Solomon Islands and U.S. sign landmark investment pact to boost jobs, infrastructure, energy, and ICT growth
HONIARA, Solomon Islands – U.S. Chargé d’Affaires Dan O’Hara and Solomon Islands Minister for Foreign Affairs and External Trade Honorable Rick Houenipwela signed the Solomon Islands-United States Investment Incentive Agreement on May 23, 2026, in Honiara. This landmark agreement opens the door to new private sector-led transactions that can help transform Solomon Islands’ economy, improve the lives of its people, and strengthen U.S. economic engagement in the Pacific.
Chargé d’Affaires Dan O’Hara said, “This agreement is about creating real opportunities for Solomon Islanders and Americans—the potential for more jobs, improved infrastructure, greater connectivity, and sustainable economic growth. In Solomon Islands, there are significant needs and opportunities in infrastructure, information and communications technology connectivity, and energy. This agreement provides the framework to bring U.S. private sector expertise and capital to help address these priorities and create opportunities for American companies. We thank Prime Minister Honorable Matthew Wale for his leadership in finalizing this agreement to make the people of our countries more prosperous.”
What This Means for Solomon Islands
The investment incentive agreement establishes a framework through which the U.S. International Development Finance Corporation (DFC), the international investment arm of the United States, can mobilize private capital to support Solomon Islands’ economic development. This could unlock opportunities across critical sectors including energy projects to expand reliable power access, hospitals, ICT infrastructure to connect communities, ports and transportation infrastructure, and access to capital for local entrepreneurs to create jobs and drive economic growth.
How DFC Works
Established in 2019, DFC mobilizes private capital to support investments that advance U.S. foreign policy, strengthen national security, and drive meaningful economic development.
An Investment Incentive Agreement provides the legal, regulatory, and tax frameworks that enable DFC to operate in a partner country.
Under this agreement, DFC can offer debt, insurance, equity, platforms and funds, guaranties, and project development in Solomon Islands to help catalyze private sector investment in priority sectors.
Next Steps
With this agreement in place, U.S. and Solomon Islands officials will work together to identify priority projects and connect potential U.S. investors with opportunities in Solomon Islands. DFC can be instrumental in helping Solomon Islands achieve its economic objectives through transparent financing, guaranties, feasibility studies for potential projects, and other activities.
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