Solomon Islands is an archipelagic state situated in the south-west Pacific Ocean, approximately 2,000 kilometres to the northeast of Australia. It extends over nearly 1000 islands comprising nine main island groups.
Solomon Islands is one of the Pacific's most challenging locations to achieve sustained economic outcomes, with high costs of service delivery due to a small and geographically dispersed population. Major constraints to growth and private sector investments include poor infrastructure and connectivity, under-developed labour skills, high utility costs, land tenure issues, and limited public administration and financial management capacity. Solomon Islands is one of the few remaining Pacific Island countries still recovering from the economic impacts of COVID-19. The recovery and diversification of the economy is a key priority of the Solomon Islands Government, particularly as the logging industry – the economy's main driver over the last few decades – is in significant decline.
Commercial fishing and processing are an identified source of growth, alongside the expansion of commercial agricultural activities. Other identified sources of growth sectors include tourism and mining. At the household level, remittance transfers and agricultural skills gained from labour mobility, particularly the Pacific Australia Labour Mobility PALM scheme, support local livelihoods and incomes.
Australia is Solomon Islands' main development partner, providing an estimated AUD171.2 million of Official Development Assistance (ODA) in 2024-25. Australian development cooperation focuses on priority sectors including infrastructure, jobs and skills, private sector development, health, education, governance and elections, access to justice and women’s leadership. Australia is also Solomon Islands' number one economic partner. Two-way trade totalled AUD391.6 million in 2023, as Solomon Islands' exports to Australia increased over 60 per cent (from the previous year) to AUD224 million. Australia exported just over AUD165 million in goods and services to Solomon Islands over the same period. Major exports from Solomon Islands to Australia include gold, timber and copra. In addition to support for the expansion of the Royal Solomon Islands Police Force, Australia and Solomon Islands continue to work together through longstanding security cooperation programs.
The AIFFP in Solomon Islands
Australia’s investment in Solomon Islands, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), includes:
Infrastructure sectors: maritime and transport; grid-scale energy; off-grid renewable energy; and telecommunications and digital
Partners (A-Z): Archipelago Energy; Atoifi Adventist Hospital; Goldie College; Good Samaritan Hospital; Mai Maasina Green Belt; Pelena; Save the Children Solomon Islands; Sir Dudley Tuti College; Solomon Islands Electricity Authority; Solomon Islands Government; Solomon Islands Shipyard Limited; Solomon Islands Submarine Cable Company Limited; and Superfly Limited
Projects (A-Z):
Connecting Solomon Islands’ capital to electricity via transmission line
Energizing Solomon Islands’ Malaita community with affordable solar power
Generating energy security for essential healthcare in Solomon Islands
Powering Solomon Islands’ Vavanga community with affordable renewable energy
Rehabilitating Solomon Islands’ Tulagi Shipyard
Securing access to renewable energy on Solomon Islands’ Savo Island
Solar-powering healthcare and education in Solomon Islands’ Malaita, Western and Isabel communities
Strengthening Solomon Islands’ digital connectivity
Australian High Commission, Honiara
Cnr Hibiscus Ave & Mud Alley
Honiara
Phone: +677 21 561
Email: AustHoniara.enquiries@dfat.gov.au
For more information on Australia and Solomon Islands’ diplomatic relations, see the DFAT website.