AfDB loans Seychelles $33m as strengthened response to climate change, transition to clean energy

The board of directors of the African Development Bank (AfDB) has approved a loan worth $33 million to Seychelles destined to strengthen the country’s response to climate change and the transition to clean energy in the framework of the implementation of the Phase III of the Governance and Economic Reforms Support Program.

The approval came on November 17 and followed the success of Phase I and II. The third phase will focus on consolidating and deepening the reforms to strengthen the country’s economic resilience and help it tackle climate change.

The program, the Abidjan-based bank said, will help to create greater and better-quality opportunities for the population of Seychelles by supporting budgetary consolidation efforts and contributing to reducing debt vulnerability.

“This will translate into reforms aimed at removing constraints associated with the business environment and allow local microbusinesses and SMEs to participate more effectively in international trade, while encouraging renewable energy production and better waste management practices,” adds the Bank.

This will include cabinet approval of the regulations on decentralized energy production systems and independent energy producers to encourage the development of renewable energy installations by using stand-alone generator units, the bank notes.