Seychelles. A. Definitions and sources of data

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1 Seychelles A. Definitions and sources of data The definition of foreign direct investment (FDI) in the Seychelles is based on standards adopted by the International Monetary Fund (IMF). This definition includes investments by a nonresident entity in the Seychelles whereby the direct investor acquires a long-term interest in Seychelles enterprise with a significant degree of influence on the management of the enterprise. An acquisition of 10% or more of the ordinary shares or voting power of a resident enterprise by a non-resident individual enterprise is considered to be FDI. The Central Bank of Seychelles collects data on FDI for the purpose of compiling balance-of-payment (BOP) statistics. The data collection is based on a combination of company surveys and transactions of foreign currency. The data are highly aggregated. The IMF provides data on FDI in the country in its BOP statistics. The Government of Seychelles only restricts foreign control or ownership of immobile property such as land. Such acquisition by foreign investors requires government approval. Also, due to a foreign exchange shortage in the Seychelles, certain transfers (e.g., remittance of dividends, transfer of management fees and proceeds for sale of assets) are subject to the approval of the Central Bank. As part of its effort to increase FDI in the economy, the government had created the Seychelles International Business Authority to facilitate development of the offshore sector. The Seychelles international trade zone is also established in the same year in an attempt to boost foreign investment. Seychelles committed to the Organization for Economic Co-operation for Development's requirements for ending harmful tax competition. The services sector including transport, communications, commerce and tourism dominates the Seychelles economy. Limited economic privatization in the 1990s reduced the role of the state in some this sector, particularly telecommunications and tourism. To advance the strategy of low-volume-high-value tourism, the government has encouraged investment in luxury facilities by offering a range of incentives including, in some cases, exemptions from taxes and labour regulations for investors. Also as part of the effort to deepen its participation in the global economy, Seychelles is an active member of a number of regional integration and co-operation arrangements, such as the Indian Ocean Commission, initiative to form the Indian Ocean Rim Association for Regional Cooperation, the Common Market for Eastern and Southern Africa, and the Southern African Development Community. Seychelles is also a member of the African Union, New Partnership for Africa's Development and a signatory to the European Union's Africa, Caribbean and Pacific countries' agreement for the negotiation of the Cotonou Agreement. It is an eligible member of the United States market access initiative for African countries - the African Growth and Opportunity Act. Posted November 2006

2 B. Statistics on FDI and the operations of TNCs

3 UNCTAD WID Country Profile: SEYCHELLES Page 3 of 13 Table 1. Summary of FDI Variable Inward Outward 1. FDI flows, (annual average) FDI flows as a percentage of GFCF, (annual average) FDI stock, FDI stock as a percentage of GDP, Source: Based on tables 3a, 4 and UNCTAD, FDI/TNC database.

4 UNCTAD WID Country Profile: SEYCHELLES Page 4 of 13 Year Equity Table 3a. FDI flows, by type of investment, Inward investment Reinvested earnings Intracompany loans Total Equity Outward investment Intracompany Reinvested earnings loans Source : UNCTAD, FDI/TNC database. Note : FDI flows: IMF for and Central Bank of Seychelles for Total

5 UNCTAD WID Country Profile: SEYCHELLES Page 5 of 13 Year Equity Table 4. FDI stock, by type of investment, Inward Investment Reinvested earnings Intracompany loans Outward Investment Total Equity Reinvested earnings Intracompany loans Total Source : UNCTAD, FDI/TNC database. Note : FDI inward stock: Estimated by accumulating inflows since FDI outward stock: Estimated by accumulating inflows since 1976.

6 UNCTAD WID Country Profile: SEYCHELLES Page 6 of 13 Table 6. FDI flows in the host economy, by geographical origin, Economy Belgium Czech Republic Germany Malaysia Mauritius Sweden United States Source: UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above Table 9. FDI flows abroad, by geographical destination, Economy Brazil Bulgaria Czech Republic France Kazakhstan Kyrgyzstan Lithuania Malaysia Portugal Source: UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above Table 12. FDI stock in the host economy, by geographical origin, Economy Czech Republic India Malaysia United Kingdom United States Source: UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above Table 15. FDI stock abroad, by geographical destination, Economy Brazil Czech Republic Estonia Kazakhstan Lithuania Portugal United Republic of Tanzania Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above Table 23. The number of affiliates of United States TNCs in Seychelles, (Number) Table no. Variable Number Source: UNCTAD, FDI/TNC database. Note: Data are based on information reported by the United States

7 UNCTAD WID Country Profile: SEYCHELLES Page 7 of 13 Table 86. Largest home-based TNCs, 2004 (Millions of dollars and number) Company Industry Sales Employees A. Industrial B. Tertiary Vijay Construction Mining and quarrying New Technology Limited Diversified.... International Corporate Agents Other business services.... Cavendish Partners Other business activities.... C. Finance and insurance Assets Employees Sources: The Banker's Almanac, 2003 (London, Reed Information Services, 2003); Thomson Analytics ( Who Owns Whom database (

8 UNCTAD WID Country Profile: SEYCHELLES Page 8 of 13 Table 87. Largest affiliates of home-based TNCs, 2004 (Millions of dollars and number) Company Name Host Economy Industry Sales Employees A. Industrial Q Glazing Ltd. United Kingdom Machinery and equipment.. 6 B. Tertiary Gavem Romania Wholesale trade 34.. a 4 Business Ltd. United Kingdom Education Atrium Computers Ltd. United Kingdom Other business activities 2 16 First Directors Ltd. United Kingdom Other business activities.. 17 New Technology Yugoslavia Wholesale trade.... International Corporate Agents Ireland Other business services.... C. Finance and insurance Assets Employees Sources : The Banker's Almanac, 2003 (London, Reed Information Services, 2003); Thomson Analytics ( Who Owns Whom database ( a 2002.

9 UNCTAD WID Country Profile: SEYCHELLES Page 9 of 13 Table 88. Largest affiliates of foreign TNCs in the host economy, 2004 (Millions of dollars and number) Company Home Economy Industry Sales Employees A. Industrial Indian Ocean Tuna Limited United States Food products and beverages 28.. a Laxmanbhai & Co Kenya Construction.. 26 b B. Tertiary Skychef France Distributive trade b Cable And Wireless United Kingdom Other business services c Ocra United Kingdom Research and development b Bodco Limited Switzerland Wholesale trade.. 51 b A Cement Company France Wholesale trade.. 12 b Ernst & Young United States Other business services.... b Hertz Corporation United States Automotive trade and repair.... b Hi Tec Sports United Kingdom Wholesale trade.... b C. Finance and insurance Assets Employees Seychelles International Mercantile Banking Corporation United Kingdom Finance d Development Bank of Seychelles Luxembourg Finance e Sources: The Banker's Almanac, 2003 (London, Reed Information Services, 2003); Thomson Analytics ( Who Owns Whom database ( a b Estimate. c d e 2001.

10 UNCTAD WID Country Profile: SEYCHELLES Page 10 of 13 C. Legal frameworks for transnational corporations Seychelles had adopted a number of national, bilateral and multilateral legal instruments for regulating the activities of transnational corporations and foreign direct investors. Some of the principal instruments that apply in the country include the following: I. National framework Investment Promotion Act (IPA), 1994, effective January Source: ( Foreign Earnings (Regulation) Act, 1996, effective 1 January Source: ( Seychelles International Business Authority Act, Act 27 of Source: Republic of Seychelles, "Seychelles's Commercial Legislation", vol. 11, edition 1995, Ministry of Finance and Communications, p. A-1 to A-6. International Business Companies Act, Act 24 of 23 December Source: Republic of Seychelles. "Seychelles's Commercial Legislation", vol. II, edition 1995, Ministry of Finance and Communications, p. B-5 to B-57. International Trusts Act, Act 26 of 23 December Source: Republic of Seychelles. "Seychelles's Commercial Legislation", vol. II, edition 1995, Ministry of Finance and Communications, p. C-4 to C- 29. S.I. 88 of 1995 International Trust Act, 1994 Regulation. International Trust (Fees) Regulations, 1995 of 18 August Source: Republic of Seychelles, "Seychelles's Commercial Legislation", vol. 11, edition 1995, Ministry of Finance and Communications, p. C-30. International Trade Zone Act, Act 8 of June Source: Republic of Seychelles, "Seychelles's Commercial Legislation", vol. II, edition 1995, Ministry of Finance and Communications, p. D-2 to D-10. S.I. of 1995 International Trade Zone Regulations of 8 November Source: Republic of Seychelles. "Seychelles's Commercial Legislation", vol. 11, edition 1995, Ministry of Finance and Communications, p. E-1 to E-7. The Industrial Development Ordinance, Chapter 248, of 24 November 1967; effective on 1 March Source: Supplement to Seychelles Gazette of 4 December Amendment: The Industrial Development Regulation, of 8 July 1971; effective on 8 July Source: Supplement to Seychelles Gazette, 12 July Companies Law 1942, Source: Country Profile Of Seychelles ( The Companies Ordinance, No. 4 of 10 March 1972; effective on 27 March Source: Supplement to Seychelles Gazette, 27 March International Business Companies Act 1994.

11 UNCTAD WID Country Profile: SEYCHELLES Page 11 of 13 Source: Country Profile Of Seychelles ( Merchant Shipping Act (1992), Source: Country Profile Of Seychelles ( Trade Licenses Act, No. 2 of 1981; effective on 3 March Source: Supplement to Seychelles Gazette, 3 March Hotels Ordinance No. 27 of 1960, Chapter 247, of 14 November 1960; effective on 1 January Source: Supplement to Seychelles Gazette, 14 November Amendment: Hotels Ordinance No. 22 of 1971; effective on I January Source: Supplement to Seychelles Gazette, 27 December Income Tax Ordinance, Chapter 104; effective on I January Source: The Laws of Seychelles, 1971, Revised edition, vol. 3, p Amendment: 'The Income Tax Act No. 12 of 24 August 1984; effective on I January Source: Supplement to Seychelles Gazette of 31 August Business Tax Act, No. 10 of 31 December Source. Supplement to Seychelles Gazette, I January Employment Act, No. 7 of 1 September 1990: effective on 16 November Source: Supplement to Seychelles Gazette, 15 October Social Security Act, No. 1 I of 29 December Source. Supplement to Seychelles Gazette, 1 January Amendment: Social Security Bill: 1990; effective on I September Source: Supplement to Seychelles Gazette, 17 September Immigration Decree of 23 April 1979; effective on 30 April Source: Supplement to Seychelles Gazette, 30 April Amendment: Immigration Bill of 7 December Source: Supplement to Seychelles Gazette, 10 December Petroleum Mining Ordinance No. 3 of 6 April Source: Supplement to Seychelles Gazette, 7 April Amendment: Petroleum Mining (Pollution Control) Act, of 30 January 1980; effective on 31 January Source: Supplement to Seychelles Gazette, 31 January Copyright Act., No. 25 of 14 February 1984; effective on 1 April Source: Supplement to Seychelles Gazette, 27 February Trademark Decree, No. 18 of 1977; effective on 4 January Source: Supplement to Seychelles Gazette, 16 August II. International Framework A. Seychelles is a party to the following multilateral and regional instruments: Paris Convention for the Protection of Industrial Property of 1883 (Revised at Brussels in 1900, Washington in 1911, The Hague in 1925, London in 1934, Lisbon in 1958 and Stockholm in 1967, and as amended in 1979). Signed in 1994.

12 UNCTAD WID Country Profile: SEYCHELLES Page 12 of 13 Convention on the Settlement of Investment Disputes between States and Nationals of other States of Entered into force on 14 October 1966 Convention Establishing the Multilateral Investment Guarantee Agency of 1985, entered into force on 12 April An observatory status at the WTO. Treaty Establishing the Market for Eastern and Southern Africa (COMESA), Fourth ACP - EEC Convention (Lome IV) of 1989, entered into force on 1st March Southern Africa Development Community (SADC). Partnership Agreement between the Members of The African, Caribbean and Pacific Group of States, of the one part and the European Community and its member states, of the other part signed in Cotonou, Benin on 23 June B. Bilateral treaties 1. Bilateral investment treaties for the protection and promotion of investments: Cyprus Bilateral treaties for the avoidance of double taxation: Norway 1955, Switzerland 1963, Japan 1970, South Africa 1998, China 1999, Indonesia 1999, Thailand 2001.

13 UNCTAD WID Country Profile: SEYCHELLES Page 13 of 13 D. Sources of information Official Central Bank of Seychelles ( Secondary African Development Bank (1998). African Development Report 1998 (London: Oxford University Press). Bennell, Paul (1997a). "Foreign direct investment in Africa: rhetoric and reality", SAIS Review (Summer/Fall); pp (1997b). "Privatization in Sub-Saharan Africa: progress and prospects during the 1990s", World Development, vol. 25, no. 11, pp Economist Intelligence Unit (EIU) (2002a).Country Profile: Seychelles (London: EIU Ltd.). (2002b).Country Report: Seychelles (London: EIU Ltd.), April. (2005a).Country Profile: Seychelles (London: EIU Ltd.). (2005b).Country Report: Seychelles (London: EIU Ltd.), April. International Finance Corporation (IFC) (1997). Foreign direct investment, IFC: lessons of experience series No. 5, (Washington, D.C.: World Bank). International Monetary Fund (IMF) (2006). IMF's Sub-Saharan Africa Regional Economic Outlook, March 10, (Washington D.C.: IMF). Makila, Mosima (2003). "The attraction of the foreign direct investment (FDI) by the African countries"; paper presented at the biennial ESSA conference, September 2003, Sommerset West, Cape Town. Maubouche, R. and N. Hadjitarkhani (1980). Seychelles Economic Memorandum (Washington, D.C.: World Bank). Soderbom, M. and F. Teal (2004). "Size and Efficiency in Africa Manufacturing firms: Evidence from Firm-Level Panel Data." Journal of Development Economics, 73. pp United Nations Conference on Trade and Development (UNCTAD) (1995). Foreign Direct Investment in Africa, (Geneva: United Nations, United Nations publication, Sales No. E.95.II.A.6). (2000). Capital Flows and Growth in Africa (Geneva: UNCTAD/GDS/MDPB/7), July. (2005a). Investor-Disputes Arising from Investment Treaties: A Review. UNCTAD Series of International Investment Policies for Development (UNCTAD/ITE/IIT/2005/4). (2005b). A Survey of Support by Investment Promotion Agencies to Linkages. Advisory Studies No. 18 (UNCTAD/ITE/IPC/2005/12). United States Trade Representative (2006) Comprehensive Report on U.S. Trade and Investment Policy Toward Sub-Saharan Africa and Implementation of the Africa Growth and Opportunity Act: The Sixth of Eight Annual Reports, May (Washington D.C.: US Government).

Australia. A: Definitions and sources of data

Australia. A: Definitions and sources of data Australia A: Definitions and sources of data Data on foreign direct investment (FDI) in Australia are reported by the Australian Bureau of Statistics (ABS). The definition of FDI is essentially in line