|Approval Date||07 Jul 2021|
|Signature Date||17 Aug 2021|
|Planned Completion Date||31 Dec 2022|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||11330|
The proposed operation is a loan to the Republic of Seychelles of US$20 million (UA 14 million) to finance the Governance and Economic Reforms Support Program (GERSP). It is the first in a 3-year programmatic series, for the years 2021, 2022, and 2023. The program results from a request to the Bank by the Government of Seychelles in February 2021. The proposed GERSP deepens reforms that were introduced through the Seychelles’ COVID-19 Crisis Response Budget Support Program that was approved in June 2020 for an amount of US$ 10 million and will be completed in July 2021. The GERSP loan will contribute to financing the fiscal gap due to declining fiscal revenues and increased spending while reducing the risks in the public debt profile. It will also create more and better opportunities for all Seychellois by (i) conserving the fiscal space and reducing debt vulnerabilities, thus allowing the Government to allocate its scarce resources to priority projects and protecting the vulnerable population; (ii) removing the constraints for doing business, thus enabling local MSMEs to better engage in international trade; and (iii) improving access to renewable energy and better solid waste management practices, thus enhancing inclusive growth and environmental sustainability. Another dimension of the reforms is a partial re-profiling of short-term public domestic debt to mitigate roll-over risks and complement domestic financing.
The overarching goal of the proposed program is to strengthen economic governance reforms that will sustain inclusive growth and mitigate the adverse impact of the COVID-19 pandemic while reinforcing green growth, and environmental and climate resilience. Its operational policy objectives are to: advance fiscal sustainability by supporting improvements in economic management and governance, improve the business enabling environment by supporting structural reforms, and enhance green growth, climate change and environmental resilience.
The beneficiaries will include the entire population of Seychelles, due to the broadness of the reform agenda and its impact on the entire public administration, economic growth, and environmental and climate resilience. Targeted interventions will be undertaken to ensure that women and youth are among the key beneficiaries of the program’s activities. The increased fiscal space generated will allow for greater spending on social programs oriented toward achieving the SDGs. Beneficiaries include the private sector in general and the MSMEs, in particular, through improved business environment, access to finance, and climate resilience. Direct beneficiaries are the Ministry of Finance, Economic Planning and Trade (MoFEP&T), Ministry for Investment, Entrepreneurship and Industry, Ministry of Agriculture, Climate Change and Environment, Ministry of Employment and Social Affairs, Public Utilities Corporation, Seychelles Energy Commission, and Seychelles Revenue Commission.
African Development Bank
MINISTRY OF FINANCE
|Last Update||04 Dec 2021|