A NEWLY launched World Bank report recommends the upgrading the Solomon Islands Road networks and enhancing inter-island shipping services to unlock new sources of economic growth.
It also urges the government to revisit the Franchise Shipping Scheme.
The report, titled Solomon Islands: Country Economic Memorandum – Unlocking New Sources of Economic Growth, which was launched in Honiara on Wednesday, examines key barriers to sustainable economic development, focusing on the cross-cutting challenges of economic geography and private sector growth.
Conducted between February 2023 and March 2024, the Country Economic Memorandum (CEM) highlights constraints in sectors with high growth potential such as agriculture, fisheries, tourism and labor mobility.
The CEM offers actionable policy recommendations to help the Solomon Islands overcome these barriers and unlock new sources of economic growth.
According to the CEM, Solomon Islands, with a population of 721,000 dispersed across 90 inhabited islands, faces unique development challenges due to its economic geography and limited state capacity.
The country’s small, remote archipelago structure complicates public service delivery and makes infrastructure development disproportionately expensive.
The report highlights several critical issues:
- Transport difficulties due to rugged terrain and challenging maritime conditions;
- Substandard road and shipping networks; and
- Poor digital connectivity and limited access to high-speed internet.
To address these issues, the CEM calls for a comprehensive reform effort focused on cross-cutting constraints to boost long-term economic development.
“Opportunities exist to address economic geography constraints through digitalization and improved transport connectivity,” the report states.
Meanwhile, as part of addressing road connectivity, the Minister for Infrastructure Development, Manasseh Maelanga informed Parliament last week that contractors have been allocated to improve the main highway in Honiara, from Henderson to White River.
One contractor will manage the section of the highway from Henderson to the Solomon Islands National University (SINU), while another will handle the stretch from SINU to White River.
In addition, under the Land and Maritime Connectivity Project (LMCP), funded by the Asian Development Bank (ADB), road upgrades are planned for Honiara’s Central Business District and feeder roads.
Under the Solomon Islands Roads and Aviation Project, funded by the World Bank, routine maintenance, regravelling, climate-resilient upgrades, and road safety improvements are underway for 17 kilometers of the North Road in Malaita Province.
The tar-sealing of Noro roads in Western Province has also begun and the 21-kilometer road from Dala to East Malaita nears completion.
On maritime, Minister Maelanga also mentioned that the Franchise Shipping Scheme (ST) is under review.
The review focuses on three key areas:
- Operational efficiency;
- Service reliability; and
- Overall performance.
The review will also assess the financial sustainability of the scheme, particularly the effectiveness of subsidies and cost management on uneconomical routes.
Furthermore, service quality and passenger satisfaction will be evaluated with a focus on safety, reliability and stakeholder feedback.
By EDDIE OSIFELO
Solomon Star, Honiara
Caption: Domestic Shipping service plays an important role in the economy. Photo courtesy of Solomon Ports Media.
