Banana fibre - license to print money
Few paper products undergo more continuous handling and folding than currency notes and it is a
significant expense for national banks to replace worn banknotes. A tribute to the tear and tensile
strength of banana fibre are Japanese yen notes printed on paper based on the fibre banana, abaca.
Abaca, Musa textilis, has long been used by rural people in the Philippines, the centre of
origin of abaca, for making hard-wearing textiles, which they have woven from the fibres stripped
from the pseudostem and coloured using dyes from native plant leaves and roots.
A wide range of goods is available, including rope cordage, yarns, abrasive backing paper, tea bags, attractively patterned cloth, handbags/purses and shoes. Exports of abaca products are an important earner of foreign exchange with the US taking some two-thirds of exports. Singapore, Australia, Malaysia, Thailand and Europe are also important markets.
Unfortunately, exports have been declining in most markets except Europe but two Philippine banks (the Development Bank and Landmark Bank) are supporting a project to grow and utilize 50,000 tons/year of abaca fibre. It will be used mainly for pulp and paper but also for textile used for curtains, ribbons, table mats, hats, handbags, slippers and other fibrecraft products including Christmas decorations, and stuffed toys. The project includes a nursery, approximately 30,000 hectares of plantations and an abaca pulping and paper mill. The total investment cost is estimated to be US$161.5 million and should provide employment opportunities on and off farm. Incentives for investors in enterprises earning at least 50% of revenues from exports include income tax holidays of 4-6 years, employment of foreign nationals and various tax credits on imported machinery and materials.
