The new investment Act appears to be the catalyst in the recent surge of planned foreign investment in the Solomon Islands.
Latest figures have shown that planned foreign investment from new investors totaled $1,640 million over the first 9 months of the Act's operation. This represents an increased investment rate of 7 times that of the old Act.The Minister for Commerce, Industries and Employment, the Hon Peter Shanel, said that the latest figures show that the new Act is working as intended.
"The increased planned investment is likely to be creating thousands of new jobs throughout Solomon Islands and contributing to increased Government tax revenue.
Locally owned businesses will also be feeling the benefits of the increased economic activity with higher demand for the goods and services they produce," said Shanel.
"Solomon Islands followed Fiji's lead and adopted a pro business Foreign Investment Act in June last year and we are very happy with the results so far," said the Minister. "Other countries in the region should look to Solomon Islands' example if they too want to boost their investment and economic growth".
The Solomon Islands economy grew at 6.1 percent in 2006 and is forecast to grow at 6 percent in 2007, one of the highest rates in the region.