Government Activates National Economic Preparedness and Response Framework Amid Disruptions in the Middle East

An Extraordinary Meeting of Cabinet was convened this morning by the President of the Republic, Dr Patrick Herminie, to deliberate on emerging global disruptions affecting key aviation, energy, shipping and financial corridors in the Middle East. During the meeting, the Government outlined decisive and precautionary measures aimed at safeguarding Seychelles’ economic stability and reinforcing national resilience in the face of external uncertainties.

The Cabinet was presented with a comprehensive National Economic Preparedness and Response Framework aimed at ensuring continuity of essential services and protecting the wellbeing of the population. The Framework provides for:

• The establishment of a Cabinet Emergency Group, chaired by the President with the Vice-President as Vice-Chair, to provide strategic oversight and rapid policy direction;
• The creation of a multisectoral Economic Monitoring Group comprising Secretaries of State, Principal Secretaries and Chief Executive Officers to coordinate a whole-of-government response;
• Continuous monitoring of fuel supply, food security, aviation connectivity and foreign exchange reserves; and
• A staged escalation mechanism with clearly defined operational triggers and corresponding policy measures.

Following the meeting, the Economic Monitoring Committee briefed members of the press on the potential implications of the evolving conflict and outlined the proactive measures being undertaken to safeguard national interests.

Current Situation

The situation remains under control. The Government is closely monitoring developments and is taking all necessary measures to minimize any potential impact on economic stability and to protect the population.

Aviation & Tourism

There have been cancellations of certain flights from the Gulf region, including services from the United Arab Emirates and Qatar, which together account for approximately 30% of tourist arrivals. Forward bookings and weekly seat capacity are being closely assessed, with detailed figures still being consolidated. This period also presents an opportunity for Air Seychelles to strategically adjust its operations where feasible to support connectivity.

Food Supply & Essential Commodities

Current national food stocks and major commodities are sufficient for approximately two to two-and-a-half months. No immediate price increases are foreseen. The Government remains in active consultation with principal importers and suppliers and stands ready to implement targeted price control measures on essential goods if required.

Foreign Exchange & Financial Stability

The Central Bank of Seychelles maintains foreign exchange reserves equivalent to approximately four months of import cover. The foreign exchange market remains stable, with daily surveillance in place. At this stage, there is no need to draw down reserves.

Diplomatic Position & Citizen Support

Seychelles remains a non-aligned state and continues to call for peace and the resolution of conflict through dialogue and diplomacy. Seychellois students and nationals in affected areas have been contacted through Seychelles’ embassies, and a dedicated hotline has been established to provide support and assistance.

The Government reaffirms its commitment to prudent economic management, transparency and timely intervention to ensure continued stability and resilience during this period of global uncertainty.