The country faces a challenging future in terms of its economic growth given the dwindling forestry industry as more natural forests are being logged out.
Asian Development Bank (ADB) economist Milovan Lucich who is looking after Nauru, Solomon Islands and Vanuatu sounded the alarm during last week’s ADB Pacific business media summit in Sydney, Australia.
He said with Solomon Islands relying heavily on logging as its main revenue earner for over many years now, it would affect its revenue when logging stops.
“With the declining logging industry slowly affecting Solomon Islands, it would affect the country’s economy in few years time,” he said.
Currently logging is the third largest revenue earner for the country.
Mr Lucich therefore highlighted the Solomon Islands government needs to prepare and look at other industries to support the economy.
“Its important to support other industries such as agriculture, mining and tourism.”
Currently Gold Ridge in Guadalcanal is the biggest mining operations to have occurred in the country.
The government is also shifting its support to the tourism industry now.
This was evident with the appointment of a Fijian Josefa Tuamoto to head the Solomon Islands Visitors Bureau (SIVB).
Mr Lucich highlighted that creating an enabling environment for sustainable economic growth remains a challenge for Solomon Islands.
Meanwhile ADB said its operation here in the country seeks to reduce poverty by promoting equitable private sector-led economic growth through assistance in three core sectors: transport and information and communication technology; public sector management; and energy.
By MOFFAT MAMU
