BY CHRIS ALEX
THE World Bank’s recent Country Economic Memorandum (CEM) suggests that modernizing the Solomon Islands’ agricultural sector could lead to a significant economic boost. The report emphasizes that combining modern agricultural practices with measures to raise aspirations among farmers could result in a 4.3% growth in GDP.
Currently, smallholder farmers rely on basic hand tools, which is demotivating and makes farm work labour-intensive. The CEM calls for context-specific modernization, including the introduction of modern production technologies and low-cost interventions, to increase productivity and motivation within the sector.
The report highlights that the private sector should play a leading role in this modernization effort, with appropriate public sector support.
This holistic approach to agricultural development includes focusing on increasing youth participation, raising aspirations, and building the necessary skills to boost productivity.
Initiatives such as peer-to-peer learning, awareness campaigns, and ICT tools are recommended to help stimulate youth engagement and raise awareness about the opportunities available in agriculture.
With digital connectivity expected to expand, the report notes the potential of information and communication technology (ICT) in addressing financial constraints and providing market information, share prices, and weather updates. Such measures could improve market efficiency, benefiting both farmers and the broader economy.
However, transforming the agricultural sector will require both public and private investment. Government spending on agriculture has declined from US$6.7 million in 2017 to an average of US$2 million between 2018 and 2022, while the estimated budget to implement the Agriculture Sector Growth and Investment Plan 2018-2030 is US$322 million.
Private investment is crucial to closing this gap, but the report warns that challenges such as high transport costs, expensive utilities, access to finance, and land issues must be addressed to create a more business-friendly environment for private sector development.
The World Bank’s findings provide a clear roadmap for revitalizing agriculture in the Solomon Islands, offering a potential pathway to long-term economic growth if key reforms and investments are realized.