Seychelles Emerging Markets in Africa, Asia and the Middle East
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S Offshore dreams Seychelles This OECD whitelisted jurisdiction aims to be the February 02.02.2012 world’s investment centre. Islands at the centre (page 16) of a new area of growth As the global economy shifts its focus away from traditional markets, this Indian Ocean island nation is setting its sights on becoming a hub that links emerging markets in Africa, Asia and the Middle East. The case for public interest A Creole experience Despite a potentially A trilingual melting pot with life-changing more to offer than just oil find, Seychelles is sun, sea and sand. determined (page 10) to protect its society. Will it succeed? (page 22) Links to the world A new submarine cable Anti-piracy observatory opens up a whole world Seychelles has created a piracy of possibilities. (page 20) intelligence centre, calling for joined-up thinking in the face of a growing crisis. (page 7) Ocean harvest A balancing act between fisheries growth, resource management and environmental preservation. (page 15) Island nation fights climate change Facing grave threats from global warming, the islands convince the The world to take action. (page 6 ) Reportcompany An independent supplement distributed in the Guardian on behalf of The Report Company, who takes sole responsibility for its content who takes sole responsibility for on behalf of The ReportAn independent supplement distributed in the Guardian Company, 2 _ SEYCHELLES > INTRO A small nation stands tall Writer: Ray Spencer S Seychelles is today held up as an example of how to do things right. Boasting one of the fastest growing economies in Africa and a world-class environmental record, it’s hard to believe that just five years ago the country was on its knees, unable to repay debts and spending money it didn’t have. > Just three months ago, an International became a regional carrier, but other airlines 01 Monetary Fund (IMF) report declared Sey- are filling part of the gap and Gulf countries Royal endorsement chelles’ recent economic performance as “fa- provide hubs to link with Victoria. Choosing which of Seychelles’ 115 vourable.” Given that in 2008 the IMF was The second economic pillar of Seychelles is islands to visit can be hard, but not forced to set economic reforms to rescue the fishing and it supplies the world’s largest tuna for these returning royals. archipelago from near collapse, that muted canning factory at an expanding Port Victoria. statement was real praise. Seychelles itself is safe, President James With high living standards, but large fis- Michel insists, but he’s urging the UK and other cal and current account deficits, the islands large states to find lasting solutions within have moved from being a welfare state to a free Somalia to the piracy issue. market one. It’s the only country in the region Climate change is another international is- without exchange controls. sue Michel is championing, because unchecked 02 External debt has been halved after restruc- it threatens many of its 115 low-lying islands, turing and tightened monetary and fiscal policy, as with all island states. Mahe is home to 75 and the government is on track to shrink public per cent of Seychellois, while most others live debt to 50 per cent of gross domestic product on Praslin and La Digue. (GDP) by 2017. Two developments will change Seychellois There are few endorsements better than being chosen by the Duke and Real GDP grew by 6.7 per cent in 2010 and fortunes. Duchess of Cambridge as a honeymoon gained another 5 per cent to reach almost £1bn In the summer, a fibre-optic cable to Tanza- destination. last year – one of the highest among African states. nia will bring the fast internet that Seychelles’ Last year, amidst intense media Last year, global ratings agency Fitch upgraded finance centre – as the third and growing pillar interest, the royal couple stayed at North 03 Seychelles’ country ceiling to ‘B’ reflecting “outper- of the economy – needs to become a dynamic Island, north west of Victoria, which has formance, by a wide margin, of the fiscal targets set gateway to Africa for investors. To help develop been developed as a private 11 villa eco- by the IMF, for a second consecutive year.” offshore finance business a stock exchange is tourist resort. Ex-IMF economist Pierre Laporte, now being set up this year. It was a return visit to the country, heading the Central Bank, notes: “The big one This former French colony – which be- as Prince William and the then Kate for us is domestic debt. By running a surplus longed to Britain until 1976 – also has potential Middleton had previously spent a diving on the budget, we have managed every year to offshore oil reserves as large as Saudi Arabia’s, break in 2007 at Desroches Island, a 40 minute flight from Mahé. use part to pay down the debt.” which could be landed by 2015. “The couple thoroughly enjoyed Tourism accounts for a quarter of GDP Seychelles, with its low tax rates, offers at- their time together,” said a Clarence and an even greater share of employment, with tractive investment opportunities in every area House spokesperson, adding that they record arrivals attracted by pristine beaches. of the economy from a strategic Indian Ocean thanked Seychelles’ government for a 04 Direct flights from Europe, where 75 per cent location. The government is acting as a facilita- honeymoon that was “such a memorable of visitors originate, ended when Air Seychelles tor, giving the private sector space to grow. <<< and special 10 days.” 01 Ste Anne Marine National Park – one of the Indian Ocean’s prime scuba diving locations. Publishers: Jose Powell and Rafael Munoz The Report Company has an For an expanded version of this feature, please visit: 02 Seychelles is home to thousands of fairy terns, the Project Management and Sales: Jose Powell exclusive media partnership with www.guardian.co.uk/the-report/seychelles world’s only all-white tern. Writers: Eleanor Wragg, Anna Reitman, Ray Spencer Guardian News and Media for and www.the-report.net 03 The Victoria Clock Tower, modelled on the the distribution of this content. Research and Editing: Eleanor Wragg Vauxhall Clock Tower in London For suggestions on a feature 04 The Seychelles Central Bank on Independence 81 Oxford Street Creative Director: Angelica Montes The Report Company takes sole on your country or any specific Avenue, Victoria. London W1D 2EU, United Kingdom Illustrations: Daniel Jimenez, Belen Isasi, Alya Mark theme, please contact us on: responsibility for the content of 05 The world famous Anse Source D’Argent beach on Tel: +44 (0) 207 903 5079 Photography: Seychelles Tourism Board [email protected] this feature. La Digue Island. 05 4 _ SEYCHELLES > RELATIONS An independent supplement produced by The Report Company 5 ing Seychelles. Its fishing industry has gained Britain has also trained Seychellois police region, where over two-thirds of the world’s oil access to the EU by adopting high standards at and military. There’s been cooperation with the is shipped and where trade and commerce is its tuna canning factory – one of the largest in UK Crown Prosecution Service in piracy cases becoming exceedingly costly.” the world – and Seychelles licenses EU vessels and the UK’s Serious Organised Crime Agency Unfortunately, the climate change debate to operate locally. to set up a new maritime intelligence and infor- has become almost ideological. President But it is with the UK that Seychelles retains mation centre to target the pirates’ financiers. Michel points out, “small islands and many a very special relationship. Minister Adams The driving force putting believes, “it’s a relationship that has stood piracy and climate change is- the test of time and which we see will con- sues before a world audience tinue. Things like investment in education is President Michel’s key mes- “ and people-to-people contacts will keep the sage that both issues must be We have been building a model relationship going.” the concern of all nations. It is not only the Seychellois who are geared towards emerging markets Gaining British AOK threatened by trade and tour- in Asia and Africa over the last Anything British is perceived as good qual- ism disruption and disaster if ity and desirable – even something as basic as the numerous low-lying islands five years British biscuits are sought after, points out are flooded. Steve Fanny Patrick Vel, chief executive of the state-owned Suggesting that global as- CEO of Seychelles International Business Authority international Seychelles Trading Company (STC). sistance needs to be given to A diplomat's view The island nation imports 90 per cent of Somalia to resolve its internal problems, Presi- other developing states are the worst hit by its needs and suffers from price volatility, but dent Michel asserts, “We are very grateful to climate change and also have the least re- it tries “to protect the population from the Britain for the support given to us in the fight sources to tackle it. There needs to be a much recognition harsh realities of the world.” For some basic against piracy.” But he wants the UK “to in- more focused approach from all developed commodities, STC fixes its prices for a period crease its engagement as a matter of priority, nations to put resources available toward “to provide more stability.” in order to ensure security in the Indian Ocean tackling the problem.” Writer: Ray Spencer <<< S For a small country, Seychelles packs a big punch on Jean-Paul Adam the international scene, working to better both itself and its Minister of Foreign Affairs neighbours in the region.