BY JOSES SAREN
Temotu Province is grappling with a persistent cash shortage that residents say is worsening, with businesses, families and workers all feeling the impact.
Sharon Inone Stimach, CEO and founder of Greenergy Pacific told Island Sun the BSP agency in Lata has had no cash for almost a week as of Wednesday this week — a problem she said is not new, recurring almost every month.
The entire province has no ATM machine.
Only one shop in Lata operates an EFTPOS machine, which accepts standard bank cards but not Visa cards, and itself frequently runs out of cash because it relies on customer deposits to stay stocked.
Stimach said the province’s sole bank struggles to keep cash on hand, partly because of how money moves through Temotu.
When ships call in, freight payments are made in cash, and that money often leaves the province with the vessel rather than being redeposited locally. With no other channel bringing new cash into the islands, circulation keeps shrinking.
A Lata resident told Island Sun that most businesses in the province deposit their earnings in Honiara, further limiting available cash within Temotu.
The resident said some communities practising informal savings schemes keep their own savings mechanisms outside the banking system, and that cash is only injected into the BSP agency in Lata when shortages become apparent, rather than as a regular practice.
The resident added that some workers had been unable to receive their fortnightly pay as a direct result of the shortage.
Responding to Stimach’s social media post on the matter, May Ferolyn Daiwo said the issue was already known to relevant authorities, who she said were considering recommendations to gradually address the cash shortage.
She acknowledged that some businesses and individuals already made a practice of depositing with the Lata agency, and called on members of the public who kept cash at home to open BSP accounts rather than banking in Honiara.
She added that a long-term trade link with Vanuatu could eventually help boost investment in the banking system, and said confidential recommendations were before senior authorities for consideration.
“Nearly everyone I talk to has the same problem — no cash at all,” Stimach told Island Sun.
“I don’t have exact numbers, but you can see it everywhere. We have not formally raised this with BSP, the Central Bank of Solomon Islands, or the Temotu Provincial Government yet. I hope this story will help bring everyone together to talk about the way forward. We need help.”
The shortage has been felt widely across the province. Families are struggling to meet daily needs, while market vendors, farmers and fishers say they often return home empty-handed because customers cannot access cash to pay them.
Local businesses have reported difficulty restocking or paying suppliers, and project work has slowed as casual laborers go unpaid and materials go unpurchased. Government offices, NGOs, schools and churches have also experienced delays.
Island Sun made three attempts to contact the BSP agency in Lata by phone for comment, but was unable to reach a representative as the branch was busy each time.
Enquiries have also been sent to BSP head office and the Central Bank of Solomon Islands (CBSI), with responses pending at time of publication.
Stimach is appealing to shipping companies operating in Temotu to deposit a portion of freight payments collected in cash with the BSP agency in Lata before departing, so that money remains in circulation locally.
She is also calling on BSP, CBSI, provincial and national leaders, and shipping operators to work together on long-term solutions, including expanded EFTPOS access and mobile banking, to reduce the province’s dependence on physical cash. Stimach has indicated she is open to further discussion with any interested stakeholders on possible solutions, and can be reached through Island Sun.
“Cash is still the lifeline of our economy here.
“When there is no cash, business slows, work stalls, livelihoods suffer, and everyone feels it. Temotu deserves a financial system that works for its people. If anyone has workable solutions, please share them — but let’s keep this a call for collaboration, not blame,” she said.
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