The Seychelles is positioning itself as an ideal gateway for international investors seeking to enter African markets, according to Vice President Sébastien Pillay. In an appeal to Gulf investors, he highlights the political stability, strategic location of the archipelago, and reforms aimed at accelerating business.

Vice President’s Appeal to Investors

Seychelles Vice President Sébastien Pillay took the opportunity in an interview with Gulf News to reposition his country beyond its idyllic tourist image. He is particularly targeting the United Arab Emirates and the Gulf, presenting the Seychelles as a stable regional platform for quickly profitable investments. Classified as a high-income country, the archipelago relies on foreign direct investment (FDI) to diversify an economy centered on tourism and fishing, which is facing saturation and increasing regional competition.

The Seychelles already excel in attractiveness rankings: ranked #1 in Africa in 2024 according to the FNB report “Where to Invest in Africa,” ahead of Mauritius, thanks to its personal freedom, human development, and economic stability. This performance is based on 20 indicators, including innovation, market accessibility, and the business climate.

Priority sectors open to capital

Pillay lists seven key sectors for foreign investors: real estate, the digital economy, renewable energy, the blue economy, medical tourism, infrastructure, and education. Concrete reforms support this initiative: business facilitation, anti-cybercrime legislation, and land reclamation projects to increase available land. The objective is clear: to transform the archipelago’s strategic geography into a hub for emerging East Africa.

Real estate remains a magnet, with high-end tourism boosting property values and rental yields of 6-8% on Mahé, Praslin, and La Digue. Renewable energy and the blue economy (sustainable fishing, aquaculture) are capitalizing on ocean resources, while digital technology and medical tourism are attracting tech companies and high-end clinics.

Major tax and legal advantages

The Seychelles boasts an attractive offshore tax regime, through International Business Companies (IBCs) exempt from foreign profit tax, with no withholding tax on dividends, interest, or royalties. There is no capital gains tax on real estate or recurring property tax, and bilateral tax treaties prevent double taxation. These advantages make it a haven for international real estate investment companies (SCIs).

Political stability, rare in the Indian Ocean, and a legal framework favorable to foreigners complete the picture: rapid approvals, administrative digitalization, and investor protection. The archipelago is listed among the “global connectors” in investment reports, with a significant global economic footprint.

Strategic Position in East Africa

Located at the crossroads of the Indian Ocean, the Seychelles serve as a gateway to the dynamic markets of East Africa: Kenya, Tanzania, and Mozambique. Their classification as a “highflyer” or “global connector” in FNB analyses underscores a potential that transcends the modest size of their economy. The government is leveraging this geographical advantage to attract investment to sectors such as port infrastructure and international education.

Challenges and Saturation of the Tourism Model

Despite its assets, the archipelago faces an over-reliance on luxury tourism and fishing, with signs of saturation. Diversification through FDI is imperative to create skilled jobs and make the economy more resilient to external shocks such as climate crises or pandemics. Strategic land reclamation aims to address the lack of available land but poses environmental challenges in an otherwise ecological paradise.

Summary: Keys to Attractiveness

The Seychelles stand out as a prime gateway thanks to these key advantages:

Sectors open to FDI:

• Real estate (6-8% returns), digital technology, renewables, blue economy, medical tourism.
• Infrastructure and education, with land reclamation projects to create more usable land.

Tax advantages (IBC/SCI):

• Exemption from foreign profit taxes, no capital gains or recurring property taxes.
• No withholding tax on dividends/interest, double taxation treaties.

Rankings and stability:

• Raised #1 in Africa for attractiveness in 2024 (FNB), ahead of Mauritius, for freedom and human development.
• Rare political stability, rapid business digitalization, hub to East Africa.

VP Pillay’s objectives:

• Targeting the Gulf/UAE for a rapid ROI, diversification beyond the saturated tourism/fishing sectors.
• Reforms: anti-cybercrime, business facilitation, positioning as a “global connector.”

In short, the Seychelles is transforming its idyllic image into an economic driver, inviting investors to capitalize on the stability and tax system that make it a unique African springboard.