Seychelles: AfDB Approves $25 Million Loan to Boost Renewable Energy Access and Job Creation
The African Development Bank Group (AfDB) has approved a $25 million loan for Seychelles to support the first phase of the Economic Resilience and Green Recovery Support Programme, an initiative aimed at improving economic governance and expanding access to renewable energy in the island nation. This program is part of a broader strategy spanning 2024 to 2026, focusing on economic reforms and sustainable growth.
One of the key objectives is to increase tax revenues and improve governance within the public sector, ensuring that resources are used efficiently for service delivery and investment in projects like the circular economy, where waste materials are recycled into new products—something that could serve as a model for African coastal countries, including Nigeria, where environmental sustainability is gaining ground.
The programme also targets economic diversification in vital sectors such as fishing and tourism—industries that are cornerstones of Seychelles’ economy, much like Nigeria’s reliance on oil and agriculture. The goal is to reduce dependency on any single sector and foster growth in others, especially by enhancing legislation to encourage private sector involvement. This can be compared to efforts in Nigeria to promote sectors like technology and renewable energy to reduce the country’s dependence on oil.
Moreover, the program will integrate climate adaptation and mitigation strategies into Seychelles’ National Development Strategy (2024-2028), reflecting a broader push in Africa to address the effects of climate change. In this regard, Seychelles can provide valuable lessons for Nigeria as it aims to develop climate-resilient agricultural and urban sectors.
Seychelles will also benefit from enhanced financial sector regulations, including a licensing regime for virtual assets, which can strengthen the country’s financial infrastructure. This focus on virtual assets and financial health mirrors trends in Nigeria, where fintech is playing a crucial role in promoting financial inclusion and economic growth, particularly for underserved populations.
Related Posts
The AfDB programme’s broader objective is to create jobs and drive inclusive economic growth while ensuring debt sustainability, much like Nigeria’s ongoing efforts to balance economic reforms with social welfare programs aimed at supporting its most vulnerable citizens.
This loan is part of AfDB’s ongoing commitment to Seychelles, with the bank’s active portfolio in the country amounting to $33.7 million as of July 1, 2024. The progress in Seychelles could serve as a roadmap for African countries like Nigeria, showing how investments in renewable energy, governance reforms, and economic diversification can pave the way for sustainable development.
