26 Sep 2007

World Bank funds welcomed as boost for Solomons rural development plans

2:50 pm on 26 September 2007

The Solomon Islands Central Bank says the World Bank's financial injection into the rural economy will boost the national economy.

The government has just signed a deal with the World Bank for 21.5 million US dollars for a five-year Rural Development Programme.

The Central Bank's deputy governor Denton Rarawa says its welcome news for those in the rural sector as the funding supports the government's ongoing efforts to improve services.

He says this will promote growth, more jobs and increased incomes as well as improve infrastructure and services to rural communities, which will have a flow-on effect.

"The rural economy is very important. 85 % of the population live in the rural sector. So what happens in the rural sector has an impact on the overall economy. The bulk of our production of commodities like copra, cocoa, logs are in the rural areas and so this support from the World Bank will only assist all these activities and hopefully generate new areas of activities and employment."

Denton Rarawa

The pilot rural development programme will start in four provinces, before being rolled out nationwide.