Asia and Oceania

Solomon Islands
Last reviewed: 09 October 2009

Country information

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Trade and investment

There is currently a low level of inward investment into the Solomon Islands. A number of high profile foreign investors withdrew during the unrest resulting in the closure of the Gold Ridge goldmine and the Solomon Islands Plantations Ltd (palm oil) with significant job losses. Gold Ridge is under new management and significant efforts are being made to secure the investment required to rehabilitate the site. It is thought that production will not commence until 14 months after the $100 million USD that Gold Ridge estimate is required is raised. Solomon Islands Plantation site was purchased by New Britain Palm Oil Ltd (quoted on the London Stock Exchange) and has now returned to production.

The downturn in world prices and demand for primary products, particularly timber which accounts for 60% of Solomon Islands export receipts, has adversely affected Solomon Islands' trade performance. Balance of Payment figures, government revenue and foreign currency reserves have been under significant pressure during the first and second quarters of 2009. A further 25 % forecast annual decline in logging revenues is likely to compound the problem. British companies who operate in Solomon Islands include British - American Tobacco (who run the local cigarette-making factory) and De La Rue, who print local banknotes and passports.