Vice-President Mr Sebastien Pillay chaired a scheduled meeting of the Cabinet on Wednesday 29th April, during which a number of policy memoranda related to the Economic development targets supported by IMF were approved.
Cabinet approved the implementation of a Multi-Year Electricity Tariff (MYT) framework as the basis for comprehensive electricity tariff reform in Seychelles. This new approach marks a key step towards a more transparent, predictable, and cost-reflective pricing system. Under the MYT framework, electricity tariffs will be set over a defined period of three to five years, based on projected costs, with built-in adjustment mechanisms to account for changes in key variables such as fuel prices and exchange rates. This approach is intended to provide greater price stability for consumers, improve revenue certainty for the utility, and reduce the need for frequent tariff revisions. The reform responds to Seychelles’ continued reliance on imported fossil fuels, increasing electricity demand, and the need to accelerate investment in renewable energy and strengthen energy security.
Cabinet was presented with the Public Expenditure and Financial Accountability (PEFA) 2025 Assessment following which Cabinet approved a comprehensive Action Plan to strengthen Seychelles’ public financial management (PFM) system over the medium term. The PEFA assessment covers the period 2021 to 2023 and was undertaken jointly by the World Bank and the African Development Bank using the 2016 methodology. The results of the assessment confirms that Seychelles’ PFM framework whilst broadly sound, however, needs improvement in areas such as, budget transparency, financial reporting, debt management, and budget execution. At the same time, it identifies priority areas for reform, including strengthening strategic allocation of resources, improving procurement and contract management, enhancing audit follow-up mechanisms, and addressing gaps in revenue administration. Cabinet accordingly approved the implementation of a targeted Action Plan to address these weaknesses, including measures to better align planning and budgeting frameworks, introduce mandatory project appraisal, expand e-procurement and establish a central contract register, strengthen revenue arrears management, improve cash forecasting, and formalise systems to track audit recommendations. Cabinet further endorsed the integration of climate-responsive and gender-responsive budgeting into the national budget process. These will be achieved through the use of tools such as budget tagging and climate risk screening of public investments to ensure that public spending is more efficient, accountable, inclusive, and aligned with national development priorities.
Cabinet approved the Tourism Action Plan 2026–2030 as the Government’s five-year strategic framework to strengthen the competitiveness, sustainability and economic returns of Seychelles’ tourism sector. The Plan results from a Tourism Assessment undertaken as part of the IMF supported economic reform programme and responds to key challenges identified, including slowing visitor growth, stagnant per-visitor spending, reduced air connectivity, and economic leakages limiting the sector’s full benefit to the local economy. The action plan sets out a structured programme of reforms and actions across four priority pillars: improving capacity and revenue management to maximise value from arrivals; advancing sustainable destination development to protect natural and cultural assets; strengthening local linkages to retain more tourism revenue within the domestic economy; and enhancing governance and institutional capacity to support coordinated sector management. This will help in redefining the tourism sector and also bring about more diversification. Cabinet further confirmed the Ministry of Tourism and Culture as the lead implementing Ministry.
