Located in the Indian Ocean just northeast of Madagascar, Seychelles is an archipelago nation of 115 islands and home to approximately 120,000 people. With an economy focused mainly on tourism and fishing, Seychelles boasts the highest gross domestic product (GDP) per capita in Africa at $13,250.5 in 2022.

Poverty in Seychelles

According to the United Nations Development Programme (UNDP) 2023 Multidimensional Poverty Index (MPI) report, 0.9% of the Seychelles population is multidimensionally poor. Additionally, 0.4% are reported to be at risk of experiencing acute poverty. This poverty rate puts Seychelles among the lowest in the world among nations that are not part of the 35-member Organization for Economic Cooperation and Development (OECD).

While these numbers are very low, the poverty rate in Seychelles, as reported by the government, is vastly different from the MPI data. A 2013 study by the Seychelles National Bureau of Statistics put the poverty rate at 39.3%. The large difference is due to using a national basic needs poverty line. This poverty line is SCR 3,945 per month, equivalent to roughly $300 per month or $10 per day.

Structural Challenges

Other structural challenges also exist for the country. While unemployment is low, at 3% as of 2017, high-quality job creation is hindered by skill mismatches. Youth poverty rates run three times higher than the reported, with male youth poverty two times higher than female youth poverty. Economic inequality is also a major concern in Seychelles.

After an outcry in the country regarding poverty statistics, the National Bureau of Statistics completed a poverty survey on the country’s main island in May and June 2017. The survey focused on four central districts which have the highest poverty rates in the country. The survey revealed housing issues, including a lack of running water, electricity and toilet facilities in some houses. Overcrowding, unemployment and drug abuse were also identified as major issues in the survey area.

The Seychellois Secretary of State for Poverty Alleviation, Dick Esparon, laid out a short-term intervention plan for the members of the study. This plan includes access to electricity, water, food and hygiene, as well as employment opportunities and social work support.

Moving Forward

Moving forward, in 2017, Esparon announced a targeted policy approach to fighting poverty that will be specific to different household situations. In addition, a second phase of the poverty survey will cover five more districts on the main island, with the rest of the country being covered by the end of 2018. Results from the surveys will be combined with the targeted policy approach to create a national anti-poverty strategy, which will be used to fight the poverty rate in Seychelles.

The International Fund for Agricultural Development (IFAD) is also working to reduce poverty in Seychelles. It aims to improve the lives of those living in rural Seychelles through initiatives that support income generation and food security. Since its inception in Seychelles in 1991, the nonprofit has completed two projects, impacting more than 5,000 households.

– Erik Beck

Photo: Flickr
Updated: May 29, 2024