BY JOHN HOUANIHAU

Every dollar spent, be it private or public, must be spent where it produces the maximum impact, said Governor of the Central Bank of Solomon Islands (CBSI), Dr Luke Forau.

Launching the 2024 CBSI Annual Report on Monday at the Honiara Hotel this week, Mr Forau said that investment should prioritise areas that unlock productivity growth, nurture innovation, enhance livelihoods, and build long-term resilience.

Forau said that this includes building rural-urban infrastructure to connect farmers to markets, expanding access to affordable finance and introducing incentives to small businesses and local farmers.

He said that the Ministry of Agriculture and associate agencies, such as CEMA, should partner effectively with farmers, the private sector, and development partners, and programmes such as PHARMA+ should be adequately resourced.

Amongst the things he mentioned is investing in technology and digital infrastructure to boost efficiency and productivity, and improve tax collection.

“This is where we can make a real difference in people’s everyday lives. Moreover, our legislation must be strengthened to ensure a conducive business environment to flourish,” he said.

He further highlighted that the CBSI implemented the Payment System called the Solomon Automatic Transfer System (SOLATS) last year, which went live in April 2024.

He stressed that this milestone lays the foundation towards an inclusive payment infrastructure, as well as embracing digitalisation in the country’s economy.

“Going forward, I would like to see the interoperability of the payments systems with other digital financial services such as the M-Selen, Iumi-Cash, Ezipei, Account plan, Aelan digital to ensure financial services are extended to the last mile, enabling the ordinary person (rural people) to make payments fast, safely, efficiently and cost-effectively.

“Imagine: Teachers and nurses getting paid or accessing their salaries on time through mobile services such as M-Selen, rather than travelling long distances to Honiara or provincial centres to withdraw cash. Farmers are accessing information on farming techniques, prices and payments through their phones.

“And a faster, fairer tax systems that work for everyone. When we expand access to digital financial services, we don’t just make things easier, we bring more people into the formal economy, thereby expanding and deepening financial inclusion for all,” said the CBSI Governor.