This archive report was first published on 22 December 2019.
December 22, 2019, marked a significant milestone in the cannabis industry, with various industry analysts warning that Africa's mass cannabis farming ambitions face significant hurdles.
Regulatory challenges are a major obstacle, with many African countries maintaining conservative laws that associate marijuana with delinquency and depression. In Kenya and Uganda, for instance, large quantities of contraband are intercepted daily, but this is largely due to rent-seeking by law enforcers rather than a concerted effort to combat the illicit trade.
According to the African Cannabis Report by Prohibition Partners, the complexity in cannabis regulation is evident across Africa. In Uganda, the anti-narcotics law allows for the use of cannabis for medicinal purposes only, while in Kenya, local administrators often shield cannabis cultivation in protected areas like forest reserves.
Israeli firm Together Pharma and its local partner Industrial Hemp Ltd have been seeking a license to grow cannabis for hemp since 2012, but the process has been slow due to regulatory and infrastructural constraints. The analysts point out that infrastructure constraints, such as the need for greenhouses and irrigation systems, are also significant challenges.
Without conducive growing conditions, Africa is unlikely to produce high-quality cannabis demanded in mature markets like Canada, Europe, and the US. The cost of a cannabis processing facility ranges from $2 million to $10 million, and smaller units are available from Australia, the EU, and North America, but these are still expensive.
On the sales end, analysts say the actual market for medicinal cannabis is not yet known, despite the increasing prevalence of chronic diseases in Africa. Nathan Emery, the CEO of Precision Cannabis Therapeutics Zimbabwe, is quoted as saying that the medicinal use of cannabis would spread rapidly in Africa given the quick adoption of plant-based treatments.
