BY LORETTA B MANELE

The Special Economic Zone (SEZ) bill was developed through the path of partnership and perseverance.

Jamie Vokia, Minister of Commerce, Industry, Labour and Immigration (MCILI) highlighted this when he introduced the bill on the floor of parliament this Wednesday.

He explained that in 2015, Cabinet had established a SEZ taskforce compromising senior officers from across government with a clear mandate.

Under the mandate, the taskforce was to rethink the country’s investment strategies, ensuring to harness strengths and unlock new opportunities.

The other responsibilities as listed were; to craft a policy and a legal framework that enables growth in economic growth centres, in industrial parks and maybe household growth centres and to engage international expertise while grounding the bill in an unique Solomon Islands context.

He said the ministry has concluded two rounds of nationwide consultations.

“First in 2015, reaching every province and again in 2016, with focused dialogues in Gizo, Auki and Honiara.”

He stated that these discussions shaped the Solomon Islands Special Economic Zone Policy 2015 which was launched by Cabinet in 2016 and now guides the SEZ bill.

Vokia said his ministry also engaged with other government ministries and organizations like the Ministry of Lands and Survey, Customs, IRD, Immigration as well as with provincial leaders to ensure local perspectives is central.

He mentioned that businesses and civil society including SICCI and DSE (Development Services Exchange) were also involved.

Vokia said although drafting on the bill had delayed since the Attorney General’s original work in 2022, MCILI and its partners have worked tirelessly to refine the bill.

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BY LORETTA B MANELE

Jamie Vokia, Minister for the Ministry of Commerce, Industry, Labour and Immigration (MCILI) brought up the establishment of a Solomon Islands Special Economic Zone Authority (SISEZA).

Speaking in parliament on Wednesday this week after having introduced the Special Economic Zone (SEZ) Bill, he said an initial focus would be to establish a Solomon Islands Special Economic Zone Authority (SISEZA).

Vokia said in the local context, the SISEZA concept is intended to be an economic policy tool to achieve meaningful economic development by addressing inadequacies of foreign direct investment strategies to attract high-quality investment in strategic sectors.

He expressed that as SISEZA is new and will grow, external assistance will be needed to establish the authority.

Vokia said this will involve putting in place systems and processes as well as seeking assistance from the country’s development partners to build the authority’s capacity and oversight staff.

He assured parliament that his ministry is fully committed to implementing the legislative framework to increase foreign investments and provide an internationally competitive and hassle-free environment for exports that will in turn facilitate fair participation by domestic enterprises and manufacturers to be competitive globally.

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BY NED GAGAHE

The Solomon Islands People First Party (SIPFP) is calling for unity, political cooperation and renewed focus as it looks to help steer the country through post-election recovery and development challenges.

The call came during a “Meet and Greet” dinner hosted by the SIPFP Executive Committee on Friday 9 May.

The event brought together MPs, new and returning, alongside Party executives and supporters to regroup after recent political uncertainty.

In a statement, Deputy Prime Minister and SIPFP Parliamentary Wing Leader Fredrick Kologeto set the tone, urging members to put national interest above all.

“All Members of the Party must work together in the interest of the country. Ministers have a big responsibility, so perform to the best of your ability,” he said.

Now the second-largest party in the ruling Government for National Unity and Transformation (GNUT), with a total of 11 MPs, SIPFP’s influence within the coalition remains crucial.

Kologeto stressed that strong lines of communication between SIPFP, OUR Party, Kadere and other coalition partners will be key to pushing forward government priorities.

“Communication is key, it safeguards political stability, drives economic progress, and lifts the standard of living for our people,” he said.

New Minister for Mines, Energy and Rural Electrification, Derrick Manu’ari, credited SIPFP for launching his political journey in 2014.

“SIPFP is the reason I entered politics,” he said. “Its vision convinced me to return, and I remain committed to it.”

Youngest MP and Minister for Infrastructure Development, Rick Fu’o, said his time on the Opposition bench gave him a clear view of what’s expected from leaders.

“I joined politics to move the country forward. The challenges are real, but I’m ready to work for our people,” he said.

Chachabule Rebi Amoi MP for Marovo commended the energy and enthusiasm of the Party’s younger leadership.

“The quality you bring is the fuel that will keep GNUT’s flame burning in Parliament,” he said. “Our people look to you as the new hope for better services.”

SIPFP Executive President Ernest Teutao reminded the Party’s leadership of their dual roles.

“You are the brains of the Party, our MPs are the voice,” he said, urging members to help shape smart, inclusive policies for all Solomon Islanders.

The dinner ended with a renewed call for coordination, as SIPFP reaffirms its role as a key partner in delivering GNUT’s development priorities.

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BY NED GAGAHE

Minister of Finance and Treasury Harry Kuma told parliament on Monday that the government is making significant progress on tax reforms as part of its broader efforts to modernize the tax system and stimulate economic growth in Solomon Islands.

Speaking during the motion to thank the Governor-General for the Speech from the Throne, Minister Kuma said the reforms aim to improve the business environment through a fairer, simpler and more efficient tax system that ensures all liable taxpayers pay the correct amount.

“The tax reform agenda is a substantial and resource-intensive undertaking,” Kuma said. “That is why the government has adopted a phased approach to its implementation.”

Phase one of the tax reform includes the development of the Tax Administration Act and the Value Added Tax (VAT) Bill.

The Tax Administration Act, passed by Parliament in 2022 and enacted on January 1, 2023, provides the legal framework for the consistent administration of tax laws in the Solomon Islands.

“The Act modernizes administrative arrangements and harmonizes the rules across all tax laws administered by the Commissioner of Inland Revenue,” Kuma explained. “It also amends several existing laws—including the Goods Tax Act, Income Tax Act, Sales Tax Act and Stamp Duties Act—to ensure their administration falls under the new Tax Administration Act.”

The second major component of phase one is the introduction of a Value Added Tax (VAT) system.

Minister Kuma said the VAT Bill 2025 has completed final vetting by the Attorney General’s Chambers and is expected to be introduced in Parliament by mid-2025.

“The VAT is a consumption tax applied to most goods and services, collected at each stage of the supply chain, with businesses able to deduct VAT paid on their inputs,” he explained. “Ultimately, it is a tax on final household consumption.”

He added that a Cabinet paper seeking approval to table the VAT Bill has been prepared.

“I urge all Members of Parliament to support this important legislation when it comes before this Honorable House. It will transform our tax system, enhance business growth and strengthen government revenue.”

Minister Kuma also announced that initial work has begun on phase two of the tax reform agenda, which focuses on a comprehensive rewrite of the Income Tax Act.

He said Cabinet approved key policy issues in 2024 that could be included in the rewrite and the Economic Reform Unit, in collaboration with ADB advisors, is now developing a detailed policy paper to support this effort.

“These reforms are crucial for building a tax system that is not only modern and efficient but also equitable and capable of supporting long-term national development,” Kuma said.

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BY INDY MAEALASIA

THE completion of the Gizo Youth Center in Western Province may be delayed until August, despite official announcements targeting a July opening.

JOGOS Construction, the contractor working on the project since last year, told this paper that the delay is largely due to persistent bad weather and logistical challenges, as key construction materials are being sourced from Honiara.

According to the contractor, roofing work has already been completed, but several interior tasks remain before the facility can be fully operational.

“It will be like a hall, so there isn’t much to be done internally,” the contractor said.

Minister for Women, Youth, Children and Family Affairs (MWYCFA) Cathy Nori announced in Parliament on Wednesday that the center will provide a dedicated space for youths to gather, engage in activities and access support and resources.

“For a very long time, our children and youth have not had a proper home for their activities,” she said. “Many times, due to the lack of facilities, they have been forced to organize their programs under the scorching sun or in the pouring rain and wind.”

She expressed optimism that the opening of the Gizo center will mark a turning point in youth development across the provinces.

“We believe this will become a thing of the past if these centers are built across the country. Our youth and children will finally have a place they can call their home.”

The Gizo Youth Center is the first of several planned facilities aimed at creating safe and inclusive spaces for young people in the provinces, as part of the ministry’s broader youth empowerment initiative.

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BY INDY MAEALASIA

THE Minister for Women, Youth, Children and Family Affairs (MWYCFA), Cathy Nori, has thrown her full support behind the Governor General’s call to address inefficiency, complacency and incompetence within the public service.

Speaking in Parliament on Wednesday in response to the speech from the throne, Minister Nori said the call for greater accountability and performance in the public sector was timely and necessary.

“Let me also thank and give my utmost support to sentiments raised by the Governor General on public officers being committed and faithful to their work,” she said.

Nori emphasized that there is no room for complacency or incompetence in government and acknowledged that ministries, including her own, must do more to serve the people effectively.

“We have an inherent responsibility to deliver services to our people — to make them feel safe and ensure a secure future,” she said. “This responsibility also means utilizing the limited resources we have to benefit everyone. We must all be accountable for our actions.”

The minister criticized the common practice of reassigning underperforming staff to other ministries rather than holding them accountable.

“We must put a stop to the practice of transferring incompetent staff to other ministries,” she said. “Let us stop shielding underperforming staff while being harsh on the vulnerable ones. The process is very clear.”

She further stressed that real change must come from within the government and its institutions.

“It is us — the government, the ministries and the public service who must play our part to make this work,” she said.

 Nori assumed the ministerial role following the resignation of her predecessor, Freda Tuki Rangirei.

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BY JOHN HOUANIHAU

On Wednesday night, 14 May, significant rainfall caused flooding in various shops.

The heavy rain in Honiara resulted in extensive flooding throughout the city and parts of Guadalcanal province.

The shops beneath the Solomon Islands National Provident Fund building (SINPF) and the Anthony Saru building were among the affected shops in Honiara.

Yesterday morning, Thursday, 15 May, the affected shop began the process of cleaning up the debris and mud that had entered their premises.

At 4 PM yesterday, the Solomon Islands Meteorological Service (SIMS) issued a heavy rain warning, which remains in effect for Isabel, Malaita, Guadalcanal, Central, Makira, Rennell/Bellona, and Temotu. Additionally, a strong wind warning was issued for Makira, Rennell & Bellona, and the southern waters of Guadalcanal.

This weeklong period of bad weather was due to a trough located just south of the country, associated with a tropical low situated west-southwest of Rennell and Bellona province, which is moving southward.

SIMS has strongly advised the public to take necessary precautions to ensure safety and prevent loss of life. However, they also indicated that the weather is expected to improve this weekend.

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BY NED GAGAHE

Minister of Finance and Treasury Harry Kuma has revealed that the Solomon Islands’ economic recovery has surpassed pre-COVID-19 levels.

Speaking in Parliament on Monday during his contribution to the motion to thank the Governor-General for the Speech from the Throne, Minister Kuma stated that Solomon Islands economy grew by 2.7 percent in 2024.

“Mr. Speaker, Sir, the Solomon Islands economy grew by 2.7 percent in 2024, following a 2.9 percent growth rate in 2023. This is well above the pre-COVID-19 level of 1.7 percent recorded in 2019.”

He said that the lower growth in Gross Domestic Product (GDP) in 2024, compared to the previous year, is attributed to a combination of external and internal factors.

These include global market challenges, local disruptions related to the National General Election, stabilization in logging activities, adverse weather conditions affecting agriculture and infrastructure and a decline in construction activity following the completion of the Pacific Games in 2023.

On key economic indicators, Minister Kuma reported that labor market performance improved by 4 percent in 2024 compared to 2023.

The number of active contributing members rose to 59,494 in 2024, up from 57,151 in 2023.

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