Seychelles First Sustainable and Inclusive Growth Development Policy Operation

The Development Policy Operation (DPO) supports the Government of the Republic of Seychelles’ (GoS) to: (i) strengthen financial stability and the business environment; (ii) promote fiscal transparency; and (iii) enhance environmental and social resilience. The DPO is the first in a programmatic series of two operations and will provide an IBRD loan of US15 million dollars. The DPO aligns with the Seychelles National Development Strategy (NDS) 2024- 2028 which outlines its reform priorities to achieve diversified, inclusive, and climate-resilient economic and social development. Given Seychelles’ high-income status (Gross National Income (GNI) per capita of US16,940 dollars, Atlas method), the DPO adheres to the principles of engagement for countries above the Graduation Discussion Income, to help address the country’s limited access to international markets and continued need for institutional strengthening. The DPO provides a strong platform to drive capacity development via technical assistance, accelerate the completion of high-quality reforms, and continue to support the post-COVID fiscal consolidation and decline in public debt towards the GoS’ 50 percent of Gross Domestic Product (GDP) target by 2030. The DPO series builds on the strong implementation and results of four consecutive DPOs over the past four years, highlighting the GoS’ prudent macroeconomic management, its commitment to consistent, steady reforms, and its capacity for implementation, despite being a small island state. The DPO aligns with the World Bank Group’s Country Partnership Framework (CPF) for Seychelles FY25-FY30. General elections are scheduled for September 2025. With well-established democratic institutions, the political environment is expected to remain stable.