Budget Address 2013-Société Seychelloise d’Investissement to manage 10 more commercial entities |07 December 2012

The Minister for Finance, Trade and Investment Pierre Laporte made the announcement in the National Assembly on Tuesday while delivering the 2013 budget address.

Minister Laporte also announced that a new authority to regulate the operations of non-bank financial institutions will replace the Seychelles International Business Authority (Siba).

With regard to the government transferring its participatory interests to the SSI, Minister Laporte said this will allow it to guide the strategies and oversee the performance and implementation of objectives of all commercial parastatals and agencies that it will own.

“It will adopt policies and business strategies similar to privately owned commercial/investment enterprises to ensure that it operates within a robust framework to achieve its goals,” Minister Laporte said.

Explaining the decision which he said is a common concept and practice in many countries, Minister Laporte said among its advantages is to have all the assets of the different entities together so as to  strengthen the financial base of the company to make it strong and financially viable.

He added that the SSI board will report to a Comité de Surveillance chaired by the President of the Republic and comprising the Vice-President and the Minister for Finance, Trade and Investment as members.

The SSI, which is a company wholly owned by the government of Seychelles, was established in 2008 and it already owns shares in four companies – Indian Ocean Tuna, Cassis Seychelles Company Ltd, 2020 Development (Seychelles) Ltd and Seychelles Cable Systems Company Ltd.

Minister Laporte noted that except for one – Cassis Seychelles Company Ltd – all the other companies are operating well.

He pointed out that the investor for Cassis Seychelles Company Ltd has encountered financial difficulties which have not allowed it to honour its commitment but noted that the  government has kept its part of the bargain and is in talks with the investor to find a solution to the issue.

With regard to the new authority – Financial Services Commission (FSC) – which will replace Siba, Minister Laporte noted that only the name and functions of the present authority will change and this measure will not affect its staff.

“Today Siba is playing two roles – regulator and promoter – but as from next year the promotion role will be removed and placed somewhere else which the government has yet to decide,” Minister Laporte explained.

He said the measure which has been adopted by many countries aims to strengthen Siba as a regulator.

Also relating to Siba, Minister Laporte pointed out that so far this year it has recorded a 16% increase in revenue compared to 2011 and beginning next year the revenue Siba and its successor the Financial Service Commission will collect will be transferred to the government on a quarterly basis.

This will ensure that funds collected by Siba are made available for the budget in a short period of time. This will also be another source of foreign currency towards building up the reserve of the Central Bank of Seychelles, added Minister Laporte.