Seychelles

The Republic of Seychelles is an archipelago of 115 islands northeast of Madagascar. The country has a total population of 122,730 people, three-quarters of whom live on the main island of Mahé. Seychelles has Africa's highest gross domestic product (GDP) per capita, at $17.9 billion (2024). Its economy is highly dependent on tourism and fisheries, and climate change poses long-term sustainability risks.

Independent since 1976, Seychelles is a relatively young democracy. The first multiparty presidential election was held in 1993 after adopting a new constitution.

Seychelles held general elections on September 25–27, 2025, covering both the presidency and the National Assembly. In the presidential race, opposition leader Patrick Herminie (United Seychelles) was elected,  over incumbent Wavel Ramkalawan (Linyon Demokratik Seselwa – LDS). United Seychelles also secured a majority in the National Assembly, gaining both constituency and proportional seats.

Read More

Read Less

Seychelles has the highest GNI per capita in Africa. Its economy relies on tourism, fisheries, and supporting activities. Since 2008, macroeconomic and structural reforms have supported development. Real GDP growth is estimated to have accelerated to 5.8% in 2025, up from 3.4% in 2024, driven by record tourism earnings and a 13% increase in visitor arrivals that surpassed the pre-pandemic peak of 2019. Fiscal consolidation continued for a fifth consecutive year, with the government achieving a primary surplus of 1.8% of GDP, while gross international reserves rose to $878 million in December 2025, equivalent to approximately four months of import cover. Inflation remained subdued at 0.3%, reflecting lower utility tariffs, fuel prices, and freight costs.

Macroeconomic policies continue to be anchored by the IMF-supported Extended Fund Facility and Resilience and Sustainability Facility (EFF/RSF), which supports revenue mobilization, debt management, financial stability, and climate resilience. Performance under the program has been strong, with all quantitative targets and structural benchmarks for May 2025 met. The final review is currently underway and is expected to be completed by May 2026.

Read More

Read Less

Despite its high-income status, Seychelles faces development challenges linked to boosting productivity and sustaining inclusive growth. Its small size, remoteness, and limited economic diversification heighten vulnerability to external and climate shocks, including fluctuations in international travel and the prices of essential imports like food and fuel. While unemployment remains low at 2.6% and extreme poverty has largely been eliminated, labor and skills shortages and persistent social vulnerabilities continue to constrain human capital development. Substance abuse, teenage pregnancy, persistent learning gaps, and high unemployment among youth and single, female‑headed households pose risks to long‑term economic sustainability and household welfare.

Climate change is a central development challenge, with Seychelles highly exposed to climate‑related hazards, compounded by frequent macro shocks. The Country Climate and Development Report finds that, without action, climate and environmental pressures could reduce GDP by more than 6% by 2050 and strain public finances, given the economy’s reliance on tourism, fisheries, and coastal infrastructure. The CCDR outlines three priorities: reorienting key sectors toward higher value and resilience; reducing exposure to economic and physical risks; and reinforcing fiscal and institutional foundations.

In the near term, priorities include maintaining debt sustainability and reforming the social protection system to support the most vulnerable. Over the medium term, revenue mobilization, climate-resilient public investment, improved public financial management and structural reforms—including completing the economy’s digital transformation— will be critical to creating fiscal space and supporting long-term sustainable development.

Read More

Read Less

The World Bank Group (WBG) strategy in Seychelles, outlined in the Country Partnership Framework (CPF) FY25-FY30, supports the country's transition to a more inclusive, resilient, and sustainable development path. The CPF addresses key challenges in productivity, participation, and public sector performance. It focuses on improving quality of life by creating employment opportunities—especially for youth and women—enhancing the business environment for SMEs and entrepreneurs, and strengthening human capital through education and skills development. The strategy also promotes the digital economy, climate resilience, renewable energy, and sustainable waste management, while supporting public service digitalization. The WBG aims to bolster social and environmental resilience through policies addressing climate change and solid waste.

A cross-cutting theme is macro-fiscal resilience, supporting Seychelles' commitment to macroeconomic prudence and efficient public resource use to promote economic, social, and environmental resilience. Key strategies include advancing skills development, digital economy, and renewable energy.

The World Bank portfolio in Seychelles stands at $82.3 million (national projects and budget support) as of April 2026.

In partnership with the government, the World Bank launched a Solid Waste Management Project to improve sector performance, promote circularity, and strengthen Seychelles’ social protection system. Under the CPF, it approved the Sustainable and Inclusive Growth Development Policy Operations (2024 and 2026), Renewable Energy Acceleration Project (2025), and Regional Emergency Preparedness and Access to Inclusive Recovery Program (REPAIR) (2025).

The WBG has launched the Seychelles Country Climate and Development Report with the government and is conducting a Growth and Jobs Study to inform policy dialogue and guide future interventions on job creation, economic transformation, and climate resilience.

Read More

Read Less

The World Bank’s  Development Policy Operation  in Seychelles delivered key reforms enhancing financial stability, fiscal transparency, and environmental/social resilience. Through the Fiscal Sustainability and Climate Resilience DPF series ($75 million) and Sustainable and Inclusive Growth DPO series ($45 million), the government enacted the Financial Stability Act, adopted risk-based supervision, advanced renewable energy via the Electricity Act and associated regulations, and improved tax transparency with rules on Beneficial Ownership and related-party dealings and transfer pricing. Environmental resilience was boosted through the Tourism Environmental Sustainability Levy, updated Land use Plans, and coastal/fisheries protection. Data protection and financial infrastructure were strengthened via the Data Protection Bill, National Payment System Amendment Act, and Credit Reporting Act. ICT competition improved with the creation of the Seychelles Communications Regulatory Authority. Fiscal management progressed with zero-based costing, reducing non-wage deviations. Social protection reforms expanded coverage, nearly doubling real spending and increasing female beneficiaries.

Social Protection: The Bank supported raising the public sector retirement age and adopting a plan to adjust pension benefits. The WHO Disability Assessment System was adopted for better targeting and services.

Solid Waste Management: Seychelles faces structural waste challenges. The Solid Waste Management Project supports landfill expansion at Providence, feasibility studies for future technologies, and circularity roadmap implementation. The Bank also supported policies on Extended Producer Responsibility, Solid Waste (2025–2030), Hazardous Chemicals/Waste (2024–2029), and the Hazardous Chemicals Bill (2025).

Read More

Read Less