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Business Profile
Economy: The economy depends on subsistence agriculture and fishing, which together employ about 90 per cent of the population. The agricultural sector produces coconuts, sweet potatoes, cassava, fruit and vegetables; livestock rearing has grown steadily. Copra is still produced in commercial quantities, but low world prices have reduced the income from this commodity. The islands’ other key export product is timber. This industry grew very rapidly during the early 1990s but has been cut back drastically following international pressure (which included suspension of vital financial aid) on the Government to introduce a controlled logging policy. A moratorium of new timber-felling licences was introduced in 1998 and the industry now continues at reduced capacity.
The Solomon Islands’ main industrial prospect lies in its mostly undeveloped mineral resources. Gold mining has grown to assume a significant position in the economy and is set for further expansion; confirmed deposits of copper, lead, zinc, silver, cobalt and other ores will also be exploited in the future. In the service sector, there is a small tourism industry which brings in around SI$10 million annually. Despite its narrow economic base, the Government has so far eschewed the choice of some South Pacific neighbours to develop an ‘offshore’ finance industry. However, it has joined with fellow members of the Pacific Forum in supporting plans to establish a free trade system in the region.
The Solomon Islands continues to enjoy substantial overseas aid although much of this is consumed by a large external debt. The Government also introduced a typical programme of structural reform under the auspices of the IMF in 1998, following the Asian financial crisis, the knock-on effects of which caused some damage to the local economy. Australia and Japan are the main trading partners, followed by the UK, New Zealand, South Korea, Thailand and Singapore.
Business: Shirt and smart trousers or skirt will suffice. English and French are widely spoken. The best time to visit is May to October. Office hours: Mon-Fri 0800-1200 and 1300-1630, Sat 0730-1200.
Commercial Information: The following organisations can offer advice: Ministry of Commerce, Employment and Trade (see Contact Addresses section); or Solomon Islands Chamber of Commerce and Employers, PO Box 70, Honiara (tel: 21851; fax: 23342; e-mail chamberc@welkam.solomon.com.sb).
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