Honiara — The Solomon Islands Chamber of Commerce and Industry (SICCI) Manufacturing Industry Working Group last Friday during a Business After Five dialogued to identify critical bottlenecks constraining manufacturing and also outlined policy priorities required for sustainable industrial growth.
SICCI Manufacturing Industry Working Group Chair, Ms. Qila Tuhanuku, KOSI General Manager Mr., Steward Mane, SICCI CEO Mr., James Dolarii and SICCI SME Working Group Chair, Mr. James Kana highlighted that the manufacturing sector is the engine room for a country’s economy, as it drives supply chains, services and employment beyond the factory floor.
The panellists noted that manufacturing facilities naturally generate demand for logistics, engineering, skilled labour, technical expertise, farmers, shipping agents and quality-control professionals, creating broad-based economic activity.
However, key constraints identified by the Working Group include high electricity costs, infrastructure and logistics gaps, skills shortages, import dependency with limited local value addition, and scale disparities has greaty affected both large and small manufacturers in Solomon Islands.
With power expenses consuming up to 10% of operating costs; one business reported incurring SBD 300,000 in electricity charges during a three-week production halt in the 2024 election period. Members called for electricity-sector reform and tax review to address fuel and non-fuel tax components contributing to high power bills.
While road improvements have been made, shipping, communications and provincial banking services remain uneven—hindering supply chains and market access for rural producers; the late arrival (2026) of the first wharf in Makira, a major cocoa-producing province, was cited as an example of persistent logistical barriers.
The sector struggles to source locally trained technicians and skilled workers, often importing expertise at significant cost, prompting calls for strengthened STEM education and vocational training aligned to manufacturing needs.
Large manufacturers frequently import key inputs, reducing opportunities for domestic farmers and processors; the country’s dispersed geography further increases the cost and complexity of engaging rural producers across provinces. Participants also noted that both large and small manufacturers face similar structural challenges—though at different scales—constraining SME growth and affecting the wider supply chain.
Industry representatives stressed collaboration across the ecosystem as essential for sector growth.
“We are in a culture that we can try to compete, but collaboration is much better than competing,” Kokonut Pasifik General Manager Steward Mane said.
SICCI Manufacturing Industry Working Group Chair, Ms Qila Tuhanuku highlighted the need for long-term investment: “When we talk about farming, your outlook has to be 10 years. We’re talking about the next 50 years of the country… If you want lasting economies, lasting revenue over time, you have to repeat the performance consistently.”
The SICCI Manufacturing Working Group advocates a package of measures to support industrial development, including unbundling the current Electricity Act to open the energy market and enable affordable renewable energy options; tax reform targeting electricity-related taxes and incentives for startups and new equipment, including land-use exemptions; targeted infrastructure investment in wharves, shipping logistics, communications and provincial banking services; expanded STEM and vocational training programs aligned with industry demand; and improved access to finance for SMEs alongside incentives to increase local input sourcing and value addition.
The Working Group will continue engagement with government, development partners and private-sector stakeholders to advance these priorities and build a more resilient, inclusive manufacturing ecosystem.