BY SAMIE WAIKORI
The Central Bank of Solomon Islands (CBSI) has projected that the Minerals and Resources Bill 2025 will have significant impact on the macroeconomic of the country.
Speaking before the Bills & Legislative Committee (BLC) on the Minerals and Resources Bill 2025 this week, Advisor Policy at CBSI Michael Fifiolo said the bill is important in terms of potentials it has on export proceeds.
Fifiolo said the bill will also boost balance of payment position of the country, trade position even the strength of local exchange rate.
“We need a lot of export proceeds back to the country, build-up of external reserves and fiscal revenues.
“The cap that export proceeds may not be repatriated back because of some factors have been understated by the industry, the country stands to lose because of deficiencies in our processes or inadequate capacity,” he said.
He stated that CBSI also acknowledges the need to look at its own exchange control processes by collaborating with responsible and appropriate government stakeholders.
“This is to ensure potential benefits which will be derived from mining industry are fully realized,” Fifiolo said.
On the same note, he said his team has looked through the bill and did not seem to see any mentioned of a Sovereign Well Fund except a mention of a Mineral Resources Special Fund.
“Given the fact that mineral is a non-renewable resource, its presence and opportunities for us to look outside of the box and come up with a facility that could generate inter-generational benefits is crucial.
“This is to ensure that income that flows from this resource can benefit our future generations.
“I’m not sure whether it can be accommodated in the bill or mentioned somewhere in the bill,” Fifiolo noted.
He said CBSI is not only looking at contributions from the mineral resources, but also from other resources the country has.
Fifiolo said nothing is too late and he hopes the idea to create facility that will benefit future generations will be looked into.
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