President of the Republic Dr Patrick Herminie has called for a strengthened and more practical partnership between Seychelles and the World Bank Group, centred on addressing the specific vulnerabilities of small island developing states, diversifying the economy and mobilising greater investment.

During discussions with President of the World Bank Group, Mr Ajay Banga, the President welcomed the World Bank Group’s new Small States Strategy and expressed Seychelles’ interest in working closely with the Bank to translate the strategy into practical results for the country.

President Herminie emphasised that while Seychelles has achieved high-income status and has undertaken significant economic reforms, GDP per capita alone does not fully reflect the vulnerabilities faced by small island states, including exposure to climate change, external economic shocks and the limitations associated with a small domestic market. He proposed that Seychelles could serve as an early pilot for the application of non-GDP measures of vulnerability in determining access to development financing, its allocation and terms. He also called for concrete progress in this area by the 2027 Spring Meetings, including through the Small States Forum.

A key focus of the discussion was the need to diversify Seychelles’ economy and create new opportunities beyond its traditional economic base.

On this matter, Mr Banga highlighted the importance of digitalisation as one avenue through which Seychelles can overcome some of the constraints associated with its size and geographic isolation.

Mr Banga also spoke about the potential of what he described as “small AI” practical, everyday predictive tools that can help make specialised knowledge more accessible. He explained that such tools could, for example, support healthcare workers in identifying conditions where specialist expertise may not be immediately available, or assist farmers in identifying diseases affecting crops and determining appropriate responses.

President Herminie outlined Seychelles’ interest in strengthening private-sector participation in the next phase of its economic development. He proposed the creation of a coordinated World Bank, International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) investment pipeline for Seychelles, identifying between three and five bankable projects.

Priority areas identified by Seychelles include renewable energy and storage, digital infrastructure and services, resilient tourism and other sectors capable of generating employment.

Mr Banga expressed support for greater collaboration on renewable energy, noting the importance of accelerating Seychelles’ transition towards renewable sources to strengthen energy security and reduce exposure to external shocks. He indicated that the World Bank has experience supporting renewable energy projects, including frameworks for private-sector participation and power purchase arrangements.

Tourism was discussed within this wider economic diversification and investment framework. President Herminie presented Seychelles’ proposal to establish a Centre of Excellence in Sustainable and Resilient Tourism, with the potential to serve other Small Island Developing States. On that point, the Minister for Environment, Climate, Energy and Natural Resources, Ms Marie-May Jérémie, noted that Seychelles is currently working on a pilot project to transform La Digue into a 100% renewable island.

He proposed that Seychelles and the World Bank Group undertake a joint feasibility and business-model exercise by December 2026, with the aim of having a concept ready for the 2027 Spring Meetings.

Mr Banga expressed interest in exploring the proposal, particularly its potential to strengthen hospitality training and skills development, while also noting that tourism investment should be considered as part of a wider ecosystem encompassing energy, digital services, infrastructure and connectivity.

Another area raised by President Herminie was protection against external shocks. Given Seychelles’ exposure to global economic and climate-related disruptions, he proposed working with the World Bank and the Central Bank of Seychelles to identify pre-arranged and rapidly disbursing financing instruments that could be activated in the event of major fiscal or balance-of-payments shocks.

The proposed review would examine the triggers, speed of access, costs and debt implications of such instruments, with a view to completing the work by the end of 2026.

President Herminie also took the opportunity to highlight that Seychelles wants its partnership with the World Bank Group to increasingly move from analysis towards implementation, investment and tangible results. He also positioned Seychelles as a potential testing ground for solutions that could subsequently benefit other small states facing similar structural vulnerabilities.

The President was accompanied at the meeting by members of the Seychelles delegation, as well as Mr Zarau Wendeline Kibwe, Executive Director at the World Bank in Washington, D.C., and Mr Bertrand Belle, Advisor to the Executive Director.

The meeting was held on the margins of the 81st Session of the United Nations General Assembly in New York.