An IMGW News Report
Prime Minister Jeremiah Manele announced in Parliament on Monday that the draft ‘Citizenship by Investment’ Bill has been finalised by the Attorney General’s chambers and is now undergoing peer review before being presented to Cabinet. This initiative is a priority within the government’s 100-day program for National Unity and Transformation.
PM Manele highlighted the bill as a key element of the government’s transformative policies, aimed at creating a regulatory framework to facilitate the Citizenship by Investment program. He explained that the program is designed to attract foreign investment, which will supplement government revenue streams. It will offer Solomon Islands Ordinary Passports to eligible individuals and their families, provided they meet stringent due diligence requirements to ensure transparency and accountability.
The Solomon Islands is projected to experience an average GDP growth rate of 2.9% from 2024 to 2026. However, this growth outlook is moderated by risks such as state fragility, climate change, and subdued global economic conditions. The expected average fiscal deficit during this period is 3.7% of GDP, with inflation rates forecasted at 3.2% in 2024 and 2.7% in 2025. Per capita GDP growth is anticipated to be minimal, at 0.2% in 2024 and 0.3% in 2025. The economy, heavily reliant on agriculture, forestry, and fisheries—which together contribute approximately 40% of GDP and employ the majority of the population—is vulnerable to external shocks and climate-related threats.
The incoming government faces significant fiscal challenges, having dealt with five consecutive years of budget deficits exacerbated by crises such as the pandemic, civil unrest, and expenses from the 2023 Pacific Games. With cash reserves significantly depleted and some expenses from the Games still unpaid, there is an urgent need to restore fiscal stability. Implementing fiscal anchors, such as limits on the budget deficit and wage expenditures, may help achieve fiscal sustainability, though balancing these with investment in essential services like health and education remains a challenge. The 2024 budget reflects expenditure restraint but shows weak revenue trends, which could threaten crucial development initiatives necessary for long-term growth and stability in the Solomon Islands.
PM Manele also emphasised that the government is conducting a thorough analysis to mitigate potential risks and ensure the program’s benefits while maintaining the credibility of the Solomon Islands Ordinary Passport. He assured that consultations with Solomon Islanders will take place before the finalisation and tabling of the Bill in Parliament.
Solomon Islands, one of the least affluent nations in the Pacific, faces challenges in delivering essential services and accomplishing development goals because of its small and widely scattered population.
