|Approval Date||22 Jun 2020|
|Signature Date||30 Jun 2020|
|Planned Completion Date||31 May 2021|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||11330|
The proposed operation is a loan to the Republic of Seychelles for USD 10 million to finance the COVID-19 emergency response support program. This is a Crisis Response Budget Support (CRBS) that will be applied for 12 months from June 2020 to July 2021. The Seychelles Crisis Response Budget Support operation was appraised from 20 – 27 April 2020 following a request from the Republic of Seychelles dated 8 April 2020. Seychelles faces a dual challenge of addressing short term impact of COVID-19 and setting the course for a higher growth trajectory. The first case of COVID-19 in Seychelles was confirmed on 14th March and by the 6th of April, there were 11 confirmed imported cases. The country has attained universal health coverage (UHC) with the State providing free and universal access to health care for all Seychellois. However, COVID-19 pandemic threatens to reverse these gains and risks the sustainability of Seychelles universal health coverage. Cognizant of this threat, the Government is implementing measures under the COVID-19 National Response Plan, which have been effective in preventing community transmissions. The operation is to support Government actions that will lay the foundation for macroeconomic stability and protect the socioeconomic progress that the country has so far achieved. The program consists of three broad components namely: (i) strengthening the health response for COVID-19; (ii) expanding social protection and protecting livelihoods against COVID-19 impact; and (iii) protecting economic activities and safeguarding jobs against COVID-19 shocks. These three components are interlinked in pursuit of addressing the immediate public health challenge of saving lives, expanding social protection mechanisms as well as cushioning businesses and the economy from downward spiral.
The goal of the operation is to support Seychelles’ National COVID-19 response policies and plans to contain and mitigate the social and economic impacts of COVID-19 pandemic. The policy objective of the operation is to; (i) strengthen the health response to COVID-19 pandemic; (ii) protect livelihoods and enhance social protection measures against COVID19, and; (iii) minimize risk to macroeconomic stability and create resilience for economic activities.
The program will protect the population from the spread of COVID19 especially men who are epidemiologically more susceptible and enhanced fiscal space for improved basic service delivery. The poor and vulnerable whose livelihoods have been affected by the pandemic will directly benefit through strengthened livelihoods and expanded social protection coverage. Employees in the private sector will also benefit through the government’s salary guarantee scheme. Maintained macroeconomic stability supported by the program will directly benefit households, the private sector and financial sector actors through faster and more inclusive economic recovery on the back of more resilient businesses and workforce.
African Development Bank
MINISTRY OF FINANCE
|Last Update||21 Jun 2021|