SPPF DOING THE U-TURN !

As the SPPF government scrambled to reverse the economic catastrophe they have unleashed on this country, a far more serious problem is looming on the horizon; a cement crisis. Land Marine has not imported any cement to the country for the past 6 months and the other company has stated that the next consignment will not be sold to the public. Small contractors and ordinary Seychellois families building a house are being hit the hardest by this new development.

DOING THE U-TURN

The government seems to be going back full circle in its demarche to take us back to the pre-1977 era where the Central Bank reserve was healthy, foreign exchange was in abundance, a lean and efficient civil service thrived, due to the tourism boom. The introduction of a free market economy where the private sector was vibrant and creating wealth for the country was also credited for economic growth. After 30 years of failed economic policies and communist indoctrination, the realization has finally dawn on the government that unless they change strategy, economic “collapse” is imminent, to quote Captain Guy Adam. Many are therefore asking is it 30 years too late for Seychelles?

A CHANGE IN STRATEGY

A change of strategy has been deemed the best approach to adopt as the government finally embraced the wisdom of advise from experts which were given to them years ago but which they arrogantly refused to take onboard. But all is not well in paradise as the government has resorted to take loans to pay loans and many are asking what will it take to make this government listen to reason. Experts are in agreement that when a country takes loan at commercial rate of interest to pay other loans which it could not otherwise pay, something very wrong is going on. The government has admitted recently that it has raised another 30 million dollar loan through the issue of junk bonds with the help of Lehman Brothers in Europe, although the purpose of the loan has remained a state secret to date.

INVESTORS ARE UNHAPPY

What has struck many as odd though is the fact that investors to our shores are still being given the run around as the Cabinet has proven itself time and time again either unable or unwilling to make timely and prompt decision on projects presented before them. Some investors have complained that they have been waiting over two years for their projects to be approved by Cabinet. The Seychelles Investment Bureau (SIB) has also failed dismally in its role as a one stop shop for investors as incompetence and inefficiency have been allowed to fester. The SIB has shockingly told a local investor that in order for his project to be approved he has to provide proof of funds. This is truly from the sublime to the ridiculous!

PERCEPTION OF CORRUPTION RIFE

On the other hand, in our sister country, Mauritius, things are moving rapidly ahead as Finance Minister, Rama Sithanen, has been given a free hand by Prime Minister Ramgoolam to do away with bureaucracy and red tape and to speed up decision making process so as not to scare away investors; something which Seychelles has failed to do. As a result investors from South Africa and further afield are flooding Mauritius with their foreign investments. The “let us wait and see approach” adopted by the SPPF government is clearly causing inconvenience and frustration not only to foreign investors but to local ones as well. This has given the overall impression to investors in general that unless something is given under the table any project presented to the present government is doomed to failure. The perception of corruption in Seychelles has thus remained prevalent and embarrassing.  What is President James Michel doing about this?

September 7, 2007
Copyright 2007: Seychelles Weekly, Victoria, Mahe, Seychelles