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Country Guide > Australia and South Pacific > Solomon Islands | |
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Business Profile Economy The economy depends on subsistence agriculture and fishing, which together employ about 90 per cent of the population. The agricultural sector produces coconuts, sweet potatoes, cassava, fruit and vegetables; livestock rearing has grown steadily. Copra is still produced in commercial quantities, but low world prices have reduced the income from this commodity. As a result, timber is now the islands’ main source of revenue although, again, this has been affected by low world prices and a ceiling on production. The timber industry had grown very rapidly during the early-1990s but has been cut back drastically following international pressure (which included suspension of vital financial aid) on the Government to introduce a controlled logging policy. A moratorium of new timber-felling licences was introduced in 1998. The Solomon Islands’ main industrial prospect lies in its mostly undeveloped mineral resources. Gold mining is now important and is set for further expansion; in addition, there are confirmed deposits of copper, lead, zinc, silver, cobalt and other ores. In the service sector, there is a small and – initially – growing tourism industry which brings in around US$15 million annually, but this has been affected by the poor security situation. Despite its narrow economic base, the Government has so far eschewed the choice of some South Pacific neighbours to develop an ‘offshore’ finance industry. However, it has joined with fellow members of the Pacific Forum in establishing a free trade system in 2002, known as the Pacific Island Countries Trade Agreement (PICTA). The Solomon Islands continues to receive substantial overseas aid, although much of this is consumed by a large external debt. In 1998, following the Asian financial crisis, the Government also introduced a typical programme of structural reform under the auspices of the IMF. Australia and Japan are the main trading partners, followed by the UK, New Zealand, Korea (Rep), Thailand and Singapore. Business Shirt and smart trousers or skirt will suffice. English and French are widely spoken. The best time to visit is May to October. Office hours: Mon-Fri 0800-1200 and 1300-1630, Sat 0730-1200. Commercial Information The following organisations can offer advice: Ministry of Commerce, Employment and Trade (see Contact Addresses section); or Solomon Islands Chamber of Commerce and Industry, PO Box 650, Honiara (tel: 39542; fax: 39544; e-mail: chamberc@solomon.com.sb). |