Integration
The Seychelles has a vulnerable economy and the government is well aware that better regional integration is key to economic stability. In January 2010 they fully satisfied OECD 's requirements, with the signature of its 12th double taxation agreement(DTA). As DTAs, unlike tax information exchange agreements (TIEAs), allow companies the added benefit of transferring the country's investment structure onto the counter signatory territory, has made the Seychelles a preferred location to structure investment deals.
The government now says it is their number one priority to expand the country's tax network. Double Taxation Agreements with Belgium, Monaco, Bahrain and Zimbabwe have been signed but are not in force yet; treaties have been discussed with Spain,Turkey, Israel, Malta and requests for DTA negotiations have been sent to Germany, Italy, Saudi Arabia, Australia and Ireland. The island also rejoined the Southern African Development Community (SADC) in 2007, which the island had pulled out of in 2003, in order to focus its funds on macro-economic reforms. Seychelles is also a member of the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA).
Infrastructure
The government is also focusing on an infrastructure drive, most importantly in telecommunication. Seychelles is getting high-speed direct access to the world's optical fiber backbone, thanks to a new submarine cable network. Last year, Seychelles Cable System (SCS) signed a contract to build the Seychelles East Africa System linking the Seychelles to Tanzania. SCS was granted an EUR8 million loan from the European Investment Bank (EIB). The link should be operational in 2012.
The island is also working to buildup its human resources. Last year a memorandum of understanding was signed between The Seychelles and India, where India promised to help with setting up a new information technology center in 2011. Technicians and IT teachers will be able to get training here.
The University of Seychelles was founded in 2009, running in conjunction with the University of London. The University's Bachelor of Laws program is badly needed to supply local lawyers for the offshore industry. According to the current law, foreign lawyers need to be retrained in the Seychelles if they want to practice there, but that rule should be changed in the very near future.
China - Seychelles
The Seychelles has over thirty years long relationship with China. FDI into China from Seychelles hit US$42million in 2008, and is growing steadily. "Seychelles can provide a tax structure for Chinese companies investing in Africa, both for those interested in manufacturing and mineral exploration, and for those interested in distributing Chinese made good into Africa," said John Esther, senior corporate manager at Barclay's Bank Seychelles.
Many infrastructure projects have been financed thanks to grants from China, hospitals, schools, housing, even a new parliament building and a new supreme court building. The Chinese are also discovering the Seychelles as a holiday destination.
