Seychelles Secures $34M AfDB Loan to Boost Public Services and Green Growth

Abdoulaye Coulibaly, Director of the Bank’s Governance and Economic Reforms Department, said Seychelles had demonstrated that sustained reforms could produce measurable results.

Seychelles has secured a $34 million loan from the African Development Bank Group to strengthen its economy and support changes that could make everyday dealings with government easier for residents, entrepreneurs and investors. Approved by the Bank Group's Board of Directors on 22 September, the financing will support better public services, wider private sector opportunities and a greener economy, with employment, skills and living wage reforms forming part of the package.

The loan funds the third and final phase of the Economic Resilience and Green Recovery Support Programme, known as ERGRSP-III. Its reforms cover three closely connected priorities: economic governance and public financial management, the business environment, and climate resilience. The Bank provided $25 million for each of the first two phases in 2024 and 2025, bringing its total financing across the programme to $84 million.

Earlier Reforms Show Measurable Progress

Previous phases have delivered improvements in revenue collection, digital services and lending to businesses, providing a foundation for the final round of reforms. Business and other tax revenues increased from 6.4% of gross domestic product in 2023 to 8.2% in 2025, and digital public services grew by 10% between 2023 and 2024. Private sector credit growth reached 12.1% in 2024, exceeding the programme's target for 2026.

Abdoulaye Coulibaly, Director of the Bank's Governance and Economic Reforms Department, said Seychelles had demonstrated that sustained reforms could produce measurable results. He described the new financing as support for protecting recent economic gains and strengthening institutions, linking improved public financial management, digital government services, infrastructure upgrades and fewer investment barriers to stronger conditions for growth led by private businesses.

Easier Access to Government and Business Services

For entrepreneurs and investors, a central part of the programme is making approvals and public services easier to access through a one-stop investment portal and a Government Business Service Centre. These reforms are intended to simplify the process of dealing with government, helping businesses navigate the services and permissions they need to invest and operate.

Modernising the way public money is collected and spent is another major priority, with electronic invoicing planned to support tax compliance and a national e-procurement system included in the reforms. Moving these functions into digital systems is part of the wider effort to improve public financial management and government service delivery, giving the economic recovery stronger institutional support.

Greener Growth With a Focus on Workers

The programme places environmental planning alongside economic reform, supporting long-term electricity planning and marine spatial planning to guide how ocean areas are managed and used. Stronger regulation of hazardous chemicals and reforms to agricultural institutions are included, connecting the country's development plans with the need to manage environmental risks and build climate resilience.

Employment and skills reforms will form part of the final phase, together with the gradual introduction of a national living wage framework. These measures bring workers' opportunities and earnings into a programme that also addresses business investment and government performance, reflecting the importance of translating economic progress into improvements people can experience in their daily lives.

Coulibaly described the financing as support for reforms that strengthen the economy's foundations and turn sound policy into better services, stronger businesses and greater opportunity. The final phase gives Seychelles another round of backing to build on earlier gains, with its practical value resting on how those reforms improve access to services, support enterprise and widen the benefits of growth.