SOLOMON Islands is sitting on a gold deposit that could sustain the nation economically for the next 30 years, it was revealed this week.
To unlock this potential, this calls for the introduction of transformative policies in every sector as a matter of urgency.
According to one study, Solomon Islands has gold deposit that could last 30 years, with potential earnings for the nation of some $2 billion a year.
“However, all these will remain locked away, unless the ruling Government of National Unity and Transformation (GNUT) introduces transformative policy in every sector as a matter of urgency,” according to someone who attended a briefing on this matter recently.
“We need transformative policies in every sector. We need transformation policies that will unlock the potential in the social sector. We need transformative policy that will unlock the productive sector. We need transformative policy to unlock the fundamental sector which is largely to deal with our natural resources and resources owners.
“Unless this is done, the financial woes the nation is going through right now will only get worse.”
The revelation comes at a time when the Government has found itself in a cash-strap situation.
It is predicted that the government would be locked in the cash-strap situation for the next six months, unless it acts now to reverse the trend.
“Investing in Constituency Development Fund in terms of increasing it is not the answer, now or ever. It is not productive”.
The observer also pointed out that this is not new. Both the ABD and the World Bank and even the Central Bank of Solomon Islands have been warning that unless transformative policies are brought in, the trend will only worsen.
“And we could be stuck in the cash-strap situation for the next six months or longer. A cash-strap situation is where the government can barely meet the cost of providing health and education services for its citizens,” the observer warned.
On a brighter note, the observer said Solomon Islands has everything going for it, citing for example the market in China. In 2022, China granted “non-reciprocal preferential tariff treatment to Solomon Islands, allowing 98 per cent of Solomon Islands products to be exported to China duty-free”.
China is Solomon Islands’ largest trade partner and a major export market for Solomon Islands products.
The agreement is expected to increase the income of Solomon Islanders and boost the country’s economic development.
Both governments have been working to sign Sanitary and Phytosanitary (SPS) Protocols to allow for the direct export of marine and plant products to China.
Some plant products, such as noni juice, coconut oil, cocoa bean, and coffee bean, are already allowed to be exported to China duty-free.
By Alfred Sasako
