Honiara is the capital of Solomon Islands and is situated on Guadalcanal Island. It serves as the main administrative, educational and economic centre for the country. It has a population of just over 64,600 with an average density of 2,953 people per square kilometre. Honiara city was developed from the rubble of an American war base established during the Second World War, and has grown at a rate of 2.7 percent per annum over the years to become the primary city in the country. The city is made up of diverse ethnic groups and indigenous people.
The main economic activities in Honiara are in the services sector. Rising unemployment, poverty and high costs of living are common features in Honiara. Some residents, particularly those living in the informal settlements, are engaged in a range of informal economic activities.