Solomon Islands need to capitalise on its great potentials in mining, tourism, agriculture and fisheries to attract more investments.
That’s according to the World Bank economist Lodewijk Smets during the launch of the Solomon Islands Country Economy Memorandum (CEM) Report in Honiara recently.
“A lot of things come with investment and so Solomon Islands needs to attract more investment and capitalise on the great potential it has in mining, tourism, agriculture and fisheries. Some of these are ongoing, but we can do more.”
He said investment drives growth all around the world and investment is not only money but knowledge and work ethics.
Mr Smets shared the scenario of a farmer who currently takes about 36 working days to invest and process on tonne of copper due to famers using only basic hand tools, which make their job harder.
“Imagine now that farmers have access to finance that allows him to invest in fertilizers, pesticides and de-husking equipment.
“They have high-speed and affordable internet so they could get up-to-date weather forecasts. They are able to watch videos on how to improve their harvesting practices. They feel inspired to expand their work.”
He said, this is not where Solomon Islands is today but it is possible and it could go there in the future with the right investments.
Mr Smets said, another thing lacking in Solomon Islands is mechanization but added that there has been some modelling done to see what is possible to invest in mechanization.
“We provide the right tools and machinery to those farmers in the rural areas with proper maintenance and operation.
“We make sure that they use fertilizers and pesticides so that they increase those yields and productivity and we raise aspirations,” he said.
Mr Smets added this could lead to a growth dividend of about 4.3 percent of the Gross Domestic Products (GDP) even in the medium term and that is boosting the rural economy.
Another scenario Mr Smets shared was that of a one-hour video watched by farmers in Ethiopia on how much farmers in neighbouring communities produce. With the income they earn, they could send their children to school, feed their families and can even save.
Five years down the road, the farmers that saw the video are producing more and are saving and sending their children to school.
“That’s what raising aspirations can be also for Solomon Islands. So there is a lot of knowledge out there to do these things.
“Same with fisheries. The coastal fisheries sector has a lot of potential and apparently what is most valuable in a fish is not in its flesh but the eyes.
“It’s in the eyes of the fish that omega-3 is, which is used in the pharmacy industry. It shouldn’t be too difficult to safeguard and preserve those eyes by putting them on ice and sending them to Soltuna for processing.
“This can have a huge income benefits,” Mr Smets said.
Thus, Mr Smets added that there are many ways to boost the rural economy and what is needed is a robust culture.
“There’s the need to have eskies, ice and energy to make sure fish are preserved and transported to urban centres of demand. That could boost the economy by 1.1 percent in the medium term.
The Solomon Islands: Country Economy Memorandum (CEM) which is to unlock new sources of economic growth’, examines key barriers to sustainable economic development with a focus in cross-cutting challenges pf economic geography and private sector development.
Carried out from February 3023 to March 2024, the CEM also looks at constraints in sectors with high growth potential (i.e., agriculture, fisheries, tourism, and labour mobility).
The CEM provides actionable policy recommendations to help overcome the identified barriers and unlock new sources of economic growth.
By AGNES MENANOPO
Solomon Star, Honiara
