Solomon Islands: Rapid e-trade readiness assessment

Summary

The Solomon Islands’ economy is undergoing transformation driven by public sector reforms, financial stability, and efforts to enhance education and health systems. Significant progress has been made in financial inclusion and diversifying productive sectors such as tourism, fisheries, and agriculture. The liberalization of telecommunications in 2009 led to high mobile telephony penetration, connecting remote areas to the government and banking services. E-commerce is seen as a key driver for growth, addressing challenges posed by the country’s geography and promoting private sector activity and trade.

Despite limited current online commercial activity, initiatives like the Better Than Cash Alliance and e-government projects are fostering digital payments and consumer confidence. The arrival of a submarine cable in 2018 is expected to boost internet speeds and support website development. Social media is increasingly used for buyer-seller interactions, particularly in fisheries and tourism.

Challenges include the legacy of conflict, reliance on logging and mining, nascent ICT penetration, and costly, unreliable satellite internet. However, the potential for e-commerce to spur economic growth, develop national markets, and improve connectivity is significant, with government-led initiatives expected to lead the initial growth phase. The national payment systems bill will further support this by establishing the legal basis for electronic payments and driving fintech solutions.