The African Development Bank (AfDB) has approved a $34 million loan to Seychelles to strengthen public services, expand private sector opportunities and boost climate resilience, capping a three-year reform programme aimed at making the island economy more competitive and sustainable.
Approved by the AfDB Board on the 22nd of September, 2026, the financing supports the third and final phase of the Economic Resilience and Green Recovery Support Programme (ERGRSP-III). It follows $25 million loans for phases one and two in 2024 and 2025, bringing total AfDB support under the programme to $84 million.
The loan is structured around three interlinked priorities: economic governance and public financial management, the business environment, and climate and environmental resilience.
On governance, the programme aims to improve the efficiency and transparency of public spending, strengthen tax administration and deepen reforms in state-owned enterprises. For citizens, this is intended to translate into better, faster and more reliable public services, including through greater digitisation of government processes.
For the private sector, a central element is the creation of a one-stop investment portal and a Government Business Service Centre. These are designed to simplify how entrepreneurs and investors interact with the state, reducing the time and complexity involved in obtaining approvals, licences and other services needed to start or expand businesses.
The programme explicitly links economic reform to environmental planning. It supports long-term electricity planning and marine spatial planning to guide how ocean areas are managed and used, reflecting Seychelles’ heavy dependence on marine resources and vulnerability to climate change.
Reforms also include stronger regulation of hazardous chemicals and modernisation of agricultural institutions, connecting development plans with the need to manage environmental risks. Employment, skills and living-wage reforms are part of the package, aiming to ensure that growth is inclusive and translates into better livelihoods.
Abdoulaye Coulibaly, Director of the AfDB’s Governance and Economic Reforms Department, said Seychelles had shown that sustained reforms could produce measurable results. The first two phases of ERGRSP focused on stabilising public finances, improving tax collection and laying the groundwork for green recovery, with results judged satisfactory by the Bank.
Phase III is intended to consolidate and deepen those gains, helping Seychelles maintain macroeconomic stability while advancing its Vision 2033 and National Development Strategy 2024–2028. The programme aligns with the country’s medium-term fiscal framework, which calls for public service modernisation, economic diversification and stronger environmental and climate resilience.
For a small island developing state highly exposed to external shocks and climate risks, the loan reinforces a reform path that seeks to balance fiscal discipline with investment in people, infrastructure and natural capital. If implemented effectively, the measures could improve Seychelles’ business climate, attract more diversified investment and reduce vulnerability to climate-related disruptions, while making everyday interactions with government simpler for residents and firms.
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