Solomon Islands manufacturers have issued a stark warning that high electricity costs, poor infrastructure, labour shortages and heavy dependence on imported goods are threatening the future of one of the country’s most important economic sectors.
Business leaders say unless urgent reforms are implemented, the manufacturing industry – which has the potential to create jobs, add value to local resources and reduce the country’s dependence on imports – will struggle to reach its full potential.
The concerns were raised on Friday during a Business After Five forum hosted by the Solomon Islands Chamber of Commerce and Industry (SICCI), where members of the Manufacturing Industry Working Group identified the major obstacles holding back industrial growth and outlined a roadmap for reform.
SICCI Manufacturing Industry Working Group Chair Qila Tuhanuku, Kokonut Pacific Solomon Islands General Manager Steward Mane, SICCI Chief Executive Officer James Dolarii, and SICCI SME Working Group Chair James Kana agreed that manufacturing is far more than simply producing goods.
They described it as the backbone of a modern economy, driving employment, supporting farmers, transport operators, engineers, shipping companies, mechanics and a wide range of service industries throughout the country.
“When manufacturing grows, the whole economy grows,” participants said.
Expensive electricity
Among the industry’s biggest concerns is the high cost of electricity, which businesses say is eroding profitability and discouraging investment.
Manufacturers reported that electricity accounts for up to 10 per cent of their operating costs, with one business revealing it was billed approximately SBD300,000 for electricity during a three-week production shutdown caused by the 2024 national election period.
Industry representatives called for reforms to the electricity sector, including a review of fuel and non-fuel taxes that contribute to high power prices and greater investment in affordable renewable energy.
Although recent road upgrades have improved transport in some parts of the country, manufacturers say inadequate shipping services, limited communications infrastructure and poor access to banking services in the provinces continue to restrict business growth.
Participants pointed to the recent completion of Makira’s first wharf in 2026 as an example of how infrastructure development has lagged behind the needs of productive sectors, despite Makira being one of the country’s largest cocoa-producing provinces.
Without reliable transport links, rural farmers and producers face greater difficulty accessing markets, increasing costs for both manufacturers and consumers.
The manufacturing sector is also facing a shortage of qualified technicians and skilled workers.
Many companies continue to recruit specialised staff from overseas because suitably trained Solomon Islanders are in short supply.
Business leaders urged greater investment in science, technology, engineering and mathematics (STEM) education, along with vocational and technical training that better matches industry needs.
Another major concern is the industry’s continued reliance on imported raw materials.
Manufacturers say stronger links with local farmers and processors could create more opportunities for value-adding within Solomon Islands, generating more jobs and keeping more money in the local economy.
However, the country’s scattered geography continues to make it expensive and difficult to source agricultural products consistently from rural communities across different provinces.
Participants noted that while large manufacturers and small businesses face different challenges, both are constrained by the same structural problems that limit investment, productivity and expansion.
Kokonut Pacific Solomon Islands General Manager Steward Mane said businesses would achieve more by working together than by competing against one another.
“We operate in a culture where we often try to compete, but collaboration is much better than competition,” he said.
Working Group Chair Qila Tuhanuku said developing a strong manufacturing sector requires long-term commitment rather than short-term thinking.
“When we talk about farming, our outlook has to be 10 years. We are talking about the next 50 years of this country,” she said.
“If you want lasting economic growth and sustainable revenue, you have to consistently invest and deliver over time.”
The Manufacturing Industry Working Group is calling on the Government to introduce a broad package of reforms to strengthen the sector.
Its recommendations include opening the electricity market by
reforming the Electricity Act to encourage competition and renewable energy investment
reviewing taxes that contribute to high electricity costs
providing incentives for start-up manufacturers and investment in new equipment
improving provincial infrastructure including wharves, shipping services, communications and banking
expanding STEM and vocational education
improving access to finance for small and medium-sized enterprises, and
encouraging greater use of locally produced raw materials.
The Working Group says it will continue engaging with the Government, development partners and the private sector to advance the reforms and help build a stronger, more resilient manufacturing sector.
Manufacturing remains one of the smallest contributors to the Solomon Islands economy, which continues to rely heavily on logging, fisheries, agriculture and donor-funded development.
Economists have long argued that expanding local manufacturing would diversify the economy, create higher-value jobs, reduce reliance on imported goods and retain more wealth within the country.
Business leaders say achieving that goal will require sustained government support, investment in infrastructure and energy, and policies that make it easier for local industries to grow and compete.
