BY NED GAGAHE

The Central Bank of Solomon Islands (CBSI) has unveiled an ambitious vision to modernise the country’s financial sector, with plans to phase out cheque payments, strengthen monetary policy operations, expand digital financial services, and explore innovative technologies including a potential Central Bank Digital Currency (CBDC).

CBSI Governor Dr. Luke Forau announced the reforms during the bank’s official Golden Jubilee celebration held at the Heritage Park Hotel in Honiara yesterday, marking 50 years since the establishment of the country’s central banking institution.

Addressing government leaders, former governors, development partners and stakeholders, Dr. Forau said the next 50 years of the institution will be guided by two key principles – innovation and impact.

“The world is not waiting for us. Technological change is accelerating. Digital platforms are redefining financial services, and economies are being reshaped by forces that did not exist when this bank was founded.

“In that environment, an institution that stands still is, in effect, moving backwards,” Dr. Forau said.

The Governor revealed that CBSI is working to modernise the country’s payment systems, including the eventual phase-out of cheque payments as digital alternatives become more widespread.

“We now have a modern payment system. The introduction of the real-time gross settlement system has transformed how money moves in our economy. Very soon, cheques will be phased out. There will be no more cheques issued,” he said.

Dr. Forau also highlighted efforts to activate and deepen the country’s money market, which he said will improve the effectiveness of monetary policy and ensure policy decisions are felt more meaningfully across businesses, households and communities.

A major component of the bank’s future agenda is expanding financial inclusion, particularly for rural communities, women, youth and small businesses.

Governor Forau said financial access infrastructure has grown to more than 6,000 access points nationwide through agents, EFTPOS terminals, merchants, ATMs and bank branches.

Despite this progress, he said more work remains to ensure all Solomon Islanders can access affordable financial services.

He issued a direct challenge to financial institutions operating in the country to ensure their services remain affordable and accessible.

“You must ensure that your services are affordable, reachable and reasonable. You must not price your services too high that the low-income earner would not afford it,” Dr. Forau said.

Looking further ahead, the Governor outlined plans to transform the current CBSI site into a ‘Central Bank Hub’ that will serve as a centre for research, innovation and collaboration within the financial sector.

The proposal includes the establishment of a Research Institute to support evidence-based policymaking, a Currency Museum to preserve the nation’s monetary history, and a Financial Innovation Hub where regulators, financial institutions, technology providers and entrepreneurs can test and develop new financial solutions.

Dr. Forau said the innovation hub will create a controlled environment for new ideas to be developed before being introduced to the wider market.

He also indicated that CBSI is examining emerging technologies, including a potential Central Bank Digital Currency, as part of efforts to keep pace with global developments in digital finance.

While reflecting on the institution’s achievements over the past five decades, Dr. Forau said resilience had been the defining characteristic of the central bank’s journey, citing challenges ranging from Cyclone Namu in 1986 and the Asian Financial Crisis to the ethnic tensions between 1999 and 2003.

During the height of the tensions, he recalled, foreign reserves fell to about two weeks of import cover while confidence in the financial system was severely tested.

“Yet the Central Bank held its position. The institution continued to function and helped restore confidence when it was most desperately needed,” he said.

As CBSI enters its next chapter, Dr. Forau said the institution’s aspiration is to become a world-class central bank recognised for stability, leadership and its contribution to national development.

“The measure of our success will not be the systems we build or the technologies we adopt, but the difference they make to the people we serve,” he said.

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BY JOHN HOUANIHAU

The commissioning of the new Kulabule Jetty marks a significant milestone in  Government’s efforts to strengthen maritime transport infrastructure across Solomon Islands said Minister for Infrastructure Development Ricky Fuo’o.

Speaking at the official opening ceremony on Wednesday, Minister Fuo’o described the facility as a major addition to the country’s maritime infrastructure and a demonstration of the Government’s commitment to provid safe, reliable and efficient transport services.

“Maritime transport remains the lifeline of our nation.

“As an archipelagic country, we rely heavily on maritime transportation to connect islands, communities, businesses and essential services. The efficient movement of people and goods is crucial to our social and economic development,” he said.

The Minister said that the Honiara Domestic Port is the busiest transport hub in the country, handling thousands of passengers and large volumes of cargo each week.

He said growing demand requires continued investment in port infrastructure.

Fuo’o welcomed Solomon Ports’ long-term development plans and indicated support to review the Solomon Ports Act to align with changing industry demands and future infrastructure investment needs.

The new jetty measures 50 metres by 50 metres and was fully funded by Solomon Ports at a cost of $28 million. Designed through collaboration between BECA Consultants and Solomon Ports, the project was constructed by Solomon Ports engineers and project staff over an 18-month period.

The Minister praised the strong local involvement in the project, describing it as a testament to the growing technical capabilities of Solomon Islanders.

“I’m a big advocate for local content. Our infrastructure must be built by Solomon Islanders and driven by our own people,” he said.

The facility has been named in honour of the late Captain Judah Kulabule, a long-serving Harbour Master whose contributions to the maritime sector played a key role in the development of port operations in Solomon Islands.

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BY JOHN HOUANIHAU

The National Disaster Management Office (NDMO) is closely monitoring reports of water shortages emerging from parts of Malaita Province as El Niño conditions were declared for the country.

Director of National Disaster Management Office (NDMO) and Chairman of the National Disaster Operation Committee (N-DOC), Mr Jonathan Tafiariki said this during a press conference on Thursday this week.

He said that reports circulating on social media and through provincial emergency have highlighted concerns over dwindling water supplies in some communities, particularly in North Malaita.

He said that the Water Resources Management Division within the Ministry of Mines, Energy and Rural Electrification (MMERE) and other mandated agencies have been informed of the reports and discussions are underway to determine the next course of action.

He said NDMO is currently coordinating with relevant agencies and technical experts to assess the information received and identify appropriate measures to support communities that may be affected by the ongoing dry conditions.

The Solomon Islands Meteorological Service recently declared El Niño conditions for the country, a climate phenomenon associated with below-average rainfall and an increased risk of drought and water shortages.

Mr Tafiariki said that low-lying and water-stressed communities are particularly vulnerable as the country enters a period of reduced rainfall.

“Drawing on lessons from previous El Niño events in 1997-1998 and 2015-2016, in past experiences will help inform preparedness and response efforts should conditions worsen,” he said.

He said that apart from Malaita, reports have also emerged from the western part of Guadalcanal, where water-related challenges have been reported at Selwyn College.

“The school is among locations experiencing difficulties accessing water, prompting former students to provide assistance through relief efforts and water supplies,” Mr Tafiariki said.

He said that no other provinces have formally reported significant water shortages at this stage.

“The immediate focus remains on gathering information and verifying reports received through the media and provincial emergency operation centres, particularly those concerning communities that are reportedly facing water supply challenges,” he said.

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BY BEN BILUA
Gizo

DIRECTOR of Western Province Health and Medical Services, Dr Dickson Boara, has called for more medical specialists to be stationed in provincial hospitals to reduce the financial burden associated with patient referrals to Honiara.

Speaking during the Western Province Health Summit, Boara said the lack of specialist services at provincial hospitals continues to place significant pressure on both the health system and patients’ families.

He explained that many patients from Western Province are referred to Honiara for treatment that could otherwise be provided locally if specialist doctors were available in Gizo.

“We need specialists to be posted in Gizo to provide the same services that can be accessed in Honiara,” Boara said.

He said the absence of specialists’ forces Gizo Hospital to refer patients to Honiara, which is costly for the hospital as well as the patients’ families.”

Boara said the referral process often places an additional burden on rural families who must first travel long distances from their communities to Gizo before making the journey to Honiara for further treatment.

He also said that decentralising specialist health services will greatly improve healthcare delivery in the provinces by enabling more patients to receive treatment closer to home.

“Services can be improved if more specialists are posted to rural hospitals so that treatment can be done at the provincial level rather than requiring patients to travel to Honiara,” Boara said.

He acknowledged that several medical specialists have been deployed to Gizo Hospital over the years and said their contributions have been invaluable in improving healthcare services for the people of Western Province.

Boara added, however, that maintaining a consistent presence of specialist doctors remains a key challenge that needs to be addressed.

He acknowledged the Australian Government for its continued support, particularly in assisting Gizo Hospital with the referral of critically ill patients to Honiara.

The call was made during discussions at the Western Province Health Summit, where health officials, government representatives and development partners gathered to discuss ways to strengthen healthcare services across the province.

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BY NED GAGAHE

Prime Minister Matthew Wale has praised the Central Bank of Solomon Islands (CBSI) for its resilience and contribution to the country’s development over the past 50 years.

Speaking during CBSI’s Golden Jubilee celebrations at Heritage Park Hotel in Honiara, Mr Wale said the institution has played a vital role to safeguard the economy and maintain confidence in the financial system.

“Fifty years ago, before our flag had been raised and before the ink had dried on our Constitution, a small group of Solomon Islanders made a decision that would shape the economic life of every generation that followed.

“They chose to build an institution to guide our monetary future,” he said.

Mr Wale said CBSI’s story is closely linked to the story of Solomon Islands and its people.

He said the bank’s work benefits farmers, families, businesses and all Solomon Islanders who depend on a stable financial system.

“For five decades, this institution has helped safeguard the stability of our economy, protect confidence in our financial system and create the conditions for growth and opportunity,” he said.

The Prime Minister described the Central Bank as the heart of the nation’s financial system.

He said while the bank does not directly create jobs or build infrastructure, it provides the monetary and financial stability needed for businesses to invest and economies to grow.

“Monetary and financial stability are not ends in themselves. They are the foundation upon which businesses grow, investment flows and jobs are created,” he said.

Mr Wale also acknowledged the challenges CBSI has faced over the years, including natural disasters, global economic shocks and the ethnic tensions between 1999 and 2003.

During that period, he said, the financial system came under immense pressure, but the Central Bank remained steadfast in carrying out its mandate.

“The Central Bank held its position when holding it was most difficult,” he said.

He paid tribute to former governors, deputy governors, board members and staff who helped steer the institution through difficult periods.

“The scars of that period are very real. But so is what was built through them.

“That resilience is visible today in our stable currency, in the trust placed in our banking institutions and in the steady development of our financial system,” Mr Wale said.

The Prime Minister said the Golden Jubilee is an opportunity to honour the dedication and service of those who have contributed to the institution over the past five decades.

“This celebration belongs to them and to the values they lived out, often under very difficult circumstances,” he said.

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Government sets up national response plan to monitor, assess impacts as El Nino begins

BY JOHN HOUANIHAU

Government, through the National Disaster Management Office (NDMO) has activated a national response plan to monitor and assess the impacts of the current El Niño conditions across in the country.

Jonathan Tafiariki, Director of NDMO and Chairman of the National Disaster Operation Committee (N-DOC) said that drought-related risks are now a key concern alongside Tropical Cyclone Maila.

Speaking to local media on Thursday this week Mr Tafiariki said that a Drought Advisory Group, established under the country’s drought contingency plan, has been convened to provide technical assessments and advice to the National Disaster Operations Committee (NDOC) on the developing situation.

He said that the advisory group is co-chaired by the Director of the Solomon Islands Meteorological Service and the Director of Water Resources Management under the Ministry of Mines, Energy and Rural Electrification.

Tafiariki said that the group brings together key technical agencies who will be responsible in monitoring different sectors affected by drought and prolonged dry conditions.

“The Solomon Islands Meteorological Service is responsible for monitoring weather and rainfall patterns, while the Water Resources Management Division tracks hydrological conditions and water availability.

“The Ministry of Agriculture and Livestock Development monitors food security concerns, and the Ministry of Health and Medical Services oversees health issues associated with the dry season,” he said.

He adds that the activation of the drought plan has enabled technical agencies to work collectively to assess the country’s current status and identify areas vulnerable to drought impacts.

He said the National Emergency Operations Centre (NEOC), which was activated in response to Tropical Cyclone Maila, remains operational and will also coordinate the monitoring of El Niño-related impacts nationwide.

“As a result, the National Disaster Operations Committee will be tasked with managing both the ongoing cyclone response and the country’s preparedness for drought conditions linked to El Niño,” he said.

Tafiariki said response planning is already underway, with technical agencies directed to begin assessments to determine the extent of impacts being experienced across the country and to guide future response measures.

“There is a dedicated drought contingency plan designed to address slow-onset disasters caused by prolonged rainfall deficiencies and water shortages due to the current EL Nino condition for the country,” Tafiariki said.

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BY NED GAGAHE

The Central Bank of Solomon Islands (CBSI) has outlined an ambitious vision for the future of central banking, including the introduction of a Central Bank Digital Currency (CBDC), during its inaugural Governor’s Annual Lecture and Forum held at Heritage Park Hotel yesterday.

The event is part of CBSI’s 50th anniversary celebrations that brought together policymakers, financial institutions, development partners and industry experts to discuss the future of the country’s financial system.

Held under the theme “Resilience, Progressive Development”, the forum aims to promote dialogue on economic development, financial systems and the future direction of central banking in Solomon Islands.

In his keynote address, CBSI Governor Dr Luke Forau reflected on the bank’s journey over the past five decades while focusing on the challenges and opportunities that lie ahead.

“While we mark the 50th anniversary, this presentation dwells more on looking forward than looking backward

“What has gone has gone. We can learn from the past 50 years, but what can be changed is the future,” Dr Forau said.

Dr Forau said the next 50 years will require transformation in how central banks operate, particularly in response to digital technology, climate change, financial inclusion, artificial intelligence and cyber security.

He highlighted key lessons from the bank’s history: the importance of institutional independence, resilience during crises, financial inclusion and regional cooperation.

The Governor also revealed that CBSI is taking a leading role in the development of a Central Bank Digital Currency known as Bokolo, describing it as a strategic transformation rather than simply a technology project.

“The Bokolo positions Solomon Islands as a pioneer in the Pacific and reflects our commitment to innovation and inclusion,” Dr Forau said.

He said that digital currencies, climate-related risks, geopolitical shifts and advances in artificial intelligence are reshaping the global financial landscape and will require central banks to adapt.

Dr Forau outlined four strategic priorities for CBSI over the coming decades: anchoring the digital financial system, building climate-resilient financial frameworks, strengthening regional cooperation and investing in people and technology.

The forum also featured two panel discussions involving representatives from BRED Bank, Bank South Pacific (BSP) and Pan Oceanic Bank (POB), who explored the future of the banking industry in Solomon Islands.

A second panel discussion focused on the theme “From Resilience to Transformation: The Next 50 Years of Central Banking,” examining how central banks can respond to emerging economic and technological challenges.

The event concluded with the announcement of the Central Bank’s digital currency initiative, which officials say will support financial inclusion and modernise the country’s payment systems.

CBSI said the forum is expected to strengthen collaboration among stakeholders and increase public engagement in economic and financial discussions as the institution prepares for the next 50 years of service to the nation.

Photo credit: Ned Gagahe

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