India and Seychelles seek to boost, explore potential for more trade, investment opportunities |29 February 2020
Vice-President Meriton launching the workshop (Photo: Louis Toussaint)
There are enormous potentials for India and Seychelles to increase trade and investment between them to boost economic growth and bring a wide range of consumer goods and services closer to their people at more affordable prices and these by exploring the potentials of the different sectors especially those which are not being fully tapped.
It is for this reason that the high commission of India initiated and organised a half-day seminar yesterday to explore the different sectors for future, sustainable business, bilateral trade and investment opportunities.
The seminar, held in collaboration with the Seychelles Chamber of Commerce and Industry as well as the Indian Association of Seychelles, took place at the Eden Bleu Hotel and it brought together a significant number of stakeholders namely government officials, regulators and policy makers, local business owners, key representatives of businesses from both India and Seychelles in sectors like trade, banking services, health care, renewable energy, IT, agriculture, construction to name but some.
The discussions took place under the theme ‘Sustainable Partnership for Shared Growth and Prosperity’ and it was launched by Vice-President Vincent Meriton who proceeded to light the traditional Indian lamp in the company of the Indian high commissioner, General Dalbir Singh Suhag.
VP Meriton reminded everyone present that the government of Seychelles is working extensively to facilitate economic activities in the country to improve the standard of living of every Seychellois.
“In this light, we have opened up the country to trade through our commitments within the setup of the World Trade Organisation.”
VP Meriton further highlighted that the department of trade is continuously seeking means to ease trading across borders not only to facilitate import but also to create openings for our local produce on the international market.
In parallel to the trade facilitation, he said the government is also fully engaged in improving the investment and business environment of the country noting that the now well-known World Bank Ease of Doing Business Index is one guide we work very closely with.
“In addition, we are looking at other measures to ensure a comprehensive investment framework and for this we have engaged the United Nations Conference for Trade & Development (UNCTAD) which is carrying out an Investment Policy Review and Entrepreneurship Policy Framework analysis.
This is an extensive exercise which will lead to recommendations and action plans to further improve the environment for business and investment,” VP Meriton stated.
VP Meriton went on to point out that in 2017 Seychelles imported just under R18 billion worth of goods and in 2019, (up to September) this value was over R12 billion. Import from India was worth just over R568 million in 2017 and just over R642 million in 2019, representing only 3.2% and 5.2% for 2017 and 2019 respectively.
Meanwhile the total export from Seychelles was over R3.9 billion in 2017 and in 2019 (up to September) just about R2.8 billion.
Of these figures only R11.6 million and R9.8 million were exports to India, representing only 0.3 percent of total exports.
“These figures are very good indications of the potential both in imports and exports from and to India.
On the investment side, there is a significant lack and we are hoping through this conference we can assess and rectify this and look for opportunities on how to increase investment in the future,” VP Meriton stressed.
For HC Suhag improvement in trade between India and Seychelles will lead to development of sustainable business models which can ensure assured supply of quality products at reasonable prices.
“By some estimates, it is projected that direct import from India to Seychelles can lead to reduction of up to 70% in the prices of essential food items in Seychelles. This will lead to stopping the surging cost of living by controlling price rise,” HC Suhag remarked.
He went on to add that increases in trade with India will also lead to exchange of proven, effective and affordable technologies and sharing of best practices between the two countries.
“This will boost domestic capacities in fields like agriculture, entrepreneurship, skill enhancement, and small and medium enterprise development,” added HC Suhag.
For his part the chairperson of the SCCI, Oliver Bastienne, pointed out that there is an urgent need to effectively identify and subsequently remove all barriers impeding trade and investment between India and Seychelles.
Mr Bastienne went on to note that in the process it is not a question of having a lot of competition but good partnerships with other businesses from India particularly in relation to foreign direct investments.
Mr Bastienne reiterated the need to explore more connectivity between the two countries to further increase trade between them, a point which VP Meriton before him also highlighted when he cited the need for the establishment of a regular shipping line between our two countries.
Mr Bastienne noted that local businesses in Seychelles are keen to explore new areas for business opportunities and Mr Bastienne said following the discussions they expect to come up with a roadmap as to how best to move forward and a timeframe to move into action.
Jamshed Pardiwalla, the chairperson of the Indian Association of Seychelles, said India is a country which produces a very large and diverse variety of goods but it is unfortunate that all these goods are exported to different destinations before being imported to Seychelles when the two countries are so close.
“When there are so many middlemen prices increase and consumers suffer so it is necessary to get rid of paying hard earned foreign exchange to middlemen but go directly to the producers and manufacturers,” he stressed.
He said there is a need for local entrepreneurs to know for themselves the quality of the different products India has to offer by visiting the country more so they can source out before buying and importing directly from the source instead of through middlemen.
He said the outcome of the discussions would no doubt benefit businesses from both countries for the benefit of their people.
He expressed the hope that the discussions will explore all the different sectors in which the two countries can explore business, trade and investment opportunities.
Marie-Anne Lepathy
