• IMF approves reviews of Seychelles’ reform programs, unlocking $45 million
• Total disbursements since 2023 to reach about $105.1 million
• Growth expected to slow in 2026 amid global pressures

A $45 million disbursement from the International Monetary Fund is expected for Seychelles following the approval of program reviews by the institution’s executive board.

In a statement released on March 19, the IMF said it had reached an agreement with the Seychellois authorities after completing the latest reviews under the Extended Fund Facility and the Resilience and Sustainability Facility.

The new tranche will bring total disbursements to about $105.1 million since May 2023. The funding is intended to support economic growth and strengthen fiscal and monetary policy frameworks, though it remains conditional on the implementation of agreed measures, according to IMF mission chief Todd Schneider.

Program performance has been described as strong. “All quantitative targets for end-June 2025 were met, and all but one for end-December. The government has implemented (or is expected to finish soon) most structural reforms under the EFF, although two will take additional time,” Schneider said. He added that the Central Bank of Seychelles has also implemented several measures related to climate risk management and communication in the financial sector.

The IMF noted that Seychelles’ economy performed solidly in 2025, with real GDP growth estimated at 5.1%, driven by tourism, while consumer prices recorded slight deflation.

However, growth is expected to slow in 2026, reflecting disruptions linked to the conflict in the Middle East. Real GDP growth is projected at 1.5%, while inflation is expected to rise to 2.6%, driven by higher global prices for fuel, food, and shipping.

“The mission recommends the government consider contingency measures on both the expenditure and revenue side to adjust to these developments,” the IMF said, adding that any additional spending should remain targeted at vulnerable groups and be temporary.

Lydie Mobio