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Soltuna

Casting a line for improved lives through tuna fishing

IFC and GAFSP Invest $10 million for Sustainable Fishing, New Jobs in the Solomon Islands

Photo: IFC

番茄社区 the Project

Located in the South Pacific region, the Solomon Islands鈥欌攁 fragile situation country made more vulnerable through the effects of climate change鈥攔anks among the poorest of the world. With 30 percent unemployment, and only a small role for large-scale agriculture given the scarcity of large areas of flat land, the nation depends heavily on its vibrant fisheries sector as a sustainable source of economic growth. The tuna industry accounts for 18% of the country鈥檚 GDP.

Supporting a more productive and resilient fisheries sector in the Solomon Islands has the potential to sustain livelihoods, improve nutrition, and increase government tax revenues. In the long term, investment in the fisheries sector is expected to contribute to the security and equity of the country. In 2017, IFC and GAFSP made an investment of US$10 million to National Fisheries Developments Ltd (NFD) to support sustainable tuna production and employment in the Solomon Islands. The new financing helps fund the purchase of new fishing vessels and ensures maintenance of the existing fishing fleet. IFC will provides advisory services to promote best practices in environmental and social risk management. The investment consists of a blended finance package of up to US$30 million for NFD, consisting of support from IFC and GAFSP of US$15 million each. The funding was made across three separate US$10 million commitments and disbursements, the first of which was made in 2017. The funding allows the purchase of up to three new fishing vessels and will expand NFD鈥檚 capacity by nearly 70 percent.

Country

  • Solomon Islands

Project Status

Active

Funding

Private

Supervising entity

  • IFC

GAFSP Funding Amount

10.00

Results

This project creates new jobs, especially for women, in the Solomon Islands. The聽addition of a new fishing vessel, which has already been purchased, will increase NFD鈥檚聽catch volume by some 8,000 MT per year and will require 30 fishermen to operate the聽vessel. The increased processing at SolTuna, a tuna processor and NFD sister company,聽will require about 200 new staff, mostly women.

Considering the lack of private sector聽employment opportunities in the Solomon Islands, job creation at both companies is an important factor that will impact the local community. An additional two fishing vessels聽are expected to have a similar impact on catch volume, processing throughput, and job聽creation at NFD and SolTuna.

In addition, local farmers and their families will be included聽in NFD and SolTuna鈥檚 internal supply chains, as both companies will source agricultural聽produce and food products locally for their employees.

Contact

Mr. Niraj Shah

Head, GAFSP Private Sector Window

nshah1@ifc.org Washington, DC

Tel: 202 473 3743

Documents

News