Seychelles Trade and Foreign Investment

Subchapters:

• Business Relationships
• Foreign direct investment
• FTAs ​​and Treaties
• Development Cooperation
• Prospective fields of study (MOP)

Business relations

Trade relations with the EU

After a balanced trade balance in 2018, Seychelles experienced a period of high exports from the EU and weakened imports to the EU in 2019 and 2020, leading to a deepening of the trade balance. In 2021, the situation was reversed, exports from the EU fell significantly and Seychelles imports into the EU increased, resulting in a positive balance with the EU for the first time in the last 5 years from the Seychelles perspective. In the EU, the main export destinations are France and Italy, the main source of imports is from EU countries France. Exports from Seychelles to the EU consist of more than 90% food and live animals, Seychelles mainly obtains machinery and means of transport and food from the EU.

Source: European Commission

Trade relations with the Czech Republic

Exports from the Czech Republic to Seychelles in 2021 remained at a similar level as in previous years, with the exception of the exceptional year 2018. Seychelles imports to the Czech Republic in 2021 remained below the usual level from previous years and just exceeded CZK million. Among the main items of Czech imports from Seychelles in 2021 were memory units and medical instruments. Television receivers and diagnostic mixtures were exported from the Czech Republic to Seychelles.

Source: businesscarriers.com

Trade relations with countries outside the EU

Imports to countries outside the EU were significantly affected by the global pandemic, in 2020 Seychelles exports fell to 64% of the relatively stable values ​​of previous years. 2021 has seen modest growth, but exports still lag behind pre-pandemic numbers.

Source: EIU, Eurostat

Foreign direct investment

During 2020, foreign direct investment in Seychelles reached USD 175.11 million. This was the second year-on-year decrease, as in 2019 investments in Seychelles amounted to USD 253.88 million, and the year before even USD 307.66 million. By sector, foreign direct investment is concentrated in the fishing industry, tourism and construction. Opportunities exist to explore for oil deposits and other commodities in Seychelles’ exclusive economic zone. In connection with the government’s efforts to reduce dependence on fossil fuels, the renewable energy sector is also interesting for investors. All investment projects are carefully evaluated, especially from an environmental point of view. At the same time, the Seychelles Investment Act contains a list of 65 areas in which foreign entities cannot be active.

FTAs and treaties

Treaties with the EU

Economic relations between Seychelles and the EU are regulated by the EPA Interim Agreement signed in 2009 and valid since May 2012 (Mauritius, Madagascar, the Union of Comoros and Zimbabwe are also members of the agreement), which allows most Seychelles goods free access to European markets. The Fisheries Partnership between the EU and Seychelles has been valid since 1987, the agreement is extended every six years, the current additional protocol covers the period from 2020 to 2026. The EU contribution for the access of European ships to Seychelles’ territorial waters for the purpose of fishing is € million annually.

Contracts with the Czech Republic

The bilateral trade agreement from 1988 was canceled in connection with the entry of the Czech Republic into the EU. Until now, negotiations on an agreement on the exchange of information in tax relations have been ongoing. However, due to the accession of Seychelles to the Convention on Mutual Administrative Assistance in Tax Matters, which enables, among other things, the exchange of information and cooperation in the tax field, further negotiations have ended.

In June 2016, the Aviation Agreement between the Czech Republic and Seychelles was signed. The President of the Czech Republic ratified the agreement on January 31, 2018, and thus the national conditions for the entry into force of the agreement were met on the Czech side. On the Seychelles side, the ratification process was not completed despite the urgency. The agreement is the first bilateral contractual arrangement between the two parties. It establishes a clear legal framework for successful cooperation between the Czech Republic and Seychelles in the field of civil aviation, including the so-called “code share”. It offers carriers of both parties the opportunity to operate services between the Czech Republic and Seychelles without geographical, capacity or other restrictions.

A Memorandum of Understanding was concluded between the Ministry of Health of the Czech Republic and the Ministry of Health of the Seychelles in the field of cooperation in the exchange of experience, doctors and medical experts. The document was signed by Ministers of Health Adam Vojtěch and Jean Paul Adam at the WHO meeting in Geneva on 19/05/2019. Although it is not a contract, the document will stimulate and support interesting and mutually beneficial cooperation between the two countries.

Developmental cooperation

The country is a recipient of development aid, however, the Czech Republic does not provide bilateral development aid to the Seychelles. European development projects focus on the areas of water (access to drinking water, treatment of used water) and access to energy.

Prospective fields of study (MOP)

Seychelles is not included in the ILO.