Enterprise

Lesotho makes way for the African cannabis market

The African cannabis market is looking to Lesotho, a small kingdom of 2.1 million inhabitants landlocked in the heart of South Africa, to lead the way. In 2017, the country was the first on the continent to allow the cultivation of medical cannabis, which is duly regulated. According to the law, it cannot contain more than 0.03% THC (tetrahydrocannabinol, the psychoactive ingredient of the plant).

Struck by unemployment and an AIDS epidemic that affects 23% of the population, the cultivation of medical cannabis in Lesotho is a real opportunity for the African cannabis market according to the local authorities.

The geographical location is more than 1,400 meters above sea level and the political stability and cheap labor are factors that attract foreign investors.

In order to find more on this subject, one potentially useful cannabis news tool is the Hemp.im app. You can find more information about cannabis markets and other important news in the cannabis sector in the Hemp.im app.

Investors show interest in the African cannabis market

The international company Medigrow has invested more than $19 million in its site located near the capital Maseru and is currently building a heliport for the fast and safe transport of its cannabis production.

This investment is in line with the development objectives of the global medical cannabis market currently estimated at $150 billion.

The sector could reach $276 billion by 2028. If a liter of cannabis oil is sold between $5,565 and $22,263 depending on the state of the market, the cultivation of this plant requires the payment of an annual license of $33,395 into the state budget.

This is a considerable sum for local farmers, hence the domination of the sector by Canadian and American companies.

Lesotho leads the way in the African cannabis market

On the mainland, Lesotho is leading the way in the African cannabis market by becoming the first country to regulate cannabis for medical use as early as 2017. Now Zimbabwe is following suit by legalizing the crop.

Nigeria also has the potential to become a producer country in the African cannabis market because of its heavy dependence on imported pharmaceuticals.

Lesotho is the first African country to allow the cultivation of medical cannabis. (Source)

Other countries on the continent are expected to follow suit by legalizing the cultivation of the plant for medical use by 2023 to reach a lucrative market with medical and recreational opportunities.

Israel looks to Uganda to grow cannabis

Uganda and Israel manufacture medical cannabis, giving an iron fist to the cooperation between the two countries.

Israeli giant Together Pharma, a producer and distributor of medical cannabis, has established a farm in Uganda to produce cannabis.

The marketing of its cannabis products started at the beginning of the year. Cannabis seeds are purchased from a company in the Netherlands considered to be the world’s largest supplier.

In Uganda cannabis is illegal, but the government can issue permits for cultivation for export. Last April, a major contract was won by the Israeli company to sell five tons of cannabis oil to a Canadian company.

Israel also predicted to be a huge market for cannabis

This agreement could potentially bring in hundreds of millions of shillings and make the work on-site sustainable.

The company plans to set up a farm in Israel to focus on the local market and promote its production in North America and Europe, which are developing markets.

Israel is considered a pioneer in research on therapeutic cannabis. According to a government source, the activity generates between $285 million and $1.4 billion annually.

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(Featured image by Francesco Ungaro via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Meyomessala International, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.

Isaac Atwood

Isaac Atwood is a PR and marketing consultant who has worked with respected names in the financial industry. He has also sat down in many sessions with startups aiming to become the next unicorn. Isaac loves working with CEOs, business executives, and entrepreneurs who wish to enter the following markets: artificial intelligence, cannabis, virtual reality, cryptocurrencies, robotics, wearable and smart tech, and even the much-hyped space race. He is currently managing the brand portfolio of an Asian firm planning for its IPO by the end of the year. While his engagements have taken him around the world, Isaac is proud to call Toronto his home.

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