BY JOSES SAREN
Solomon Islands’ economic growth is projected to slow to 2.8 percent in 2026, down from 3.6 percent last year, the World Bank says.
The slowdown reflects Cyclone Maila, the global fuel price shock from the conflict in the Middle East, weak private investment, and a continued decline in logging, according to the World Bank’s first Solomon Islands Economic Update, launched yesterday.
The report, titled “Harnessing the New Roots of Growth,” says the economy remains below its long-run potential despite the 2025 rebound.
Growth is expected to recover to about 3.1 percent in 2027 and 2028, the World Bank states.
That figure is still 1.6 percentage points below the pre-pandemic decade average, it adds.
The World Bank attributes the near-term outlook to two main drivers.
These are increasing mining activity at Gold Ridge and a substantial infrastructure pipeline, including the Tina River Hydropower Project and road construction, the report explains.
Remittances, now equivalent to about 5 percent of GDP, will continue to support household consumption, it notes.
However, the bank warns that growth remains concentrated in capital-intensive mining and donor-financed infrastructure rather than in services, tourism, or private investment.
The baseline projection rests on three assumptions that carry material uncertainty, the report further noted.
These are gold prices holding at 2025 levels, major infrastructure projects staying on schedule, and fiscal reforms — particularly the VAT Bill and wage bill measures — moving ahead in Parliament.
Should any of these weaken, the World Bank says growth could fall materially below the baseline.
The economy operated with an output gap of an estimated -2.4 percent of GDP in 2025, the report states, meaning output remains below the country’s productive potential.
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BY CHARLES STENNETT
Debate on the Mines and Minerals Bill has been deferred until September 7 to allow the new parliamentary Bills and Legislation Committee (BLC), to go through the report of the previous committee and come up with a final report.
The government had intended to pass the Bill this week through the general debate on the Second reading, the committee stage and the third reading.
However, before the debate started yesterday, acting chairman of BLC and leader of the Independent Group, Peter Shanel Agovaka raised a point of order, not to distract the government of its intention to table the bill but to ensure members of Parliament get sufficient information, time and opportunity to properly scrutinise the Bill given the profound importance the Bill has to the nation.
Mr Agovaka said the previous BLC has taken an extensive enquiry into the Bill but was not able to complete it following the cancellation of visits to Isabel and Choiseul Provinces due to lack of financial resources coupled with the political impasse experienced at the early part of the year.
As such there was no final BLC report on the Bill to be tabled to enable members to make constructive debates.
“Without such report, members are deprived of the committee’s findings, concerns and recommendations. It is imperative that such report be available before members are asked to deliberate further. Parliament must not be reduced to a mere rubber stamp for executive’s legislation,” Agovaka said.
He said the debate on the Bill should be deferred to enable members of the new BLC to come up with a final report after consultation with other stakeholders.
Agovaka requested that the house allow time for one more meaningful consultation, outstanding issues from the enquiry to be addressed and form part of the recommendations and conclusion and that the BLC report to be finalised, tabled and that members receive and consider the report.
Prime Minister Matthew Wale described the Bill as a victim of the transition because of the political situation earlier in the year.
He admitted that the previous BLC had held extensive enquires with stakeholders and that a draft report has been produced.
Prime Minister Wale also asked which of the committees should present the report, the previous BLC or the new one.
Leader of Opposition, Manasseh Sogavare told Parliament that the house is not ready to debate the Bill as yet.
“The House is not ready to debate the Bill today. We’ve been given all the files and to be fair to the House and the new committee, give us the time to go through the report,” Leader of Opposition said.
After the suspension of the meeting for lunch which the Prime minister had requested, Parliament Speaker Patteson Oti announced that a consensus has been reached for the debate to be deferred.
“Applying the rule of necessity, it is important that the Committee report must be tabled to gauge the informed consent necessary to vote on the Bill,” Speaker Oti said.
Former Chairman of BLC and minister for Women, Youth, Children and Family Affairs, John Maneniaru told parliament that his committee has completed their task and a full report has been made after consultations with all the necessary stakeholders were held except visits to Isabel and Choiseul provinces because of the lack of financial resources.
Minister for Mines, Energy and Rural Electrification, Derick Manuari then moved that the debate on the Mineral Resources Bill be deferred until the next time Parliament sits.
Prime Minister Wale asked Parliament for a special adjournment of the sitting until September 7 when it will resume which the members supported.
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Public debt increases by four times in under a decade, World Bank warns
BY JOSES SAREN
Solomon Islands’ public debt has quadrupled in less than a decade and could breach 35 percent of GDP by 2029, the World Bank says.
Debt rose by about 4 percent of GDP to reach 29.5 percent in 2025, driven by persistent fiscal deficits, major regional events, and growing infrastructure investment, according to the World Bank’s first Solomon Islands Economic Update.
The fiscal deficit widened to 3.8 percent of GDP in 2025, from 2.4 percent in 2024, the report said.
The 2025 primary deficit of 3.2 percent of GDP exceeds the debt-stabilising threshold by 2.6 percentage points, it explains.
This means public debt will keep rising, the World Bank notes, underscoring the need for gradual adjustment.
Cash reserves have fallen to less than one month of spending, down from over a month in 2022, the report adds.
The World Bank identifies the public wage bill as a major driver of fiscal pressure.
Wage spending has grown sharply to reach 16 percent of GDP, well above the medium-term target of 10 percent, the report states.
This increase reflects cost-of-living adjustments, high allowances, a growing public service, and significant teacher salary increases since the pre-pandemic period, it details.
Domestic debt increased from 1.7 percent of GDP in 2019 to 9.4 percent in 2025, driven by high-cost instruments amid limited long-term financing options, the World Bank further noted.
On the external front, the shift from grants towards concessional and semi-concessional financing has led to firmer debt service obligations, according to the report.
The World Bank recommends that the government prioritise grants and concessional financing for public investment, establish a binding ceiling on domestic borrowing, and avoid non-concessional borrowing.
It also calls for independent cost-benefit analysis on all major capital projects, including those tied to the country’s 2028 independence anniversary.
GREAT government under Prime Minister Matthew Wale is moving reforms to lower public debt.
Government through investments and closely monitored foreign financing will establish major infrastructure developments which in turn will generate revenue and lower national debt eventually.
Prime Minister Wale in his speech to close the debate on the speech from the throne in parliament earlier this month listed reforms his government will introduce which will tackle economic challenges such as public debt.
One such is his government’s engagement with the United States’ Development Finance Corporation (DFC) which will sponsor major infrastructure development in Solomon Islands.
“And the first fruit is already before us: the firm commitment, subject to details, of DFC financing for the wharf, the power, the fuel storage and the roads at Bina Harbour, non-sovereign financing that adds not one dollar to the public debt of a nation at moderate risk of debt distress,” Wale said, defending government’s stance on DFC against Opposition scrutiny in parliament.
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THE ISLAND SUN FRONT PAGE
ISSUE 5680 | WEDNESDAY 19 AUGUST 2026
FROM 4 TO 29.5
Public debt increases by four times in under a decade, World Bank warns
Solomon Islands public debt has quadrupled in less than a decade and could reach 35 percent of GDP by 2029, according to the World Bank.
Debt rose by about 4 percent of GDP to 29.5 percent in 2025, driven by persistent fiscal deficits, major regional events and growing infrastructure investment.
The World Bank warns that public debt will continue to rise, highlighting the need for gradual fiscal adjustment as the Government moves forward with public reforms.
Read the full story on Page 2.
Also in today’s edition
Solomon Islands growth to slow to 2.8 percent in 2026: World Bank - Page 3
GREAT plans 4 TAFE schools across country with Japan support - Page 3
WHO Solomon Islands reaffirms commitment to strengthen health system - Page 6
Plus more national, provincial, development, business, community and sports news inside today’s Island Sun.
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ISLAND SUN FRONT PAGE
ISSUE 5680 | WEDNESDAY 19 AUGUST 2026
FROM 4 TO 29.5
世界银行警告,公共债务在不到十年的时间里增加了四倍
根据世界银行的报告,所罗门群岛的公共债务在不到十年的时间里已经翻了四倍,到2029年可能达到GDP的35%。
债务在2025年上升了约4%的GDP,达到29.5%,这主要是由于持续的财政赤字、重大区域事件和基础设施投资的增加。
世界银行警告,公共债务将继续上升,强调政府在推进公共改革时需要逐步进行财政调整。
请在第2页阅读完整故事。
Also in today’s edition
所罗门群岛的增长将在2026年放缓至2.8%:世界银行 - 第3页
日本支持下的全国TAFE学校伟大计划 - 第3页
世卫组织所罗门群岛重申加强卫生系统的承诺 - 第6页
此外,今天的岛屿太阳报还包含更多国家、省级、发展、商业、社区和体育新闻。
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Island SunBusiness & Economy商业经济·2026-08-19Original ↗原文 ↗
OFFICE OF THE AUDITOR GENERAL CLARIFIES STATUS OF PROVINCIAL AUDITS
The Office of the Auditor General confirms that Provincial Audits for Rennell and Bellona Province for the periods of 2022 and 2023 have been released, as opposed to recent media reports published recently by the Provincial Government Strengthening Program within the Ministry of Provincial Government and Institutional Strengthening.
The recent statement announced receiving complete audit reports from 6 provinces for the period of 2022 and 2023 with varying results. The provinces are Central, Choiseul, Isabel, Western, Temotu and Guadalcanal. The statement also announced that they are currently waiting for the Office of the Auditor General to submit Audit Reports for that particular period, for Malaita, Rennell and Bellona and Makira Ulawa Provinces.
However, the OAG clarifies that Audit Opinions for Rennell and Bellona were released to the Speaker of Rennell and Bellona Province, the Hon Jefter Tuhangena, in July this year. The Permanent Secretary of the Ministry of the Provincial Government was also copied in on the email.
Meanwhile, Malaita and Makira and Ulawa Provinces are yet to respond to audit queries before final audit report for 2023 can be released.
The Provincial Audit Opinions for the periods of 2022 and 2023 released to Provincial Governments or tabled in Parliament so far are as follows:
Audit Opinion Definitions:
Unqualified Audit Opinion
An unqualified audit opinion, also known as a clean opinion, indicates that an entity's financial statements present a true and fair view in all material respects, without any significant reservations.
Qualified Audit Opinion
A qualified audit opinion indicates that, except for specific identified issues, the financial statements are fairly presented in accordance with the applicable accounting standards.
Disclaimer Audit Opinion
A disclaimer audit opinion is issued when an auditor cannot obtain enough reliable evidence to form any opinion on a company’s financial statements, typically due to material and pervasive scope limitations.
Emphasis of Matter
An emphasis of matter means a specific section added to an auditor's report to draw attention to a critical issue already presented or disclosed in the financial statements that is important to the user's understanding, without changing the auditor's opinion.
The OAG provincial audits 2022-2024 are supported by UNCDF, which provides some funding for consultancy, logistics and equipment. Audit fieldwork for 2024 for all Provinces are complete and the outcomes, alongside the commencement of 2025 audit fieldwork should be finalised this year, depending on how Provinces respond to requirements of the audit process.
Ends////
WHO SUPPORTS SOLOMONS HEALTH SERVICES
The Ministry of Health and Medical Services (MHMS), with support from the World Health Organization (WHO), is strengthening the country’s regulatory system for medicines, vaccines and medical devices to help ensure that health products reaching communities are safe, effective and of assured quality.
For details visit: https://www.solomonstarnews.com/solomon-islands.../
New school offers hope of keeping children close to their families while improving access to education
BY NED GAGAHE
In Thathaje village, Isabel province, a school building rising from a coconut plantation represents more than classrooms and lessons.
Members of Thathaje community with Mr. Nickson Teopuhi and his team pose for a group photo infront of the classroom building, Photo credit- Ned Gagahe
For parents, it means their children may no longer have to cross rough seas or leave home to stay with relatives just to attend school.
For children, it could mean going to class each morning and returning home to their families each afternoon.
And for the wider community, the nearly completed school represents hope that more children will be able to remain in education.
Thathaje, a community of about 200 people in Japuana Ward 12, Gao/Bugotu Constituency, has faced significant challenges in providing children with access to education.
For years, children have had to travel to Kalenga Primary and Secondary School or Lepi Primary School.
The journey to school can take between 5 and 10 minutes by canoe or outboard motor (OBM), depending on sea conditions.
The alternative land routes are also difficult, with steep mountains, large rocks and rugged terrain making the journey challenging for young children.
Seafront of Thathaje village, Photo credit- Ned Gagahe
For families, the problem goes beyond transportation.
When children cannot travel safely each day, some families have had to arrange for them to stay with relatives in Sepi, where Kalenga is located, or in Lepi primary school – another nearby village during the school term.
Parents then have to make regular trips to provide food, school supplies and pocket money.
Community elder Chris Vahia said the difficulties had contributed to a significant number of children being out of school.
Village elder Chris Vahia speaking to Island Sun during an interview, Photo credit- Ned Gagahe
He said about 30 children from Thathaje were currently not attending school, while some who had previously enrolled had dropped out because of the challenges.
The situation has also affected children emotionally and academically.
Grade Six student Ileen Mizar, who attends Kalenga Primary School, said staying away from her parents was difficult.
“Sometimes I feel hungry, but I keep quiet. This affects my studies. Going home and returning every weekend is difficult. I wish the school was here,” she said.
Her experience reflects the concerns of parents who want their children to receive an education without having to sacrifice their comfort, safety and connection with their families.
Kalenga Primary School headteacher Nickson Teopuhi said children could experience difficulties when staying with extended family.
Kalenga Primary School head teacher Mr Nickson Teopuhi speaking to the community, Photo credit- Ned Gagahe
He said some children could become fearful even over simple activities within the household.
“Even simple things, such as going to get food from the food safe, can make you think twice about whether it is ok to do so,” he said.
Teopuhi said this was one of the reasons establishing a school in Thathaje was important.
“That is why our children did not go to Kalenga. They were afraid because of the challenges and fear we faced,” he said.
He said the community needed to work together to ensure the school became a reality.
“We must support it as much as we can so that our children can attend school, learn and have the opportunity to develop,” Teopuhi said.
“The most important thing is for us to put our heads together, cooperate and support one another so that we can achieve our goals and create a better future for everyone.”
The school is being established with support from the Provincial Government and under the leadership of Japuana Ward 12 representative Tony Vahia.
It is currently described as an extension of Kalenga Primary School.
When the Island Sun visited the site last month, construction of the school building was about 70 percent complete.
Once completed it can accommodate up to 6 classrooms. If both the bottom and top of the building is fully utilised.
However, further work is still required before it can officially open.
Chairman of the Thathaje Extension School project, Chief George Tafo said the project had faced challenges, including a land dispute over an initially identified site.
Chairman of Thathaje extenssion school Chief George Tafo, Photo credit- Ned Gagahe
The community eventually found another location, with Tafo agreeing to allow part of his coconut plantation to be used.
“I thought about the importance of establishing this school. After consulting my family, I decided to allow the school on my coconut plantation. Education is important for the generation of this community,” he said.
Tafo said the decision was made with the future of the community’s children in mind.
For parents, the school could also remove some of the financial pressures associated with sending children to school away from home.
Parent Marion Vahia said families sometimes struggled to find fuel or an OBM to transport their children.
Parents Mostyn Huai and his wife Marion Vahia, their two boys Mostyn Jnr, and Livingstone, are currently attending Kalenga Primary School, Photo credit- Ned Gagahe
“Sometimes we do not have the fuel or outboard motor (OBM) to transport them to school. Sometimes we also do not have a canoe to take them to school. As a result, the children have to stay at home instead of attending school,” she said.
She said parents also relied on relatives to accommodate their children.
“If they allow us, we leave our children with them so they can attend school. If they do not, then the children cannot go to school,” Vahia said.
The financial responsibility does not end once children leave home.
Parents must also provide food for children staying with relatives.
“When our children stay with our relatives, we have to take food to them every Sunday. Sometimes, we also have to take food to them during the week,” she said.
Vahia said mothers also worried about whether their children were comfortable, properly fed and safe while staying away from home.
“As a mother, this is one of my biggest worries about my children,” she said.
The prospect of having a school in the village has therefore been welcomed by parents.
“We are very, very happy that once this school opens, our children will be able to attend school while staying at home. We will be able to look after them in the village, make sure they eat well, and then send them to class,” Vahia said.
Marion’s husband, Mostyn Huai, said the school would also help families reduce transportation and food costs.
“I am very, very happy that the school will soon be established here because the children will be able to live close to us,” he said.
Huai said families currently had to spend money transporting children to Kalenga and providing food when they stayed away from home.
“We have to give them a bag of rice and other food such as noodles and tinned fish,” he said.
“When the school is established here, we will be very happy because we will be able to feed the children at home before they go to school.”
For Thathaje, the school is therefore not simply another building in the village.
It represents the possibility of keeping children close to their parents while giving them a better chance to attend school regularly.
It represents relief for parents who have struggled with transportation, accommodation and food costs.
And for children who have faced difficult journeys and separation from their families, it represents the possibility of attending school without leaving home.
The community is now looking towards completing the remaining work so the school can open and begin serving Thathaje children.
The community has also appealed to donors to support the completion of the school.
*Reporting for this story was supported by Pacific Media Assistance Scheme (PACMAS)
Photo credit: Ned Gagahe
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BY LORETTA B MANELE
The Parliamentary Opposition Group commends the Minister of Finance and Treasury, Gordon Darcy Lilo for his responsible and realistic approach to Solomon Islands financial position.
A statement from Opposition this afternoon said the minister’s emphasis on understanding the country’s available fiscal space, strengthening domestic revenue and managing public finances responsibly is the kind of discipline required when Government is faced with many competing demands.
The Opposition Group said Mr Lilo in his recent presentation of the 2026 Supplementary Appropriation Bill, highlighted the pressure placed on the national budget when expenditure increases without corresponding revenue growth or a clear financing strategy.
The statement said this is a difficult responsibility for any Finance Minister, particularly when Government is also pursuing major policy commitments and new programmes.
“Minister Lilo deserves credit for putting fiscal reality at the centre of the discussion. A Finance Minister must look at what the country can actually afford before Government makes commitments that create additional financial obligations,” the Opposition said.
Moreover, the Opposition Group stated that this discipline must apply across Government.
“The Government is increasing expenditure, making additional political appointments and pursuing major commitments including fee-free education, infrastructure, agriculture and other programmes. All of these commitments have financial implications and must be considered against the country’s available resources,” the Opposition said.
Also mentioned is that while increasing revenue is important, it cannot simply be followed by more spending and that Government must also take into consideration what it can afford or sustain over the long term.
In regards to the proposed free education policy, the Opposition said the Government must be clear on the full cost of the policy and on how it will be financed alongside its other commitments.
“Good policy must be matched by good financial planning,” the Opposition stated.
The Opposition said responsible financial management requires the Finance Minister to have the space to properly assess the country’s finances and advise Government on what is affordable and sustainable.
“If we genuinely want responsible government, then fiscal discipline cannot rest with the Finance Minister alone. It must be respected and applied across the whole of Government,” the Opposition said.
Minister Lilo’s focus on fiscal responsibility has been welcomed by the Opposition Group and they will continue to support efforts to strengthen the country’s financial position while scrutinising Government spending and major policy commitments.
The Opposition said Solomon Islanders deserve a Government that makes promises based not only on what people want to hear, but on what the country can realistically afford and sustain and urges the Minister for Finance and Treasury to control government expenditure whilst building the country’s fiscal space.
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Central Coast FC faces Galaxy FC tomorrow night with historic OFC final spot at stake
BY RICHARD MENANOPO
Solomon Islands representative Central Coast FC will face Vanuatu’s Galaxy FC tomorrow night in a high-stakes OFC Men’s Champions League semi-final, with a place in Saturday’s grand final at stake.
The two Melanesian sides will meet at 7pm at 4R Stadium Govind Park in Ba, Fiji, with Central Coast chasing a historic first appearance in the continental final.
OFC Media, in a media release issued yesterday, confirmed that defending champions Auckland City FC, hosts Rewa FC, Galaxy FC and Central Coast FC are the four clubs remaining in contention for the 2026 title.
Central Coast advanced to the semi-finals after finishing second in Group A and have grown stronger as the tournament progresses.
Head coach Jacob Moli had earlier admitted that his side was undercooked heading into the competition, but their match fitness has improved and the team has produced some impressive football in Fiji.
Their squad has also been strengthened by eight players with OFC Pro League experience, providing valuable regional experience ahead of the knockout stage.
Standing in their way is a Galaxy side that has impressed throughout the tournament.
The Vanuatu champions topped Group B with three wins, with Brazilian striker Willian Dos Santos Medina emerging as one of the competition’s standout players after scoring three consecutive hat-tricks.
His combination with fellow Brazilian Roberson Dos Santos Ribeiro has helped Galaxy develop one of the tournament’s most dangerous attacks.
The semi-final will also carry a strong Solomon Islands connection, with former Solomon Islands international Batram Suri coaching Galaxy, while Solomon Islanders Michael Laulae and Aengari Gagame are also part of the squad.
“It will be special playing against a club from my country. Business is business though, and I coach Galaxy, so I am Vanuatuan now,” Suri said.
Moli, meanwhile, said Central Coast must respect their opponents and prepare carefully for the crucial encounter.
“We respect Galaxy FC. They have been one of the teams to watch at this tournament and impressed during the group stage,” Moli said.
“We have to go back to the training ground and make sure we prepare well for the semi-final.”
Tomorrow’s match will also decide which Melanesian football nation ends a lengthy wait for a place in the final.
OFC Media noted that it has been 12 years since a Vanuatu club last reached the final, while Solomon Islands have waited 17 years since their last club appearance in the decider.
Central Coast previously reached the semi-finals on their OFC Men’s Champions League debut in 2023, but exited at the group stage on home soil last year.
The first semi-final tomorrow sees 13-time champions Auckland City FC take on hosts Rewa FC at 3pm, before Central Coast and Galaxy meet at 7pm.
The two winners will meet in Saturday’s final for the 24th OFC Men’s Champions League title.
Both semi-finals and the final will be available live and free on FIFA+ via DAZN.
The OFC Men’s Champions League is Oceania’s premier club football competition, bringing together the region’s top domestic champions.
Central Coast FC are carrying Solomon Islands’ hopes into the final four in Fiji, with victory over Galaxy tomorrow night potentially sending the club into its first-ever continental final.
Photo credit: OFC Media via Phototek
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$3 million set aside to support Cyclone Maila-affected tourism operators
The Ministry of Culture and Tourism (MCT) has identified tourism operators in Choiseul and Western provinces to receive support from a $3 million allocation for businesses affected by Cyclone Maila, following a government assessment.
Five operators in Choiseul were identified for $335,000, while 24 affected operators in Western Province were assessed, with the ministry also considering renewed airport welcoming activities to improve the country’s tourism image.
Read more
https://theislandsun.com.sb/3-million-set-aside-to.../
BY JOHN HOUANIHAU
The Government has admitted that the country’s current franchise shipping system is not working effectively and says it will undertake a broader review of maritime connectivity.
The issue was raised by Opposition Leader Manasseh Sogavare during Parliament’s Committee of Supply on the 2026 Supplementary Appropriation Bill 2026 on Monday this week.
Sogavare questioned the Government’s policy on shipping services, saying shipping is an important economic infrastructure, but the country has yet to settle on a workable model for delivering services.
He pointed to the country’s different approaches over the years, from government-owned fleets and ships allocated to provincial governments to the current system of direct assistance and franchise shipping.
Sogavare also recalled a proposed national transport initiative that was expected to improve sea connections to 50 constituencies and reach about 70 percent of the population, but said it never materialised.
In response, Infrastructure Development Minister Ricky Fuo’o said the Government is reviewing the franchise shipping system, including whether government-owned shipping fleets should be brought back.
Prime Minister Matthew Wale meanwhile said the Government intends to commission a study looking at the entire maritime connectivity sector.
He said the study will examine gaps in the current system, particularly routes where private operators do not provide services because they are not profitable.
Wale said this creates a “market failure” that needs to be addressed while ensuring the Government does not undermine private-sector competition.
He said the Government also wants to strengthen indigenous ship owners and operators, potentially through access to concessional financing to help them replace older vessels.
“Some existing shipping fleets are more than 25 years old. Affordable and reliable shipping services are important, and the Government wants the study to provide a stronger basis for a long-term maritime connectivity policy,’ he said.
He said the review is intended to move beyond individual measures such as franchise shipping and develop a broader approach to connecting people, communities and markets across the country.
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HONIARA, Solomon Islands – Women play a vital role in promoting transparency, accountability and community wellbeing in Solomon Islands’ mining communities, participants heard at a workshop in Honiara focused on strengthening women’s voices in the extractive sector.
Read More Here⤵️⤵️
BY JOSES SAREN
The country is generating only around 2,000 formal jobs a year while roughly 9,000 young people enter the labour market annually, the Solomon Islands Economic Update has found.
World Bank Senior Country Economist Marko Kwaramba said this during the launch of World Bank’s Solomon Islands Economic Update at SINU today.
He said the labour market is moving in the wrong direction, with workers shifting back into subsistence agriculture instead of higher-value jobs.
The report found that labour force participation declined between 2009 and 2019, while unemployment rose from 2.3 percent to 7.9 percent over the same period.
Youth unemployment stood at 14.5 percent, and the report projected Solomon Islands’ youth population will reach 200,000 by 2035, the highest in the Pacific.
“Instead of the country witnessing a structural transformation, it’s actually witnessing what you call the reversal of structural transformation,” Kwaramba said.
The report also cited a 2025 World Bank Enterprise Survey showing employment growth among firms fell to 5.1 percent, down from 12 percent in 2015 and now below the regional average.
World Bank Country Representative Bernard Harborne said the private sector remained too “captured”, calling for space to be freed up for growth in agriculture, fisheries, and tourism.
The report recommended lowering the cost of formality and investment, expanding access to finance for productive sectors, and supporting job-creating diversification through infrastructure such as roads and electricity.
Photo credit: Joses Saren
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BY JOSES SAREN
Young Entrepreneurs Council Solomon Islands (YECSI) chairman Limahl Totogi says supporting 1,000 business startups could absorb the roughly 9,000 young Solomon Islanders entering the labor market each year.
Totogi made the comments during a panel discussion following today’s launch of the Solomon Islands Economic Update at SINU, telling the audience the country needs to shift young people from being “job seekers” to “job creators”.
The World Bank report found only around 2,000 formal jobs are created annually against the 9,000 new entrants into the labor market.
Totogi said YECSI transitioned 60 young people from the informal sector into the formal sector last year, and that 16 of those businesses went on to create jobs for two additional people each.
“If we support 1,000 business startups, and they employ nine people, then we will already solve the problem of 9,000 unemployed people,” he said.
Totogi added that access to finance remained the biggest barrier facing young entrepreneurs, along with a lack of mentorship, limited access to digital tools, and difficulty reaching markets for their products.
He called for entrepreneurship, financial literacy, and business management to be taught in schools and universities, saying education providers should focus on producing “job creators” rather than job seekers.
Totogi closed by calling for a shift from employee mindset to employer mindset and from employment-ready to entrepreneurship-ready, describing it as building a new road for broad-based economic growth in Solomon Islands.
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BY JOSES SAREN
The World Bank launched the Solomon Islands Economic Update at Solomon Islands National University’s Kukum Lecture Theatre today.
The report, titled “Harnessing the New Roots of Growth,” found that the economy grew by 3.6 percent in 2025, continuing a rebound after three years of contraction but remains narrow and fragile, the report said.
Acting Permanent Secretary for Finance and Treasury Coswal Nelson delivered the Ministry of Finance and Treasury’s statement, saying growth “must translate into jobs, income, better services, and stronger resilience for Solomon Islanders.”
World Bank Country Representative Bernard Harborne told the gathering the country was “at a crossroads,” welcoming what he called a “not business as usual” approach from the government.
Harborne announced that the World Bank will release a poverty report in September, based on the Household Income and Expenditure Survey, followed by a private sector report in October or November.
SINU Vice-Chancellor Transform Aqorau said the university wanted to provide a space for our country to gather and discuss these issues.
World Bank Senior Country Economist Marko Kwaramba presented the report’s findings, revealing public debt has quadrupled in less than a decade and now sits at 29.5 percent of GDP, while the fiscal deficit widened to 3.8 percent of GDP in 2025.
The launch featured a moderated panel discussion with Central Bank of Solomon Islands Governor Dr Forau, SINU’s Professor Kapila Mallah, SICCI CEO James Dolarii, YECSI chairman Limahl Totogi, and Economic Association of Solomon Islands representative Reuben Tovutovu.
Photo credit: Joses Saren
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By Simon Tavake
There have been growing concerns and calls from landowners, communities and individuals over pollution and environmental impacts allegedly caused by logging and mining activities.
While these concerns and calls are being heard and considered by the relevant authorities, affected parties say there is still no clear or immediate solution that can fully address their concerns.
Legal action and support from the Government may be among the options available to those affected, but prolonged and lengthy court processes can also cause cases to stall and lose momentum, leaving communities to continue living with the impacts they are seeking to address.
In light of these concerns, Chairman of the Public Accounts Committee (PAC) and Member of Parliament for North Guadalcanal Constituency, Hon. Paul Popora Bosawai, has called for the establishment of an Environmental Bond.
He said the bond would ensure that companies responsible for environmental damage are held accountable and required to pay for the clean-up and restoration of areas affected by their activities.
Hon. Bosawai raised the issue following reports from downstream communities along the Metapona River regarding alleged pollution caused by mining activities upstream. The affected communities are also located within his North Guadalcanal Constituency.
The Minister for Environment, Climate Change, Disaster Management and Meteorology, Hon. Wayne Ghemu, confirmed that his Ministry has conducted an assessment following the reports.
However, he highlighted that while the assessment was carried out through field observations and consultations with affected communities, the Ministry requires a comprehensive scientific investigation before any conclusion can be drawn on the extent and level of pollution along the river.
This prompted the PAC Chairman to ask whether the country has an Environmental Bond in place that could be accessed by the Ministry to help support the affected communities.
“My question to you, Minister, is: does the country have an Environmental Bond so that you can assist?
“I am also a medical doctor, and there are a lot of allergic cases along the Metapona downstream because of sedimentation inside the food chain. Those are indirect evidence to the case. So I want to ask: if we have an Environmental Bond, how can you access it and build water supply for these communities?” said Hon. Bosawai.
Prime Minister Hon. Matthew Wale, while acknowledging the concern raised, said there is currently no such mechanism as an Environmental Bond in the country.
He said this has left the country “high and dry” when environmental issues such as this arise.
“This is a very significant and serious matter and is going on for far too long, so we must address it.
“There is no Environmental Bond anywhere in any mining assets in the country, and that’s a defect in our regulatory system. Our laws, both in environment and mining, do not require it, so we are left high and dry when these things happen,” Prime Minister Wale said.
Hon. Bosawai further pressed for the matter to be regulated, stressing that although it has yet to be addressed through the amended Bills, regulations providing for it have already been passed.
Hon. Bosawai previously served as Minister of Health and Medical Services under the Government for National Unity and Transformation (GNUT), which has since been succeeded by the GREAT Coalition Government.
During his tenure as Health Minister, he similarly pursued the regulation of dangerous drugs, including the Dangerous Drugs (Methylamphetamine) Rules 2025.
“There are no regulations on how to deal with methylamphetamine in the country. I took a Cabinet paper to regulate it, and it worked. Even the methylamphetamine amendment will come later in the Bill, but its regulations have already been passed. So I thought the Environment Minister can do better regulation on this,” Hon. Bosawai said.
While the matter was being debated and considered in Parliament, the Minister for Mines, Energy and Rural Electrification (MMERE) highlighted that an Environmental Bond is already provided for under the interim measures of the Mineral Resources Bill 2025.
If passed, the Bill, together with the review of the Environment Act, could have a significant impact on how environmental responsibilities and liabilities are managed in the country, particularly in the mining sector.
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The post Dr Bosawai calls for Environmental Bond to protect communities first appeared on Solomon Islands Broadcasting Corporation (SIBC) .
By Agnes Menanopo
Prime Minister Matthew Wale said the Tina Hydro project is a significant financial risk and should serve as an important lesson for the Solomon Islands Government.
Prime Minister Wale made the statement in parliament yesterday.
Parliament then discussed the cost of the Tina Hydro project to the Government, including loans secured from the World Bank.
Minister of Finance and Treasury, Hon. Gordon Darcy Lilo, said that in terms of Solomon Islands’ relationship with the World Bank and the International Monetary Fund (IMF), Tina Hydro is by far the worst.
“Tina Hydro is a very bad one, honestly, that we ended up with two loans,” Lilo said.
He warned that walking away from the project would result in higher penalties.
“For us to break away from these loans...penalty goes even higher,” he said.
Lilo said the penalty involved is about US$60 million.
“We have tied ourselves to a punishment on a single figure, a fixed amount penalty,” he said.
Prime Minister Wale said the Ministry of Finance and the Ministry of Energy have requested an additional US$35 million for the project.
He said despite the financial challenges and loan commitments, the project has reached a stage where it should not be abandoned.
Wale said the Government has been discussing options with partners, including seeking grant financing through the Green Climate Fund.
“We are asking for grants. If we ask for a loan, the tariff will be way expensive and we’ll be stuck with it for thirty years. So, we are hoping that it will be granted,” he said.
He questioned whether the Government could walk away from the project after investing significant funds to date.
“We spent so much money on it till today, do we just leave it and walk away?” Wale said.
He said the Government is also considering options to buy out the loan components.
Wale said the loan component could reach about US$230 million by the time the project is commissioned, while the Government could still face a US$60 million penalty for breaching the sovereign guarantee.
He said the Government is continuing discussions with development partners to secure grant financing.
Wale said the current approach is to move the Tina Hydro project from the greenfield stage towards investment-grade grant financing.
He stressed that the experience should serve as an important lesson for the Government in managing major development projects and associated financing risks.
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The post Tina Hydro raises financial risks-should be a lesson first appeared on Solomon Islands Broadcasting Corporation (SIBC) .
BY JOY OFASIA
The Australian Federal Police (AFP) has highlighted its long-standing partnership with the Royal Solomon Islands Police Force (RSIPF), saying the cooperation has helped strengthen policing skills and readiness in Solomon Islands.
Speaking at the handover of the new Tactical Training Centre at Rove Police Headquarters on 14 October,
AFP Commissioner Krissy Barrett said the partnership had grown through several programs, including RAMSI and the RSIPF-AFP Policing Partnership Program.
“For many years, the Australian Federal Police has worked alongside the RSIPF ... to strengthen specialist policing capability and operational readiness,” she said.
Commissioner Barrett said Australia had supported the RSIPF through training, advice, specialist equipment and skills development.
She said the new centre showed the continued commitment of both countries to building a professional and modern police service.
AFP Commissioner Krissy Barrett speaking at the handover of the new Tactical Training Centre event.
The centre includes training areas for Close Personal Protection, Operational Safety Training and the Police Response Department. Having the specialist teams in one location will help improve teamwork, training and operational effectiveness.
Commissioner Barrett said the centre could provide training for about 1,000 RSIPF officers each year.
The Australian Government invested about SBD $5.5 million in the facility. The project also provided local jobs and used materials sourced from communities in Solomon Islands.
Commissioner Barrett said the investment was important as Pacific police forces faced growing challenges, including transnational crime and new security threats.
“Investment in training, leadership and professional capability has never been more important,” she said.
She described the centre as an investment not only in infrastructure but, more importantly, in the people serving their communities.
The AFP formally handed over the Tactical Training Centre to the RSIPF on 14 October, marking another milestone in the policing partnership between Australia and Solomon Islands.
Opposition urges broader financial, investment and business expertise in remaining SINPF Board appointments to protect savings. Honiara, Solomon Islands – The Parliamentary Opposition Group is calling on the Minister of Finance to ensure that any remaining appointments to the Solomon Islands National Provident Fund (SINPF) Board bring a stronger mix of financial, investment, business and [...]
The post OPPOSITION CALLS FOR BROADER SINPF BOARD EXPERTISE appeared first on Tavuli News (Solomon Islands) .
Malaita Provincial Government is ready to support the development of Bina Habour.
This followed a committment made by the United States Government.
Read More: https://www.solomonstarnews.com/malaita-welcomes-us-intere.../
GRCLC Chairman Backs Call For Wider Consultations On Mineral Resources Bill
The Chairman of the Gold Ridge Community and Landowners Council (GRCLC), Dick Douglas, has strongly backed Central Guadalcanal MP and Leader of the Independent Group, Hon. Peter Shanel Agovaka, in calling on the Government to return the Mineral Resources Bill to the people for wider consultation.
Speaking in Parliament this morning, Agovaka said that while he supported the Bill in principle, the Bills and Legislation Committee (BLC) had strongly recommended that wider consultations be undertaken before the legislation is brought back to Parliament.
Mr Douglas said significant changes had been made to the proposed legislation since consultations were last conducted in 2024.
He said it was therefore important for communities to understand the proposed changes and have an opportunity to express their views before Parliament considers the Bill.
“I understand that following previous consultations, we strongly recommended that the Bill should be brought back to the people through community consultations,” Mr Douglas said.
“People need to know the major changes and have their say before bringing the Bill back to Parliament,” he stressed.
Mr Douglas said wider consultation was particularly important for communities directly affected by mining activities.
For the communities he represents, he said consultation should cover the entire mining value chain, including both upstream and downstream communities.
“If the Government wants to hear the true impacts of mining and the associated problems, it must consult these communities,” he said.
Mr Douglas said the same approach should be taken with other mining communities throughout Solomon Islands, particularly as mining is expected to become an increasingly important contributor to the national economy.
“This should be the same for other mining communities and every other community, because mining is set to become the next major economic activity in this country,” he said.
He stressed that meaningful consultation should go beyond simply informing communities about proposed legislation.
Instead, he said, the process must ensure that the experiences, concerns and realities of people living with the impacts of resource development are properly considered in shaping Solomon Islands’ mining laws.
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金岭社区与土地所有者委员会(Gold Ridge Community and Landowners Council,GRCLC)主席迪克·道格拉斯(Dick Douglas)强烈支持中央瓜达尔卡纳尔国会议员及独立小组领袖彼得·沙内尔·阿戈瓦卡(Hon. Peter Shanel Agovaka)呼吁政府将矿产资源法案交还给人民进行更广泛的咨询。
阿戈瓦卡今天在议会发言时表示,虽然他原则上支持该法案,但法案和立法委员会(Bills and Legislation Committee,BLC)强烈建议在法案重新提交议会之前进行更广泛的咨询。
道格拉斯表示,自2024年上次进行咨询以来,提议的立法已发生重大变化。
因此,他认为社区有必要了解提议的变化,并在议会考虑法案之前有机会表达他们的意见。
“我理解,在之前的咨询之后,我们强烈建议将法案通过社区咨询的方式重新提交给人民,”道格拉斯说。
“人们需要了解重大变化,并在法案重新提交议会之前发表意见,”他强调道。
道格拉斯表示,对于直接受到采矿活动影响的社区而言,更广泛的咨询尤为重要。
对于他所代表的社区,他表示咨询应涵盖整个采矿价值链,包括上游和下游社区。
“如果政府想要了解采矿的真实影响及相关问题,就必须咨询这些社区,”他说。
道格拉斯表示,其他矿业社区也应采取相同的方法,特别是随着采矿预计将成为国家经济日益重要的贡献者。
“这对其他矿业社区和每个社区都应如此,因为采矿将成为这个国家下一个主要的经济活动,”他说。
他强调,有意义的咨询应超越仅仅告知社区有关提议立法的内容。
相反,他表示,该过程必须确保生活在资源开发影响下的人们的经历、关切和现实在塑造所罗门群岛的采矿法律时得到适当考虑。
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Eight constituencies to compete as association tightens player eligibility
BY RICHARD MENANOPO
The Guadalcanal Football Association (GFA) has moved to strengthen the grassroots focus of its 2026 Guadalcanal Cup Championship, with strict player eligibility rules set to shape the competition when it kicks off next month.
The championship is proposed to begin on September 21 in Honiara, with teams representing Guadalcanal’s eight constituencies expected to take part.
The GFA Executive announced the competition details through an update shared on its official Facebook page, outlining registration requirements and eligibility regulations for players and team officials.
Under the rules, each constituency team must register a squad of 23 players, including three goalkeepers, alongside five team officials.
A key restriction is that each team will be allowed a maximum of five former TSL players, while players currently registered with S-League clubs will not be eligible.
Players currently participating in active SIFF competitions, including futsal, are also excluded under the regulations.
“Players who are currently registered and participating with clubs in the current S-League season are not eligible to participate in the Guadalcanal Cup Championship 2026,” the GFA said.
The association said the restriction on former TSL players is intended to create greater opportunities for young and emerging footballers from the eight constituencies.
Players must also be from, or have resided within the constituency they represent for at least six months. Those currently residing in Honiara or participating in HFA or other provincial football association competitions are considered outside GFA jurisdiction.
The GFA has also ruled out players and team officials serving suspensions or bans from previous SIFF competitions.
Each team must pay a SBD$3,500 registration fee, with the full amount required at least two weeks before the proposed commencement date.
The association is also encouraging teams to appoint coaches holding MA or OFC coaching certificates.
The official venue and further championship details are expected to be announced by GFA in the coming weeks.
The 2026 Guadalcanal Cup will bring together the eight Guadalcanal constituencies in what the association hopes will provide a platform for locally based and emerging players to compete at constituency level.
Photo credit: GFA File
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