The Government of Solomon Islands places great emphasis on the encouragement of foreign investment in the private sector as a basis for growth and development. The net economic benefit of the proposed investment is the dominant consideration in accessing both the acceptability of an investment and the degree of assistance it will be accorded. While the Foreign Investment Act 2005 requires that the assessment of foreign investments rest with the Registrar of Foreign Investment Division, certain guiding criteria exist. The most important is the impact of investment on:

1. Widening the productive base

2. strengthening the technical and marketing expertise of the private sector

3. generating either net export income or import cost saving

4. providing employment and training, especially in regional areas Another key element in the assessment is that investment activity (ies) being applied for by the foreign investor is/are not listed under the reserved or prohibited list.

Principle

Solomon Islands, like any other country in the world, has certain guiding investment principles embedded in its policy. This policy outline that the national government of Solomon Islands

1. Recognizes that foreign investment is an important instrument to advance the country’s economic development through the employment of appropriate technology, capital, production methods, management and expertise associate directly with the working of Foreign Investors.

2. By recognizing this aspect, the national government is committed to creating an enabling and conducive investment environment

• that is free from political and excessive bureaucratic influence

• that Investment impeding legislatives are reviewed to reflect the actual need of investors while at the same time improve the working mechanism of the private sector

• that Investment procedures are made simpler as to avoid unnecessary delays in the registration and approval process

• that Foreign Investors are protected under the laws of Solomon Islands and are properly assisted and fairly treated while implementing and operating their business.

• that Investors are free to invest in any investment activities that they are allowed to carry out with ease or mobilize their resources to areas they think is viable for their investment.

• that investors are encouraged to seek fiscal and non fiscal incentives to induce the growth of their investment projects

3. In recognizing these outcomes, the national government is also cognizant to that fact that institutional measures are not enough to create a better and working private sector. Therefore a well established market driven private sector is needed. This lead to oblige the national government to device and implement national development policy

• that support the growth of the private sector

• that is cost effective and efficient

• that meet the demand and needs of both local and international investors.

• that encourage efficient delivery of goods and services whether locally or internationally

• that promote development in every part of the Solomon Islands The national investment policy set the basis at which investment objectives are drawn. The core of which, is to maximize benefits, by all stakeholders including the welfare of ordinary citizens of Solomon Islands.