HONIARA, Solomon Islands – The Solomon Islands Chamber of Commerce and Industry (SICCI) has welcomed the Government’s renewal of the Micro, Small and Medium Enterprise (MSME) Loan Guarantee Scheme, describing it as a critical step towards addressing one of the most persistent barriers facing local businesses.
The revised Memorandum of Understanding (MOU), signed on Wednesday between the Ministry of Commerce, Industry, Labour and Immigration (MCILI), the Ministry of Finance and Treasury, and the Central Bank of Solomon Islands (CBSI), updates the existing arrangement to improve administration of the scheme that helps SMEs access bank financing.
SICCI CEO James Dolarii said access to finance remains a significant challenge for Solomon Islands businesses, particularly for locally-owned enterprises that often lack the collateral required by commercial banks.
“We know that accessing finance is one of the biggest challenges for businesses, which is why this scheme is so important,” Mr Dolarii said, echoing comments made by MCILI Permanent Secretary Riley Mesepitu at the signing ceremony.
The scheme is designed for viable SMEs with sound business proposals but insufficient collateral to secure loans from commercial banks. Participating banks assess applications before recommending eligible businesses for support under the guarantee scheme.
During the National Business Forum 2025, access to finance was identified as a significant and persistent challenge facing local businesses, particularly for SMEs and locally-owned enterprises.
This theme aligns with SICCI’s long-standing advocacy priority, where the Chamber has consistently emphasized the need for continued government-private sector collaboration to address systemic barriers.
The Forum’s outcomes and recommendations fed into a Communiqué that has informed continued policy dialogue between the Government and the private sector.
SICCI reaffirmed its commitment to working with Government through the Government-Private Sector Advisory Group to ensure these recommendations are translated into practical actions, including improving access to finance and expanding the private sector base.
SICCI noted with approval CBSI Governor Dr Luke Forau’s commitment to processing applications quickly. Dr Forau stated that the Central Bank aims to ensure turnaround times of one to two days, which would significantly improve business access to financing.
“Efficient processing is essential for SMEs, many of whom operate on tight timelines and cannot afford prolonged delays in accessing capital,” Mr Dolarii said. “We encourage all participating banks to work closely with the Central Bank to ensure the scheme delivers on its promise.”
The scheme is funded by the Solomon Islands Government under the Small and Medium Enterprise Policy to assist Solomon Islanders engaged in business. The Ministry of Commerce administers the policy, the Ministry of Finance manages the fund, while CBSI administers the guarantee scheme through participating banks and financial institutions.
Mr Dolarii noted that a consolidated report is being prepared to assess how the initiative has supported businesses since its establishment. SICCI looks forward to reviewing this data and working with Government to further refine the scheme to maximise its impact.
“Improving access to finance is fundamental to creating jobs, driving economic diversification, and building a more prosperous Solomon Islands,” Mr Dolarii said. “SICCI remains committed to working with all stakeholders to ensure our SMEs can access the capital they need to grow and succeed.”