Advertisment

IMF Approves $102 Million Arrangement for Seychelles to Bolster Economic Growth and Climate Resilience

author-image
Nasiru Eneji Abdulrasheed
New Update
IMF Approves $102 Million Arrangement for Seychelles to Bolster Economic Growth and Climate Resilience
<br>
Image Credit: Image Credit: Nation

The executive board of the International Monetary Fund (IMF) has granted its approval for Seychelles to receive a total of $102 million in financial assistance, divided into two separate arrangements. The first is a three-year Extended Fund Facility (EFF) totaling $56 million, while the second is a three-year Resilience and Sustainability Facility (RSF) amounting to $46 million. This significant support aims to fortify Seychelles' economic growth and enhance its capacity to combat the challenges posed by climate change, as outlined in an official press release on Thursday.

Advertisment

According to the IMF statement, Seychelles' economic outlook is promising, with its tourism sector showing a robust recovery that has nearly reached pre-pandemic levels. Moreover, the country is expected to maintain moderate inflation levels. Despite these positive indicators, Seychelles remains exposed to substantial risks emanating from global financial and economic developments that could severely impact its tourism industry. Additionally, the country faces the looming threat of climate change, necessitating comprehensive measures to ensure sustainability.

Strengthening Climate Resilience and Encouraging Private Financing

The approved arrangement not only provides financial support but also aims to promote increased private financing and other official sources of funds. Specifically, the program emphasizes the mainstreaming of climate change considerations into the government budget, the enhancement of climate-related risk management within financial institutions, and the implementation of climate adaptation and mitigation reforms. These measures are crucial for facilitating the transition to a more sustainable and climate-resilient economy, including initiatives that promote renewable energy.

In response to the IMF's decision, Seychelles' finance minister, Naadir Hassan, expressed gratitude and appreciation. Hassan welcomed the approval of the new EFF and acknowledged the IMF's recognition of Seychelles' vulnerability to climate change. He further highlighted the substantial costs associated with enhancing the country's resilience against climate-related phenomena. The inclusion of Seychelles in the RSF program demonstrates the IMF's acknowledgment of the unique challenges faced by the country and its commitment to supporting its climate resilience efforts.

This IMF financial assistance represents a significant milestone for Seychelles in its pursuit of sustainable development and economic stability. By leveraging these funds effectively, Seychelles aims to further strengthen its economy, mitigate climate risks, and enhance its resilience in the face of future challenges.

IMF Economic Growth Climate Change Resilience Financial Assistance Seychelles
Advertisment
Advertisment