INDUSTRIAL DEVELOPMENT POLICY - SUMMARY
It was common amongst various governments that there is great potential in the private sector to develop if the there is increase in the productive sector. It is aniticpated that this developmetn will broaden the action platform for the private sector. It was this in mind that the Industrial Development Policy was incepted in 1994. The policy aims at increasing and diversifying degrees of industrial production which was only confined to coconut production and logging activities via the introduciton of LSL operation on Kolombangara and Allardyce operatiosn on Virau Harbour and Shotlands respectively from 1950 to late 1970s. Evn though there wa an increase of these activities during 1980s it was understood that the resources still exceeds the applied technology. In the light of these developments the government uphols the Industrila Development Policy to encourage and promote commercial and industrial sectors of the Solomon Islands economy which is registered among the priorirties of the government. Although there were change of political governments, this policy statement was still high among their respective Policies, Strategies and Programmes of Action (pink book) during their reign. The Industrial Development Divsiion (IDD) was to coordinate economical activities envisaged at broadening the productive sector of the economy. To this end, the Ministry of Commerce, Employment and Tourism through IDD embarks on development programmes and schemes which will harmonsie the restructing in all relevant sectors to achieve and effective and balanced growth in the economy. This approach encompasses developments in appropriate sectors where domestic resource production and development will become tangible and a priority for development of small and medium scale industries initiated by indigenous Solomon Islanders. This measure will be encouraged along with private sector investment at large scale which may be initiated by foreign investors. To effectively implement and achieve the policy statement, certain principles, objectives and strategies were designed.
- 2.1 To accelerate industrial and technological development the level of investment in the following factors has to be monitored:
- (i) well established and functioning infrastructure
- (ii) financial services
- (iii) technology availability
- (iv) skilled hman resources
- (v) adequate information flow
- 2.2 Industrial development should contribute to the attainment of fundamental objectives and ideals such as:
- (I) alleviation of absolute and relative poverty
- (ii) increase in productive employment
- (iii) improvement in scientific and technological capability at national level.
- (iv) satisfaction of basic needs and rational use of natural and manmade resources within the framework of environmentally sound ans sustainable development.
- 2.3 An integrated approach to planning and implementation of industrial development in all indentified sectors in view of the close and continuing interconnections among industrial, economic and social aspects.
- 2.4 Adaption of higher value added products and conducive environment for these products be it in development of human resources or upgrading of technology. it is envisaged taht these friendly environments will cause positive impacts on the country’s macroeconomic and international trading system.
- 2.5 Where necesary the resources of regional and international institutions should be engaged in our endeavours for promotion and development of sectorial industries with special attention in industrial structuring and planning.
- 2.6 Apart from the regional and international organisations consultations should also be registered with in-country organisations such as Federation of SI Businesses, Employers Federation, NGOs and other commercial and insutrial associations.
- 2.7 Adequate attention and priority be accorded to promote the transfer of technologies and support for this transfer and the role of small and medium scale industries in the economy.
3. POLICY OBJECTIVES
- 3.1 To encourage and promote industrial development.
- 3.2 To develop greater economic independence.
- 3.3 To create increased employment opportunities.
- 3.4 To involve all indigenous Solomon Islanders in meaningful development in identified industrial development sectors be it in production, resource based development, manufacturing, processing, marketing and trade developments.
- 3.5 To increase participation of indigenous Solomon Islanders.
- 3.6 To improve technological development.
- 3.7 To decentralise industrial activities in the provinces through creation of creation of industrial estates.
- 3.8 To create diverse industrial base.
- 3.9 To have a trained (skilled) and literate workforce.
- 3.10 To improve infrastructure development for effective and efficient industrialisation programme.
- 3.11 To decentralise economic activities to provinces.
- 3.12 To ensure that funds are readily available to finance appropriate terms and conditions for the development of the private sector.
- 3.13 To ensure that a body of experienced entrepreneurs and trained managers in industrial development are intact with industrial development and ensure that there is growth in the number.
- 3.14 To encourage foreign investment in the manufacturing, processing and agrobased sectors.
- 3.15 To create incentives as and where appropriate for the indentified productive sectors.
- 3.16 To encourage import-substitution and exports and exports of locally produced goods.
- 3.17 To create import-export duty free zones as an incentives for the promotion of industralisation.
- 4.1 A stable macroeconomic policy to create to conducive economic environment.
- 4.2 Utilisation of existing trade agreements for export industry promotions in particular manufacturing of locally based resources.
- 4.3 Export schemes with incentives for sustainability of the said protected industries. All incentives should be in uniform and not tailored for specific companies or sectors.
- 4.4 Industries be protected for sound economical benefits.
- 4.5 Anti-dumping legislation(s) to be in places for protection of industries from damages or injuries to local industries.
- 4.6 Mobilisation of government incentives and private savings to productive sectors of the economy.
- 4.7 Strengthen credit guarantee schemes to broaden the range of potential investments PSIP is encouraged for prioritization of down-stream processing of primary commodities. Public Investment should encourage private sector activities which promotes law and order, community and social services, adequate infrastructure and improvement in development administration. Government should support indigenous Solomon Islanders be encouraged to develop these infrastructurual projects.
- 4.8 Taxation base be broadened to allow for competition including excise tax be to reduce dispartities on domestically manufactured goods and tarrifs on imports.
- 4.9 Specified sectors be reserved for indigenous Solomon Islanders to explore for investment and employment purposes.
- 4.10 Training on industrial aspects should receive priority in government plans.
- 4.11 Direct foreign investment in industrial related projects be encouraged between foreigners and Solomon Islanders.
- 4.12 Establish common understanding among appropriate authorities, departments or organisations who has common interest in developing the private sector.
- 4.13 Major resource developments such as mining, fishing, forestry be negotiated fairly with landowners.
- 4.14 Availability of technology via international agencies and organisations be encouraged.
- 4.15 Appropriate norms and standards for locally produced goods or services be in place.
- 4.16 Programmes to assist women in their business undertakings be encouraged.
5. SPECIFIC POLICY MEASURES
- 5.1 Industrial Estate and Infrastructural Development.
- 5.2 Promotion and Development of Small and Medium scale Industries (SMIs).
- 5.3 Industrial Skill Training and Management
- 5.4 Technology Development
- 5.5 Foreign Investors and Industries
- 5.6 Industry and Trade
6. PRIORITY DEVELOPMENTS FOR THE PROMOTION OF INDUSTRY
- 6.1 Agro-based Industries.
- 6.2 Palm Oil processing
- 6.3 Coconut processing
- 6.4 Cocoa processing
- 6.5 Food/fruit processing
- 6.6 Animal Feed
- 6.7 Livestock
- 6.8 Honey processing
- 6.9 Forest based Industries
- 6.10 Fisheries and Marine Resources based Industries
- 6.11 Textiles, Garments and Leather Industries
- 6.15 General - Opportunities are inexhaustible in the manufacturing and processing sector therefore it is encouraged that appropriate assessment must be done first to determine suitable investment. Any form of investment in the manufacturing and processing sector for import substitution and exports will be highly supported by the government.
7. CREDIT GUARANTEE SCHEME
- (a) Small Enterprises Development Programme (Manufacturing Sector)
- (b) CBSI/DBSI Programme
8. DEVELOPMENT PROJECTS
- (i) APPROVED PROJECT
- (a) Boat Building development - LangaLanga Boat Building Project
- (b) Provincial Industrial Centre
- (c) Coffee Processing Facility
- (ii) PENDING PROJECTS
- (a) Bina Harbour and Industrial Estate
- (b) Noro Industrial Estates
- (c) Provincial Industrial Estates
- (d) Henderson Industrial Estate
The Division is administering the Protected Status Industries Act, Cap. 72 of the Laws of the Solomon Islands