Solomon Islands, an archipelago of nearly 1,000 islands in the Pacific, is a strategic U.S. partner located near key shipping lanes. Its economy remains heavily dependent on logging, which accounts for more than half of national exports—with over 90 percent of timber exports going to one trading partner. This reliance on a single sector and trading partner increases economic vulnerability and limits long-term growth.
To reduce this dependency and strengthen regional stability, MCC is partnering with the Government of Solomon Islands on a $20 million grant agreement to diversify the economy through targeted investments in natural resource management and tourism. Tourism represents a largely untapped opportunity for job creation and foreign investment, but growth has been constrained by land access challenges and limited government capacity to attract and support investors.
By strengthening tourism and improving management of critical resources, the program helps build a more resilient Solomon Islands economy while maintaining a stable environment for commerce and transportation. As the economy grows, demand for goods and services will rise—expanding opportunities for American companies.
Financials
Financials as of June 30, 2025
Program Budget
Milestones
-
Signed:
January 22, 2022 -
Entry Into Force:
January 22, 2022
Program Projects
-
$11,562,000
Project Total Amount -
$10,187,498
Project Amount Committed -
$3,071,674
Project Amount Expended
This project addresses land access and investment barriers that limit tourism growth. It aims to:
- Increase government capacity to identify and prepare land parcels for tourism investment.
- Support development of a model that clarifies land tenure and builds community trust, reducing investor risk and ensuring community members share in tourism benefits.
- Develop a portfolio of investment-ready sites and assist the government in attracting new investments.
- Provide additional funding to derisk investments in focused hospitality developments.
-
$6,500,000
Project Total Amount -
$6,107,486
Project Amount Committed -
$2,209,730
Project Amount Expended
This project helps Solomon Islands communities transition to more stable sources of income that reduce reliance on a single export and increase long-term economic returns by:
- Expanding a market-based mechanism that increases the ability of Solomon Islands to receive full value for its timber resources.
- Strengthening regulatory and enforcement capacity in the forest sector.