President hails progress in offshore sector |14 July 2008

Mr Michel also said a banking college will be set up soon to train Seychellois so as to meet the forecast demand in the banking, financial and offshore sectors. This college will eventually form part of Seychelles University.

The President made these announcements on Saturday after touring the Seychelles International Business Authority (SIBA) headquarters off Bois de Rose Avenue as well as various firms operating in the adjoining international trade zone.

SIBA was formed in February 1995 after several pieces of legislation were passed that set the stage for Seychelles’ entry into the international financial services industry.

Essentially a one-stop shop, licensing and regulating primary offshore activities, SIBA is the registrar for International Business Companies (IBC) and trusts, and also regulates international trade zone activities.

More recent legislation allows it to license offshore banks, offshore insurance, mutual fund activities and regulate a securities industry.

On hand to guide Mr Michel around the various facilities during Saturday’s visit were SIBA chairman Conrad Benoiton and chief executive Steve Fanny.

Speaking to journalists after the visit, Mr Michel said it had allowed him to see the progress made in the offshore sector, one of the three pillars of the economy (tourism and fisheries being the others) that underpin Strategy 2017 – a 10-year blueprint to double the country’s gross domestic product.

Noting that growth in this sector has been phenomenal, Mr Michel said there is enormous potential for it to develop further.

“Seychelles’ economy is inspiring great credibility and I can say that the country is at the peak of attention as far as the offshore sector is concerned,” he said.

The President also noted that land allocated to the international trade zone is saturated and there is a need to find extra land to cater for expansion.

“And with Seychelles’ re-entry soon into the Southern African Development Community, there will be new demand and interest, and this augurs well for the development of the third pillar of our economy,” he said.

Commenting on the recent opening of a second offshore bank – the BMI offshore bank – in Seychelles, Mr Michel said it highlights the confidence offshore companies have in the country.

On the domestic front, the President announced that soon an important French bank, “Caisse d’Epargne”, will be buying shares in the Seychelles Savings Bank as government’s strategic partner with the aim of bringing more competition and giving fresh impetus to the development of banking services.

Referring to the “phenomenal” growth in the offshore sector and the “enormous” potential that exists, Mr Michel called on young Seychellois professionals, especially lawyers, to consider tapping into the promising and lucrative opportunities that the financial sectors offer.

He said he was happy to note that many Seychellois professionals are already gaining experience and developing their skills in the field of mutual funds, for instance, and working with foreign offshore companies.

This, the President said, will stand them in good stead in the future if they want to set up their own companies.

All these developments, he said, form part of the process of achieving Strategy 2017, of which education is a key component, which is why he commissioned a study into the education system so as to realign it in relation to the three pillars of the economy.

With regard to the launch later this year of Seychelles’ Stock Exchange, Mr Michel is inviting Seychellois to consider joining this venture, which will set the stage for the country to move forward in both the domestic and offshore financial sectors.

Mr Michel also hailed the government’s foresight in having laid the economic foundations which are today beginning to bear fruit.

Noting that economic reform does not yield success overnight, he said he was happy to note that the country’s economy is now at a stage of development that bodes well for the future.

He also had praise for the management and staff of SIBA for the excellent work they are doing in marketing Seychelles as a growing offshore jurisdiction with a sound credibility and reputation.

To date SIBA has registered more than 50,000 IBCs.