European Investment Bank channels Eur 5 million into Seychelles

Seychelles small and medium sized businesses are to benefit from EUR 10 million funding.

The European Investment Bank (EIB) today formally agreed to provide EUR 5m to the Development Bank of the Seychelles (DBS) to increase funding available for small and medium sized businesses (SMEs) in the country.

The loan from Europe’s long-term lending institution will be matched by the same amount from the Development Bank of the Seychelles.

The long-term funding agreement was signed in Victoria by EIB President Werner Hoyer and Seychelles Minister for Finance, Trade and Investment Pierre Laporte.

The European Investment Bank has been active in the Seychelles since the first credit line to the Development Bank of the Seychelles agreed in 1978. Since then European Investment Bank funding and technical assistance has supported private sector investment, water infrastructure and improved communications.

The EIB has worked closely with the DBS to address challenges facing SME private sector investment in the region. Loan funding under the new scheme will be available in local currency and target small companies and start-up entrepreneurs.

This initiative will be supported by technical assistance to help the Development Bank of the Seychelles’ continued efforts to modernise its governance, credit risk management and financial monitoring.

Past European Investment Bank funding for small business in the Seychelles has helped create more than 800 new jobs in 48 firms active in the tourism, manufacturing, fishing and storage sectors.

Earlier this year the European Investment Bank agreed to provide EUR 27m for investment to improve water and sanitation in the country. This includes funding for planned upgrades to the island’s water network to reduce leakages and help secure year round continuity of supply, and new sewer facilities to reduce risks to the environment and health.

The EIB has also funded the installation and operation of the first submarine fibre optic cable for international connections to the Seychelles.