The Market Monitor Minding the Nation's Business
By Rose de la Cruz
GROW bamboo and reduce the cost of constructing a house or any infrastructure project,
The Asian Development Bank is now encouraging developing countries, including the Philippines to help farmers by pushing them to grow more bamboos for ecological and economic considerations.
Growing bamboo in developing countries could help farmers access the financial market and bring down the cost of housing, according to ADB Finance Sector Advisor Lotte Schou-Zibell.
In an ADB blog, Schou-Zibell said bamboo is fast growing and has a high capacity for carbon capture.Given these attributes and the help of modern technology such as artificial intelligence, Schou-Zibell said farmers in developing countries like the Philippines, can significantly benefit from bamboo cultivation, Business Mirror quoted her.
“By harnessing the benefits of bamboo and integrating it with modern technologies, developing countries can create a more inclusive financial ecosystem that supports sustainable economic development and resilience,” Schou-Zibell said
“Bamboo can revolutionize finance, housing, and sustainability in developing countries. But first, we need to enable bamboo to be a secure, bankable, and tradeable asset,” she added.
Schou-Zibell said bamboo is a tough and versatile grass that grows in Asia and the Pacific that can also be processed into flooring, textiles, and paper. But it can also transform the finance and construction sectors.
B Given its many applications, bamboo can be used by farmers as collateral to access financing. It can become a tradeable asset through the use of technology.
She said by using geocoding and geospatial data from satellites and drones as well as AI, the asset valuation of bamboo along with its future revenue can be determined. She mentioned that the alternative data that can be derived from this are crucial for collateral assessment, access to credit, effective risk management, and fostering investor interest.
Schou-Zibell noted that fintech innovations can increase digital literacy which could also further efforts to tailor-fit products to specific needs and improve efficiency. It can also provide financial data in real time
“Farmers can use AI-driven geocoded data to assess the current value of their bamboo crops in real-time. Banks can then use this data to determine asset value, future cash flow, and collateral value, facilitating loans and investments. This integration of technology positions bamboo as a pivotal asset in financial ecosystems,” she said.
She said AI can analyze historical and real-time data to forecast future yields.