Solomon Islands Urged to Turn Mining Growth into More Jobs

The World Bank expects Solomon Islands' economy to grow by 2.8 per cent in 2026, supported mainly by mining and public investment.

Solomon Islands has a chance to turn its recovering economy into stronger employment, higher household incomes and greater protection against future shocks, but doing so will require the country to look beyond its growing dependence on mining, according to a new World Bank Group assessment. The first Solomon Islands Economic Update: Harnessing the New Roots of Growth says better management of government finances and greater investment in agriculture, fisheries and other productive industries could spread the benefits of growth more widely.

The economy has recovered after contracting for three consecutive years between 2020 and 2022, yet much of the rebound has come from mining, remittances and government infrastructure spending. These activities have supported economic growth without creating enough jobs or delivering equally strong benefits across communities, leaving the country exposed if commodity markets weaken or another major external shock occurs.

Mining drives growth but creates relatively few jobs

The World Bank expects Solomon Islands' economy to grow by 2.8 per cent in 2026, supported mainly by mining and public investment. Mining has expanded rapidly, accounting for more than half of the country's exports in 2025 compared with only 4 per cent in 2019.

That transformation creates an important source of government revenue and export earnings, but mining is capital-intensive and does not employ large numbers of people compared with some other industries. The report warns that without effective governance and careful reinvestment of resource revenues, the economic gains could remain concentrated rather than flowing into jobs, services and opportunities for communities.

Bernard Harborne, World Bank Group Resident Representative for Solomon Islands and Vanuatu, described the country as being at an important turning point. Managing resource income well, he said, could allow the Government to strengthen public finances while investing in businesses and productive sectors that improve living standards.

The employment challenge is particularly significant for younger Solomon Islanders. Around 9,000 young people enter the labour force every year, while the economy creates only about 2,100 formal jobs, leaving a large gap between the number of people seeking work and available formal employment.

Weak financial buffers increase exposure to shocks

Government finances are another source of concern. Cash reserves currently cover less than one month of expenditure, while public debt reached 30 per cent of gross domestic product in 2025. Declining grant funding, higher fuel costs and climate-related disasters are placing additional pressure on already limited financial resources.

Cyclone Maila has underlined how quickly unexpected events can create new spending needs. The World Bank argues that rebuilding financial buffers would give the Government more room to respond when disasters or economic disruptions occur without placing excessive pressure on essential services or increasing borrowing.

Recommended measures include improving mining governance and revenue collection, carrying out planned tax reforms and making sure public resources are directed towards investments capable of supporting longer-term growth. Expanding access to finance for businesses is also identified as an important step, particularly for local firms that may have opportunities to grow but struggle to secure the capital required for equipment, staff or expansion.

Agriculture and fisheries could broaden economic opportunities

The report sees considerable potential outside mining, including higher-value agriculture, fisheries, tourism, renewable energy and wider private-sector development. These sectors could create employment across more parts of the country while reducing dependence on a small number of economic activities.

Agriculture and fisheries are especially relevant because they can connect growth more directly with rural and coastal communities. Better infrastructure, improved financing and stronger links to higher-value markets could allow producers to increase incomes while creating businesses around processing, transport and other parts of the supply chain.

Tourism and renewable energy provide additional possibilities, though attracting investment will require a predictable business environment and infrastructure that allows companies to operate efficiently.

As Solomon Islands moves towards the 50th anniversary of independence, the World Bank sees the current recovery as an opportunity to reshape the country's economic foundations. Mining can provide valuable revenue, but the larger challenge is turning that wealth into productive investments that create employment for a rapidly growing workforce.

If resource revenues are managed carefully and more investment reaches sectors capable of employing local people, the country's current recovery could become something broader: an economy with more businesses, stronger public finances and better opportunities for the next generation of Solomon Islanders.