The African Development Bank's Board of Directors approved on 22 September a $34 million loan to Seychelles. This is the third and final phase of the Economic Resilience and Green Recovery Support Programme (ERGRSP), bringing total financing to $84 million over three years.
Three years of reform, $84 million invested
The first two phases of the programme each received $25 million in 2024 and 2025. This third phase closes an unprecedented cycle of structural reforms in the archipelago. Results are already measurable: corporate tax revenues rose from 6.4% of GDP in 2023 to 8.2% in 2025, a nearly 28% increase. Digital public services improved by 10% between 2023 and 2024, and credit to the private sector grew by 12.1% in 2024 — exceeding the programme's initial targets.
Priorities of the final phase
The third phase targets four complementary areas. First, fiscal governance: introduction of e-invoicing and a national e-procurement system. Second, the business environment: creation of a one-stop investment shop and a business services centre. Climate resilience forms the third pillar, covering long-term electricity planning, marine spatial planning and agricultural institution reform. Finally, a national living wage framework is expected in this final phase.
A strategic partner in the economic transition
For Seychelles, the AfDB has been a central partner since the Covid-19 crisis. The archipelago, whose economy depends on tourism for over 70% of GDP, has been diversifying since 2021 toward finance, sustainable blue economy and digital services. The ERGRSP programme embodies this transition: it anchors structural reforms that attract private investors and build resilience against external shocks.
Why it matters
The signal is twofold. For Seychelles, the successful completion of a three-year AfDB programme strengthens credibility with international financial markets. For the region, it demonstrates that a small island state can implement deep and measurable reforms in under three years — a model that Comoros or Mayotte might observe with interest.
Source: Devdiscourse, African Development Bank, 22 September 2026.