54 AFRICAN COUNTRIES

After attaining independence in 1976, Seychelles's per capita output has increased roughly seven times the pre-independence level . The major reasons for growth are tourism and the fishing sector.

Sector % age Contribution to GDP(2007) Agriculture , fishing and forestry 2.30% Manufacturing  10.2% Electricity Gas and Water  2.1% Construction 7.10% Wholesale and retail trade 6.10% Transport and Storage 14.50% Real Estate  11.50% Government services  9.1% other Services 37.20%

Agriculture and Fishing Sector

Agriculture in Seychelles accounts for only a 2.3% of the GDP and employs an equally modest proportion of the workforce. The arable land is limited and the soil is generally poor. The country is still dependent on imports of foodstuff except that of copra (from coconuts), cinnamon bark, vanilla, tea, limes and essential oils which are exported.

Fishing Sector

Seychelles comprises of widely scattered group of islands in the western Indian Ocean, one of the few absolute economic advantages that it enjoys is the very large EEZ (Exclusive Economic Zone). The scattered islands provide a total of 1.4 million square kilometers, of which approximately 50 thousand square kilometers is continental shelf. The country has got a modern fishing industry that supplies both domestic and foreign markets.

Tuna is presently by far the most important of these marine resources. In effect, Seychelles is situated in the centre of the most important zone of surface tuna fishing in the Indian Ocean. The maximum amount of the tuna vessels are foreign-flagged and owned, though they do provide employment but for a limited number of Seychellois. The artisanal fishing has traditionally been an activity, especially since it provides employment for a significant number of local fishermen. The catch from artisanal fishing is mainly for the domestic market, although its contribution to exports has increased in recent years.

Tourism

The establishment of the International airport in Seychelles in the year 1971 paved the way forward for the tourism sector. The tourism sector is today the key sector of the Seychelles economy. It contributes to more than 20% of the country’s GDP and is also the single largest generator of foreign exchange. It is also the largest generator of employment. Over 15% of the total work force in tourism is directly employed in related businesses like airlines, accommodation, restaurants, car hire business, tour operator etc.  The visitor arrivals have steadily grown from a mere 37,000 in 1975 to over 160,000 visitors in 2007; the average length of stay per visitor has been consistently recorded at slightly over 10 nights. The maximum visitors are from the European region and constitute of approximately 80 percent of the total arrivals. The government of Seychelles plans to make tourism a strategy for sustainable tourism development and to diversify into a product. The environmental policies ensure that the region is not only marketed as tourism spot but also an eco-tourism destination.

Manufacturing Sector

The manufacturing sector of Seychelles is dominated by the tuna canning industry. The two major companies into this industry is IOT and IMPRESS. Both the companies manufacture tuna cans from imported metal and are into the production of fishmeal and catfood. The industry is particularly important for the economic growth and generates large amount of foreign exchange for the country.

For Further Reference

African Economic Outlook

Seychelles country profile - BBC

World bank