London, UK -- (SBWIRE) -- 03/16/2011 -- President James Michel was addressing the National Assembly, and the Seychelles nation via live radio and television broadcast on his address on the State of the Nation today.

“Yes, the world is talking about Seychelles’ successes…Our economic growth for 2010 was 6.2%. This surpassed the IMF forecast of 4%.”

“With 47% of our territory designated as nature reserves, Seychelles is first in the world in conservation and environmental management. We conducted three missions to rescue our brothers who had been taken hostage by Somali bandits. The bravery and tenacity of our soldiers brought victory for Seychelles. Five tankers are flying our flag all over the world. Seychelles, a small country of 89,000 inhabitants, is developing its oil exploration industry. The University of Seychelles has opened its doors to its first group of students. More importantly, the economic reform we undertook two years ago has demonstrated to the world our resilience and strengthening.”

The President said that the success of the economic reforms is today a victory for Seychelles and that the country’s harmony, social cohesion, unity, peace and stability are a ‘victory for our young democracy.’

The President said that he wishes the upcoming presidential election takes place in peace, tolerance and respect for the opinions of others.

“On 14th April 2004 I laid the foundation stone for the new Seychelles that will enable us to prosper in this competitive world. I’ve started a job. I am not the type of person to walk away from a job halfway through it. Today, we have in place a solid structure and there is work to do to build the edifice that will receive and shelter all Seychellois, without exception. This job, this mission, is my passion, my life, because I believe in my people, and the people of Seychelles have put their trust in me. I am determined to complete what I have started doing together with the Seychellois people, said President Michel.

The President outlined the state of the economy, noting noted that Seychelles is heading towards a sustainable debt level and increased growth. In 2010, Seychelles recorded 6.2% economic growth in real terms, with inflation at almost zero. In 2010 there was a record number of tourists who visited Seychelles, totaling 174,529. Already, since the start of 2011, there is an increase in the number of tourist arrivals over the corresponding period of 2010.

The year 2010 was also an exceptionally good year for Foreign Direct Investment, when US$290M entered the economy. In 2011, the governments expect this figure to be around US$120M. The President noted that the performance of the domestic economy ‘remains very solid’ and that other are economic indicators are encouraging: a fiscal surplus, fundamental to the continued reduction of our national debt; a stable exchange rate; foreign exchange reserves which had reached almost US$250M at the end of January 2011, which is the equivalent of 2.4 months of imports.

The President said that his government would continue to put in place policies that ensure that Seychellois become responsible workers, entrepreneurs, managers, and owners of their own businesses and enterprises. And that they participate in wealth creation and the prosperity of the country.

In context with this ownership drive, the President announced that Government has decided to sell 40% of its shares in the Seychelles Savings Bank to its clients and employees of the Bank who wish to buy shares.

On the topic of land ownership and future investment, the President announced that the Seychelles EXPO 2020 exhibition would be the launch pad for his government’s vision of the future ten years of development, including the opportunity for Seychellois entrepreneurs to invest in 5 reclaimed islands projects, where there will be opportunities for 400 units for shops, restaurants, workshops for small businesses and new offices, as well as up to 8 hotels and many small guesthouses.,

“In our vision for 2020, we are using our islands –Aurore, Soleil, Eve, Romainville and Perseverance to create economic space. We will make available opportunities for Seychellois to develop around 1,400 houses of different styles that blend well with our Seychellois creole identity and environment. These houses will be tendered out to Seychellois who aspire to either have their own homes or wish to undertake commercial developments. Our ‘waterfront’ project which has been re-launched as ‘La Promenade’ is reserved for Seychellois investments,” said President Michel.

President Michel also announced a special fund will be created for the 1150 Seychellois workers of the Indian Ocean Tuna cannery. Government will use a portion of the dividends that it earns from IOT to pay Seychellois workers of IOT the benefits that they were not being paid before. All Seychellois workers of IOT who will receive compensation for completion of 5-years service this year will also receive a gratuity as do other employees of the public sector. Payments of gratuity will be made from April this year.

“This will encourage more Seychellois to work in the IOT factory, and help to localize posts. It would also ensure that they will receive benefits upon retirement, and will have contributed to their pension fund, “said the President.

The President also said that as of the 1st of March, income tax will not be applied to gratuity payments that are less than RS10,000, and that this would apply to all Seychellois workers.

The President noted that there was a perception that foreigners are taking the place of Seychellois in the workplace, however he noted that today there are 191 expatriates, working mainly in the health and education sectors in the Government ( down from 319 in 2005), and that this formed part of efforts of the Government to localize posts.

“There are today some 30,860 workers in the private sector. Of these, some 21,030 are Seychellois, and 9,830 are expatriates. The majority of foreign labour is in the tourism and construction industries. Should we ask all these expatriates in the construction and tourism industries to leave? Should we stop building houses? Should we close our hotels? Should we sack all the foreign teachers and doctors? Is this what some people want to see?”said the President.

The President warned against cheap politics that are sowing the seeds of xenophobia in the country and called on respectful behaviour towards foreign workers.

“ We are a country renowned for its harmony and welcome. Our way of life is one of our strong points which makes visitors return to our country. Seychellois have no time for xenophobia. Every fast developing country needs expatriate workers.... all these developments and all these projects are being undertaken above all for the benefit of the Seychellois.”