Inside IMF’s support for Seychelles under the resilience & sustainability facility

The International Monetary Fund (IMF) has recently approved Seychelles' participation in the Resilience and Sustainability Facility, making it the second African country to access this funding after Rwanda. This facility is geared towards aiding countries with restricted budgetary capacity in tackling long-term challenges like climate change and pandemic readiness. In an exclusive interview with CNBC Africa, Calixte Ahokpossi, the IMF's Mission Chief for Seychelles, shed light on the significance of this development. The Executive Board of the IMF acknowledged Seychelles' sound reform proposals and their commendable history of reform implementation. Ahokpossi highlighted that Seychelles' reform agenda, under the facility, mirrors the nation's unique climate vulnerabilities, such as the imperative to integrate climate considerations into building codes and expedite the establishment of a disaster risk management fund. Seychelles, being a low-lying archipelago, heavily reliant on its coastal zones for residence and infrastructure, emphasizes the critical necessity of these measures. The program under the Resilience and Sustainability Facility encompasses three primary reform areas, namely public investment and fiscal management, the financial sector, and climate change mitigation and adaptation. These reforms are pivotal to fortifying Seychelles against climate-related adversities and fostering sustainable development. The IMF will conduct a series of reviews over the three-year program to monitor Seychelles' progress in implementing the reform measures and disburse funds accordingly. Additionally, technical assistance will be extended to augment Seychelles' capacity in executing these reforms effectively. The integration of climate considerations into Seychelles' broader macroeconomic policy agenda is essential for bolstering the efficacy of climate policies. The IMF's requirement for a concurrent high-quality macroeconomic program with the Resilience and Sustainability Facility underscores the interplay between economic and climate reforms. Ahokpossi emphasized the symbiotic relationship between macroeconomic policies and climate initiatives, advocating for coordinated efforts to address climate change holistically. While Ahokpossi refrained from disclosing specific countries in the pipeline for accessing the facility, he noted that nine nations, including Seychelles and Rwanda, have already tapped into the Resilience and Sustainability Trust. This signals a growing momentum towards leveraging IMF's support to enhance climate resilience across the globe, particularly in regions vulnerable to environmental threats.