President Ramkalawan chairs high-level meeting on access to financing

The President of Seychelles, Mr. Wavel Ramkalawan, chaired a high-level meeting on access to financing this morning at State House. He was accompanied by the Vice President, Mr. Ahmed Afif, and the Minister for Investment, Entrepreneurship, and Industry, Mrs. Devika Vidot. The meeting brought together representatives of the Seychelles Bankers’ Association, the Central Bank of Seychelles, and the Ministry of Finance, National Planning, and Trade to discuss and address critical challenges in the area of access to financing.

The meeting focused on ensuring that financing mechanisms in Seychelles align with the developmental needs of the country while fostering an inclusive, resilient, and sustainable economic environment. The discussions also revolved around identifying key barriers to accessing financing for businesses and individuals and proposing targeted interventions to improve affordability, accessibility, and efficiency within the financial sector.

Key highlights of the meeting included:   

1. Challenges Identified:

• High lending rates and stringent credit requirements affecting Local Direct Investment (LDI).
• Limited access to financing for small and medium enterprises (SMEs) and startups.
• Perceived gaps in financial literacy and awareness among borrowers.

2. Proposed Measures:

• Enhanced collaboration between financial institutions and government stakeholders to develop innovative financing solutions tailored to SMEs and priority sectors, including agriculture, fisheries, and tourism. 
• Continued engagement from banks to ensure clients are given a fair opportunity to access financing.
• Strengthening financial literacy programs to empower citizens and businesses to make informed decisions.
• Promoting the adoption of technology and digital platforms to streamline the loan application process and reduce transaction costs.

3. Role of Regulators and Policy Frameworks:

• The Central Bank of Seychelles committed to reviewing its regulatory framework to encourage responsible lending while maintaining financial stability.
• The Ministry of Finance pledged to explore targeted incentives to support risk-sharing mechanisms, particularly for SMEs and emerging sectors.
• The Ministry of Investment, Entrepreneurship and Industry will be the main facilitator to ensure proposed measures are implemented for the benefit of local businesses and banks.

4. Call to Action:

• The President underscored the importance of collective effort and urged all stakeholders to prioritize access to financing as a critical enabler of economic growth, job creation, and providing a viable environment for Seychellois-owned businesses to thrive.

The meeting concluded with a commitment to convene regular follow-up sessions in the coming months to assess progress and refine strategies where necessary amongst all the key partners and authorities present. The government reaffirms its dedication to fostering an equitable and enabling financial ecosystem for all citizens and businesses, ensuring that no one is left behind in the country’s journey toward sustainable development. Furthermore, they will continue efforts to explore alternative means of financing which can benefit SMEs, especially start-ups.

Other senior officials and banking representatives present at State House for the meeting included, the Governor of the Central Bank of Seychelles (CBS), Ms. Caroline Abel, the First Deputy Governor – CBS, Mr. Brian Commettant, the Principal Secretary for Finance, Ms. Astride Tamatave, the Principal Secretary for Department of Investment, Entrepreneurship and Industry, Mr. Michael Nalletamby, the Chairperson of the Seychelles Chamber of Commerce and Industry, Mr. Oliver Bastienne, the CEO of Development Bank of Seychelles (DBS), Ms. Jean Preira, the CEO of the Seychelles Investment Board, Ms. Anne Rosette, the CEO of the Enterprise Seychelles Agency (ESA), Ms. Lisa Lautoy, the CEO of the Seychelles Commercial Bank, Ms. Annie Vidot, the CEO of Nouvobanq; Mr. Christophe Edmond, the Head of Finance (Credit)—Bank of Baroda; Mr. Arun Subramanian, Managing Director—MCB Mr. Desire Leo, the CEO of the Seychelles Credit Union; Mr. Christopher Lawrence, the Country Manager—Bank of Ceylon; Mr. Rajith Thushantha, the Managing Director—ABSA; Mr. Nazim Mahmood; the Director for Financial Services Development Division, May Paule Rabat and Ms Karine Benstrong from the Seychelles Investment Board.

Distributed by APO Group on behalf of State House Seychelles.