The African Development Bank (AfDB) has approved a $25 million loan to Seychelles, marking a significant step toward enhancing the country’s renewable energy sector and fostering economic resilience.
This loan is part of the first phase of the Economic Resilience and Green Recovery Support Programme, which will be implemented from 2024 to 2026.
The initiative aims to improve tax revenues, enhance governance in public spending, and promote economic diversification.
Seychelles, a small island nation, faces unique challenges related to climate change, including rising sea levels and extreme weather events. The country’s heavy reliance on imported fossil fuels has made it vulnerable to price fluctuations and supply disruptions.
To address these issues, the government is working towards achieving 100% renewable energy by 2035. The AfDB loan will play a key role in this transition, helping Seychelles reduce its dependence on fossil fuels and invest in renewable energy projects that will create jobs and drive sustainable economic growth.
A major focus of this programme is supporting the Seychelles government’s efforts to integrate climate adaptation and mitigation into its National Development Strategy for 2024-2028. This includes investments in the circular economy and enhancing environmental resilience.
The programme will also support economic diversification in key sectors such as fishing and tourism, encouraging private sector growth through legislative reforms and the implementation of an industrial policy.
The renewable energy projects will not only boost energy security but also create employment opportunities in the green energy sector. Community engagement will be central to these initiatives, ensuring local residents are actively involved in planning and implementing projects. This grassroots approach promotes local ownership and distributes the benefits equitably among communities.
Seychelles’ push towards clean energy also aligns with its tourism sector, enhancing its appeal to eco-conscious travelers. The AfDB’s support highlights the potential of innovative financing solutions for small island economies, helping Seychelles set an example for other nations in achieving climate resilience and sustainability.
