Australia-funded infrastructure delivers strong local benefits, returning $2.60 for every dollar invested
A new report shows that every dollar Australia invests in locally delivered infrastructure returns $2.60 to the Solomon Islands economy.
In Buala, over 80 per cent of the SBD 25.6 million invested in the Australia-funded new market, or around SBD 20 million, was retained within Solomon Islands, with about half flowing directly into the local Buala economy.
Delivered by a local construction company, the new Buala market supported 92 Solomon Islanders directly and indirectly, with workers spending their wages locally on food, transport, housing and school fees.
Australian High Commissioner, Jeff Roach, said this clearly shows the impact of prioritising local companies and suppliers.
“When more than SBD 10 million is injected into a local economy like Buala, the impact is immediate and far-reaching,” Mr Roach said.
“Local companies hire local workers, and those wages stay close to home, flowing through markets, shops and small businesses.
“It’s a powerful ripple effect that supports families and drives growth across communities and the Solomon Islands economy.”
The study also found that infrastructure design plays a key role in determining how much investment is retained in Solomon Islands during construction.
Projects designed to align with local capabilities, materials and supply chains enable greater participation by local businesses, resulting in more money staying in the economy and delivering stronger local economic benefits.
Similar impacts are now being seen in Seghe, where Australia is supporting the construction of a new market delivered by local contractor Hatanga.
Allan Sumbo, owner of Charoa Trade Store in Seghe, said the project is already delivering benefits for local businesses.
“Developments like this bring more people through our doors,” Mr Sumbo said.
“Workers and their families spend locally, which helps drive our economy.”
With the Buala Market now complete and handed over to the community, workers say the benefits of construction are lasting within the community.
Tropic Group Builders employee Marlon Loranatha said the project strengthened both his skills and his household’s financial stability.
“I, like many others, spent my wages in local shops, so the money stayed in the provincial economy,” Mr Loranatha said.
“The work helped support my family and others in the community.”
Over the past five years, the majority of Australia’s infrastructure investments in Solomon Islands have been delivered by a skilled and diverse workforce of Solomon Islander men, women and people with disabilities.
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