GOVERNMENT must liberalise the cannabis sector if the country is to achieve a US$1 billion industry by 2025.
Speaking in Harare yesterday at the inaugural Hemp and Medicinal Cannabis Business: Success and Failures Symposium organised by the Daily News, Zimbabwe Industrial Hemp Trust (ZIHT) founder and chief executive Zorodzai Maroveke said there were several issues that must be addressed to grow the sector.
She said there were many challenges in the sector, among them, wide knowledge and information gaps and that it was expensive to obtain a cannabis growing licence.
“Lack of localised expertise, technology, and most importantly funding for research and development are some of the challenges,” Maroveke said.
“To address these, ZIHT is working closely with the government and other stakeholders to accelerate the development of a strong foundation for the industry through research and development. We are also planning to conduct awareness campaigns, provide training programmes, and seek partnerships with financial institutions to support hemp-related projects,” she said.
Zimbabwe produces medicinal cannabis and industrial hemp. An investor in the sector has to pay a US$500 non-refundable application fee upon submission and upon approval, the client would be required to pay a US$4 500 licence fee.
Speaking at the same event, Zimbabwe Investment and Development Agency head investment licensing Felisters Chikandiwa said there was a lot of interest in cannabis production by both international and local investors.
She said since 2019, 57 companies had been licensed to grow the plant, but only 16 were operational, 12 of them being from abroad and four being local.
“The source markets are the United States, Australia, Britain, India, Mauritius, China and South Africa. If all the 57 companies had been operating, US$212 million would have been invested. Currently US$40 million has been invested,” Chikandiwa said.
Agricultural Marketing Authority director of agribusiness Jonathan Mukuruba said there were three permits an investor in the cannabis sector can secure, cultivator’s licence which allows the cultivation of industrial hemp; processing for marketing purposes and selling.
The Merchant’s licence which allows the supply, processing and procurement within Zimbabwe of industrial hemp and the Breeder’s or Researcher’s licence which allows the cultivation, for research purposes only, of new cultivars and varieties of hemp that are not approved cultivars.
“Required is payment of the appropriate fee; three copies of a plan of the cultivation area proposed, including the geo-coordinates, to be licensed; proof of Zimbabwe citizenship or proof of being ordinarily resident in Zimbabwe or proof of an exemption by the minister; and a declaration, signed and dated by the proposed authorised person in charge, stating that the proposed authorised person in charge is familiar with the provisions of the Act; and a security clearance,” Mukuruba said.
