Medical Cannabis to Boost Exports for Colombia

Colombia is expecting that its new framework for the industrialization and export of medical cannabis will generate $1.7 billion dollars for its economy and create thousands of jobs, putting cannabis ahead of flower exports--one of the country's biggest exports. Additionallyy, it will also add some much-needed diversity to Colombia's economic mix, helping to build a more robust economy.

Medical cannabis will generate more than 1.7 billion dollars and thousands of jobs. That’s what Colombia expects its new framework will contribute to its economy between now and 2030, boosting the country’s exports. To give some perspective, the $1.7 billion figure is even higher than that of foreign sales of flowers, one of its flagship products, according to official sources.

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Medical Cannabis Will Diversify Colombia’s Economy

“Within the framework of the secure economic reactivation, this industry represents a viable alternative for the diversification of Colombian exports and the reduction of dependence on traditional sectors,” said the president of ProColombia, Flavia Santoro, quoted in a statement from her office.

Australia, the United Kingdom, the United States, Peru, Ecuador, Brazil, and some European Union countries are the destinations with the greatest potential for international medical cannabis sales for Colombia.

The sector “represents concrete export opportunities, generation of formal jobs, and investment in science and technology,” added Santoro.

According to ProColombia, so far 18 foreign investment projects for 288 million dollars have arrived. This has created more than 2 thousand jobs at including such as Khiron, PharmaCielo, and Avicanna, among others, according to reports from businessmen to this state entity.

“From ProColombia, we will continue to accompany foreign investors and exporters so that their businesses reach a good port,” said Santoro.

Medical Cannabis Will Drive Job creation

According to ProColombia’s calculations, which propose a scenario of intermediate international prices for medical cannabis of 2,000 dollars per kilogram of extract, it is estimated that 44,000 jobs will be generated by this industry in 2030.

To date, licenses for the cultivation of psychoactive and non-psychoactive cannabis, seeds for sowing, and the manufacture of derivatives have been authorized in 32 municipalities in eleven departments of Colombia.

The country also has a supply of seeds, raw extracts, distillates, isolates, and finished products such as medicines and cosmetics.

On the other hand, between January and May of this year, exports of medical cannabis from Colombia totaled 2.2 million dollars, an increase of 0.6 percent over the same period last year, with the United Kingdom, Australia, the United States, and Israel as the main destinations.

An investment opportunity

On July 23, President Iván Duque signed a decree authorizing the export of dried cannabis flowers for medicinal purposes in order to provide more incentives to the country’s pharmaceutical industry and guarantee access to medicines derived from the plant.

The decree also seeks to encourage the market for medical cannabis, as well as its use in scientific, medicinal, and industrial research to promote the country’s economic reactivation, job creation, and industrial development.

It also allows the transfer of cannabis to free trade zones so that it can be cut, dried, transformed, and packaged.

(Featured image by CRYSTALWEED Cannabis via Unsplash)

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Desmond O'Flynn

Desmond O’Flynn believes in minimalism and the power of beer. As a young reporter for some of the largest national publications, he has lived in the world of finance and investing for nearly three decades. He has since included world politics and the global economy in his portfolio. He also writes about entrepreneurs and small businesses, as well as innovation in fintech, gambling, and cannabis industries.