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Solomon Islands Business Guide S Pecial Feature This Feature First Published in the July/Aug 2017 Edition of Paradise Magazine Solomon Islands Business Guide S PECIAL FEATURE This feature first published in the July/Aug 2017 edition of Paradise magazine. © Copyright 2018 Air Niugini and contributors www.airniuginiparadise.com SOLOMON ISLANDS SPECIAL REPORT BUSINESS GUIDE Sunny skies, calm seas and A POSITIVE ECONOMIC OUTLOOK he Solomon Islands, 1400 by 11.4 years, mean years of The Asian Development Bank’s Commerce and Industry, says kilometres east of Papua schooling increased by 0.7 years Asian Development Outlook 2018 progress on broadening the New Guinea, is a country and expected years of schooling notes that cash crops, fishing country’s agricultural base has Tthat is making big economic increased by 3.6 years. revenue and construction remained been relatively slow in the short advances. Although it faces Over the same period, Solomon strong in 2017, but economic term. “There is a little bit of small many of the familiar challenges Islands’ gross national income growth slowed because of a niche products getting exported confronting developing Pacific per head (GNI per capita) decline in logging exports. at the moment but nothing very economies, such as a narrow increased by 14.8 per cent. “Inflation decelerated on lower substantial.” industry base, the country has The bulk of the population food prices, and the current In the medium term, however, been making some positive gains. depends on agriculture, fishing account deficit almost halved. there are plans for expansion of the According to the United and forestry for at least part of Slower growth is expected in 2018 palm oil industry. Nations’ Human Development its livelihood. Most manufactured and 2019 as new construction only A subsidiary of New Britain Index, between 2000 and 2015 goods and petroleum products partly offset a likely further decline Palm Oil, GPPOL, is, says Bartlett, the Solomon Islands’ rating must be imported. The islands in logging output. Progress is being looking at an expansion program increased from 0.442 to 0.515 – an are rich in undeveloped mineral made in implementing a much- in the Guadalcanal, in the east improvement of 16.5 per cent. resources such as lead, needed national transport plan, but of the country. The UN estimates that between zinc, nickel and gold. Some challenges remain.” “GPPOL is looking at more 1990 and 2015, Solomon Islands’ calculations put the country’s Jay Bartlett, chairman of the plantations; that is in the pipeline. PICTURES: DAVID KIRKLAND life expectancy at birth increased GDP at $US1.317 billion in 2017. Solomon Islands Chamber of There just needs to be some key 108 Paradise – Air Niugini’s in-flight magazine SOLOMON ISLANDS BUSINESS GUIDE SPECIAL REPORT David James reports that economic advances are being made in the Solomon Islands, providing plenty to smile about. Located 1 hour from Honiara on infrastructure built: two bridges to “A task force has been the waterfront of the historic open up access.” established. The Chamber of Tulagi harbour. Bartlett says there are some Commerce is working with the •Reef & Wreck Diving cassava exports but it is still on a Government and the Ministry of •Accommodation “quite small scale”. Virgin coconut Agriculture. The private sector is •Bar & Dining oil production has been growing taking the lead to find a solution. slowly, but could potentially be It needs to be a biological solution •Snorkeling affected by spread of the coconut … a virus that will kill it.” •Hiking & more... rhino beetle. Bartlett says the government is “That is a huge threat to the embarking on a three-year review livelihoods of our rural population into tax reform “to ensure that that depends on the coconut its administration is efficient and industry. It is also having a negative simpler”. He describes it is a very impact on the palm oil industry, positive step. as well. It is spreading around “We in the private sector, the the Solomons at the moment Chamber of Commerce, we are WWW.RAiDERSHoTEl.Com and being found in a number of part of the committee so we different provinces. are trying to ensure that the Email: [email protected] • Ph: +677 7494185/7938017 government understands Check out our reviews on TripAdvisor & Facebook July – August 2018 109 SOLOMON ISLANDS BUSINESS GUIDE SPECIAL REPORT A positive economic outlook the business point of view and which is very high. We have also how we would like to see the got a very young population. reform happen. I think people that invest and run We are talking seven out of 10 “It will broaden the base, make business in Papua New Guinea and under 30 – so similar demographics tax easier to pay and broaden as PNG. the net. There is a large informal Melanesia probably see the Solomons as “With a lack of economic sector that at the moment isn’t a good opportunity as well. opportunity for young people and a contributing to government lot of unemployment, in the future revenue so hopefully we can look security could be a concern. So we at getting more businesses into are just looking at ways we can the formal sector with a simplified “I think people that invest and Monetary Fund (IMF) the address this holistically. Not just tax system. That is something we run business in Papua New Australia-led Regional focus on how we can stop it, but can promote.” Guinea and Melanesia Assistance Mission to also why these issues are there.” Bartlett says the members of probably see the Solomon Islands (RAMSI) Land ownership is another issue, the chamber are businesses that Solomons as a good withdrew this year says Bartlett. “contribute and comply”. He says opportunity as well,” after 14 years, “having “Accessibility to land is always it is hard to say what the level of says Bartlett. succeeded, together challenging. Similar to Papua compliance is across the whole A trade delegation with the authorities, in New Guinea, most of the land economy. “We believe there is a lot from the Solomons to restoring law and order is customary owned.” Bartlett of room for improvement.” PNG is being planned. and re-establishing public estimates 85 per cent of the land Two positive developments for “It will be a partnership institutions”. is customary land and only 15 per the Solomon Islands are the Tina between the private sector RAMSI was established cent is registered land. River Hydropower Development and government just to gauge in 2003 to deal with ethnic “With the majority of our land Project and the Solomons what sort of interest we can violence, the closure of we need to get some ownership Undersea Cable Project (which will get in PNG and also for us key businesses, and structures in place so we can be mainly funded by the Australian to go on a bit of a learning government fiscal move on development and get Government). The ADB estimates mission as well. stresses. infrastructure in place. There are Jay Bartlett … that these will start contributing to “There is a lot of chairman of the Bartlett says the different models in the Pacific. economic growth in 2019. innovation that is Solomon Islands relationships remain. “It “Some of them are quite Bartlett says the laying of happening in Papua New Chamber of has just changed from successful, like in Fiji – they have Commerce and domestic cables is expected to Guinea with agriculture. Industry. the mission to a bilateral the Native Land Trust Board that begin in May 2019. The main So maybe there are some relationship so we still have manages this. But it is a long-term international cable will go into process. Land reform is about Honiara and there will be three people, not land. We have to go additional domestic connections. through some sort of identification He says it will “definitely” lead to The bulk of the population depends on process to really understand who more efficiency in business, lower is there and what people own. It costs and increased speeds. agriculture, fishing and forestry for at least is not something that is going to Bartlett says after that immediate part of its livelihood. happen quickly. It will take some impact, experience suggests that time and it needs a lot of political consumption will double every will to drive it.” year for the first five years. “It Bartlett adds that the Solomons creates other avenues where we lessons we can learn and bring a lot of support from the Australian chamber represents “a quite can use technology a lot more to back. We are still in dialogue government. One of the things we diverse group of businesses”. deliver services and infrastructure; with the Port Moresby Chamber, are doing as a chamber is working He says the big-ticket items are connectivity is always a challenge the Trade Commissioner and the with law enforcement and police infrastructure, the cost of business, and logistics costs are always very High Commissioner in PNG but to build trust and confidence in utilities, roads and general business expensive. I think innovation is a big we would like to do it this year, business, and to encourage more efficiency. area that can grow from this.” working towards September.” investment. He says the cost of internet is The Solomon Islands is mostly The Solomon Islands is recovering “The Solomons is a safe country. also prohibitive, but he expects Melanesian, and has strong cultural from some serious civil conflict. But we do have a lot of (negative) that to fall with the laying of the connections with PNG. According to the International elements like unemployment, overseas cable. 110 Paradise – Air Niugini’s in-flight magazine Solomon Is. Epic FLY FISHING visitsolomons.com.sb Adverts1.indd 7 28/05/2018 03:24:18 PM SOLOMON ISLANDS BUSINESS GUIDE SPECIAL REPORT A positive economic outlook The Solomons strengthens its finances The good life … tourism in the Solomon Islands is on the increase.
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