Fisher's Digital Marketplace Applications
Fisher's Digital Marketplace Applications
Business Model Description
Develop digital marketplace applications connecting artisanal and semi-industrial fishers with businesses in tourism and fish processing value streams. This would be specifically large hotels in the Inner Islands, to improve demand forecasting, hence informed supply decisions and traceability in terms of source and sustainability of the catch, in addition to increasing fresh produce sales through direct transactions. Application may include additional tracking services such as preventing fishers from getting into a marine protected area (MPA).
Expected Impact
Improve efficiency in the fisheries sector, specifically small-scale artisanal and semi-industrial fishers, and increase product diversification and traceability to unlock access to finance and markets.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Seychelles: Greater Victoria
- Seychelles: Rural Mahé
- Seychelles: Praslin
- Seychelles: La Digue
- Seychelles: Silhouette
Sector Classification
Technology and Communications
Development need
Seychelles has experienced a moderate productivity increase despite graduating to high-income country status in 2015. Geospatial isolation and dependence on the services sector for more than 75% of GDP underscore the technological development as a catalyst for economic growth and resilience and as a tool for promoting the Blue Economy concept and monitoring SDGs (1, 2, 3).
Policy priority
Seychelles National Development Strategy (NDS), 2019-2023 incorporates enhanced technology use in implementing six thematic pillars, including innovative economy and economic transformation, that reflect the strategic direction of Vision 2033 (4, 5). The Digital Economy Agenda and Digital Economy Steering Committee aim to make the sector a pillar of Seychelles' economy (6).
Gender inequalities and marginalization issues
Inadequate capacity to generate comprehensive sex-disaggregated data impedes the identification of gender-related issues in the technology sector and the monitoring process of gender equality implications of Sustainable Development Goals (SDGs) and Africa Union Agenda 2063 (1).
Investment opportunities Introduction
The country ranked second in Africa in the last ICT for Development Index (IDI) in 2017. Partnerships increase with the public sector in digital skills development, digital infrastructure, such as the SEAS and PEACE international submarine cables, and cybersecurity domains. In addition, the private sector provides software to government platforms and local companies (2, 11, 12).
Key bottlenecks Introduction
Broadband services are characterized by low internet speed, metered and expensive packages, with an average package cost per month (USD) of USD 65, placing Seychelles 161st out of 220 economies, that result in low data consumption (2, 10). The cost of public-private partnership (PPP) and build–operate–transfer projects is comparable in high-income European countries (6).
Technology
Development need
Software services cover cross-cutting issues of efficiency and value creation from key sectors and public services, providing quality financial services to a 94% banked population who lack financial flexibility, decreasing systemic risks in the financial sector that arise from manual workload, initiating eco-innovation, including eco-labelling, and inclusive market systems (1, 2).
Policy priority
Budget 2021 places the digital economy sector within priorities. Seychelles Digital Economy Agenda, devised after that, concerns are digitizing government services, becoming a FinTech hub and building online payment and cybersecurity capacity. The private sector is included through outsourcing software and IT services, developed 90% in-house by the Department of ICT (DICT) (6, 9).
Gender inequalities and marginalization issues
In Seychelles, while the rate of women enrolled in tertiary education is more than double that of men, in 2020, only 8% of women graduated from tertiary-level Science, Technology, Engineering and Mathematics (STEM) programmes compared to 38% men. Mainstreaming gender equality in the government's digital economy agenda is lacking (2, 7, 8).
Investment opportunities introduction
Software services, e.g., fleet management and human resources, and digital applications in Blue Economy and tourism may achieve scale in Africa. Digitizing government services and online payment platforms emerged as Seychelles scored above the global average in the 2020 E-Government Development Index and had an internet penetration rate of 79% in 2020 (11, 13, 14).
Key bottlenecks introduction
The finance cost is high for tech start-ups, and digital businesses have no clear incentives. End-to-end public digital services, starting and ending a process online, lack for most government processes, partly due to underdeveloped digital payment infrastructure (2). In addition, limited land availability and the high electricity cost impede data centre development (6).
Software and IT Services
Pipeline Opportunity
Fisher's Digital Marketplace Applications
Develop digital marketplace applications connecting artisanal and semi-industrial fishers with businesses in tourism and fish processing value streams. This would be specifically large hotels in the Inner Islands, to improve demand forecasting, hence informed supply decisions and traceability in terms of source and sustainability of the catch, in addition to increasing fresh produce sales through direct transactions. Application may include additional tracking services such as preventing fishers from getting into a marine protected area (MPA).
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
Digital marketplace applications could tap into the market and value potential of small-scale fisheries in Seychelles, which generates 1-2% of the GDP, amounting to more than USD 100 million (1).
In 2021, African startups raised USD 4.4 billion in funding, growing by over 2.5x year-on-year. As of May 2022, startups in Eastern Africa raised USD 845 million in funding, including Mauritius, which has received more than USD 9 million since 2019 (16).
Seychelles has an emerging ICT sector, with the telecoms industry in Seychelles receiving USD 21 million in the form of Foreign Direct Investment (FDI) between 2014-2019 and with an internet penetration rate of 79% in 2020 (14, 15).
Indicative Return
> 25%
Established software developers in Seychelles expect a return from similar investments in two years (11).
Investment Timeframe
Short Term (0–5 years)
Established software developers in Seychelles expect a return from similar investments in two years (11).
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Market - Volatile
Capital - Limited Investor Interest
Limited Supply of Sector Professionals
Impact Case
Sustainable Development Need
Seychelles' small-scale artisanal fishers lack access to markets and finance with limited digital tools to improve the situation. Lack of adequate financial reports, high operational costs, and reporting on compliance issues such as bycatch are the main impediments to accessing finance (22).
On average, total catches from small-scale artisanal fisheries represent 3500 to 4000 metric tons. However, catch rates in Seychelles are depleting, and capture variance is especially high in the artisanal fisheries subsector, which lacks reliable data and remains open access (3, 19).
The economy of Seychelles is overreliant on the export of services and exhibits a low level of export diversification, as indicated by a Theil Index score between 6-7 in 2018-2019 (20).
Gender & Marginalisation
Informal employment is particularly high in Praslin and La Digue, where small fisher communities hold a significant role in the economic sphere. However, employees, particularly youth and women, are denied the benefits of decent work, and businesses cannot scale up their operations (21).
Seychelles has a significant proportion of youth (aged 15–24 years), 19.3% in 2018, not in education, employment or training (23). As a result, the artisanal fisheries sector's sustainability is challenged by lower interest by the youth (22).
Expected Development Outcome
Licensed fishers log their catch and sell fish through digital platforms, improving efficiency and bycatch management as well as formalisation and decent working conditions in the industry. In addition, pay slips generated from the application facilitate bookkeeping, supporting access to finance (22).
Digital marketplace platforms leverage sustainable business and product differentiation for small-scale fishing communities by enabling traceability and data-driven decisions.
Seychelles is among the eight African countries that export more services than goods and six countries with relatively developed ICT infrastructure. Therefore, a digital marketplace for fishers may increase knowledge-intensive service exports as well as the export of goods (20).
Gender & Marginalisation
Small fisher communities in Praslin and La Digue will improve visibility and market access due to formalization brought about using digital tools. In addition, online transactions through the application will help fishers keep sales records and improve their financial reporting and compliance capacity.
Digital marketplace applications may improve youth's involvement and women's visibility in the small-scale fisheries sector by improving access to market and finance.
Primary SDGs addressed
8.1.1 Annual growth rate of real GDP per capita
4% in 2019 (23).
7% (23).
12.3.1 (a) Food loss index and (b) food waste index
Household food waste estimate is 93 kg per capita, annually (24).
N/A
14.6.1 Degree of implementation of international instruments aiming to combat illegal, unreported and unregulated fishing
14.4.1 Proportion of fish stocks within biologically sustainable levels
On a scale from 1 to 5, Seychelles is ranked 4 in its level of implementation of international legal instruments (2018).
Seychelles possessed 21% of fish stock within biologically sustainable level in 2019 (23).
N/A
Restoring the status of declining fish stocks in the shortest time (23).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Planet
Corporates
Public sector
Outcome Risks
Increased fishing activity may result in overfishing and depletion of marine habitats.
Impact Risks
Weak digital literacy among the target users, notably small-scale fishers, may lessen the benefits of digital applications.
Problems with internet infrastructure access and undersea cables damage may prevent impact from being achieved at scale.
Digital applications might not be affordable for small-scale fishers and businesses in the hospitality sector due to the high cost of the internet.
Impact Classification
What
Software development and digital tools support economic growth beyond traditional sectors through startups and micro, small and medium enterprises (MSMEs).
Risk
The cost of software and the internet may impede the broad uptake of digital applications.
Contribution
Digital applications extend the fisheries value chain, increase efficiency in the sector and improve market access, adding to infrastructure development such as cold stores.
Impact Thesis
Improve efficiency in the fisheries sector, specifically small-scale artisanal and semi-industrial fishers, and increase product diversification and traceability to unlock access to finance and markets.
Enabling Environment
Policy Environment
National Fintech Strategy, 2022/2023: is currently being devised and encompasses support to technology-driven interlinkage between key industries, tourism and fisheries, alongside financial services (2).
Seychelles Blue Economy: Strategic Policy Framework and Roadmap Charting the future 2018-2030: Seychelles' blue economy roadmap considers strategic opportunities in developing fish value chains and seafood traceability with cold storage facilities (25).
Seychelles Fisheries Sector Policy and Strategy, 2019: set ten policy priorities for Seychelles’ fisheries sector, whereby adopting new technologies is a cross-cutting enabler for growth, monitoring, and sustainable development (26).
The Science Technology and Innovation (STI) Policy and Strategic Plan, 2016-2025: Sets strategical priorities in terms of transition to a knowledge-based economy in Seychelles, per Sustainable Development Goals (SDGs) and Africa Union Agenda 2063 targets (1).
National Information & Communications Technology Policy (NICTP): promote the use of information and communications technology (ICT) for business modernization in key sectors, principally for tourism and fisheries (27).
Reserved Economic Activities Policy, April 2020: It ensures that certain economic activities that are doable and affordable to the Seychellois investors and businesses shall remain reserved for them (32).
Financial Environment
Financial incentives: Fisher's marketplace application may access the Blue Investment Fund (BIF) proceeds. The Fisheries Development Fund aims at increasing value addition from fishing activity (28).
Fiscal incentives: The government of Seychelles is compiling different incentives for the ICT sector to be applied by 2023 (6).
Regulatory Environment
Seychelles Fisheries Act, 2014: forms the legal basis for developing and managing fisheries (26).
Broadcasting and Telecommunication Act, 2000: is the main legislation for the ICT sector in Seychelles (29).
Seychelles Investment Act, 2010: broadly defines investment and investor’s nationality - based on citizenship or the level of control- and makes all foreign investments subject to screening by the Seychelles Investment Board (SIB), giving the latter a business facilitation role (15, 30).
Reserved Economic Activities Policy, April 2020: ensures that certain economic activities that are doable and affordable to the Seychellois investors and businesses shall remain reserved for them; the list includes artisanal fishing, including demersal fishing (31).
S.I. 76. - Seychelles Investment (Economic Activities) Regulations, 2022: lists software implementation services and other computer services as an activity a non-Seychellois may invest in with the requirement to conduct an Economic Needs Test (ENT) (33).
Marketplace Participants
Private Sector
Cable and Wireless (C&W), Airtel, Intelvision, Kokonet, Victoria Computer Services (VCS), Space-95, WISeKey, Jobo Seychelles, Venture-Bay, TFC-International, dezigncubicle, KWIM Solutions.
Government
Office of the President Department of Information Communications Technology (DICT), the Seychelles National Institute of Science, Technology and Innovation (NISTI)
Multilaterals
United Nations Development Programme (UNDP), the United Nations Sustainable Development Group (UNSDG), the Southern African Development Community (SADC)
Non-Profit
ABALOBI, Seychelles Fishermen and Boat Owners Association (SFBOA), University of Seychelles (UniSey), the Guy Morel Institute, the India-Seychelles Centre for Excellence in ICT (ISCEICT)
Public-Private Partnership
Seychelles Cable System (SCS)
Target Locations
Seychelles: Greater Victoria
Seychelles: Rural Mahé
Seychelles: Praslin
Seychelles: La Digue
Seychelles: Silhouette
References
- (1) Government of the Republic of Seychelles & The United Nations. 2018. Strategic Partnership Framework (SPF) 2019-2023. https://minio.dev.devqube.io/uninfo-production-main/31577005-0d19-4fd6-bd85-5f76a035a082_SPF_Seychelles.pdf
- (2) World Bank Group. 2019. Seychelles Digital Economy Assessment. Washington, DC: World Bank.
- (3) World Bank. 2017. The Republic of Seychelles Systematic Country Diagnostic. Washington, DC: World Bank. https://openknowledge.worldbank.org/handle/10986/27559
- (4) Ministry of Finance, Trade, Investment and Economic Planning. 2019. Seychelles Vision 2033. http://www.finance.gov.sc/uploads/files/Vision_2033.pdf
- (5) Ministry of Finance, Trade, Investment and Economic Planning. 2019. Seychelles National Development Strategy 2019-2023. http://www.finance.gov.sc/uploads/files/Seychelles_National_Development_Strategy_2019_2023_new.pdf
- (6) UNDP Project Team stakeholder consultation undertaken with a government department in June 2022.
- (7) United Nations Development Programme (UNDP). 2022. Women in Technology in Seychelles. https://www.undp.org/sites/g/files/zskgke326/files/migration/mu/Gendered-Voices-Women-in-technology-in-Seychelles.pdf
- (8) UN Women. 2020. Women's Economic Empowerment in the Indian Ocean Rim: Progress and Challenges. https://www.unwomen.org/sites/default/files/Headquarters/Attachments/Sections/Library/Publications/2020/Womens-economic-empowerment-in-the-Indian-Ocean-Rim-Progress-and-challenges-en.pdf
- (9) Ministry of Finance, National Planning and Trade. 2020. Budget 2021 Speech delivered by Naadir Hassan, Minister for Finance, Economic Planning and Trade. http://www.finance.gov.sc/uploads/national_budget/BUDGET%202021%20Speech.pdf
- (10) Cable.co.uk. 2022. Global broadband pricing league table 2022. https://www.cable.co.uk/broadband/pricing/worldwide-comparison/
- (11) UNDP Project Team stakeholder consultation undertaken with an ICT company in Seychelles, in June 2022.
- (12) Joubert-Lawen, Rita. 2021. Seychelles to launch year-long trial as country moves closer to a digital economy. Seychelles News Agency. http://www.seychellesnewsagency.com/articles/15370/Seychelles+to+launch+year-long+trial+as+country+moves+closer+to+a+digital+economy
- (13) United Nations Department of Economic and Social Affairs. 2020. United Nations E-government Survey 2020. New York: United Nations. https://desapublications.un.org/file/781/download
- (14) The World Bank Group. 2022. Individuals using the Internet (% of population) - Seychelles. https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=SC-1W-ZG
- (15) The United Nations Conference on Trade and Development (UNCTAD). 2020. Investment Policy Review of Seychelles. United Nations, Geneva. https://unctad.org/system/files/official-document/diaepcb2020d1_en_0.pdf
- (16) Cuvellier, Max. 2022. Africa: The Big Deal. https://thebigdeal.substack.com/
- (17) Technical Centre for Agricultural and Rural Cooperation (CTA) - Vincent Fautrel. 2020. Project Completion Report. https://cgspace.cgiar.org/bitstream/handle/10568/110508/im1-ioc-fisheries-completion-report.pdf
- (18) Aruna. 2022. https://aruna.id/about-aruna/
- (19) Seychelles Conservation Climate Adaptation Trust. 2019. Pilot and integration of tracking, logbook and market traceability tools for co-management of the small-scale fisheries sector in Seychelles. https://seyccat.org/wp-content/uploads/2020/03/Keith-Andre-Pilot-and-integration-of-tracking-logbook-and-market-traceability-tools-for-co-management-of-the-small-scale-sheries-sector.docx
- (20) The United Nations Conference on Trade and Development (UNCTAD). 2022. Economic Development in Africa Report 2022. United Nations, Geneva. https://unctad.org/system/files/official-document/aldcafrica2022_en.pdf
- (21) The Ministry of Employment, Immigration and Civil Status (MEICS). 2018. Seychelles Decent Work Country Programme 2019-2023. https://www.ilo.org/wcmsp5/groups/public/---ed_mas/---program/documents/genericdocument/wcms_674580.pdf
- (22) UNDP Project Team stakeholder consultation undertaken with a Seychellois private sector agency in May, 2022.
- (23) Republic of Seychelles Ministry of Finance, Trade, Investment & Economic Planning, Economic Planning Department. 2020. Voluntary National Review 2020. https://sustainabledevelopment.un.org/content/documents/26382VNR_2020_Seychelles_Report.pdf
- (24) United Nations Environment Programme. 2021. Food Waste Index Report 2021. Nairobi.
- (25) Republic of Seychelles. 2018. Seychelles Blue Economy: Strategic Policy Framework and Roadmap Charting the future (2018-2030). https://investinseychelles.com/component/edocman/blue-economy-road-map/download?Itemid=0
- (26) The Government of Seychelles. 2019. Seychelles Fisheries Sector Policy and Strategy. http://www.mofbe.gov.sc/wp-content/uploads/Seychelles-Fisheries-Sector-Policy-.pdf
- (27) Republic of Seychelles Ministry of National Development. https://investinseychelles.com/component/edocman/ict-policy/download?Itemid=0
- (28) Development Bank of Seychelles (DBS). 2022. Product Loans. https://www.dbs.sc/product-loans
- (29) Republic of Seychelles. 2000. Broadcasting and Telecommunication Act. https://www.ict.gov.sc/documents/BTA2000.pdf
- (30) Republic of Seychelles. 2010. Seychelles Investment Act. http://www.mofbe.gov.sc/wp-content/uploads/2021/09/Seychelles-Investment-Act-2010.pdf
- (31) The Ministry of Finance, Trade, Investment and Economic Planning. 2020. Policy Paper on Economic Activities Reserved for Seychellois. https://www.investinseychelles.com/component/edocman/reserved-economic-activities-policy-reap-_april-2020/download?Itemid=0
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- (33) Ministry of Investment, Entrepreneurship, and Industry. 2022. Seychelles Investment (Economic Activities) Regulations, 2022. https://www.gazette.sc/sites/default/files/2022-07/SI%2076%202022%20-%20Seychelles%20Investment%20%28Economic%20Activities%29%20Regulations%202022.pdf
- (34) Bonnelame, Betymie. 2021. Central Bank of Seychelles pleased to see banks' lower interest rates on loans. http://www.seychellesnewsagency.com/articles/15792/Central+Bank+of+Seychelles+pleased+to+see+banks%27+lower+interest+rates+on+loans