BY EDDIE OSIFELO

IN a concerted effort to revitalize its economy, the Solomon Islands government has unveiled a comprehensive set of short-to-medium-term strategies.

These measures, designed to stimulate economic growth and enhance the country’s resilience, span multiple sectors and initiatives.

One of the key strategies involves the promotion of trade in cash crops, such as copra and cocoa, as well as timber. The government plans to facilitate this trade by subsidizing domestic shipping services, which will, in turn, invigorate the agricultural and forestry sectors.

To support essential State-owned Enterprises (SOEs) and large private sector firms crucial for employment and value addition, the government is prepared to provide capital injections where needed.

The government has laid out a multifaceted approach to support the domestic agriculture and fishery sectors.

This includes leveraging new diplomatic relationships to expand international market access for local exporters, seeking accreditation to ISO standards to enhance competitiveness, promoting investments in biosecurity technologies, and facilitating access to finance through the Development Bank of Solomon Islands (DBSI) and CBSI Lending Guarantee and Export facilities.

Additionally, there will be investments in the rehabilitation of coconut and cocoa plantations and encouragement of investments in the fishery sector, with a focus on seaweed, bechdemer farming, and other viable aquaculture products.

The overarching policy objective of the government is to encourage private sector investment in value-added products, both for domestic consumption and export. This approach will center on key sectors such as agriculture, forestry, and fisheries.

The Inland Revenue Division (IRD) faces the challenge of balancing revenue collection with supporting businesses and households during civil unrest and the pandemic.

Finance and Treasury Minister Harry Kuma stressed in Parliament recently the need for flexible tax measures to assist businesses while ensuring that revenue targets are met.

“Recognizing various constraints to development and growth, the government is embarking on structural and institutional reforms, including tax reforms.

“This will address issues like a lack of access to financial services, limited competition in key areas, skill shortages, land access problems, inadequate infrastructure, weak institutions, governance challenges, and a shortage of employment opportunities,” he said.

Collaboration and coordination among ministries are actively encouraged to facilitate the planning and implementation of the 2024 budget. This includes fostering working relationships to address crosscutting needs and cost-sharing arrangements to expedite key government priorities.

The government recognizes the importance of infrastructure in facilitating international trade. It hopes that the successful completion of the Solomon Islands National Broadband Infrastructure Project (SINBIP) will not only enhance telecommunications services but also boost international trade. Furthermore, the government plans to improve and expand international port infrastructure services to foster growth and development.

Presently, the Solomon Islands Port Authority (SIPA) monopolizes international port services in Honiara and Noro. To encourage growth, the government is planning to liberalize the provision of international port services, opening the door to increased international trade.

Kuma said with 45 years of political independence since 1978, the Solomon Islands aims to learn from past development experiences and chart a new path based on its unique strengths and lessons from successful developing countries in Asia and Africa.

These measures underscore the government’s commitment to fortifying the nation’s economy, promoting development, and achieving sustainable growth, even in the face of challenges and constraints.

BY EDDIE OSIFELO

RODERICK Holness Rollands, a dedicated advocate for climate change in the Solomon Islands, is calling on countries in the global North to take decisive action against climate change, reduce carbon emissions, and limit global warming to 1.5 degrees Celsius.

Rollands made this impassioned plea during his presentation at the 19th Regional Meeting (Pacific Region) of the Asia Caribbean Pacific-European Union Joint Parliamentary Assembly in the Solomon Islands Parliament yesterday.

Under the theme ‘Small Island Developing States in the Pacific – Perspectives on Climate Change,’ Rollands conveyed the urgent and existential threat that climate change poses to the Pacific Islands.

These nations are on the frontline of the climate crisis, facing immense challenges, including severe tropical cyclones, flash floods, drought, loss of critical infrastructure, climate-induced displacement, resettlements, and loss of lives.

He described the rising sea levels as “silent invaders,” engulfing ancestral lands and homes, tearing apart communities that have thrived for generations.

Rollands also highlighted the increasing frequency and intensity of tropical cyclones, the bleaching and lifelessness of the vibrant oceans, and the heart-wrenching goodbyes as families are forced to leave their homes, no longer habitable.

Rollands acknowledged the ongoing efforts of Pacific Island nations, civil society organizations, non-governmental organizations, and other stakeholders in calling for greater action, ambition, and accountability in climate change forums and negotiations.

He commended the countries that stand in solidarity with the Pacific Islands, especially those also on the frontlines of climate impacts.

Despite their efforts in adaptation and mitigation measures, Rollands emphasized the challenges faced by the Pacific Island nations.

These challenges include geographical isolation of vulnerable communities, lack of climate finance, limited resources, and insufficient accurate data and tools to support vulnerable communities in responding to climate impacts.

On the issue of loss and damage, Rollands expressed appreciation for the Pacific leaders’ efforts to push for mechanisms like the loss and damage financial facility, which was endorsed during the 26th Conference of the Parties. However, he raised concerns about the financing of such mechanisms.

He pointed out that climate finance for the Pacific Islands remains inadequate, with only a tiny fraction of global funds reaching the region.

“Accessing climate finance, such as the Green Climate Fund, is complex and challenging, particularly for community-based organizations, NGOs, and stakeholders working in the climate space.

“This hinders efforts to advance adaptation, mitigation, and resilience in vulnerable communities,” he said.

Rollands also acknowledged the initiative led by the Vanuatu government, which seeks an authoritative and coherent statement on the obligation of states to respond effectively to climate change and to place human rights at the center of climate discussions.

He highlighted the importance of integrity and accountability in the climate change dialogue.

Rollands represented the Solomon Islands Climate Action Network in partnership with regional civil societies and NGOs.

He called upon the leaders at the assembly to recognize the urgency of the situation and emphasized the need for united action as they prepare for COP 28.

The 28th United Nations Climate Change conference, will be held from November 30 until December 12, 2023, at the Expo City, Dubai.

He stressed that addressing climate change requires collective efforts from governments, businesses, communities, and individuals and urged immediate action, as time is running out.

BY JENNIFER KUSAPA

The Central Bank has urged public to take care of bank notes (cash) to ensure they last and to avoid the cost of printing new ones.

Governor of Central Bank (CBSI), Dr Luke Forau, emphasised the importance of handling bank notes with extra care to ensure their longevity and to save on the costs associated with frequent replenishment.

Forau said statistics have revealed that banknotes often do not last as long as their expected durability due to poor handling practices.

“Do not squeeze the bank notes,” Forau said.

He said that the Central Bank has observed a need to replenish their stock as the bank receives and destroyed notes just over three months.

This frequent replenishment not only incurs substantial expenses for the Central Bank but also contributes to the depreciation of the country’s foreign reserves, Forau said.

Forau urged the public to be mindful of the impact of their actions on the lifespan of currency notes. Printing new currency is a costly process, and the continuous need for replacement notes strains the financial resources of the Central Bank.

He asked the public to use wallets as a means to protect and preserve banknotes. By using wallets, individuals can contribute to maintaining the durability and cleanliness of the currency. Additionally, he cautioned against squeezing or mishandling the notes, as such actions can significantly shorten the lifespan of the currency.

He strongly called on the public to handle currency with extra care, recognising that responsible handling practices not only contribute to the longevity of banknotes but also play a crucial role in saving costs for the Central Bank and preserving the country’s foreign reserves.

BY EDDIE OSIFELO

IN a bid to boost cocoa exports and strengthen its cocoa sector, the Solomon Islands is actively developing a proposal for targeted support from the European Union.

This was confirmed by the Minister of Foreign Affairs and External Trade, Jeremiah Manele, during his presentation at the 19th Regional Meeting (Pacific Region) of the ACP-EU Joint Parliamentary Assembly in the Solomon Islands Parliament yesterday.

Minister Manele addressed the assembly on the topic ‘State of play of the negotiations on the Economic Partnership Agreement for the Pacific region,’ shedding light on the significant steps taken to enhance the country’s cocoa industry.

One of the pivotal developments is the engagement of Cathliro Commodities Development to facilitate cooperation with French distributors in Europe.

French distributors have expressed a keen interest in collaborating with Solomon Islands cocoa exporters to improve the flavor and marketing of Solomon Islands cocoa, particularly targeting boutique markets in France.

The European Union has granted a generous 30% duty-free and quota-free access to all imports from the Pacific Economic Partnership Agreement (EPA) countries.

Importantly, this access to the European Union market is permanent, full, and free for all products, providing a favorable trade environment for Pacific nations.

Minister Manele also highlighted improvements in the interim EPA rules of origin, particularly in the fish and fisheries products sector.

Under the “global sourcing rule,” fish and fish products are deemed originating, regardless of where the fish is caught or the flag under which the vessels are registered, as long as they are transformed from fresh or frozen into pre-cooked, packaged, or processed products.

This rule aims to promote local jobs, skills transfer, and income by developing an onshore processing capacity while ensuring the long-term sustainability of fish stocks.

Despite these advances, the interim EPA does not address trade in services or investment.

Minister Manele indicated that Solomon Islands and the interim EPA parties are in the process of assessing their preparedness for including trading services and investment facilitation chapters.

Dr. Jane Pearson Kelsey, a consultant commissioned by the Pacific Island Forum Secretariat, conducted consultations in Solomon Islands from October 9 to 13, 2023, using funding from the 11th European Development Fund (EDF).

While the initial focus is on implementing the trade in goods component and enhancing development cooperation in targeted sectors, there is growing interest in exploring potential opportunities in trade and services.

This includes the possibility of agreements for skilled workers, such as nurses and caregivers, to temporarily work in EU countries.

The demand for caregivers and qualified nurses in certain EU member states is on the rise, and the current supply may not be sufficient to meet this growing demand.

Minister Manele acknowledged that the implementation progress of the interim EPA has been slow since its ratification by the Pacific African Caribbean Pacific (ACP) parties. However, he emphasized that the expected benefits will only be realized when parties systematically implement the agreement.

Solomon Islands formally acceded to the interim EPA on May 17, 2020. Meanwhile, Tonga, Timor Leste, and Vanuatu have expressed their intention to accede but are still undergoing internal review and procedural requirements. Papua New Guinea ratified the Pacific interim EPA in May 2011, following the European Parliament’s ratification in the same year.

Fiji signed the agreement in July 2014, and Samoa acceded to the interim EPA in December 2018.

An Interim Economic Partnership Agreement (EPA) is a trade agreement established between the European Union (EU) and a group of countries in a specific region, typically former colonies or territories with historical trade ties to EU member states. These agreements are part of the broader framework of Economic Partnership Agreements, which are trade agreements between the EU and the African, Caribbean, and Pacific (ACP) regions.

Interim EPAs are designed to provide a framework for trade and economic cooperation while negotiations for comprehensive EPAs are still ongoing. Comprehensive EPAs are intended to replace preferential trade agreements that the ACP countries previously had with the EU under the Cotonou Agreement.

The 19th Regional Meeting (Pacific Region) of the ACP-EU Joint Parliamentary Assembly continues, with further discussions scheduled for today and concluding tomorrow.

BY EDDIE OSIFELO

SOLOMON Islands has reaffirmed its commitment to sign the Small Island Developing States Accelerated Modalities of Action (SAMOA) agreement during an upcoming meeting in Apia, Samoa.

Prime Minister Manasseh Sogavare confirmed this decision during his opening address at the 19th Regional Meeting (Pacific Region) of the ACP-EU Joint Parliamentary Assembly in Honiara.

Sogavare stated that the cabinet has granted approval for the Minister of Foreign Affairs and External Trade to sign the SAMOA agreement. Additionally, the cabinet has tasked the ministry with facilitating the ratification and application of the agreement after its signing.

The Prime Minister emphasized the importance of this agreement, highlighting that the partnership between the Organisation of African, Caribbean, and Pacific States (OACPS) and the European Union is expected to deepen cooperation between member countries over the next two decades. This collaboration aims to advance common interests in various areas outlined in the agreement, such as human rights, democracy, governance, peace and security, human and social development, inclusive sustainable economic growth, environmental sustainability, climate change, and migration and mobility.

The SAMOA agreement, formally known as the Small Island Developing States Accelerated Modalities of Action (SAMOA Pathway), was adopted at the Third International Conference on Small Island Developing States (SIDS) in Apia, Samoa, in September 2014. SIDS encompass countries in regions including the Caribbean, Pacific, and Indian Ocean, facing distinctive challenges due to their small size, geographical isolation, vulnerability to climate change, and limited resources.

This international agreement provides a framework for addressing the sustainable development challenges specific to SIDS, recognizing their vulnerabilities and development needs. It outlines a roadmap for action in areas such as climate change, sustainable energy, disaster risk reduction, and access to financing for development. The SAMOA agreement aligns with the broader global sustainable development agenda, particularly the 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs).

The SAMOA agreement will succeed the previous Cotonou Agreement, which governs relations between the European Union (EU) and the African, Caribbean, and Pacific Group of States (ACP). The Cotonou Agreement, named after the city of Cotonou in Benin where it was signed in June 2000, has undergone various revisions and extensions, with the most recent extension in effect until 2023.

BY MAVIS N PODOKOLO

ALL contractors engaged by the National Hosting Authority will have their dues fully paid after the hosting of the Pacific Games 2023 says Chairperson for NHA Dr Jimmy Rodgers.

NHA Chairperson Dr Rodgers confirmed this yesterday during the Team Solomon radio talk back show recently held on the Solomon Islands Broadcasting Corporation (SIBC).

“We will honour our contractors based on the contracts given to them, similarly like the government honours its promises to fund this historical event, the Pacific Games 2023,” Rodgers said.

He highlighted that from the National Hosting Authority perspective one of their top commitment is to ensure all contractors engaged get paid before this year, 2023 ends.

“We want to assure all our contractors that we will leave no debt behind. All the contracts that we have signed with contractors will be honoured and we will pay them before the end of this year.

“We are committed to ensure all bus owners, all vehicle owners and who ever we engaged we will ensure your dues are paid. Because we promised you this, we would like to close this year by keeping our promise. This is to ensure we can all work together,” Rodgers said.

Furthermore, he reiterated that the games is no longer about the Pacific Games, but it is about Solomon Islands credibility.

“I want to again underscore here that let us put aside all negativities, now is the time for us to pull together.

“This does not mean that it will never happen. We did it in the Festival of The Pacific Art (FOPA) in year 2012 and thus, we can do this again just bigger and just better,” Rodgers said.

He stressed that the country is on the right tract to deliver the Pacific Games 2023.

Rodgers adds in terms of facilities the last one was handed over last Thursday and that is the Solomon Islands Football Federation (SIFF) academy. The rest were handed over earlier.