Solomon Islands PM secures $35m Australia funding, resets strained ties in power shift

Solomon Islands has moved to reset its relationship with Australia, launching talks on a new formal treaty and securing immediate budget support as the new government shifts direction in its foreign policy.

Prime Minister Matthew Wale met Australian Prime Minister Anthony Albanese in Canberra on his first official overseas visit since taking office, signalling a clear effort to rebuild ties after years of strained relations.

The two leaders confirmed that negotiations are now underway on a comprehensive, legally binding bilateral agreement covering security, development and cooperation.

Australia also announced emergency budget support worth around A$35 million (NZ$42.48m) and about SI$200m, which will be directed into the Solomon Islands government budget to help manage economic pressure and recovery needs.

The funding is also aimed at helping the country deal with wider global shocks, including rising fuel costs linked to instability in the Middle East, as well as ongoing recovery from recent severe weather events.

Wale acknowledged there had been tensions in the relationship in recent years, particularly following Solomon Islands’ 2022 security agreement with China, which raised concerns among regional partners.

“We acknowledge that there’s been problems in the last few years, I’ll be honest,” Wale said at a joint press conference in Canberra, while stressing that long-standing ties between the two countries remain strong.

He also said he had only received a copy of the 2022 security pact with China shortly before leaving for Australia, and confirmed his government would need time to fully review its contents.

Wale is also expected to travel to New Zealand for further talks with Prime Minister Christopher Luxon.

Opposition Leader Manasseh Sogavare, who has warned against growing reliance on foreign aid, saying Solomon Islands must protect its long-term fiscal independence. Photo/Chinese govt

While the meeting in Canberra focused on strengthening ties with Australia, debate continues at home over how far Solomon Islands should rely on foreign support.

Opposition Leader and former prime minister Manasseh Sogavare warned against long-term dependence on external funding in relation to government plans that rely on donor support for services such as education.

“A responsible government must never confuse start-up assistance with permanent national capacity,” Sogavare said in a statement.

Sogavare argued that aid dependence could expose the country to outside influence.

In 2022, he signed a security agreement with China which drew concern from the United States and some regional partners including Australia and Aotearoa.

The developments come as Australia steps up engagement across the Pacific with Governor-General Sam Mostyn also visiting Tuvalu for high-level talks with Acting Prime Minister Panapasi Nelesone.

Australian Governor-General Sam Mostyn visits Tuvalu where she held talks with the government focused on the Falepili Union and concerns around the relocation of Tuvaluans to Australia. Photo/Tuvalu government

During those talks, Tuvalu raised concerns about the practical challenges facing citizens relocating to Australia under the Falepili Union deal including housing and transport challenges.

Before arriving in Funafuti on Tuesday, Mostyn began her Pacific visit in Sāmoa on Monday, taking part in the country’s 64th Independence Day celebrations.

During her stop in Apia, Mostyn joined Prime Minister Laʻaulileuatea Polataivao Fosi Schmidt to officially open a new multi-million-dollar Parliamentary Office Complex, supported by about A$48.8 million (NZ$59.25m) in funding from Australia.

Mostyn also met with Tonga's King Tupou VI and Prime Minister Lord Fakafānua during the independence celebrations. After the ceremony, Mostyn travelled directly to Tuvalu. She returned to Canberra on Wednesday.

The visits show a wider regional push by Pacific governments to secure funding, infrastructure support and climate resilience commitments while managing shifting geopolitical competition.

Australian Governor-General Sam Mostyn meets with King Tupou VI and Tongan Prime Minister Lord Fakafānua during independence celebrations in Tonga, where discussions focused on strengthening ties between Tonga and Australia. Photo/Facebook/Governor-General of Australia

Accompanying Prime Minister Wale in Canberra are several senior Solomon Islands ministers involved in the talks.

They include Foreign Affairs and External Trade Minister Rick Hou, who is leading work on the treaty details, National Planning and Development Coordination Minister Peter Kenilorea Jnr, who is overseeing economic planning and development discussions, and Police, National Security and Correctional Services Minister John Tuhaika Jnr, who will be closely involved in how the newly announced policing funding is directed and used.

Wale and his delegation are expected to arrive in New Zealand on Thursday night for his week-long tour including formal bilateral security and development talks with Prime Minister Luxon on Friday. Wale returns home on 10 June.