Solomon Islands: Emphasis on the 2020 budget and the export potential for quality agricultural products.
Last Monday, speaking in Honiara, the Minister of Finance and Treasury, Hon. Harry Kuma, introduced the 2020 budget details.
Minister Kuma called for wide-ranging support from development partners, the private sector, NGOs and the people to support the DCGA in its endeveaours.
Minister Kuma cautioned about the major challenges facing the nation and went on to say how it was necessary for the country to do away from the business as usual approach.
As quoted in the Solomon Star newspaper this is what was recorded about the 2020 budget.
Quote.
“The major challenges facing the nation remains eminent despite our progress as an independent nation, which includes; poor economic growth, poor governance at all levels and political instability,” said Minister Kuma.
“It means moving away from the dependency syndrome or poverty mentality and be proactive and productive, moving away from wanting more resources and doing more with less and moving away from dependency on logging and broaden investment in productive and resources sectors.”
“Maintaining the status quo will mean failure, this is why the budget 2020 is a critical budget for the nation,” said Minister Kuma.
“The stern warning came about as the domestic economy now at the cross-road of economic challenges, with economic growth in 2020 is expected to grow below 2.5 per cent.
“The Permanent Secretary of the Finance and Treasury, Mckinnie Dentana, also confirmed the status of the domestic economy.
“We cannot sit and watch our economy continue sliding backward while the population is growing at the same rate, this will lead this country and our people into catastrophe and poverty,” the secretary strongly emphasized.
“He further challenged senior policy officers within the government to think strategically to support the government meeting its objectives.
“In terms of the 2020 fiscal framework it has been revealed that the government has set a balance budget of $3.675 billion dollars.
“Minister Kuma revealed that in 2020 key priority projects that will be progressed include; the Tina River Hydro Development project (TRHDP), the Submarine Cable project, Bina Harbour seaport and fisheries projects, Munda international airport project, tar sealing of Seghe, Taro and other key domestic airports and Henderson international airport upgrade project, the Honiara and Auki road projects which are critical to stimulate growth at all levels.
“Minister Kuma also revealed that agriculture will be one of the key focuses in 2020.
“In agriculture, the government will ensure to facilitate and support the development of commercial agriculture and prioritized key targeted investments including noni, cocoa, coconut and cassava.
“Large scale commercial agriculture includes, work with GPPOL for Guadalcanal Palm Oil expansion project, RIPEL and CEMA roles in the industry will be enhanced,” he said.
“On the other hand, as part of the revenue strategy, the Minister also revealed key non-tax revenue measures which include, the review of fees and charges and land rents, implementation of sugar, sweat beverage policy, enforcement of a 15 % gaming tax, benchmarking of Bauxite price to international standard, environmental levy on plastics, containers and electronic equipment and the review of fisheries licensing regime on locally flagged fishing vessels.
“Preparation for the 2020 budget has now commenced, with the aim to present the budget to Parliament in early November.”
Source: Solomon Star News.
Apart from the infrastructure and upgrade proposals mention in the pre-budget launch, I was very interested to learn about the plan to facilitate and support the development of commercial agriculture with an emphasis on key targeted investments such as, noni fruit, cocoa, coconut and cassava.
As I wrote recently, research needs to be undertaken to identify commodity markets for the export of the key agricultural products ( such as noni-fruit, cocoa, coconut and cassava), but I would add kava, banana chips, pineapples, pineapple juice and organically grown leafy vegetables, including salad crops.
I successfully cultivate pineapples in Vanuatu several years ago and I cannot see why the climate and soil quality is any different in the Solomon Islands to make a commercial success of growing and exporting pineapples.
Likewise I believe there is a market for kava in China and the USA; provided the crops meet quality and regulatory import requirements.
Kava is used in herbal medicine to treat anxiety and insomnia. The active ingredients are called kavalactones and it is commonly prescribed by herbalists and alternative medicine practitioners for all types of anxiety disorders. Kava is also a traditional beverage and can be considered to be food.
China, with its large consumer base, should be a market of interest for kava imports from the Solomon Islands. With a focus on consumption led growth there are opportunities for kava in both the food and pharmaceutical industry in China.
I very much hope that the Solomon Islands government will adhere to the aims already outlined to ensure the country moves to designing policies with a goal of increasing exports of high value, predominantly agricultural based products and thereby contributing to increased economic growth and much improved rural livelihoods.
Yours sincerely
Frank Short
