Stimulating investment in pearl farming in ... - World Fish Center

partnership with the identified commercial partner, who would be primarily responsiblefor raising investment capital and taking over project management. It may be appropriateto also seek other partners in the venture, especially in regard to the black-lip farmingcomponent, and in order to have the involvement of local business interests. This mixedprivate-public approach would overcome the existing barriers to investment that havebeen identified by this programme.7 ConclusionOverall, after considerable research, information gathering and consultation within theindustry and legislators, the conclusions of our project are that there are few naturalbarriers to successful pearl farming in Solomon Islands. It is clear that pearl farmingneeds to be introduced with great care to ensure that the best investors are attracted andthat conditions are set up to ensure that they are free to produce high quality product.Two areas at present remain barriers to investment. These revolve around the paradoxthat a large investment is required under the current state of the pearl farming industry tocreate a profitable enterprise, yet that this is a new enterprise for Solomon Islands thatwould be best carried out slowly.The best prospects for establishing pearl farming are if a small amount of newcommercially targeted research is undertaken to address uncertainties as to the ability toproduce high quality white pearls in good numbers, as well as a variety of colours ofblack pearl, and for sufficiently strong financial incentives to be put in place by SolomonIslands Government and their international aid partners to attract long term investment.A pilot project suitable for financing by an aid donor or development partner in SolomonIslands, and in conjunction with a commercial partner, is recommended to address theseuncertainties.Provided that findings are positive, the trial project should scale up to full commercialoperation after 2-3 years. The identified commercial partner, would be primarilyresponsible for raising investment capital and taking over project management. Thismixed private-public approach would overcome the existing barriers to investment thathave been identified by this programme.How the industry is developed and the arrangements made for use of custom waters andinvolvement of local communities in the various stages of the pearl production processwill then determine the extent to which it will truly contribute to rural development andincome generation.31