WORLD BANK THROWS SEYCHELLES A $30 MILLION LIFELINE — BUT WARNS MORE TROUBLE MAY BE COMING
As global shocks bite, questions linger over government’s economic resilience strategy
By The Seychelles Times
The World Bank has already approved $30 million in emergency budget support for Seychelles as the country grapples with the cascading economic fallout from the Middle East crisis — and the bank’s representative has warned that further intervention may be necessary if conditions worsen.
Zarau Wendeline Kibwe, executive director for Africa Group 1 Constituency on the World Bank’s Executive Boards, met with President Patrick Herminie at State House this week, describing a visit focused on two goals: introducing himself as Seychelles’ representative on the board, and hearing directly from government about what support is needed.
The candour of his public remarks was notable. Rather than offering reassuring platitudes, Kibwe was direct about the stakes — youth unemployment, women’s economic participation, and climate vulnerability all featured in discussions, alongside the immediate turbulence caused by regional conflict affecting trade routes and tourism receipts.
A Tourism-Dependent Economy Under Strain
President Herminie reportedly emphasised Seychelles’ expertise in tourism, floating the idea that the archipelago could serve as a model of excellence for Africa. It is a familiar refrain from government — and one that critics argue reflects an over-reliance on a single sector that has repeatedly demonstrated its vulnerability to external shocks, from the COVID-19 pandemic to geopolitical instability.
With the government’s economic diversification agenda moving at a pace many observers consider too slow, the $30 million injection — while welcome — raises a longer-term question: how many emergency lifelines can a small island economy absorb before structural reform becomes unavoidable?
Kibwe met separately with Finance Minister Pierre Laporte, Fisheries Minister Wallace Cosgrow, and Central Bank Governor Caroline Abel. His departure after just a few days leaves behind a government that, by all accounts, is navigating serious headwinds with limited room to manoeuvre.
The World Bank’s door, he made clear, remains open. Whether government walks through it with a credible diversification plan remains to be seen.
