BY SHOREYANN RAGOSO
The Development Bank of Solomon Islands (DBSI) has launched two new initiatives aimed at improving access to finance for rural communities, entrepreneurs, and small businesses. The initiatives were launched in partnership with New Zealand, Australia, the European Union, the United Nations Capital Development Fund (UNCDF), and other UN agencies in Solomon Islands. The two initiatives are the Blue Economy Financing Facility and the Digital Financial Services.
The Launch program was attended by government officials, development partners, private-sector representatives and civil society organisations.
Giving the Keynote address is the Secretary to the Prime Minister Dr Melchior Mataki, has described the new initiatives involving the Development Bank of Solomon Islands (DBSI) as an important milestone for national development, financial inclusion and climate resilience.
He said the occasion demonstrated what can be achieved when government, the bank, private businesses, civil society and international partners work towards shared national goals.
Dr Mataki said expanding access to finance, promoting digital innovation, supporting private-sector growth and building climate resilience are central priorities of the Government.
He noted that digital financial services have grown significantly in Solomon Islands over the past five years, creating new opportunities for people and businesses in areas where traditional banking services are difficult to reach.
However, he stressed that access to finance alone is not enough.
“Access is important, but finance must work for our economy and our communities,” he said. “It must help businesses grow, create jobs and prepare the country for the future.”
He also highlighted the importance of strengthening DBSI as a national institution, saying targeted financing and strong partnerships can help the bank unlock opportunities for local businesses, entrepreneurs and key sectors of the economy.
Dr Mataki welcomed discussions on the Blue Finance Facility, which is expected to support livelihoods, food security and local economic development.
He said the facility will benefit not only a section of the population but the whole country, particularly communities that depend on marine and land resources.
The facility is expected to support small and medium enterprises in areas including fisheries, aquaculture, agriculture, ecotourism and waste management. Dr Mataki said this would strengthen local businesses while helping protect the natural resources communities rely on.
“Once it rolls out, the facility will support local businesses while protecting the resources that our people depend on,” he said.
Dr Mataki said digital transformation is especially important for Solomon Islands because of its scattered geography and the difficulty of delivering services through physical infrastructure alone.
He said the Government recognises this priority and has established a dedicated digital transformation unit within the Office of the Prime Minister.
He added that while digital services can reach more communities, proper safeguards and due diligence are needed to protect users and prevent negative risks.
Partnerships essential
Dr Mataki said government cannot deliver development at the speed and scale required on its own.
“Government alone cannot deliver change at the rate and scale that is needed,” he said. “It needs partnerships.”
CEO for DBSI Mr Aisake Radu says the initiatives build on DBSI’s recently launched core banking system, which the bank described as the foundation of its digital transformation.
The new services will allow people in remote areas to send and receive money and carry out banking from home, without travelling to Honiara.
“They can do it through the digital platforms that are now available for which DBSI is going into partnership with them,” he said.
Mr Radu said the move is expected to make banking more efficient and affordable, particularly by reducing transport costs for people living outside the capital.
The bank also announced plans to expand into blue finance. It said it wants to support small and medium-sized enterprises whose activities have a positive impact on coral reefs and the marine environment.
To help grassroots borrowers access funding, DBSI has received a credit guarantee from the United Nations Capital Development Fund (UNCDF). The guarantee is intended to provide security for farmers, community members, and local contractors who often lack the equity or collateral normally required by banks.
DBSI acknowledged that lending in these sectors carries risks, but said it will begin with pilot projects and work step by step with partners already operating in the market.
Mr Radu described the launch as a major milestone and said more work remains ahead as it expands digital banking and blue-economy financing across Solomon Islands.
