State House

Office of the President of The Republic of Seychelles

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Cabinet Business- Thursday 25th July 2024

President Wavel Ramkalawan, chaired a scheduled meeting of the Cabinet yesterday, Wednesday 24th July in which a number of legal and policy memoranda were approved.

The Cabinet approved for Seychelles to ratify the ‘International Convention for the Suppression of Acts of Nuclear Terrorism.’ Adopted by the UN General Assembly in 2005 and in force since 2007, the Convention aims to enhance global nuclear security by criminalizing acts of nuclear terrorism and requiring State Parties to establish jurisdiction over related offenses, ensure extradition or prosecution of offenders, and cooperate internationally. Seychelles signed the Convention in 2005 but has not yet ratified it. Ratification will strengthen national, regional, and global security, provide a robust legal framework, facilitate international cooperation, and ensure compliance with UN Security Council Resolutions. Additionally, Seychelles will receive assistance from UNODC and IAEA for adherence and implementation, with no additional financial burden on Seychelles.

The Cabinet has approved amendments to the Customs Management (Tariff and Classification of Goods) Regulations 2022 and the Excise Tax (Rates) Regulations 2023 in light of promoting eco-friendly vehicles and a circular economy. In response to private sector concerns about high taxes on chassis fitted with electric motors, such as for buggy/golf carts, the Cabinet has decided to reduce the customs duty and excise tax on chassis fitted with electric motors to 0%, maintaining only the 15% VAT. Previously, these chassis were subject to a 25% customs duty, 100% excise tax, and 15% VAT. The Cabinet's approval aims to encourage the importation of environmentally friendly vehicles, supporting the government's sustainability goals.

The Cabinet approved the implementation of the National Addressing System (NAS) in S42 format, including the postcode proposition.  This system aims to provide a standardized, accurate, and efficient addressing framework to improve service delivery, economic growth, and quality of life in Seychelles. The Universal Postal Union (UPU) will support the implementation, with pilot testing in Beau Vallon and a planned rollout by March 2025.

The Cabinet approved the shortlisted potential Geographical Indications (GIs) products of Seychelles—namely Bourgeois, Kordonnyen sale, Coco de Mer, and Honey—for more in-depth analysis by a European Union (EU) expert. Since 2022, Seychelles has actively pursued GIs development to address challenges in the agriculture and food sector, enhance market access, and preserve bio-cultural diversity. GIs are used to identify products from a specific region with unique characteristics linked to their geographical origin, providing consumer assurance and protection for producers. The next steps include drafting a manual of GI registration procedures and receiving additional expert assistance to complete the GI registration process for at least one GI as originating from Seychelles.

The Cabinet approved solutions to address the generation capacity challenges faced by the Public Utilities Corporation (PUC) due to outdated generators in Mahe and Praslin. For Mahe, the proposal includes deploying three 1.5MW containerized generator sets and undertaking necessary foundation works. For Praslin, the plan is to enhance existing generator capabilities by replacing cooling systems and adding one 1.5MW containerized generator set. These measures aim to stabilize power supply until planned expansions are commissioned in 2025 and 2026. The total project cost is estimated at SCR36M.

The Cabinet approved a proposed three-party Memorandum of Understanding (MoU) for Reem Energy Holdings (REEM) to develop utility-scale renewable energy projects across La Digue, Praslin, and Mahé. This MoU, involving the Seychelles government, the Public Utilities Corporation (PUC), and REEM, outlines REEM's role in executing projects under the Build Own Operate Transfer (BOOT) principle. The projects, including solar PV with battery storage, floating solar PV, and wind energy, aim to generate 94.9 GWh annually, meeting renewable energy targets and reducing CO2 emissions by 193,848 tons over 25 years.

The Cabinet approved the establishment of a Government Service Centre in Victoria’s Waterfront area, aimed at providing a one-stop shop for public and business access to a wide range of government services aligned with Seychelles' ease of doing business agenda. It will also house the Accelerator Unit, dedicated to rapidly addressing challenges, accelerating strategic programs, developing policies, and enhancing government services through collaboration and innovation. Fully funded by the UAE, this project will be managed by the Ministry of Investment, Entrepreneurship, and Industry.

The Cabinet Paper approved a strategic plan for the Seychelles Petroleum Company (SEYPEC) to replace its aging tanker fleet with new, technologically advanced vessels. The current fleet, aged between 16 and 19 years, faces increasing maintenance costs and regulatory pressures, making replacement necessary. SEYPEC plans to phase out its existing tankers and acquire two new vessels by 2027, leveraging the expertise of German Tanker Shipping (GTS). This plan aims to ensure SEYPEC's long-term sustainability and operational efficiency.

The Cabinet was briefed on the results of the analysis of the current cleaning and waste collection contracts and services in Seychelles. Following this briefing, the Cabinet approved several recommendations, including integrating waste management education, enhancing efficiency and enforcement, cleanliness, improving the bidding process, and adjusting the number of lots. The Cabinet also advised on finding ways to ensure maintenance of the cleanliness of the beaches by the public. 

The Cabinet approved the setting up of a National Coordinating Body for high-level support and oversight of initiatives to address substance abuse.  Cabinet also gave its approval for Seychelles to prepare its bid to host the Regional Drug Observatory. Hosting the RDO will position Seychelles at the forefront of combating drug trafficking and abuse in the Western Indian Ocean, addressing the significant public health and crime challenges posed by narcotics.

 

Relevant Ministries will provide details.