World Country Guide

Business Profile

Economy
Tourism is the largest industry in the Seychelles’ economy; it now accounts for over 20 per cent of GDP, and draws 70 per cent of foreign exchange earnings. The service sector as a whole covers three-quarters of the Seychelles’ economy.
Despite a shortage of fertile land, the agricultural sector produces copra for export, a variety of cash crops including tea and vanilla, and staple foods like cassava and sweet potatoes for domestic consumption. Fishing became increasingly important from the 1980s onwards, both through expansion of domestic operations and the lucrative sale of licences to foreign fleets. Industry comprises a small mining sector which extracts guano (rich in minerals) and some natural gas, plus light and small-scale industries including food and drinks (notably a tuna-canning operation), boat-building, metals, chemicals, wood products and tobacco. There is also a thriving re-export business based on a recently established export-processing zone. Extensive searches for offshore oil and gas reserves have so far been unsuccessful. The economy’s heavy dependence on tourism makes it especially vulnerable to external factors (such as the September 11 attacks on the USA), over which it has no control. In 1995, in an attempt to diversify the service economy away from tourism, the Government started to promote the Seychelles as an ‘offshore’ financial services centre. This has been moderately successful, especially given that this is now a highly competitive and – because of concerns about fraud and money-laundering – controversial field.
After several years of recession, the economy is growing slowly. The main financial problem is the size of the country’s external debt. The Seychelles must import many essential products – an expensive process given the islands’ location – and this consumes the bulk of the foreign exchange earned from tourism.
The Seychelles is a member of the African Development Bank and the Indian Ocean Commission (which provides for regional economic cooperation). The Seychelles’ principal trading partners are the UK, Yemen (the main source of imported oil), Germany and the countries of the South African Customs Union (South Africa, Botswana, Namibia, Lesotho and Swaziland).

Business
Businessmen do not wear suits and ties, although a smart appearance is advised. Most executives speak English and/or French. Office hours: Mon-Fri 0800-1600.

Commercial Information
The following organisation can offer advice: Seychelles Chamber of Commerce and Industry, PO Box 599, Ebrahim Building, Victoria, Mah (tel: 323 812; fax: 321 422; e-mail: scci@seychelles.net).

Conferences/Conventions
Further information from Mason’s Travel, Michel Building, PO Box 459, Victoria, Mah (tel: 322 642; fax: 225 273); or Creole Holidays, Orion Building, PO Box 611, Victoria, Mah (tel: 280 100; fax: 225 817; e-mail: info@creoleholidays.sc; website: www.creoleholidays.sc); or Premier Holidays, Premier Building, PO Box 290, Victoria, Mah (tel: 225 777; fax: 225 888; e-mail: premier@seychelles.net); or Travel Services Seychelles, Mah Trading Building, PO Box 356, Victoria, Mah (tel: 322 401; fax: 322 366).