Solomon Islands: Government procurement changes reflect continued effort to favour domestic businesses

Around 15 July, the Solomon Islands Government, through the Ministry of Rural Development, signed one-year Preferred Supplier Arrangement (PSA) contracts with 83 private companies (39 indigenous-owned and 44 foreign-owned) for the implementation of the 2026 Constituency Development Fund (CDF) programme. The PSA authorises the companies to supply goods, materials, equipment, and services to the 50 constituencies. The 2026 CDF programme is funded at AUD$44 million, with each constituency allocated AUD$888,915. Separately, around 21 July, the Government began compliance inspections of all gold dealer licence holders following PM Wale's directive on gold dealing operations. The Government stated that any regulatory action will follow completion of all inspections and the final assessment, with non-compliant licence holders to be notified and given time to respond over the next two months.

Assessment: The higher proportion of indigenous firms selected under the PSA, alongside increased regulatory scrutiny of gold dealer licence holders, is consistent with the government's stated policy of strengthening domestic ownership and national economic benefits (see SPI 51, 1–14 July 2026). Foreign businesses operating in the Solomon Islands or looking to invest are likely to be looked on favourably by the Government and regulators if they partner with local businesses. Further measures to expand indigenous participation and increase state regulation of mining industries are likely.

Sources: “83 COMPANIES SIGN PSA CONTRACTS WITH GOV’T AS MRD READY FOR FULL IMPLEMENTATION OF 2026 CDF PROGRAM,” SIG, 23 July 2026; Joses Saren, “83 companies govt preferred suppliers,” The Island Sun, 15 July 2026; Charley Piringi, “Compliance Checks Begin for Gold Dealer Licence Holders,” In-depth Solomons, 21 July 2026.