Economic Transformation Strategy slide image

Economic Transformation Strategy

CHAPTER 2 / BROAD STRATEGY FOR DEVELOPMENT ...BUT DUE TO TOURISM, SEYCHELLES' SERVICES ARE LARGER THAN AVERAGE FOR SMALL STATES Source: WDI data Luxembourg Maldives Seychelles Cyprus Bahamas, The Fiji Iceland Samoa Bahrain Guyana Brunei Darussalam 0.5 1.5 2 The Seychelles EEZ spans an area of approximately 1.4 million km2 and thus fisheries is a vital component in the eco- nomy of the country. It provides a source of employment, contributes to food and nutrition security, generates income, trade and foreign exchange and government revenue. The fisheries sector is one of the most important pillars of the economy, alongside tourism. With more than 65 percent of the fish landed in Seychelles being immediately transhipped for processing in other countries, there is scope to significantly increase the sector's value-added contribution and a need to place fisheries on a more sustainable footing to ensure a secure supply for future generations. In transforming our economy, the aim is to sustainably exploit this abundant natural resource to its full potential. The blue economy concept, although new to many, represents a potential area for beneficial gains to the Seychelles. The ocean brings untapped development opportunities for our people, as well as the responsibility for protection of our marine and coastal resources. The fundamental principles of sustainability and climate resilience are consistent with Agenda 2030 and the Paris Agreement on Climate Change Seychelles signed in 2015. The blue economy is about increasing human wellbeing through ocean-based sustainable development practices. Infrastructure investment needs are large, including in electricity, water, sanitation, the port, airport, road network, urban development, land, and second undersea cable. Many of these investments will go towards the replacement of obsolete infrastructure, such as that of the port and the electricity grid. The fast spread of digital technologies throughout the world, such as the current "Industry 4.0" trend towards industrial automation, digitalisation of machinery and artificial intelligence, is reshaping production processes and business mo- dels with important implications for the economic transformation of the country. Technology helps boost both labour and capital productivity and facilitate connections. In order to maximise the potential of digital technology for economic transformation, policy makers must proactively adjust the infrastructural, regulatory and policy framework. The ICT sector in Seychelles is a relatively small but well-established one. Multiple successes have been achieved in the ICT domain over the years, through the four established operators in collaboration with government. Some of the successes include the international connectivity of Seychelles through the submarine cable since the year 2012 through a public-private partnership (the SEAS consortium), and the recent decision to install a second fibre optic cable for redundancy purposes. A critical factor of these successes has been the continuous efforts of government to ensure 67
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