Solomon Islands Urged to Pursue Comprehensive Reforms to Boost Economic Growth, Says World Bank Report

Solomon Islands’ Minister of Finance, Manasseh Sogavare, acknowledged the difficulties while expressing a commitment to the necessary reforms.

A comprehensive reform agenda could significantly boost economic growth in the Solomon Islands, helping the country address its development challenges and advance toward its goal of achieving upper-middle income status by 2040, according to a new World Bank report.

The Country Economic Memorandum/Sources of Growth Study, launched in collaboration with the Ministry of Finance and Treasury, identifies key areas for growth, including digitalization, improved transport connectivity, and better urban planning. The report also emphasizes the need to stimulate private-sector investment in key industries such as tourism, agriculture, and fisheries.

“This analysis is vital in recognizing the challenges faced by the Solomon Islands, but more importantly, it highlights opportunities for driving positive change,” said Stephen N. Ndegwa, World Bank Country Director for Papua New Guinea and the Pacific. “By addressing these issues, the government can build a stronger and more resilient economy that benefits all Solomon Islanders. The World Bank is committed to supporting these efforts.”

Solomon Islands’ Minister of Finance, Manasseh Sogavare, acknowledged the difficulties while expressing a commitment to the necessary reforms. "The findings underscore the importance of reforming our economic policies. We are dedicated to diversifying our economy, improving infrastructure, and supporting the private sector—vital steps for securing a better future for our people."

The Solomon Islands faces an urgent need to identify new sources of growth, particularly as its traditional logging industry declines. Other sectors remain underdeveloped due to factors such as the country's small economy, dispersed population, and a challenging business environment. The report warns that without reforms, the Solomon Islands may not reach its growth targets or achieve upper-middle-income status by 2050.

Key recommendations in the report include improving transport and digital infrastructure, enhancing urban planning, reducing trade barriers, improving access to finance, lowering electricity costs, strengthening land administration, and investing in agriculture, fisheries, and tourism. Additionally, increasing labor mobility through education and training is seen as essential for long-term growth.

The World Bank report provides a clear roadmap for overcoming current economic challenges. With targeted reforms and strategic investments, the Solomon Islands government can build a more resilient economy and unlock new opportunities for sustainable growth.