#1Seychelles SDG Investor Map Leveraging Private Capital for Sustainable Development Emerging Investment Opportunities#2The Seychelles SDG Investor Map is the product of a partnership between the Ministry of Investment, Entrepreneurship, and Industry (MIEI) and the United Nations Development Programme (UNDP). The market intelligence tool identifies concrete and emerging Investment Opportunity Areas (IOAs) to attract private capital to national development needs and policy priorities in five sectors with strong impact on the Sustainable Development Goals (SDGs). The Seychelles SDG Investor Map also establishes emerging IOAs. Emerging IOAs offer the potential to generate additional private sector-led development impact once the market momentum and the policy and regulatory momentum, respectively, progress with the evolving market dynamics and the Government's further efforts towards ensuring the enabling environment for private sector contributions. They can evolve into market ready IOAs once business models are proven and the policy and regulatory opportunities are addressed. This prospectus highlights the emerging IOAs for Seychelles. COR#3The Sustainable Development Goals The SDGs were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030, all people enjoy peace and prosperity. The 17 SDGs are integrated-they recognize that actions in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability. Countries have committed to prioritize progress for those who are furthest behind. The SDGs are designed to end poverty, hunger, AIDS, and discrimination against women and girls. Disclaimer: UNDP does not seek or solicit investment for programs, projects or opportunities described in this document, and nothing in this document should constitute a solicitation for investment. UNDP assumes no liability for investment losses direct and indirectly resulting from recommendations made, implied or inferred by its research. Likewise, UNDP assumes no claim to investment gains direct or indirectly resulting from trading profits, investment management or advisory fees obtained by following investment recommendations made, implied or inferred by its research. Foreign investors interested in respective IOAs should carefully consider the list of activities reserved for nationals as outlined in the Reserved Economic Activities Policy of April 2020. This policy is accessible at: https://investinseychelles.com/investors-guide/where-to-invest SDG Investor Map - Seychelles 2023 3#4Emerging IOAs with Market Momentum 2 ZERO HUNGER SSS DECENT WORK AND ECONOMIC GROWTH INDUSTRY, INNOVATION LIFE 9 AND INFRASTRUCTURE 14 BELOW WATER#5Sustainable Aquaculture Production Business Model Set up and operate sustainable aquaculture farms and sea- ranching, in onshore and offshore areas, for the cultivation of high-value species such as snappers, groupers and other finfish. Development Need • . Fish is the major contributor to dietary protein, accounting for 35-40% of total protein consumed. The industrial and semi-industrial commercial fishing sectors are subject to quota due to depleting resources. The fisheries sector is unlikely to maintain the current fish consumption rate, without diversifying production and improving productivity. Emerging Potential The new Broodstock Acclimation and Quarantine Facility (BAQF) was inaugurated at the Providence Fishing Port in 2019 to accommodate commercial fish species such as grouper and red snapper. BAQF can serve as a foundation for further integration into an aquaculture research and development facility, where a specialized hatchery will be established. Market Momentum • • Aquaculture farms and related infrastructure are currently developed by the Government of Seychelles. High investment and research costs, and land space requirements associated with aquaculture, evidence the need for public sector intervention during the infancy of the sector. Once piloted, it should commercialize, improving the food security and fishery value chain in Seychelles. SDG Investor Map - Seychelles 2023 5#6Waste Management Business Model Provide waste management services, including collection, sorting, recycling, and waste logistics through PPP and B2B models to reduce and recover waste ending in landfills. Leverage digital waste management solutions such as food waste tracking applications. Produce biogas-based clean energy from organic waste trough Anaerobic Digestion (AD) while further utilizing the digestate as fertilizer or raw material. Development Need • Seychelles, a geospatially isolated biodiversity hotspot with limited and mountainous land, serves a sizeable fishing industry and a tourist population more than three times its own in the absence of engineered landfills. The main sanitary landfill at Providence has a projected lifespan ending in 2024. The unavailability of new land space impedes the development of new landfills amid an increase of 6% in solid waste generation per year.#7Emerging Potential The waste generation rate in the island of Mahé is twice the world average, while the solid waste collection rate is 100% on the island. More than half of the waste generated in Seychelles is recoverable for energy production and the total waste amount is expected to increase by 50% by 2030. Market Momentum • There is strong demand for the end products of the Anaerobic Digestion (AD), which are the biogas and the digestate with multiple use (including energy, fertilizers, and heating), from farmers, industry, hotels, households, restaurants, and landscaping companies. Moreover, the biodegradable waste supply is also sustained by farmers, food and beverage processing industries, hoteliers, households, restaurants, landscaping companies, and sewage treatment plants. Improved waste management could also unleash export potential of waste materials such as glass. SDG Investor Map - Seychelles 2023 7#8Waste Circularity in Hotels Business Model • Invest in circular waste management or sustainable material management (SMM) in hotels. This includes utilizing waste as the production input for the manufacturing of upcycled goods and commodities, and reducing solid and liquid waste. Development Need The quantity of waste generated per hotel per tourist per day (kg/person/day) may be as low as 0.56 kg for a small establishment, and as high as 4.07 kg for a full-service establishment. Sustainable waste management practices are amongst the criteria for the Seychelles Sustainable Tourism Label (SSTL) but received limited scrutiny by a small share of hotels and establishments. Emerging Potential There were efforts to establish a system to recycle waste oil from hotel kitchens, which would be converted into biodiesel and used in hotel vehicles to further reduce reliance on non-renewable energy. However, the need for laboratories for checking quality of the used oil accentuated the need for feasibility studies and incentives. Market Momentum Waste circularity in hotels is a potential business model to address one of the main development challenges arising from the country's dependence on a tourism industry which generates high volumes of waste. With the integration of this business model, hotels will also be aligned with global sustainability standards and have a broader outreach to potential impact-oriented customers and investors.#9• 山 Emerging IOAs with Policy and Regulatory Momentum Local Agricultural Production ⚫ Semi-Industrial Commercial Fishing · Digital Transformation: Business and e-Government Software Solutions Digital Marketplace for Diversifying the Export Market 2 ZERO HUNGER 3 GOOD HEALTH AND WELL-BEING SSS 10 REDUCED INEQUALITIES 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 4 QUALITY EDUCATION 14 LIFE BELOW WATER DECENT WORK AND ECONOMIC GROWTH 15 ON LAND LIFE 17 INDUSTRY, INNOVATION AND INFRASTRUCTURE PARTNERSHIPS FOR THE GOALS#10Local Agricultural Production Business Model • • Produce nutrient-dense crops in Seychelles, particularly fruits and vegetables locally produced by smallholders for local households and the hospitality industry. These products comprise staple foods such as sweet potato, cassava, breadfruit, and yam; fruits such as mango, tomatoes, and papaya; vegetables and spices such as moringa, lettuce and watercress, and other products (including an option for combining with livestock production of poultry, pork, and beef). Use intensive agriculture techniques such as aeroponics and hydroponics, notably for high-tech vertical farming in Seychellois islands that go green in energy supply, and climate-smart techniques such as drip irrigation, integrated pest and disease management, conservation agriculture, and improved drainage. Development Need • • The country is heavily dependent (70%) on food imports for domestic needs. Shocks such as the COVID-19 pandemic and the Russian- Ukrainian conflict are affecting food security further. Addressing these development needs will contribute to SDG 2 (Zero Hunger), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 15 (Life on Land). Emerging Potential • Sustainable agriculture could be developed in outer islands with focus on specific crops including, onion, potato, carrot, ginger garlic, vanilla and vanilla products, and coconut and coconut products. Around 400 smallholder farmers operate in Seychelles. If policy and regulatory gaps are addressed, Seychelles can substitute fruits and vegetable imports which amounted to SR 509 million (USD 40M) in 2020.#11Policy and Regulatory Momentum Designing an agricultural policy, introducing incentives and establishing vocational training among entrepreneurs, could make the sector profitable and competitive. A comprehensive assessment of potential projects could support farmer engagement in sustainable production. The Government could create facilities and infrastructure through public-private partnerships such as Build-Operate-Transfer and Design-Build- Operate. The capacity and competitiveness of smallholder farmers could be strengthened with necessary measures to prevent large enterprises and SOES from monopolizing the market. SDG Investor Map - Seychelles 2023 11#12Semi-Industrial Commercial Fishing Business Model Harvesting fish using artisanal fishery techniques or semi- industrial long-line fishery techniques to catch demersal and pelagic fish species to sell in the domestic market and for export to the AfCFTA and EU. Development Need • • Stability of fisheries in terms of catch is under scrutiny due to fishing size and methods. Although highly regulated by the government of Seychelles licensing structures and the Indian Ocean Tuna Commission, yellowfin tuna, one of the main targeted fish species, and other stocks in the demersal fishery, are already overfished. Fishers lack adequate infrastructure like markets, ice- making plants, repair areas, and modern fishing vessels. • Emerging Potential Revenue from fresh, frozen and processed fish exports accounted for almost USD 550 million in 2021, owing to an extensive Exclusive Economic Zone of 1.35 million km², situated within the Western Indian Ocean where approximately 14% of the value of global tuna catch is sourced. In 2021, the Seychelles Fishing Authority undertook six artisanal fishing projects in the districts of Baie Sainte Anne in Praslin, Glacis, lle Perseverance, Cascade, Anse Aux Pins and Grand Anse Praslin. The European Union-Seychelles Sustainable Fisheries Partnership Agreement (SFPA) guarantees a total of €2.8 million each year for the promotion of sustainable management of fisheries in Seychelles and the development of small-scale fisheries. The ratification of the AfCFTA will allow Seychelles to diversify beyond European markets and assure economic stability.#13ETE ANGEL 1 S220314013-86836 BLIQUTIER Policy and Regulatory Momentum • To improve local production capacities, several interventions are required. These include: Applying software solutions for the facilitation of a demand- driven supply network in the fishery sector. Introducing trade facilitation reforms and market entry support for businesses in the form of EU-based guidance and AfCFTA guidance. • Improving opportunities to access Blue Bond disbursement and Debt-to-Nature Swap proceedings by preparation and implementation of the sub-projects (promoting financial literacy and bookkeeping and operational capacity in terms of boat ownership and maintenance) to help increase capacity for local production. SDG Investor Map - Seychelles 2023 13#14Digital Transformation: Business and e-Government Software Solutions Business Model Develop customized software and enterprise technologies, including inventory and supply chain management software, enterprise resource planning (ERP), customer relationship management (CRM), search engine optimization services, and conversion rate optimization, specifically for micro, small and medium enterprises (MSME), digital tools for ministries, departments and agencies (MDAs), government- to-citizen (G2C) and government-to-business (G2B) e-governance services. Development Need • • A limited supply of digital talent, wide fluctuations in electricity rates, and the high price of internet connectivity restrain the development of internet-based services and products. Few educational establishments are engaged in the sector. There is ample scope for creating a more enabling environment for the development of home-grown technological innovation and e-business, with incentives in place to allow for start-ups and/or established entities. Emerging Private Sector and Market Potential • • African start-ups raised over USD 4bn in 2021, growing by over 2.5 times in 2021. Seychelles can substantially contribute to this trend if the ICT sector is improved. After the approval of the Digital Economy Agenda, the Digital Economy Steering Committee was created. Policy and Regulatory Momentum The digital economy agenda could improve policy and regulatory environment by providing guidance and management structure for digital entrepreneurship and fostering the establishment of an ICT ecosystem in the country, notably with fintech labs, IT incubators, and IT academies that would complement the education policy regarding the bilingual characteristic of the Seychellois workforce.#15Digital Marketplace for Diversifying the Export Market Business Model • Develop a digital marketplace application or platform to connect Seychellois producers with international markets specialized in tourism, fisheries value chains, and agriculture, and improve demand forecasting, supply decisions, origin traceability, and sustainability of products to trade via AfCFTA and EU agreements. Emerging Private Sector and Market Potential . . • There have been discussions regarding the initiation of a Mauritius fish exchange platform to trade the excess fish caught mainly in Praslin (or La Digue) from Seychelles to Rodrigues, an outer island of Mauritius. As islands of both countries transport the catch to the mainland first and then export, there is a need to create a link between the two countries. The partnership will take place between fishers' associations and NGOS to facilitate fish trade between artisanal communities. The Government of Seychelles is soon to issue the E-money regulation to ensure guidance to Payment Service Providers (PSPs). Government engagements to advance the digital ecosystem include incentives to increase the usage of digital financial services; study internet affordability and reliability; the adoption of the Financial Consumer Protection Act; Digital Financial Literacy, and the implementation of a new Credit Information System and associated legislative framework. Development Need • Seychelles' intra-Africa trade (USD 8 million in 2020) represented only 2% of the country's global exports. The ratification of the African Continental Free Trade Area (AfCFTA) can enable diversification beyond the European Union. Seychelles should tap into markets such as the Gulf Cooperation Council (GCC), the US, and the ASEAN countries. Policy and Regulatory Momentum • The digital economy agenda could improve policy and regulatory environment by providing guidance and management structure for digital entrepreneurship and fostering the establishment of an ICT ecosystem in the country, notably with fintech labs, IT incubators, and IT academies that would complement the education policy regarding the bilingual characteristic of the Seychellois workforce. SDG Investor Map - Seychelles 2023 15#16S-CORONAT OPVS FINIS C sib Seychelles Investment Board SDG JOINT UN DIP FUND https://sdginvestorplatform.undp.org/country/seychelles