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A warm welcome across the board
June 4, 2012, Monday
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AS Sino-Seychellois relations grow, strategic partnerships can bear fruit for both countries.
With excellent incentives and a government dedicated to developing public-private partnerships and small to medium-sized enterprises, Seychelles is experiencing a boom in incoming business and is on the lookout for more.
With the government also keen to double Seychelles' GDP by 2017 with a template for sustained growth, Peter Sinon, minister of Natural Resources and Industry, is buoyed up for the work ahead.
"We believe the financial crisis in 2008 gave us a reality check as to whether this ambition is one we should persue and how feasible our ambition to double the GDP by 2017 is," he says. "The obvious trend of having increased growth is definitely not a compromise. It is a goal. There has been a tectonic shift in the world economic order, from the US and Europe as the richest, toward the east, China and India, and the other emerging BRIC countries, as well as South Africa. They are the ones who are showing signs of growth and they are the ones we are looking at.
"Africa is also emerging and has been growing through the crisis at a rate of 5 percent. And here we are, strategically placed as the bridge and stepping stone from the east into Africa."
Having introduced an investment code that provides a robust legal framework, the government has seen trade and investment flows increase exponentially. As Minister Sinon notes, Seychelles is now positioning itself to serve this market by putting in the infrastructure that will help Seychelles become a serious financial platform.
"The double taxation avoidance agreements we have with a number of countries give us a serious advantage and we are extending those agreements to ensure that whoever decides to choose Seychelles as its jurisdiction will not only benefit from low taxes but also transparency and accountability. We are using best practices because we intend to remain on the OECD's white list," he says. "We have 1.3 million square kilometers of exclusive economic zones, and we are hoping that with China's help, we can combat piracy."
A further challenge, the minister notes, is economies of scale. "We have 87,000 people and 50 percent of our land is protected. There is not, therefore, much left for building houses or farming. We are looking for regional cooperation with regards to farming so that we can adequately supply our population and our five-star hotels, which are importing food. We have to look toward technology to be able to ensure we can produce and supply what can be produced at the quantity and quality required."
The ministry is also actively promoting the fisheries sector. Seychelles lies on a tuna migratory path, which means there is a ready and plentiful supply of this popular fish. The country is one of the largest canned tuna producers in the world, with Port Victoria transhipping the most tuna of any port in the Indian Ocean.
What is needed now, Minister Sinon states, is the know-how, the best machinery and the markets to export the fish, and China would be the ideal partner.
"We are making the private sector the engine of growth and the government will facilitate and regulate. Being small, we could build an ultra-modern financial platform. We are not only contributing to the GDP of the country, but toward a more dynamic interface between Africa and China."
As a nation wholly reliant on fossil fuels, the government is also investigating alternative energy possibilities. "We are seriously seeking people to produce and sell to the renewable energy grid," he says.
Developing SMEs, adding value
With trade being boosted in almost every corner of Seychelles, the impact on the local population is tangible. The increased liquidity and stability of the banks has prompted many companies to seek loans and set up SMEs.
Because the country imports more than 90 percent of what it consumes, most SMEs engage in the sale of groceries and consumables, from imports provided by Seychelles Trading Company Ltd (STC).
Despite being a fully state-owned company, STC is still able to generate profits. Headed by CEO Patrick Vel, it plays a major role in supplying Seychelles with rice, flour, sugar and other staples at fair and consistent prices.
Due to a change in demand patterns from more discerning visitors to the islands, STC is also increasingly involved in the trade of higher-value products and has diversified its business to include shops and a duty-free store.
"Seychelles began opening up after the reform program in 2008. The black market was eradicated and the foreign exchange shortages were remedied. These were times of great hardship, as whatever earnings we had in foreign exchange were spent immediately on importing basic commodities. Nowadays, the opportunities for investors are enormous across all sectors."
The CEO sends out a warm welcome to Chinese investors, particularly in the fields of storage facilities, handling equipment and value addition.
"Our relationship with China has developed well," he says. "As the Asian country continues to show a keen interest in the region, the opportunities are enormous. We need to ensure the right structures and avenues are in place, and once that is done, we can capitalize on these openings.
"At STC, we do business with many Chinese companies. Any investor in our field of business, which is trade and commerce, is welcome to contact us as a solid partner. We offer the route to the market, and mutually beneficial partnership in our line of business."
With excellent incentives and a government dedicated to developing public-private partnerships and small to medium-sized enterprises, Seychelles is experiencing a boom in incoming business and is on the lookout for more.
With the government also keen to double Seychelles' GDP by 2017 with a template for sustained growth, Peter Sinon, minister of Natural Resources and Industry, is buoyed up for the work ahead.
"We believe the financial crisis in 2008 gave us a reality check as to whether this ambition is one we should persue and how feasible our ambition to double the GDP by 2017 is," he says. "The obvious trend of having increased growth is definitely not a compromise. It is a goal. There has been a tectonic shift in the world economic order, from the US and Europe as the richest, toward the east, China and India, and the other emerging BRIC countries, as well as South Africa. They are the ones who are showing signs of growth and they are the ones we are looking at.
"Africa is also emerging and has been growing through the crisis at a rate of 5 percent. And here we are, strategically placed as the bridge and stepping stone from the east into Africa."
Having introduced an investment code that provides a robust legal framework, the government has seen trade and investment flows increase exponentially. As Minister Sinon notes, Seychelles is now positioning itself to serve this market by putting in the infrastructure that will help Seychelles become a serious financial platform.
"The double taxation avoidance agreements we have with a number of countries give us a serious advantage and we are extending those agreements to ensure that whoever decides to choose Seychelles as its jurisdiction will not only benefit from low taxes but also transparency and accountability. We are using best practices because we intend to remain on the OECD's white list," he says. "We have 1.3 million square kilometers of exclusive economic zones, and we are hoping that with China's help, we can combat piracy."
A further challenge, the minister notes, is economies of scale. "We have 87,000 people and 50 percent of our land is protected. There is not, therefore, much left for building houses or farming. We are looking for regional cooperation with regards to farming so that we can adequately supply our population and our five-star hotels, which are importing food. We have to look toward technology to be able to ensure we can produce and supply what can be produced at the quantity and quality required."
The ministry is also actively promoting the fisheries sector. Seychelles lies on a tuna migratory path, which means there is a ready and plentiful supply of this popular fish. The country is one of the largest canned tuna producers in the world, with Port Victoria transhipping the most tuna of any port in the Indian Ocean.
What is needed now, Minister Sinon states, is the know-how, the best machinery and the markets to export the fish, and China would be the ideal partner.
"We are making the private sector the engine of growth and the government will facilitate and regulate. Being small, we could build an ultra-modern financial platform. We are not only contributing to the GDP of the country, but toward a more dynamic interface between Africa and China."
As a nation wholly reliant on fossil fuels, the government is also investigating alternative energy possibilities. "We are seriously seeking people to produce and sell to the renewable energy grid," he says.
Developing SMEs, adding value
With trade being boosted in almost every corner of Seychelles, the impact on the local population is tangible. The increased liquidity and stability of the banks has prompted many companies to seek loans and set up SMEs.
Because the country imports more than 90 percent of what it consumes, most SMEs engage in the sale of groceries and consumables, from imports provided by Seychelles Trading Company Ltd (STC).
Despite being a fully state-owned company, STC is still able to generate profits. Headed by CEO Patrick Vel, it plays a major role in supplying Seychelles with rice, flour, sugar and other staples at fair and consistent prices.
Due to a change in demand patterns from more discerning visitors to the islands, STC is also increasingly involved in the trade of higher-value products and has diversified its business to include shops and a duty-free store.
"Seychelles began opening up after the reform program in 2008. The black market was eradicated and the foreign exchange shortages were remedied. These were times of great hardship, as whatever earnings we had in foreign exchange were spent immediately on importing basic commodities. Nowadays, the opportunities for investors are enormous across all sectors."
The CEO sends out a warm welcome to Chinese investors, particularly in the fields of storage facilities, handling equipment and value addition.
"Our relationship with China has developed well," he says. "As the Asian country continues to show a keen interest in the region, the opportunities are enormous. We need to ensure the right structures and avenues are in place, and once that is done, we can capitalize on these openings.
"At STC, we do business with many Chinese companies. Any investor in our field of business, which is trade and commerce, is welcome to contact us as a solid partner. We offer the route to the market, and mutually beneficial partnership in our line of business."
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