The recent political turbulence surrounding the Motion of No Confidence has sparked deep concerns amongst local and international investors, raising fears of economic instability in Solomon Islands.
The motion, which was tabled in Parliament April two months ago, created a tense political atmosphere, leading to widespread speculation about the future direction of the government.
Although the motion was eventually defeated, the uncertainty it generated has already had a ripple effect on investor sentiment.
Several business figures both private and local operators in Western Province have expressed concern that such instability sends the wrong message to current and prospective investors.
A concern local business operator, speaking on condition of anonymity told Solomon Star in an interview that the political climate is becoming “too unpredictable” for long-term investment planning.
“Investors look for political stability above all else,” the source said.
“When there’s talk of changing leadership or government policies, it naturally causes hesitation.”
Reports from Honiara and Western Province indicate that some foreign business interests have paused negotiations or shelved investment proposals until the political climate becomes clearer.
Others are reportedly reviewing their risk assessments and considering alternative regional markets.
Western Province Premier Billy Veo also weighed in on the issue month ago , saying the province is already feeling the impact of cautious investor behavior during the heat of the MoNC.
“We have ongoing projects that are now in limbo because partners want to see how the political situation unfolds,” Premier Veo said.
“We urge our national leaders to be mindful of the economic consequences political instability can cause.
‘’However it’s over now and everything comes back to normal,’’ Veo added.
A local business owner who owns some of his asset –Island somewhere in New Georgia island told this paper that he lost his opportunity to seize one of the interested foreign investor during the MoNC fever hits.
‘’Since the those potential overseas investors flee back from Vanuatu during that week,’’ the local business man said.
Analysts said, while Motions of No Confidence are part of the democratic process, their timing and frequency can significantly affect the country’s economic outlook.
With Solomon Islands still recovering from the economic strain caused by the COVID-19 pandemic and recent unrest in Honiara, stability is seen as crucial to rebuilding investor confidence.
The government has called for calm and assured the public that it remains committed to upholding good governance and maintaining economic stability.
However, until the political dust settles, investor hesitation may continue to cast a shadow over future development prospects.
By ULUTAH GINA
Solomon Star, Gizo
