Zimbabwe eyes US$272 billion global cannabis market
Nqobile Bhebhe, [email protected]
ZIMBABWE’S favourable climate conditions for the cultivation of high-quality medicinal and recreational cannabis coupled with appropriate regulations and robust marketing strategies have the potential to boost the economy.
The country’s optimal growing environment can produce cannabis that meets international standards, creating significant export opportunities and attracting investment. By leveraging these advantages, Zimbabwe could see job creation, increased revenue, and overall economic development.
The country became one of the first in Africa to legalise the production of medicinal cannabis in 2018.
The global cannabis industry could be worth US$272 billion by 2028, and Zimbabwe is eyeing at least US$1 billion of that.
In 2022, about 60 companies had been licensed to cultivate medicinal cannabis, as the country started producing medication from cannabis, dubbed cannabidiol (CBD) complementary medicines.
Zimbabwe is targeting to make cannabis one of its leading exports, with an annual revenue of US$1 billion expected.
Medicines Control Authority of Zimbabwe (MCAZ) approved the production of CBD complementary medicines and invited drug manufacturers to apply for production licences.
Investors responded overwhelmingly to the call and the Zimbabwe Investment and Development Agency (Zida) is confident local farmers can produce enough medicinal cannabis to support the industry.
Last Friday, Foreign Affairs and International Trade Deputy Minister Sheillah Chikomo, Information Publicity and Broadcasting Services Permanent Secretary Nick Mangwana, and ZimTrade chief executive officer, Mr Allan Majuru toured Thathokuhle Farm located in Douglasdale on the outskirts of Bulawayo.
The farm, measuring about 44 hectares, grows cannabis and other crops for the export market. At least 20 hectares are under cultivation of various crops. The farm currently employs about 85 people, a majority of whom are women, with figures rising to 150 during harvest season.
The cannabis is grown under greenhouse conditions to meet the criteria for “organically grown” cannabis.
The farm has a highly mechanised drip system and a lighting system.
Speaking after the tour, Deputy Minister Chikomo said the production levels demonstrate entrepreneurial skills among Zimbabweans. She said with proper support, cannabis could be a major foreign currency earner.
“It is good to witness that Thathokuhle Farm is not that big, just 20 hectares but producing over 1,5 tonnes per hectare of cannabis flower. We learnt that it fetches about US$650 per kilogramme,” said Deputy Minister Chikomo.
“Our focus is on entrepreneurship and getting to see what local farmers can do, it’s an inspiring story and I am excited.”
Farm owner, Mr Mike Querl said Zimbabwe stands to reap huge dividends from cannabis production. He said the country should leverage its favourable climatic conditions and take the lead in cannabis production.
Mr Querl said export markets are in the United States of America, Portugal and South Africa. “We can produce far better cannabis than most people can and we can grow all year round because of our weather. Because of our climate in Zimbabwe, it’s a huge opportunity for a lot of people and if grown properly one can get a tonne per hectare,” he said.
“I believe this plant is perfect for the country and this will change the economy. There is a lot of market for CBD cannabis and we have a lot of brokers coming into the country, but we have to deal with end users to get the right price.
“I believe Zimbabwe should be leading the cannabis industry. It is intensive farming but of high value.” Mr Querl noted that one of the competitive advantages is the size of local farms.
“Here in Zimbabwe, our farms are so big and in other countries, farms are close to each other and cannabis tends to be affected through over-spraying of chemicals and the product becomes unsellable, but here we have enough space,” he said.
“At full stage, one plant takes in a litre per hour and with 7 000 plants under cultivation, you will need a borehole that yields at least 7 000 litres.” Mr Majuru expressed satisfaction with the scale and level of production, diversification and tapping into non-traditional export markets.
“There is a lot of diversification and space intensification. They are going to get a lot per hectare compared to other crops. Their markets are not the traditional markets as they are talking of exporting to Australia, the USA and the United Arab Emirates and Oman. It’s good for the country as we diversify our export market base,” he said.
Mr Majuru said in the future they would ensure that there is more value addition and aggressive participation in the global cannabis medicinal space.
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