Economic Transformation Strategy

CHAPTER 2 / BROAD STRATEGY FOR DEVELOPMENT effective regulation of the sector. However, Seychelles still lags behind its peers in some areas, particularly in the area of affordability of voice and data services on mobile networks. Seychelles would benefit in increasing its competitiveness regionally and globally to address these issues. Seychelles aspires to become a potential financial technology (FinTech) hub. The creation of a critical mass of FinTech start-ups creating a strong ecosystem for innovation. FinTech is defined as the use of necessary technologies in the financial services industry to enhance operational and customer engagement capabilities by leveraging analytics, data management and digital functions. The FinTech agenda is being led by a partnership between the Central Bank of Sey- chelles, the Financial Services Authority and the Ministry of Finance, Trade, Investment and Economic Planning. With the assistance of the World Bank Group, a national coordinated strategy is currently being drafted, in addition to the enabling regulatory framework. Seychelles' FinTech agenda is in its infancy stage and effort is being made to develop it further. This may serve as an avenue for new economic and investment opportunities. Additionally, the domestic private sector in Seychelles remains small, which points to persistent constraints that limit opportunities. One of the major impediments is the ease with which one can start and operate a business. There is there- fore a need to improve the enabling environment for the private sector. Evidence from business surveys and international benchmarking shows that businesses in Seychelles face significant operating challenges that government policies and improved regulations can tackle. In particular, micro, small and medium-sized enterprises (MSMEs) play an important role in the development of the eco- nomy. MSMEs represent the main source of new business start-ups, and they have great potential to contribute to eco- nomic growth and innovation. It is thus important to address the areas of constraints to enable their full development. The graph below shows the most problematic factors for doing business in Seychelles. WEF survey results: the most problematic factors for doing business 0 5 10 15 20 20 25 Access to financing Poor work ethic in labor... Inadequately educated.. Inefficient government... Inadequate supply of... Restrictive labor regulations Corruption Policy instability Foreign currency regulations Crime and theft Tax rates Insufficient capacity to... Poor public health Complexity of tax regulations Inflation Government instability/coups Source: WEF Developing countries and regional and global institutions have increasingly focused on economic transformation towar- ds greater productivity and higher value activities. All this is in line with the SDGs, which ensures that no one is left behind and all parties work together to reduce poverty and increase the prosperity of a nation. Goal 9 calls for countries to build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation while Goal 17 identifies technology and international cooperation as important means of achieving and implementing the goals of the 2030 Agenda. As part of its Aspiration 1, Agenda 2063 calls for African economies to be transformed structurally to create growth, decent job and economic opportunities for all. Vision 2033 is in line with these international commit- ments and in choosing economic transformation as one of the pillars, these commitments were strongly recognised. 68

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