This September 2017 PESA Editorial focuses on political uncertainty and its impact on economic growth in Seychelles. The issue looks at: what is the current political economy context in SADC? what is the source of uncertainty? what is the historical context behind the uncertainties? what are the drivers and key role players in the SADC growth story?
The top two trade agreements signed by this small island are the Common Market for Eastern and Southern Africa (COMESA), and the Cotonou Partnership Agreement (CPA). COMESA is a free trade area that was formed in December 1994, taking the place of a Preferential Trade Area (PTA) which was in existence since 1981.
Economic growth globally continues to be subdued. Brexit and the Trump victory are the two main factors which continue to present uncertainties for many countries. According to the Seychelles 2017 Budget Speech, which was delivered by the Minister of Finance, the uncertainties in the international markets continuously reduce investor confidence.