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Getting better connected
June 4, 2012, Monday
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HIGH-SPEED Internet increases the business appeal of these special islands.
Seychelles' impressive U-turn in fortunes since 2009 can be best summarized by increased growth and lower inflation, recorded last year as 5 percent and 4 percent respectively.
What Danny Faure, vice president and minister for Information Technology, Communication and Public Administration, aims to deliver is a commitment to the education and training of the Seychellois, as part of the president's legacy to get the men and women in the street involved and empowered.
"We have created a system where education is well looked after, and we continue to invest in training because these are essential ingredients for economic development. Our objective is to consolidate the social and human development aspect as we grow the economy."
And, as well as being rich in fish, beauty and other natural resources, Seychelles has the distinct advantage of having a time zone that overlaps with most of the world's major financial centers, making it even more competitive and attractive to investors.
It has been given a clean bill of health by the Organization for Economic Co-operation and Development (OECD) as an offshore financial destination, leading economic pundits to believe Seychelles can become a major offshore financial center in its own right. The Ugandan-born vice president is optimistic this will become a reality in the near future.
"China is well known to Africa, but what is important now is that the emerging markets are now in the east. China is a growing economy and a huge contributor of foreign direct investment, but the largest free trade zone will be in Africa. Africa is still untapped and presents huge potential. As the bridge between Africa and Asia, Seychelles is the best place, so we will continue to nurture this relationship."
Double taxation avoidance
Faure highlights that the double-taxation avoidance agreement between China and Seychelles gives the island another tremendous advantage.
"In the last 15 years, we have grown slowly, we are very prudent and we want to ensure that the regulatory framework is always in place," he says. "We want to create the best financial services center in this part of the world by having the best policies and the best laws."
Another transformation taking place is the Seychelles East Africa System (SEAS). The ambitious project will connect Seychelles, using a submarine fiber-optic cable to the existing Tanzania network. The link, expected to be operational by July, will dramatically improve both telecommunications and Internet access in Seychelles by strengthening the cable bandwidth to approximately 640GB per second. The cable, which is being built by French company Alcatel, will cover a distance of 1,930 kilometers.
"We are a nation that speaks three languages: English, French and Creole, and there is a huge amount of potential," Faure says. "We want Seychellois entrepreneurs and foreign business entrepreneurs to develop these opportunities.
"As a government, together with the private sector, we have been able to develop this infrastructure, and the fiber-optic link will be a major contributor to economic growth this year."
Faster speed, reduced costs
The new cable's international transmission capacity, estimated at being seven times cheaper than today's Internet prices on the island, has created a buzz for Seychelles' investors. The high connection costs will go, and people will be significantly better off financially.
Another huge benefit is a fast and reliable service. Banking, tourism, telecommunications and education sectors will benefit enormously in terms of efficiency, professional capability and productivity.
"Financial services, where you can use Seychelles as a platform to penetrate Africa, will be very attractive to the Chinese," Faure says. "They can use Seychelles as the headquarters for very important Chinese investments because we have access to Europe, Asia and Africa. I see Seychelles providing the Free Trade Zone where Chinese companies can set up manufacturing outlets and export to other regions in Africa.
"We have our islands, there is tourism development and there are the fisheries.
"For now, the number one question is trade and how we trade. For many years, tourists came from Europe but now it has to be diversified and as we look toward Asia, the country needs to prepare, to have the top Chinese restaurants here. The government has taken the steps it needs to attract the private sector to take the lead."
Within the next five years, Faure wants to see a Seychelles where debt is sustainable and it continues to have economic growth. "If you can remove the debt burden of your country, you allow the new generation to breathe," he says.
"Within the next five years, we will have achieved one major objective of reducing the debt of our country to below 60 percent of gross domestic product (GDP). Our target is to reach 50 percent of GDP by 2018 so we are really transforming the economy, but there is also a change in mindset needed so that we can move from a centralized economy.
"Today, Seychelles stands at number one on the United Nations Human Development index. It wants to deepen democracy, and have good institutions that can protect the citizens' business as we develop and transform.
"We always strive to be friendly and preserve the peace and quiet, and we do not want to have any development destroy this. We are creating a new Seychelles and we want Chinese investment to be part of the next stage of our development.
"We invite investors to use Seychelles as a platform for the new large trade zone appearing on the horizon."
Seychelles' impressive U-turn in fortunes since 2009 can be best summarized by increased growth and lower inflation, recorded last year as 5 percent and 4 percent respectively.
What Danny Faure, vice president and minister for Information Technology, Communication and Public Administration, aims to deliver is a commitment to the education and training of the Seychellois, as part of the president's legacy to get the men and women in the street involved and empowered.
"We have created a system where education is well looked after, and we continue to invest in training because these are essential ingredients for economic development. Our objective is to consolidate the social and human development aspect as we grow the economy."
And, as well as being rich in fish, beauty and other natural resources, Seychelles has the distinct advantage of having a time zone that overlaps with most of the world's major financial centers, making it even more competitive and attractive to investors.
It has been given a clean bill of health by the Organization for Economic Co-operation and Development (OECD) as an offshore financial destination, leading economic pundits to believe Seychelles can become a major offshore financial center in its own right. The Ugandan-born vice president is optimistic this will become a reality in the near future.
"China is well known to Africa, but what is important now is that the emerging markets are now in the east. China is a growing economy and a huge contributor of foreign direct investment, but the largest free trade zone will be in Africa. Africa is still untapped and presents huge potential. As the bridge between Africa and Asia, Seychelles is the best place, so we will continue to nurture this relationship."
Double taxation avoidance
Faure highlights that the double-taxation avoidance agreement between China and Seychelles gives the island another tremendous advantage.
"In the last 15 years, we have grown slowly, we are very prudent and we want to ensure that the regulatory framework is always in place," he says. "We want to create the best financial services center in this part of the world by having the best policies and the best laws."
Another transformation taking place is the Seychelles East Africa System (SEAS). The ambitious project will connect Seychelles, using a submarine fiber-optic cable to the existing Tanzania network. The link, expected to be operational by July, will dramatically improve both telecommunications and Internet access in Seychelles by strengthening the cable bandwidth to approximately 640GB per second. The cable, which is being built by French company Alcatel, will cover a distance of 1,930 kilometers.
"We are a nation that speaks three languages: English, French and Creole, and there is a huge amount of potential," Faure says. "We want Seychellois entrepreneurs and foreign business entrepreneurs to develop these opportunities.
"As a government, together with the private sector, we have been able to develop this infrastructure, and the fiber-optic link will be a major contributor to economic growth this year."
Faster speed, reduced costs
The new cable's international transmission capacity, estimated at being seven times cheaper than today's Internet prices on the island, has created a buzz for Seychelles' investors. The high connection costs will go, and people will be significantly better off financially.
Another huge benefit is a fast and reliable service. Banking, tourism, telecommunications and education sectors will benefit enormously in terms of efficiency, professional capability and productivity.
"Financial services, where you can use Seychelles as a platform to penetrate Africa, will be very attractive to the Chinese," Faure says. "They can use Seychelles as the headquarters for very important Chinese investments because we have access to Europe, Asia and Africa. I see Seychelles providing the Free Trade Zone where Chinese companies can set up manufacturing outlets and export to other regions in Africa.
"We have our islands, there is tourism development and there are the fisheries.
"For now, the number one question is trade and how we trade. For many years, tourists came from Europe but now it has to be diversified and as we look toward Asia, the country needs to prepare, to have the top Chinese restaurants here. The government has taken the steps it needs to attract the private sector to take the lead."
Within the next five years, Faure wants to see a Seychelles where debt is sustainable and it continues to have economic growth. "If you can remove the debt burden of your country, you allow the new generation to breathe," he says.
"Within the next five years, we will have achieved one major objective of reducing the debt of our country to below 60 percent of gross domestic product (GDP). Our target is to reach 50 percent of GDP by 2018 so we are really transforming the economy, but there is also a change in mindset needed so that we can move from a centralized economy.
"Today, Seychelles stands at number one on the United Nations Human Development index. It wants to deepen democracy, and have good institutions that can protect the citizens' business as we develop and transform.
"We always strive to be friendly and preserve the peace and quiet, and we do not want to have any development destroy this. We are creating a new Seychelles and we want Chinese investment to be part of the next stage of our development.
"We invite investors to use Seychelles as a platform for the new large trade zone appearing on the horizon."
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