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The Board of Directors of the African Development Bank Group has approved a $34 million loan to Seychelles to strengthen economic resilience, improve public services, expand private sector opportunities, and advance the country’s transition towards greener, more inclusive growth.
Approved on 22nd September, the loan funds the third and final phase of the Economic Resilience and Green Recovery Support Programme (ERGRSP-III), supporting reforms across three connected areas: economic governance and public financial management, the business environment, and climate resilience.
“Seychelles has demonstrated that sustained reforms can deliver measurable results. This new financing will protect recent economic gains while supporting the next stage of reforms with a focus on stronger institutions. By improving public financial management, modernising government services through digital transformation, upgrading infrastructure and reducing barriers to investment, this programme will help create stronger conditions for private sector-led growth,” said Abdoulaye Coulibaly, director of the Bank’s Governance and Economic Reforms Department.
ERGRSP-III aims to improve public financial management systems, including electronic invoicing for tax compliance and a national e-procurement system. It will also create a one-stop investment portal and a Government Business Service Centre to help investors and entrepreneurs access business approvals and services.
Another key focus is green growth, which includes planning for electricity and marine resources, better regulation of hazardous chemicals, and reforms in agriculture and employment. It also plans to gradually introduce a national living wage.
Previous phases of ERGRSP have shown positive results, with tax revenues rising from 6.4% of GDP in 2023 to 8.2% in 2025. Digital public services increased by 10% from 2023 to 2024, and private sector credit growth reached 12.1% in 2024, exceeding 2026 targets.
The African Development Bank Group is an organisation that supports economic and social development in Africa. The Bank provided $25 million for each of the first two ERGRSP phases, in 2024 and 2025, bringing its total financing across all three phases to $84 million.
“The objective is not simply to finance a national budget. It is to support reforms that strengthen the foundations of the economy and help translate sound policy into better services, stronger businesses and greater opportunity for the people of Seychelles,” said Coulibaly.
