SCCI’s response to President Wavel Ramkalawan’s State-of-the-Nation Address |04 March 2025
‘Through collaboration, Seychelles can build a prosperous, competitive and future-ready economy’
The Seychelles Chamber of Commerce and Industry (SCCI) commends the government’s progress, as outlined in the 2025 State-of-the-Nation Address by President Wavel Ramkalawan. Key challenges require a whole-of-society approach which confirms the SCCI's focus on building a robust collaborative partnership between the private and public sectors. It is in this light that SCCI strongly supports the establishment of a Joint Economic Forum for ongoing dialogue and agreement. Key areas of mutual interest and therefore targets for priority attention include improving public service efficiency, sustaining and diversifying tourism products and services, improving responsible pricing practices, ensuring a modern and enabling legal environment, enhancing financial compliance, accelerating
digitalisation, aligning education to market demands and fostering a revived agricultural development.
The SCCI is committed to driving sustainable progress for Seychelles, advocating for a business-friendly environment that supports both prosperity-for-all and social well-being.
Navigating compliance & Seychelles’ path to the White List
SCCI commends the government’s efforts in strengthening Seychelles’ international financial compliance. Since being placed on the Black List in 2020, the country has made significant progress, advancing to the Grey List through substantial reforms and international cooperation.
As Seychelles strives for White List status, it is essential to strike a balance between adhering to global Anti-Money Laundering (AML) and Know Your Customer (KYC) standards and maintaining a regulatory environment that is efficient rather than overly restrictive, bureaucratic, or punitive. Excessively stringent enforcement measures risk stifling business growth and economic competitiveness by creating unnecessary bottlenecks.
SCCI advocates for continuous dialogue between regulators and the private sector to ensure that compliance measures are both effective and supportive of a dynamic and thriving business ecosystem.
Government & service delivery
A thriving private sector and the well-being of Seychellois citizens depend on an efficient and responsive public service. SCCI acknowledges the government’s ongoing efforts to modernise public administration and fully supports the President’s call for a shift in mindset regarding service delivery. However, inefficiencies in approvals, licensing, and compliance processes continue to frustrate businesses, particularly micro, small, and medium-sized enterprises (MSMEs)—the backbone of Seychellois entrepreneurship. These delays lead to economic losses, missed opportunities, and hinder job creation, especially for young entrepreneurs and job seekers.
The President rightly highlighted the cost of these inefficiencies—not only in lost revenue but also in diminished employment opportunities. A more agile, responsive, and effective public service is essential for fostering a truly enabling business environment. From small enterprises to large corporations, all businesses require a regulatory framework that supports investment, expansion, and job creation.
Reforming licensing processes and eliminating unnecessary barriers to business growth must remain a top priority. Public service should be a facilitator of economic progress, not a bottleneck, aligning with the national vision of prosperity and sustainable development.
In this context, digital solutions have a critical role to play. However, digitalisation is not just about automation—it must be about achieving cost efficiency through a well-calibrated balance between technology and human labour.
While technology can streamline administrative processes, it is essential to recognise that certain human roles — such as providing personalised tourist experiences, offering empathetic care in healthcare, or fostering meaningful connections between teachers and students — cannot be replaced by AI. Therefore, the government’s digitalisation strategy must be part of a broader plan that enhances efficiency while preserving service quality and the human touch.
To achieve these goals, SCCI advocates for the implementation of digital solutions, improved inter-agency coordination, and a strong accountability framework. Structured feedback mechanisms should be established to drive continuous improvement. Although more than a decade old, the 2014 Public Service Delivery Survey conducted by the National Bureau of Statistics and the Department of Public Administration serves as a valuable example of how public-private collaboration can lead to tangible reforms. By working together, we can build a public service that is efficient, transparent, and truly transformative.
Tourism Sector: Sustaining growth & addressing red flags
Tourism remains the backbone of the Seychelles economy, contributing significantly to employment, foreign exchange earnings, and overall economic stability and prosperity among the populace. SCCI acknowledges the bold decision taken to reopen the borders post-pandemic, which allowed for the recovery of the industry.
However, underlying challenges and warning signs must be addressed to ensure long-term sustainability and competitiveness. The sluggish start to 2025 is reflected in the latest National Statistics Bureau data as well as the trades’ own performance indices. Visitor spending patterns, inflationary pressures, and the cost of services must be closely analysed and corresponding action taken to maintain Seychelles' edge in an aggressively competitive market.
According to the 2024 National Statistics Bulletin, total visitor arrivals reached 352,762, a marginal increase of 0.5% from 2023. However, sector revenue estimates indicate a shift in spending behaviour, with average per capita expenditure showing stagnation. Given that tourism contributes approximately 25% of Seychelles' GDP, these trends require immediate attention.
SCCI supports a holistic industry-wide effort where all stakeholders — including hoteliers, tour operators, retailers, transport providers, and the wider community — play a role in delivering a high-value tourism experience. The President’s remarks on service quality, pricing, and visitor experience resonate deeply. Issues such as overpriced services and products, inconsistent customer experiences, and environmental degradation could erode Seychelles’ appeal over time.
SCCI stands ready to work alongside SHTA, SSHEA, and government agencies to implement practical, impactful strategies that will strengthen the sector. Tourism is not just about increasing arrival numbers — it is about maximising yield, improving visitor experience, and ensuring long-term sustainability. Seychelles cannot afford complacency, and we must act collectively and decisively to maintain our competitive edge.
Responsible pricing & retail sector collaboration
The SCCI acknowledges the President’s concerns regarding the cost of living and the role of wholesalers, retailers, and service providers in ensuring fair pricing for consumers. We recognise that price stability is a shared responsibility, influenced by global market conditions, import costs, supply chain inefficiencies, and operational expenses. It is important, yet again, to highlight that the behaviour of a few businesses do not define the entire private sector, which remains committed to integrity, growth, and responsible business practices.
Furthermore, we all must understand the complex cost dynamics in Seychelles, where businesses face high import duties, logistics costs, economies of scale and operational expenses. The Central Bank of Seychelles' December 2021 report, Analysis of the Price Structure in Seychelles, identifies key factors such as import dependency — 109% of GDP in 2019 — supply chain inefficiencies, and market size constraints as significant contributors to domestic price levels.
The report also points out that increases in global commodity and freight costs have a larger impact on final prices than exchange rate movements, noting a 150% rise in container freight rates since March 2021 due to global supply chain disruptions.
Despite these challenges, we firmly believe that through collaboration, data-driven policy decisions, and open, constructive dialogue between the private sector and policymakers, we can develop practical solutions to mitigate unnecessary cost escalations while ensuring businesses remain competitive and are able to continue to deliver for the Seychellois people and visitors.
The SCCI and Retailers Association of Seychelles (RAS) stand ready to facilitate a constructive and solutions-driven dialogue with the retailers, wholesalers, and relevant authorities to ensure balanced and responsible pricing. While businesses must remain profitable to sustain jobs and investment, we also recognise the importance of ensuring that essential goods remain accessible and affordable for the broader population. By working together, we can create an economic environment that supports both businesses and consumers in achieving long-term prosperity.
Rule of law & the private sector
A stable and predictable legal environment is fundamental to economic confidence, investment, and business operations. The SCCI strongly advocates for the rule of law as a pillar of economic stability, ensuring fairness, transparency, and consistency in regulatory and commercial frameworks. The private sector thrives when legal certainty prevails, allowing businesses to make informed decisions and plan for long-term growth.
We commend the enactment of the Law Commission Act 2022, which established the Seychelles Law Commission responsible for reviewing and modernising the nation’s laws. This initiative aims to propose legislative amendments or new legislation to the government and the National Assembly, ensuring that our legal frameworks remain relevant and effectively implemented.
However, it is equally crucial that the application of these laws is done with the right mindset — not as a box-ticking exercise but as a tool to create a fair, efficient, and enabling business environment. The SCCI is looking forward in working with the commission to strengthen the synergy between the private sector and legal institutions.
The role of agriculture in economic resilience
Agriculture is a pillar of food and nutrition security and social resilience. SCCI acknowledges the positive strides made in ensuring that farmers have better access to materials, inputs, and land. We also welcome the government’s ongoing initiatives to improve infrastructure, such as road access for farmers on Praslin, and efforts to facilitate agricultural imports.
Despite these advancements, much work remains to be done. The agricultural sector requires consistent support, particularly in areas such as financing, modernisation, and market access. The ‘Grow Local, Process Local, Eat Local’ campaign must be fully embraced as a national strategy, promoting self-sufficiency, reducing dependency on imports, and strengthening the value chain from farm to table.
From discussion with some of the players in the industry, the agricultural sector is navigating through the “bad weather” of climate change, while simultaneously, the population’s need for food security becomes more urgent to ensure the survival and stability of our nation. To meet these needs and secure the future of Seychelles’ agriculture, we must establish a clear, strategic policy framework that mandates all branches of government to view agriculture with a unified vision. This framework should reflect the reality of our needs, providing tangible solutions to ensure food security and create a competitive agricultural sector.
In essence, the time has come for an effective solution: a comprehensive agricultural policy that obligates the whole of government to act in alignment with the needs of the agricultural sector. This policy should not be just a document, but a guiding force that drives action across all government branches. We also do take note of the current formulation of the Agriculture Bill 2024.
Furthermore, to achieve a strong and competitive agricultural sector, SCCI recommends:
1. Financial Support & Subvention Policies – Reviewing and strengthening financial incentives, grants, and subsidies for farmers to ensure sustained production growth.
2. Market Development & Processing Facilities – Enhancing infrastructure for food processing and local value addition to reduce waste and increase profitability.
3. Fair Trade Practices – Addressing pricing concerns in retail sectors to ensure fair market conditions for local producers.
4. Technology & Innovation – Encouraging modern agricultural techniques, digital farming solutions, and
better access to climate-resilient practices.
5. Public-Private Partnerships – Strengthening collaboration between government agencies, businesses, SIAH (Seychelles Institute of Agriculture and Horticulture) and agricultural cooperatives to accelerate sector growth.
Agriculture must be recognised as a strategic economic sector, and a long-term vision is needed to enhance its viability. SCCI stands ready to collaborate with all stakeholders to transform agriculture into a sustainable and profitable industry for Seychelles. However, the most critical first step is the establishment of a clear legal framework and policy to guide this transformation. Only then can we ensure a future of food security, self-sufficiency, and economic resilience.
The path forward
The SCCI is dedicated to working alongside the government and other stakeholders to create a dynamic and inclusive business environment. We propose the establishment of a Joint Economic Forum—a platform for ongoing dialogue between the private sector and government to address economic challenges, enhance policy effectiveness, and ensure that decisions support sustainable growth. Through collaboration, Seychelles can build a prosperous, competitive, and future-ready economy.
Together, we can drive sustainable progress, reinforce investor confidence, and build a Seychelles that is ready for the future.