Africa-Press – Seychelles. A wide range of economic-related issues were discussed when newly accredited New Zealand High Commissioner Designate H.E. Michael Upton called on Minister Naadir Hassan yesterday.
The Minister of Finance, National Planning and Trade received HC Upton at his office at Liberty House.
Discussions during the meeting focused on the economy, climate change and adaptation, limited sources of financing available, investment in infrastructure, the banking sector, Anti-Money Laundering/Combating the Financing of Terrorism work being undertaken to meet international standards as well as other issues impacting on the cost of living.
Minister Hassan noted that due to the current fiscal consolidation required to ensure the country’s debt goes back to a sustainable pathway, there was limited fiscal space for investment in key infrastructures. Moreover, access to concessionary financing is limited due to Seychelles ‘high income’ status.
“As a small island state, vulnerable to many external shocks, Seychelles should not be penalised for managing its affairs properly. Because of its ‘high income’ status, we are not able to access concessionary loans,” said Minister Hassan.
Minister Hassan further pointed out that the main challenge facing the government is the high cost of living, emanating from supply chain issues caused by the Covid-19 crisis and also the impact of the Ukraine war on commodity prices.
“Seychelles as a small island state is dependent on importation which does not benefit from economies of scale, is bearing the brunt of the high cost of commodities on the international market. Inflation is continuing on its upward trend; thus the government has to come up with new mechanisms to assist those in the lower income bracket, at a time when budget is limited,” Minister Hassan highlighted.
HC Upton acknowledged that the last two years have been tough for New Zealand as well and currently his country is also being hit with high inflation because of the high cost of commodities worldwide and “issues around supply chain” just like Seychelles.
The topic of climate change and adaptation was also part of the discussions, with both Minister Hassan and HC Upton acknowledging that small island states “should be treated differently” as they “contribute less to climate change, yet they will be most impacted”.
For More News And Analysis About Seychelles Follow Africa-Press
