Competitive Advantage on an Island Paradise

In many ways, the Seychelles represents a best kept secret in terms of fit for niche light manufacturing. The Seychelles is an island state located in the Southwestern Indian Ocean, consisting of 115 islands. The island of Mahe, where Chelle’s facility is located, is the largest island of the archipelago and the seat of the Government. It constitutes about one-third of the total land area. The Seychelles are close enough to the equator to have a temperate climate year round. That geographic position also puts them outside the track of typhoons and the seismic instability of the Ring of the Fire. As a result of an excellent climate, tourism is primary industry and accommodations and transportation options are well established and excellent. There is good availability of an educated workforce and labor costs are relatively low.

However, an even bigger advantage is the Seychelles International Trade Zone Sector (SITZ) and the country’s participation in both regional preferential trade agreements and bilateral agreements. The Seychelles is a signatory to several preferential trade agreements with countries in Africa including COMESA and SADC. Its bilateral agreements include South Africa, Switzerland, the European Union, Thailand, Japan, Canada and the U.S. A current list of trade agreements is available at the Seychelles Trade Portal.

The Seychelles is a member of the WTO and the IMF categorizes the Seychelles as a developed country. The World Bank’s Global Competitiveness Index 4.0 2018 Rankings list it as 74 overall out of 140 countries. In the subcategories, the Seychelles ranked 43rd out 140 in human capital skills and 23rd in labor market. It ranked 49th in innovation capability. Comparatively, its overall ranking scores better than Vietnam and most of the Caribbean nations.

The Seychelles also offers one of the most relaxing environments for business travel. World class accommodations, pristine beaches, fine dining and a wide range of entertainment options are available for those wishing to mix business with pleasure.