The Board of Directors of the African Development Bank Group has approved a $25 million loan to implement the second phase of the Economic Resilience and Green Recovery Support Programme, aimed at improving economic governance across the archipelago.
The operation, the second in a three-year programme running from 2024-2026, will support the Seychelles authorities in advancing governance and economic management by enhancing tax revenue performance and strengthening the efficiency of public spending and public service delivery.
Key measures include reducing tax expenditure and improving the appraisal, selection and budgeting of public investment projects to tackle implementation bottlenecks and raise the quality of public spending.
The operation will also bolster ongoing efforts to build a more resilient financial sector and foster a conducive environment for private sector development, thereby supporting economic diversification.
Specifically, it will back the authorities' initiatives to empower the Central Bank of Seychelles with oversight, licensing, regulatory, and supervisory authority over non-deposit-taking credit institutions, including enforcement capacity.
Additionally, the initiative will also help the Seychelles authorities to deepen reforms that promote environment and climate resilience, assisting the government's efforts to integrate climate adaptation and mitigation into the National Development Strategy for 2024-2028.
The over-arching objective is to create more and better opportunities for all Seychellois. The operation is expected to contribute to Seychelles' medium-term goals of creating jobs while conserving fiscal space and promoting debt sustainability. This will enable the Government to allocate its limited resources to priority projects and programs that protect the vulnerable population.
"I would like to reiterate that the Bank will continue to engage with the authorities, private sector and other stakeholders in dialogue on several issues during the implementation of the operation, including consolidating fiscal sustainability and improving the enabling environment," said Abdoulaye Coulibaly, Director of the Bank Governance & Economic Reforms Department.
The Bank's approved and ongoing portfolio in Seychelles as of July 2025 comprises seven operations in the public sector totaling $37 million. 98.1 percent of these operations are focused on improving lives, 1.2 percent allocated to integration, and 0.7 percent for energy.
