Foreign Investment Up Seven Fold

Foreign Investment Up Seven Fold

The Minister of Commerce has today released the latest Foreign Investment figures which show how the new Act has been performing since it came into force in June last year.

The figures show that planned foreign investment from new investors totaled $1,640 million over the first 9 months of the Act’s operation, compared to only $315 million in planned new investment for the whole 12 month period prior to the Act coming into force.

This represents an increased investment rate of 7 times that of the old Act.

In addition the number of investors for the first 9 months of the Act’s operation is 118, compared to only 61 for the whole year prior to the new Act coming into force.

This represents an increased rate of investors of 2 and a half times that of the old Act.

The Minister for Commerce, Industries and Employment, the Hon Peter Shanel said that the latest figures show that the new Act is working as intended.

Solomon Islands now has an international reputation as a country which is working hard to create a business friendly environment for investors.

“The increased planned investment is likely to be creating thousands of new jobs throughout Solomon Islands and contributing to increased Government tax revenue.

Locally owned businesses will also be feeling the benefits of the increased economic activity with higher demand for the goods and services they produce.”

The Solomon Islands economy grew at 6.1 percent in 2006 and is forecast to grow at 6 percent in 2007, one of the highest rates in the region.

The increased foreign investment flowing into the country is one of the contributors to this high growth.

“Solomon Islands followed Fiji’s lead and adopted a pro business Foreign Investment Act in June last year and we are very happy with the results so far,” said the Minister. “Other countries in the region should look to Solomon Islands’ example if they too want to boost their investment and economic growth”.

The Government is also pursing a range of other pro business growth policies including business skills training for local Solomon Islanders, the abolition of most business license fees, a new Companies Act, reform to State Owned Enterprises, expansion of rural banking, on going tax reform and a range of other pieces of legislation.

The Minister said that these reforms combined with the Government’s Bottom Up Approach for rural development will mean that the Solomon Islands economy can continue to build a strong private sector and continue to raise our people’s standard of living.

ENDS

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