The Seychelles Column - By Christopher Gill

Mr. Seychelles Governor Sends Smoke Signals To Sell in Rupees Your Investments

The Seychelles Governor of the Central Bank has been at it again. This time, he has brought the financial markets and economy of Seychelles to a lop-sided position that would make Humpty-Dumpty look like a Playgirl centre fold. As the Seychelles Rupee is now stronger than a Euro in real terms and it is also beating the US Dollar to death week after week, month after month, investors must read the smoke signal Mr. Governor is sending, or be consumed in the campfire next year when we must start to service our debts and finance elections.

Strong Rupee Means Sell In Rupees

The strong Seychelles Rupee with prospects of convertibility on the horizon mean individual Seychellois who have held properties in the past waiting for Euro or US Dollar sales, can now sell in Seychelles Rupee and convert the transaction at the bank, and have their investment repatriated overseas to Australia, if that is where they are going.

All indications point to Australia, where they have discovered natural gas rivalling Qatar ‘s holdings. The time to cut your loses under LP is now, or stick it out for change.

If you stick it out for change, you cannot just do business and stay quiet, you will have to become a molecule in the fuel for change. I have chosen to be a molecule for change. SPPF and LP have devalued my holdings just by being around and not giving Seychellois with strong economic potential a fair chance when placed in the market with select foreigners that have had to grace their entry with a little here and a little there.

But like many Seychellois, I live off salted fish and fresh grilled mackerel with great pleasure and satisfaction. A little lentils is considered a luxury, since the lentils boat is always stuck in Dar es Salaam.

From Down Under to the Equator

Over 30,000 Seychellois reside in Australia. What effort has LP made to ask them and the other Seychellois overseas to return to Seychelles in a meaningful way? They could easily replace your 9,400 GOP workers and meet the demand for another 10,000 in time. Even if they come here 6 months per year to contribute to the Country it would be a great benefit. Instead, it was announced with great fanfare last night on TV that the Australian High Commissioner (Ms. Cathy Johnstone) is providing us with a technical advisor (Dr. Bryn Battersby) from its own treasury down-under. I assume the Australian Treasury is doing very well indeed. And of course our own Finance Minister Faure was at a loss for words for this grateful contribution since our own Ministry of Finance is in great need of western-trained experts as all we have are Cuban-trained ones from the Rene and Michel’s era. Of course, a few million Aussie dollars would have been better for our economy, but then, beggars cannot be choosers. How ironic that our own countrymen are leaving our shores for Australia, and here we have Australians flocking to our shores in search of greener pastures? I wonder if it’s the lucrative expatriate salaries that are attracting tax men, financial advisors, customs officers from down-under to our shores. Some say it’s our beautiful local girls too, but our smart ones are still emigrating to Australia as I write while the remainder are turning to prostitution and drugs!

Seychellois who stay benefit

Seychellois that have the courage to remain behind and take the blows that will be delivered by Mr. Laporte for the duration of his contract and if renewed, will benefit from this freak event in the markets (Seychelles Rupee gaining on Euro). They will be able to borrow Seychelles Rupees from banks and convert the Seychelles Rupees to an asset that will maintain hard currency values over the long term as the non-sustainability of the Seychelles external debt takes hold of our financial jugular veins. Property will be safe only after the financial and political storm settles.

Build Local Industry

In these ever turbulent times, investors staying in Seychelles permanently may want to consider investing in local industry. I know one gentleman producing coconut oil and he is doing very well. The retail side of this business is highly profitable if the product is sold as an exclusive tanning product.

Another friend is investing in vanilla plantation. He has brought in 3 ton trucks, excavators and will employ Malagasy personnel to plant and maintain the vanilla plants. Incubation period for this venture is 3 years. After, he expects huge profits that will rival returns of 5 star hotels. All is not lost. But you will have to put your back into whatever you do and you will have to watch your back if LP is around. They smell success from over the mountains and they rush in to penalize it and eventually destroy it. Vanilla is a little like diamonds. You can carry your asset out of the country or place it in a few boxes and ship it as luggage. Enough boxes, you can use the money from the sales to buy a house and start a business elsewhere if things go really bad in Seychelles. Mango farm in Australia anyone?

The days of picking Euros off the beach are over. Now under Mr Governor’s economic financial guidance, Euros are worth less than they were 6 months ago: about 40% less. Incredible. Who else could defy World trends? Perhaps Mr. ChangLeng who is enjoying the fruits of retirement and living like a King while we toil to pay his pension.

Rupees Valuable Hence Local Crime Increases

As Seychelles Rupee gain great value, crime that has the objective of securing Seychelles Rupees will increase. This will affect ill-prepared residents. Since the Black Market is no longer on the beaches, drug addicts no longer have an avenue in which to obtain money quickly. They will now resort to attacks and burglaries to meet demands of a habit. Local law enforcement must be aware of this development.

Mr. Laporte must know what impact the great imbalances will have on a society not prepared to cope with such unpredictability in the money markets created by himself.

After all, if you did not know, in a society, especially small ones like Seychelles, everything happens to be connected and inter-related.

Yes, somehow… what is concocted in those leatherette chairs in the CBS glass building, does have a profound impact on people’s lives, be it good or bad. Unfortunately, so far, it has been bad, and our international credit rating proves it.

May God Bless Seychelles and All Freedom Loving Seychellois!