The fisheries sector is second only to tourism in the Seychelles. The fisheries sector contributes significantly to the GDP and employs 17% of the population. According to the National Bureau of Statistics in 2018, Seychelles has seen a 116% increase in the total export of fresh and frozen fish; and 400 tonnes of demersal fish exploited monthly, on average for consumption by locals and tourists. Seychelles recognized the need to rebuild and sustainably utilize fish stocks through improved governance and management of the sector. The Blue Economy Roadmap also, provided direction on how to diversify the blue economy through more investment in aquaculture. However, the cost of this transition can be substantial for a small island nation.
To meet the cost of this transition, the Government of Seychelles issued a US$ 15 million bond. The proceeds of this blue bond would be used for three objectives:
- Expanded sustainable-use marine protected areas: investments in planning, implementing and enforcing the planned expansion of areas within the Seychelles’ exclusive economic zone subject to restrictions on fishing;
- Improved governance of priority fisheries: investments in finalising key fisheries management plans and building the institutional capacity to implement those plans; and
- Sustainable development of the blue economy: investments in developing greater value addition from the aquaculture, industrial, semi-industrial and artisanal fishing and processing sectors.
The proceeds of the blue bond is administered by two bodies. First, US$3 million by the Seychelles’ Conservation and Climate Adaptation Trust (SeyCCAT) to provide grants and the Development Bank of Seychelles (DBS) to provide loans.
The main beneficiaries are Seychellois whose livelihoods depend on marine resources and the ocean. This includes artisanal and semi-industrial fishers, operators in tourism and seafood value chains, including aquaculture; national and local institutions engaged in the management of marine resources, including fishers’ associations and government entities.
Since 2018, SeyCCAT receives US$ 500, 000 annually from the blue bond. Since 2018, SeyCCAT has used the proceeds of the blue bond to fund a total of 17 projects.
What is the link between SeyCCAT and DBS?
To support the J-curve development of businesses, SeyCCAT supports the research and development stage. Once the idea is piloted, lessons learned then the grant can further support the development of a business plan.
This business plan and evidence of research and development can support your application for a blue loan. The output from the SeyCCAT grant will be accounted as part of your personal contribution for a loan from DBS.
An example: The Route to Market project:
SeyCCAT is funding the survey of consumers and fishers and the creation of an app that will connect them. This survey should ascertain who are the fishers who are willing to participate in this service and whether there is in fact, demand for such a service.
The creation of the app provides the starting point to connect the fisher to their consumer. This serve as a foundation for a business proposition that can be submitted to DBS.
Are you interested to submit a project?
We are open to support projects that:
Who invested in the blue bond?
Since the total amount of the blue bond is of relatively low volume in market terms, it was privately placed with three socially responsible impact investors based in the United States, namely Calvert Impact Capital, Nuveen, and Prudential. The placement agent is Standard Chartered Bank and the trustee is the Bank of New York.