23 Sep 2016

ADB wants more profitability from Pacific SOEs

1:07 pm on 23 September 2016
Frank Bainimarama meeting with the Asian Development Bank Vice President Stephen Groff

Frank Bainimarama meeting with the Asian Development Bank Vice President Stephen Groff Photo: Supplied

The Asian Development Bank has again called for reform of state-owned enterprises across the Pacific.

SOE portfolios in eight Pacific countries examined contribute only 1.8% to 12% of gross domestic product, despite having very large asset bases, ongoing government cash transfers, and monopoly market positions.

The ADB said productivity levels of the SOEs were also well below that found in developed countries.

But the Bank noted some successes in pursuing commercially-oriented reforms.

It said that over the past 14 years Solomon Islands has improved significantly, with Tonga also doing better.