International Finance Corporation (IFC), a member of the World Bank Group, and the Global Agriculture and Food Security Program Private Sector Window, is lending $10 million to National Fisheries Developments (NFD) Limited to support sustainable tuna production and employment in Solomon Islands.
This loan is IFC’s second investment to support the tuna industry in Solomon Islands. In 2013, IFC provided a $9-million loan to SolTuna Limited, a tuna processor and NFD sister company.
The new financing arrangement will help fund the purchase of a new fishing vessel and ensure maintenance of the existing fishing fleet. IFC will also provide advisory services to promote best practices in environmental and social risk management.
“Expansion of NFD’s fleet will increase our capacity substantially and enable us to create more local jobs, directly in fishing, shore handling, provision of supplies and services, and indirectly in tuna processing,” General Manager of NFD Mr Frank Wickham said.
The tuna industry accounts for 18% of the country’s GDP. In recent years, NFD’s tuna catch has accounted for around 25 percent of the commercially caught tuna in Solomon Islands.
“IFC’s engagements with NFD and SolTuna will boost their combined capacity to catch and process fish — an important source of revenue in the region — and also build on sustainable management practices and set a higher standard for the wild-catch fishing industry,” the IFC Director for East Asia and the Pacific Mr Vivek Pathak said.
Solomon Islands benefits from a sustainable and well-managed fishery. In 2016, it received the Marine Stewardship Council (MSC) certification for skipjack and yellow-fin tuna purse seine and pole-and-line fishery. MSC recognises that these species are caught from well-managed stocks and that the fishing practices meet its robust sustainability standards. The World Bank is supporting the government’s fisheries management capacity through its Pacific Islands Regional Oceanscape Program.
Solomon Islands is classified as a fragile and conflict-affected situation (FCS) and is eligible for International Development Association (IDA) support. With 30 percent unemployment, the nation depends on its vibrant fisheries sector as a sustainable source of economic growth.
Supporting a more productive and resilient fisheries sector can sustain livelihoods, improve nutrition, and increase government tax revenues, thereby contributing to the security and equity of the country.
IFC is a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org
About NFD
Established over 30 years ago, NFD is Solomon Islands’ premier fishing company, operating a fleet of purse seine and pole and line vessels from the port of Noro in Western Province. The company’s management, staff and crew are nearly all Solomon Islanders. NFD and SolTuna form one of the most integrated tuna fishing and processing operations in the South Pacific.
About GAFSP
The Global Agriculture and Food Security Program (GAFSP) is a global effort that pools donor resources to fund programs focused on increasing agricultural productivity as a way to reduce poverty and increase food and nutrition security. GAFSP targets countries with the highest rates of poverty and hunger. The Public Sector Window helps governments with national agriculture and food security plans. The private sector window, managed by IFC, and supported by the governments of Australia, Canada, Japan, the Netherlands, the United Kingdom and the United States, provides long- and short-term loans, credit guarantees, and equity to private sector companies to improve productivity growth, deepen farmer’s links to markets, and increase capacity and technical skills.
