Business and Investment opportunities for cannabis production in Zimbabwe

by | Nov 4, 2020 | 2 comments

Zimbabwe may perhaps become one of the biggest producers or exporters of cannabis sativa in Southern African as it is already one of the biggest producers of Tobacco in the Region.  A successful value chain will make industrial hemp production viable, but also the good policies and regulations being put in place to allow for the production, brings hope in the agricultural economic growth in our country.


The government of Zimbabwe has legalised the production of cannabis for medicinal or scientific purposes in which the Dangerous Drugs (Production of Cannabis for Medicinal and Scientific Use Regulations) 2018 came into effect in May 2018. In terms of these 2018 Regulations, persons interested in the production of the cannabis plant must apply for the producer’s license which will only be valid for 5 years and may be renewed after that before its expiry. It is noteworthy that the 2018 Regulations allow for the production of cannabis, which is defined to include fresh or dried cannabis, cannabis oil, cannabis plants or cannabis seeds; the cannabis plant also includes the whole or any portion, whether green or dry, of any plant of the genus cannabis.


Further, in September 2020 a new law being Statutory Instrument, S.I 218 of 2020 Agricultural Marketing Authority (Industrial Hemp) Regulations 2020, ‘the Regulations’ was gazetted. These regulations were put in place to regulate and to provide a conducive environment in the production, procurement, distribution possession, sale, provision, transportation of industrial hemp. Section 2 of the Regulations define ‘industrial hemp’ as ‘the plant cannabis sativa and any part of the plant including the seeds thereof and all derivatives, extracts, cannabinoids, isomer, acids, salts and salts of isomers, whether growing or not with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 on a dry weight basis.In my view this limits the producer to only produce a cannabis plant with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 whereas the 2018 Regulations allow for the production cannabis as defined above though it is only meant for medicinal and scientific use.


Cannabis sativa is a remarkable plant containing many valuable natural components and an informal/slang name has been identified for mbanje/ dagga/ marijuana. Industrial hemp has been cultivated globally for years, and noteworthy is its history for use as a food, fuel source, nutritional supplement, body care product, building material, medicine etc. Worldwide there is an increasing demand for hemp-based products and there is also increasing awareness among consumers of the benefits of industrial hemp and its product. This follows that there is room for investing in the production or sale of hemp or cannabis in Zimbabwe.


In order to produce industrial hemp persons, need to obtain a permit. Section 4 provides for the types of permits the Authority may issue that is; a general cultivator’s permit, a research and breeding permit, an industrial hemp merchant’s permit. A general cultivator’s permit only authorises the permit holder to undertake the cultivation of industrial hemp and processing hemp for marketing purposes, selling of hemp production A research and breeding permit authorises the permit holder to undertake all or any of the following activities: the procurement of hemp; the cultivation and breeding for research purposes only; the conduct of research, under the supervision of a research institute approved by the government, into the suitability of cultivars and variety of hemp for industrial uses; the supply specified cultivars and varieties of hemp and lastly, the possession of specified cultivars and varieties of hemp that are not approved cultivars for the purposes of the activities specified in the permit.


An industrial hemp merchant’s permit shall entitle the holder of any or all of the following; the supply within Zimbabwe of industrial hemp, the procurement within Zimbabwe of industrial hemp, the processing of industrial hemp into specified hemp product, contracting individual farmers and the possession of industrial hemp for the purposes of the activities specified in the permit. With that said, it is important to note that the duration of the permit ranges from one to three years. A general cultivator’s permit shall be valid for one year, a research and breeding permits for three years and lastly, the industrial hemp merchant’s permit shall be valid for one year; and the permits may be renewed after that before their expiry.


An application of any of the above permits shall be made to the Agriculture Marketing Authority and the requirements that must be satisfied for it to be approved are outlined in section 5 of the Regulations. These requirements include payment of fees, proof of citizenship/residence, declarations, security clearance etc. If these requirements are not met, a permit may be refused subject to circumstances stated in section 7 (factors considered for refusal of permits). Permits may also be suspended as the Authority sees fit. Section 6 provides a peremptory provision which states that after examining the application the Authority shall, issue to the applicant a permit which indicates the permit number, the name of the permit holder, list of authorised activities, address of the cultivation area, security level requirement, effective date and expiry date of the permit, and any conditions that the permit holder shall meet in order to comply with any international obligations and any other obligations and to reduce any potential public health, safety or security risk, including the risk of industrial hemp being diverted to an illicit market or use.


The Regulations also require that permits be displayed at all times on the licensed cultivation areas to which it relates to. All essential features that relate to the production and selling of industrial hemp are well provided for in the Regulations. In terms of section 37 (1) any person who contravenes the provisions of the Regulations shall be guilty of an offence and liable to a fine not exceeding a fine of level 4 or imprisonment for a period of three months or both such fine and such imprisonment. Section 38 provides for the appeals of decisions. It provides that, any person dissatisfied by any decision made in terms of the Regulations may appeal to the Authority within thirty days.


In conclusion, the formal introduction and legalizing of the production of cannabis for medicinal use has opened investment opportunities in this country. This not only applies to farmers but to foreign companies, financial institutions who can finance cannabis production, pharmaceutical companies who manufacture cannabis related medication, research institutes, retailers etc. Within a short period of time, the door for the production of industrial hemp is now open which highlights progression in the cannabis production and its related plants within the Zimbabwean context.  

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2 Comments

  1. Can wait to be part of this opportunity

    Reply
  2. That’s my advocate..keep pushing and go beyond the sky

    Reply

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