Seychelles, officially the Republic of Seychelles, is an archipelagic island country within the Indian Ocean at the eastern fringe of the Somali Sea. The country consists of 115 islands. Other nearby island countries and territories include Comoros, Madagascar, Mauritius, and therefore the French territories of Mayotte and Réunion to the south, also, because the Maldives and Chagos Archipelago to the east. With a population of roughly 94,367, it’s the littlest population of any sovereign African country. In 1971, with the opening of Seychelles International Airport, tourism became a big industry, essentially dividing the economy into plantations and tourism. The tourism sector paid better, and therefore the plantation economy could only expand thus far. The plantation sector of the economy declined in prominence, and tourism became the first industry of Seychelles. These incentives have given rise to a huge amount of investment in land projects and new resort properties, like project TIME, distributed by the planet Bank, alongside its predecessor project MAGIC. Despite its growth, the vulnerability of the tourist sector was illustrated by the sharp drop by 1991–1992 due largely to the Gulf War. Since then the govt has moved to scale back the dependence on tourism by promoting the event of farming, fishing, small-scale manufacturing and last the offshore financial sector, through the establishment of the Financial Services Authority and therefore the enactment of several pieces of legislation (such because the International Corporate Service Providers Act, the International Business Companies Act, the Securities Act, the Mutual Funds and Hedge Fund Act, amongst others).
The Seychelles’ economic freedom score is 64.3, making its economy the 72nd freest within the 2020 Index. Its overall score has increased by 2.9 points thanks to higher scores for state integrity and property rights. The Seychelles is ranked 4th among 47 countries within the Sub-Saharan Africa region, and its overall score is well above the regional average and slightly above the planet average. This is often the fifth year during a row that the economy of the Seychelles has been judged moderately free. Reflecting that trend, GDP growth during an equivalent period has been quite healthy. to take care of and accelerate the momentum toward greater economic freedom, the government should address several lagging Index indicators—financial freedom, investment freedom, and judicial effectiveness—that could impede successful implementation of its decision to specialize in fiscal consolidation, debt reduction, and diversification of the economy.