Published on and written by Cyril Jarnias
Seychelles: An Essential Hub for Industrial Real Estate
Seychelles, with its enchanting natural beauty and strategic location at the heart of the Indian Ocean, is becoming an essential hub for industrial real estate, particularly thanks to its free trade zones.
The appeal of these islands no longer lies solely in their paradise beaches, but also in the spectacular potential they offer for industrial investments.
As companies seek to leverage the tax benefits and favorable conditions offered by these zones, Seychelles is transforming into a dynamic center for regional and international trade.
Investment Opportunities
Discover how these strategically located industrial spaces are reinventing the archipelago’s economic landscape and why they represent golden opportunities for visionary investors.
Good to Know:
Seychelles’ free trade zones offer attractive tax benefits, including tax exemptions for companies establishing operations there.
Introduction to Industrial Real Estate in Seychelles
Seychelles is an archipelago of 115 islands located in the Indian Ocean, east of Africa. Three-quarters of the population reside on the main island, Mahé. The country stands out with its high-income economy and boasts the highest GDP per capita in sub-Saharan Africa. However, this prosperity remains fragile in the face of external shocks due to heavy dependence on tourism (31% of GDP) and imports (over 90% of inputs).
Seychelles’ industrial real estate is primarily concentrated on Mahé, around port and industrial areas such as Providence. This sector has experienced sustained development thanks to tourism growth and the modernization of port infrastructure: ports serve both international goods traffic and logistical support for the hotel sector. However, the industrial market’s dynamism is hampered by some local particularities:
- Industrial real estate supply remains limited due to the lack of available land space.
- Infrastructure is vulnerable to natural disasters or industrial accidents, as evidenced by the major explosion in the Providence industrial zone in 2023 that temporarily slowed commercial exchanges.
- Post-global health crisis recovery is progressing gradually with increased focus on economic resilience.
The Seychelles government plays an active role in attracting foreign investment through several mechanisms:
- Tax incentives for international investors;
- Programs promoting diversification beyond tourism (agri-food processing, industrial fishing);
- National strategies focused on sustainable development and structural transformation to enhance the attractiveness of existing industrial zones.
Seychelles’ distinctive feature lies in its dual dependency:
The industrial real estate market must contend with high exposure to global tourism flows and its strategic position as a regional logistics hub, but it is also strongly affected by any international fluctuation impacting its main economic partners.
Compared to other island or African countries:
| Characteristic | Seychelles | Other Regional Countries |
|---|---|---|
| Tourism Weight | Very High (>30% GDP) | Variable |
| External Sensitivity | High (global shocks transmitted quickly) | Sometimes Lower |
| Land Supply | Limited (compact archipelago) | More Extensive Depending on Area |
| Incentive Policies | Focused on Industry/Tourism | Often Focused on Raw Materials |
The unique geographical location – relative isolation but direct maritime access – thus gives rise to industrial real estate oriented towards port storage/logistics, an essential complement to the dominant tourism sector while remaining dependent on public policies aimed at diversifying a highly exposed island economy.
Good to Know:
Located in the Indian Ocean, the Seychelles archipelago benefits from a strategic geographical position that fosters the development of its industrial sector, although tourism remains the backbone of its economy. Industrial real estate in Seychelles is experiencing robust growth, with a notable increase in foreign investment, stimulated by attractive government policies such as tax incentives and port infrastructure development. These assets, combined with a relatively skilled workforce, attract companies seeking to leverage proximity to African and Asian markets. Seychelles’ particularity in this field lies in its well-integrated free trade zones, which offer export facilities and efficient logistics, surpassing many regional neighbors. However, the market remains constrained due to the small territory size, requiring careful planning of any industrial real estate investment to optimize the use of available land.
Benefits of Free Trade Zones for Investors
Seychelles’ free trade zones offer a set of particularly attractive tax and administrative benefits for international investors:
Tax Benefits
- Full or partial exemption from customs duties on the import of raw materials, equipment, and goods necessary for activity in the free trade zone.
- Corporate tax exemption for a determined period (often up to 10 years), allowing companies to maximize profits during the launch phase.
- No taxation on income generated abroad by companies established in the free trade zone.
- Advantageous flat tax on income (low single rate) applicable only to local income, with exemptions for certain brackets.
Administrative Simplification
- Fast and simplified procedures for company registration and issuance of licenses necessary for international commercial activities.
- Facilitated access to public services, dedicated one-stop shop within free trade zones allowing accelerated processing of formalities.
Access to Modern Infrastructure
- Location in or immediately adjacent to the main international port, facilitating maritime transit.
- Modern logistics infrastructure: secure warehouses, flexible industrial spaces, direct access to air freight.
Re-exportation Ease
No restrictions or quotas imposed on the re-exportation of goods produced or processed in the free trade zone to any third country.
| Benefit | Description |
|---|---|
| Tax Exemption | No corporate tax or customs duties for several years |
| Simplified Procedures | Administrative one-stop shop; reduced delays |
| Modern Infrastructure | Port/airport proximity; secure warehouses |
| Free Re-exports | No quantitative or territorial limitations |
Political and Economic Stability
Seychelles has benefited for several decades from a stable political environment as well as an open economy focused on international trade. This stability reassures foreign investors wishing to establish their headquarters or regional logistics base. The legal framework is transparent and effectively protects foreign commercial interests while ensuring competitive taxation.
Concrete Success Examples
Several companies operating in the international trading sector, particularly in agri-food (import-export), have chosen Victoria International Trade Zone as a regional platform. Some Asian companies transit their electronic products to Africa there without incurring any local taxation thanks to the preferential regime offered by the free trade zone.
European groups specialized in logistics also use these benefits to temporarily store their goods before final distribution to various African markets – thus fully illustrating the flexibility offered by this Seychelles system.
Maximum tax benefit + administrative simplicity = lasting attractiveness for any international project focused on export
Good to Know:
Free trade zones in Seychelles offer investors several attractive benefits, including tax exemptions such as no customs duties and income tax, making the investment environment particularly favorable. Administrative procedures are simplified, thereby accelerating the start of activities. Additionally, these zones benefit from modern infrastructure facilitating logistics operations, and the possibility of re-exporting products without restrictions constitutes a major asset. Seychelles’ political and economic stability further enhances the appeal for investors, as evidenced by the successes of companies such as the major textile structure that multiplied its production thanks to these facilitations and the canned tuna exporter that successfully broke into international markets from these advantageous platforms.
Analysis of Key Logistics Entities in Seychelles
Seychelles, a strategic Indian Ocean archipelago, has a logistics ecosystem adapted to its geographical position and economic development centered on maritime trade and services. Major logistics entities play a key role in structuring the industrial real estate sector and in the rise of industrial free trade zones.
Main Logistics Players
- CMA-CGM: Via its local subsidiary, Société Seychelloise de Navigation, this international player manages a significant share of maritime activities at Victoria Port. It ensures regional service with its Indian Ocean Feeder line.
- Sapmer: The Réunion-based shipowner primarily operates in the tuna sector at Victoria Port since 2015, contributing to agri-food industrial activity.
- Hydrotech (Eiffage): Specialized in hydraulic infrastructure, this French subsidiary has been involved since 2017 in improving essential equipment for the operation of industrial platforms.
- Sealogair: Since 2019, this company based in La Réunion has been developing an innovative multimodal logistics offer to facilitate inter-island exchanges.
| Player | Domain | Impact on Industrial Real Estate |
|---|---|---|
| CMA-CGM/Société Seychelloise | Maritime | Regular access to external markets; revitalization of land around the port |
| Sapmer | Agro-industry | Real estate valorization linked to refrigeration facilities and warehouses |
| Hydrotech | Infrastructure | Improved hosting capacity for industrial projects |
| Sealogair | Multimodal | Development of connected solutions; inter-island land optimization |
Specialized Real Estate Agencies
Several agencies structure the local market:
- Seychelles Properties
- Savills Seychelles
- Eden Island Development Company
- Arriva Real Estate
These operators facilitate the search and management of industrial assets (commercial premises/warehouses), providing comprehensive support for investors or companies wishing to establish or expand operations.
Available Logistics Infrastructure
Maritime Ports:
Victoria Port is the nerve center with its recently modernized facilities (dredging underway to accommodate larger vessels). It concentrates both international and regional commercial flows.
Airports:
Mahé International Airport plays an essential role in fast import-export (notably perishable products).
Road Network:
Although limited by the island topography, it effectively connects main urban areas, industrial sites, and port/airport platforms.
Importance for Industrial Free Trade Zones:
- Direct access to infrastructure allows operators established in free trade zones to optimize logistics costs and delays.
- The island positioning also favors regional transit to Southern Africa or Asia.
Commercial Agreements & International Partnerships
Seychelles benefits from:
- Regional maritime conventions via CMA-CGM,
- Preferential agreements with several African countries,
- European technical partnerships (notably France via Eiffage/Hydrotech),
which facilitates funding/continuous modernization of strategic infrastructure.
Sector Challenges & Opportunities
Main Challenges:
- Insularity causing dependence on external flows
- Current limited capacity for certain types/masses of freight
- Constant need for heavy investments
Major Opportunities:
- Continuous modernization of the main port
- Multimodal innovation driven by Sealogair
- Growing attractiveness to international operators thanks to political/legal stability
Outlook:
Increased support from these players – combined with a national strategy oriented towards economic diversification – suggests rapid consolidation of the sector. This should sustainably strengthen the Seychelles industrial real estate market as well as its attractiveness as a regional hub dedicated to international trade around industrial free trade zones.
Good to Know:
In Seychelles, key logistics entities play a crucial role in the development of industrial free trade zones, with major players like the Seychelles Ports Authority, which manages Victoria Port, the main maritime entry point vital for commerce. Mahé International Airport also contributes to this dynamic by facilitating air cargo transport. The road infrastructure, although limited, proves essential for internal logistics, connecting the main industrial hubs. Commercial agreements with international partners like South Africa and Dubai reinforce this infrastructure by attracting foreign investment. However, challenges remain, including geographical isolation and dependence on imports. These aspects nevertheless offer opportunities for developing resilient infrastructure and establishing strategic partnerships to stimulate the growth of free trade zones, positioning Seychelles as a logistics pivot in the Indian Ocean.
Optimizing Returns Through Industrial Real Estate
Investment in industrial real estate in Seychelles, particularly in free trade zones managed by the Seychelles Economic Zone Authority (SEZA), offers unique opportunities to maximize returns. These spaces are designed to attract international investors and support the country’s economic growth.
Seychelles’ free trade zones offer a combination of tax incentives, flexible regulations, and privileged access to international markets, making them prime locations for industrial real estate.
Tax Incentives
- VAT and customs duty exemption on imports of equipment, machinery, or raw materials necessary for industrial activity.
- Reduced tax rate on industrial profits (sometimes up to 0% for several years depending on the project).
- Possibility of full repatriation of capital and dividends, facilitating international management of financial flows.
Advantageous Regulations
- Simplified administrative procedures for business creation, obtaining permits or licenses.
- Legal flexibility, particularly regarding local or international employment: facilitated work permit acquisition for expatriates associated with a company in a free trade zone.
- Enhanced legal protection against any discriminatory measures targeting foreign investors.
| Main Advantage | Detail |
|---|---|
| Tax Incentive | VAT/customs exemption, reduced rate on profits |
| Simplified Regulation | Fast procedures, legal flexibility |
| International Access | Port/airport proximity, free repatriation |
Strategic Access to International Markets
Industrial zones located near the port or international airport enable efficient logistics to East Africa, the Middle East, and beyond. Modern infrastructure (major roads between Victoria and Providence) promotes rapid transport of manufactured or processed goods.
“Immediate proximity to the main port allows direct access to global maritime trade.”
Local Infrastructure & Government Initiatives
The Seychelles government leases industrial land long-term (60 to 99 years), thus securing the land stability necessary for industrial development. Authorities also actively encourage economic development in certain outer islands like La Digue or Silhouette through additional incentives.
Non-exhaustive list of key infrastructure:
- Modern craft zones equipped with recent warehouses
- Efficient road network connecting Victoria to main industrial areas
- Growing availability of adaptable premises according to needs
Concrete Examples & Testimonials
Several projects have achieved notable success thanks to these conditions:
- A French company specialized in agri-food processing established its factory near the main port; it now enjoys annual growth exceeding 15%, largely attributed to local tax benefits.
- An Asian group chose Eden Island to develop a multimodal logistics platform: “Our operational costs were reduced thanks to the customs exemption.”
- Anonymous testimony collected from a German investor: “Administrative simplicity allowed us to start our operations in less than two months.”
These examples illustrate how industrial real estate investment in Seychelles’ free trade zones can generate increased returns while offering legal security and solid international prospects.
Good to Know:
Investing in industrial real estate in Seychelles offers high return potential thanks to free trade zones that provide attractive tax incentives and pro-business regulations. These zones offer strategic access to international markets, thereby fostering the growth of established companies. For example, the Mahé Island free trade zone project attracted massive investments, with witnesses reporting significant increases in their returns due to tax relief and modern infrastructure. Local infrastructure, such as ports and roads, as well as government initiatives like simplified administrative procedures, effectively support the development of industrial projects. Investors thus benefit from an environment conducive to optimizing their real estate portfolio, while contributing to regional economic growth.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
