2018 has seen a significant increase in Foreign Direct Investment (FDI) surpassing expectations, reaching USD 158.5 million, this is according to data compiled by the Central Bank of Seychelles (CBS). The actual 2018 FDI figure of USD 158.5 million vs. the forecasted amount for the same period of USD 139.2 million, represents a 14% increase in FDI. This increase brings the FDI amount for 2018 on-par with pre-moratorium levels which impacted large hotel developments in Seychelles.   

The general increase of USD19.3 million in Foreign Direct Investment (FDI) compared to the forecast shows that whilst the moratorium on large hotel development is still in place, investors are diversifying their portfolio into other sectors in Seychelles. This diversification is very important to the Seychelles economy as it reduces the country’s dependency on our traditional sectors; namely Tourism and Fisheries, it provides opportunities for investors to identify and fill demand gaps in the market, such as the Technology sector and as a result creates new skilled employment opportunities. Lastly and perhaps most importantly an increase in FDI demonstrates a level of confidence foreign investors have in the Seychelles economy.

2019 will prove to be a very strong year ahead with a forecasted USD 284.2 million in FDI. This will equate a 79% increase compared to 2018. Such positive figures is mainly accounted to large hotels developments and extensions which had received approval prior to the moratorium finally starting.   The emerging aquaculture industry which is expected to launch this year also plays a key role in such positive 2019 figures. As earlier mentioned, FDI figures are back on par with pre-moratorium level and is similar to the 2013/2014 period where FDI was USD 154.5 million and USD 209.5 million respectively.

Foreign capital investment is directly beneficial for local investors as it strengthens the economy, reflect a positive country’s image and provides investment opportunities in ancillary and complimentary services, for example large hotel establishments has created niche opportunities for adventure tourism activities most of which are reserved activities for Seychellois nationals.  The Seychelles Investment Board (SIB) is optimistic that the strong growth experienced in 2018 and the forecasted for 2019 will continue in the near future further boosting our economy.