Financing a company in the Seychelles economy
In Seychelles, entrepreneurs finance projects through commercial banks or the Development Bank of Seychelles, which runs five funds including the Blue Investment Fund, created from the 2018 blue bond and lending at 4% for sustainable fishing projects.
An economy driven by tourism and fishing
Tourism brings in most foreign currency and employs a large share of the workforce, while tuna fishing supplies the cannery at Port Victoria. Demand for business credit follows these two engines, with marked seasonal cycles throughout the year.
The Development Bank of Seychelles and its five funds
Based on Independence Avenue in Victoria, the DBS runs the DBS Scheme, the SME Scheme, the ADF for agriculture, the FDF for fishing and the Blue Investment Fund. It describes itself as the country's only development bank.
The Blue Investment Fund for the blue economy
Funded with 12 million dollars from the 2018 sovereign blue bond, the Blue Investment Fund lends from 10,000 to 3 million dollars at 4%, over fifteen years at most, covering up to 90% of the project cost.
Eligibility for public funds
The BIF is reserved for citizens and companies at least 51% owned by Seychellois. It finances processing, logistics, scientific services, market access and, since 2021, aquaculture, with applications handled on a first-come, first-served basis.
Commercial banks and established businesses
For a hotel, shop or service company already trading, Nouvobanq, SCB, Absa and MCB offer overdrafts, equipment loans and working-capital lines. Foreign-currency revenue from tourism sometimes makes it easier to obtain loans denominated in euros.
Small projects and first financing
A craftsperson or young founder will often start with modest sums from the DBS or the Credit Union. These options are described in our guide to microcredit in Seychelles, and a first loan repaid on time then eases access to the banks.
Licensing, registration and the Seychelles Investment Board
Every commercial activity requires a licence from the Seychelles Licensing Authority. A foreign investor also goes through the Seychelles Investment Board, and some activities remain reserved for Seychellois, which determines who can access public financing.
Farms and fishing businesses
Market gardeners, poultry farmers and small-scale fishers have dedicated windows at the DBS, where the ADF and the FDF play a central role. Their specific needs are covered in our guide to a farm loan in Seychelles.
Security and the promoter's contribution
Lenders generally ask for a mortgage on land, a pledge over equipment or personal guarantees from the partners. Even when the BIF covers 90% of a project, the promoter must provide the remaining share from their own equity.
Leasing pickups and minibuses instead of buying
Pickups, tourist minibuses and refrigerated trucks can be leased rather than bought, with the monthly rent paid from tourist-season takings. Our guide to car leasing in Seychelles presents the finance lease options now available locally.
Exchange-rate risk and foreign-currency income
A guesthouse on La Digue often earns in euros but repays in rupees, or the other way round. Matching the loan currency to the currency of revenue limits the effect of rupee fluctuations on the monthly repayments.
South Africa's SME ecosystem
South Africa's far larger SME financing ecosystem combines banks, public funds and venture capital. For comparison, see our guide to a business loan in South Africa, where the sums involved bear no relation to those in the archipelago.
Building a business financing file in Seychelles
- Register the company, obtain the Seychelles Licensing Authority licence and open a business account.
- Write a business plan with cash-flow forecasts that reflect tourism seasonality.
- Identify the right window: a commercial bank, or the DBS SME Scheme, ADF, FDF or Blue Investment Fund.
- Gather quotes, proposed security, financial statements and proof of your equity contribution.
- Submit the application, answer the credit committee's questions and negotiate the schedule and grace period.
- Sign the security documents, then account for how funds are used at each disbursement.
Indicative terms for business financing
| Source | Terms | Note |
|---|---|---|
| Blue Investment Fund | 4% over 15 years max (indicative) | From 10,000 to 3 million USD |
| DBS SME Scheme | Set by the DBS | For small local businesses |
| Commercial banks | Negotiated rate | Depends on security and track record |
| Promoter's contribution | At least 10% under the BIF | Higher elsewhere depending on risk |
| Security costs | Variable | Mortgage, pledge, professional fees |
Company file expected by Seychelles lenders
- Company registration certificate
- Seychelles Licensing Authority licence
- Business plan and financial forecasts
- Financial statements for recent years
- Parcel title or list of assets offered as security
- Partners' ID documents and proof of Seychellois shareholding
- Quotes for the equipment to be financed
What sinks a business project
- Presenting a business plan based on high-season occupancy all year round, when Seychelles tourism has pronounced slack periods.
- Submitting a project to the BIF that is not part of the blue economy or whose Seychellois shareholding is below 51%.
- Starting the investment before the credit decision and funding the launch with an expensive overdraft.
- Trusting an intermediary who promises guaranteed access to DBS funds in exchange for a commission paid upfront.
Entrepreneurs' questions on financing in Seychelles
What is the Blue Investment Fund?
It is a fund managed by the Development Bank of Seychelles and financed by the 2018 blue bond. It lends at 4% for up to fifteen years to projects in sustainable fishing, processing, logistics or aquaculture.
Can a foreigner benefit from DBS funds?
Public funds such as the BIF target Seychellois citizens and companies at least 51% owned by Seychellois. A foreign investor will instead turn to the commercial banks or to financing from outside the country.
Can a Seychelles business loan include a repayment holiday?
Lenders sometimes grant a grace period during construction or the start-up phase. Its length is negotiated according to the project, for example the time needed to deliver a boat or finish building a guesthouse.
Is land always required as security for a business loan?
Not always, but a mortgage on a parcel remains the most sought-after security. Otherwise, a pledge over the financed equipment and personal guarantees from the partners may be accepted, depending on the amount.