, minimising as much as possible, the potential costs”, she says.
Mrs Dupasquier, said that to date they have completed IPRs in 50 economies worldwide and the reports have led to tangible impacts.
Today Seychelles is ranked 96th amongst 190 countries in the World Bank Ease of Doing Business Index, and the Principal Secretary for Investment, Michael Nalletamby has pointed out that Seychelles is continuing in its efforts to improve the ease of doing business in the country. And since last year they have started an exercise to review the different procedures and policies, but has now requested UNCTAD to assist. P.S Nalletamby said that they believe that Seychelles could do better, “despite the many programmes and government relinquishing the economic sector to private initiatives, there are still concerns and dissatisfaction on the part of the private businesses when it comes to starting and operating a business”, he said.
Over the last year, the Department of Investment has reviewed the business environment in Seychelles with a the aim of bringing about consistency, predictability and confidence in the business environment. The Department is also working with several partners from both the public and private sectors to review the investment procedures, policies and regulations that impact on the ability to do business.
And has come up through the Seychelles Investment Policy, with the broad principles that should guide the manner in which all local entities having any form of impact on the business environment should treat the investment and business.
The government believe that things need to change; a point well noted in Ambassador Lalanne’s address and which was echoed by P.S Nalletamby: “ We need to fix things. Doing business should not be an obstacle race to see who can overcome, or circumnavigate, barriers and come out the other side unscarred and still fit to carry on. On the contrary, we need to explore all means to bring about an environment where starting, operating and even winding up a business is as hustle free as possible. Of course, this, within the boundaries of Health, Safety and Security of the people, the environment and property”.
Different initiatives and measures are being put in place to improve the business environment, such as the development of a unique identifier for business, development of a business e-portal to serve as a digital one-stop shop for investment information and processes to name a few.
Mrs Dupasquier said that they have seen that there is strong commitment to reform the business environment, and to take measures to improve it. There is a strong focus on strengthening the private sector and its role as an engine of growth in the economy. “For us this is a very important point, she noted, and to ensure that whatever is put in place or discussed is done with the objective of sustainable development in mind, and the role of government in there is very important so that whatever investment projects are undertaken leads to fostering development objectives of the country.
This inception workshop is the continuation of work started by the Department of Investment, the private sector and partners. It will be facilitated Mrs Dupasquier, and the Economic Affairs Officer from UNCTAD, Massimo Meloni.
The team will be back for a fact-finding mission after this scoping mission, before the end of this year, and early next year to finalise the report and then come back to present it to all stakeholders.