State Own Enterprises in the country has showed an average 10 percent return on equity in 2010 to 2012 compared to a return of negative 11 percent from 2002 to 2009.
The Asian Development Bank, ADB, attributes the remarkable turnaround to increased privatisation, public-private partnerships, financial restructuring and efforts to place SOE’s on a sound commercial footing.
The study says SOE reforms have the potential to bring immediate benefits to Solomon Islanders.
Meanwhile, ADB Vice-President Stephen Groff, says reforming SOE sector is vital as it improves basic service delivery, reduces the costs of doing business, and creates opportunities for private investment.
SIBC News understands the report is the ADB’s fourth comparative study of SOE performance in nine countries including Cabo Verde, Fiji, Jamaica, Marshall Islands, Mauritius, Papua New Guinea, Samoa, the Solomon Islands, and Tonga.