Smart, Resilient Investments Key to Jobs and Growth in Seychelles, New World Bank Group Report Finds

WASHINGTON, March 27, 2026- Seychelles has built one of Africa's strongest economic success stories, and a new report outlines how decisive, resilient, and smart investments and reforms, particularly in tourism, fisheries, energy, infrastructure, and skill building can sustain these gains, unlock new growth engines, create thousands of new quality jobs, and safeguard livelihoods across the economy. Analysis in the Country Climate and Development Report (CCDR), released today by the Government of Seychelles and the World Bank Group, finds that without action, economic pressures linked to rising environmental and climate-related risks could reduce Seychelles' GDP by more than 6% by 2050, with disproportionate impacts on jobs, incomes, and poverty.

"We welcome the Seychelles CCDR as a timely and strategic contribution to our national development agenda," Minister Pierre Laporte, Minister responsible for Finance, Economic Planning, Trade and Investment, Republic of Seychelles. "It reflects our strong commitment to climate leadership and economic resilience. The report's recommendations are closely aligned with our national priorities-from strengthening energy security and protecting our coastlines, to investing in our people and unlocking the full potential of our blue economy. We look forward to working with the World Bank Group and our partners to turn these insights into meaningful action."

Tourism and fisheries-Seychelles' economic pillars-employ a large share of the workforce and generate most foreign exchange earnings. Yet both are increasingly exposed to rising sea levels, coastal erosion, marine heatwaves, and extreme rainfall. The report finds reorienting these toward higher-value, more resilient models can protect existing jobs while creating new ones.

Further opportunities to create jobs across the value chain could be realized by scaling up local renewable energy which could cut costs by 20% and reduce the reliance on imported fuel, which exposes the country to high and volatile electricity costs.

The CCDR underscores that sustaining growth, and employment requires targeted investments in infrastructure (coastal protection, transport, and water systems). Upgrading critical infrastructure and managing localized risks could halve future economic losses. In addition, aligning education, training, and labor policies with demand for skills in tourism services, energy, construction, water management, and agriculture will be essential to ensure Seychellois can access job opportunities and benefit from rising productivity.

"Protecting Seychelles' economy is not about choosing between growth and resilience," said Boubacar-Sid Barry, World Bank Resident Representative for Comoros and Seychelles. "Smart investments can deliver stronger growth, more and better jobs, and lower economic risks, while positioning Seychelles as a leader among small island states."

The CCDR sets out an action framework of three priorities: reorienting key sectors toward higher value and resilience; reducing exposure to economic and physical risks with targeted investments; and reinforcing fiscal and institutional foundations to support growth. Achieving these goals requires $810 million over the next 25 years (net present value), about 2.8% of GDP annually over five years, alongside reforms to mobilize private capital and strengthen public finances. The report outlines recommendations spanning tourism, fisheries, energy, coastal protection, water security, skills development, and financing, and will inform future engagement under the Seychelles Country Partnership Framework (2025-2030).

About the Climate and Development Reports

The World Bank Group's Country Climate and Development Reports (CCDRs) are new core diagnostic reports that integrate climate change and development considerations. They will help countries prioritize the most impactful actions to reduce greenhouse gas (GHG) emissions and boost adaptation while delivering broader development goals. CCDRs build on data and rigorous research and identify main pathways to reduce GHG emissions and climate vulnerabilities, including the costs, challenges, benefits, and opportunities. The reports suggest concrete, priority actions to support the low-carbon, resilient transition. As public documents, CCDRs aim to inform governments, citizens, the private sector, and development partners and enable engagements with the development and climate agenda. CCDRs will feed into other core Bank Group diagnostics, country engagements, and operations and help attract funding and direct financing for high-impact climate action.

Contacts

In Seychelles: Diana Styvanley, [email protected]

In Washington: Daniella van Leggelo-Padilla, [email protected]