Seychelles Could Boost GDP by 13% as Reforms Open Doors to Better Jobs and Higher Pay

Seychelles has built one of Africa’s strongest development records and become the continent’s only high-income economy, according to the report.

For families in Seychelles, the next stage of economic progress could mean better-paid work, stronger career prospects for young people and household incomes that stretch further. The World Bank's Seychelles Country Growth and Jobs Report 2026 estimates that a comprehensive reform package could lift GDP by 13 percent by 2040, create 2,900 additional jobs and raise real wages by almost 8 percent, making productivity central to the country's future prosperity.

Seychelles has built one of Africa's strongest development records and become the continent's only high-income economy, according to the report. Protecting those gains will require changes to how businesses operate, how people prepare for employment and how technology supports everyday economic activity, particularly in an island economy with a small domestic market, expensive transport links and considerable exposure to external shocks.

A Successful Economy Faces Limits on Its Next Chapter

Tourism and fisheries remain the main drivers of economic activity, leaving Seychelles with a narrow range of opportunities and a strong need to make existing businesses more productive. High costs associated with trade, finance, electricity and commercial processes make investment harder, and most productivity improvements come from established firms rather than a steady flow of new businesses and innovations.

Employers face an aging population, skills shortages and limited local labor supply, increasing their reliance on foreign workers, who account for a significant share of private-sector employment. Labor regulations have changed little over three decades, restricting flexibility for firms and employees in an economy whose needs have evolved. The report calls for updated rules that protect workers and help businesses adapt, alongside better management of foreign labor, fewer investment barriers, smoother trade procedures and stronger commercial justice.

Young People Need Clearer Routes Into Better-Paid Work

The report's focus on people reflects a concern that economic success is not automatically creating secure opportunities for every young Seychellois. School disengagement, substance abuse, teenage pregnancy and difficult transitions into employment can disrupt education and limit future earnings, weakening the country's ability to develop the skills needed for sustained growth and social mobility.

Better education outcomes, practical skills development and stronger connections between school and employment form the core of the report's "Utilize" priority, which calls for making fuller use of the country's human capital. Addressing youth vulnerability would help more Seychellois enter work and qualify for better-paid positions, giving families greater financial security and reducing the skills shortages that constrain businesses.

Digital Progress Could Help Turn Reforms Into Household Gains

Expanded internet connectivity has not translated into widespread digital adoption, with affordability, reliability, skills gaps and concerns about trust continuing to hold back households, businesses and public institutions. The report recommends better-quality, more affordable internet services, wider access to digital government and support for businesses adopting technology, with particular attention to small and medium-sized enterprises that may struggle to make the transition.

Digital tools could help Seychelles overcome some of the disadvantages of distance and a small market, supporting more efficient services, innovation and new business opportunities. The report presents digital transformation as part of a connected agenda: modernizing the business and labor environment, investing in people and expanding technology use would deliver the greatest benefits when implemented together.

The projected gains depend on carrying out that comprehensive package, rather than treating individual reforms as isolated fixes. By 2040, the changes could generate the equivalent of more than 7,600 better-paying jobs in addition to the 2,900 additional jobs, and increase household purchasing power by over 8 percent. These estimates point to a potential improvement in daily living standards, with stronger productivity supporting higher incomes and continued fiscal sustainability.