Solomon Islands Investment Environment

Investment Information

Investment Information/ Investment Environment

Investment Policy

The Government of Solomon Islands places great emphasis on the encouragement of foreign investment in the private sector as a basis for growth and development. The net economic benefit of the proposed investment is the dominant consideration in accessing both the acceptability of an investment and the degree of assistance it will be accorded. While the Foreign Investment Act 2005 requires that the assessment of foreign investments rest with the Registrar of Foreign Investment Division, certain guiding criteria exist. The most important is the impact of investment on:

Widening the productive base;
Strengthening the technical and marketing expertise of the private sector;
Generating either net export income or import cost saving;
Providing employment and training, especially in regional areas Another key element in the assessment is that investment activity (ies) being applied for by the foreign investor is/are not listed under the reserved or prohibited list.

Principle

Solomon Islands, like any other country in the world, has certain guiding investment principles embedded in its policy. This policy outline that the national government of Solomon Islands.

Recognizes that foreign investment is an important instrument to advance the country’s economic development through the employment of appropriate technology, capital, production methods, management and expertise associate directly with the working of Foreign Investors.

By recognizing this aspect, the national government is committed to creating an enabling and conducive investment environment.

that is free from political and excessive bureaucratic influence.
that Investment impeding legislatives are reviewed to reflect the actual need of investors while at the same time improve the working mechanism of the private sector.
that Investment procedures are made simpler as to avoid unnecessary delays in the registration and approval process.
that Foreign Investors are protected under the laws of Solomon Islands and are properly assisted and fairly treated while implementing and operating their business.
that Investors are free to invest in any investment activities that they are allowed to carry out with ease or mobilize their resources to areas they think is viable for their investment.
that investors are encouraged to seek fiscal and non fiscal incentives to induce the growth of their investment projects.

In recognizing these outcomes, the national government is also cognizant to that fact that institutional measures are not enough to create a better and working private sector. Therefore a well established market driven private sector is needed. This lead to oblige the national government to device and implement national development policy.

that support the growth of the private sector.
that is cost effective and efficient.
that meet the demand and needs of both local and international investors.
that encourage efficient delivery of goods and services whether locally or internationally
that promote development in every part of the Solomon Islands The national investment policy set the basis at which investment objectives are drawn. The core of which, is to maximize benefits, by all stakeholders including the welfare of ordinary citizens of Solomon Islands.

Government Investment Priority

While all form of investments are encouraged, there are certain characteristics of investments that will be most favored and supported by the National Government. Current focus of the National Government is to attract more investments that support the national development strategies based on the “ Bottom-up-Approach”. This is a concept devised to decentralize development to rural areas.

Most favored investments are those that will improve the liveli-hood of rural people including down stream processing or manufacturing. The national government will support directly these types of investment especially where local raw materials are fully utilized in the production stages. Those investments that intend for international markets or export oriented are on the same priority list for government direct support. Some of these support include allocation of land, tax exemption from income, tax holidays and export relief tax. In cases where investment is rural base, a 100% tax exemption can be applied for by the investor.

For more information about tax and incentives, contact the Office of the Commissioner of Inland revenue.

Why invest in Solomon Islands

Solomon Islands is unique in many ways compared to other Pacific Islands. First we have the land mass and resources that other Islands countries lack. Our ocean contained some of the richest fishes in the world and business environment is stable. There is everything for investors to discover about this great Pacific Island country. Solomon Islands is renowned for these outcomes.

Is a country with vast untapped natural resources
Has an Economic Exclusive Zone that supply world class tuna
Where business establishment is easy
Has cheap Labor force ideal for any investment sector
Is committed to improve physical infrastructure and public utilities
Has abundant land for any investment projects
Has two international sea ports and an air port designed to accommodate investors’ trade needs
Has attractive investment incentives
Where business is free from Political interference
Is a country with very low crime rate in the Pacific Islands region Potential areas of investment Being naturally rich, Solomon Islands offer a wide array of potential investment opportunities in many sectors.

Investment Act

Foreign direct investment in to Solomon Islands has increased over the past 4 years (2004-2008) with an estimated total injected investment value of more than US$800 million. Investors’ distribution shows that China, Australia, Malaysia, Singapore, and PNG are the leading investors in Solomon Islands. By sector, tourism, agriculture, mining, forestry and fisheries constitute to attract more foreign investment. Manufacturing sector is quite minimal given the environment at which growth is impeded. Increase in foreign investment has attributed to certain underling factors including simplification of the investment process, improve security in the country, exploration of investment opportunities by investors, diversification of investment portfolios and strong interest mainly from China and Australian investors. Foreign Investment Flow into Solomon Islands is expected to rise over the next 5 years especially from the tourism, fisheries, manufacturing and mining sectors.

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Solomon Islands Trade, Investment and Culture Office Hong Kong/ China

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