Rwanda starts cannabis production | high times

The Republic of Rwanda has some interesting features. It is just a few degrees south of the equator. Bordering Uganda, Tanzania, Burundi and the Democratic Republic of the Congo, it is a high-elevation piece of sovereign real estate, picturesquely situated where the Great African Lakes and East Africa meet.

It has also joined other African nations, particularly in the south, to initiate cannabis reform that will shortly lead to production. Like Lesotho, the geography is mountainous but retains the distinction of being the most densely populated African country. The population is young and rural, the average age of Rwandans is a shockingly low 19 years.

In progress

The beginning of the reform took place last summer when the country announced its plans to start cultivation in June when a framework for the legal industry (of cultivation, processing, distribution and use) was published.

According to local news reports, the Rwanda Development Board has now also designated 134 hectares for cannabis production. The RDB also announced that it has received keen interest in exporting the product and its processed versions.

A statement released by the agency said: “RDB has been working with other government officials to assess the proposals received. The Government of Rwanda has established a rigorous process for selecting companies to partner with or work with companies that already have experience in the production of cannabis for medicinal and therapeutic purposes. The evaluation process has different phases. So far, 5 companies are at an advanced stage.”

No license has been issued yet.

Tragically, the country is also following a trend observed in other countries (such as Greece, the UK and Spain). Namely, there will be limited reform for companies, but solely for the purpose of export earnings. Of course, Europe is at the top of the list of destination countries.

The local law that regulates the use of cannabis carries a hefty fine ($540 to about $5,000). That’s a huge amount of money in a country where the average monthly income is around $200. Prosecution can also include a prison sentence of three to five years.

The big export market

Here is the new face of the global industry. Countries need cash, especially now that every government worldwide is suffering from income shortages and economies are being disrupted by both a pandemic and war with global ramifications. Cannabis reform is a place where countries from Africa, Central America and South America are moving forward at an increasingly accelerated pace.

Production in such locations costs a fraction of what it costs elsewhere – even where proper GMP standards (or good manufacturing practices) are in place.

In addition, there are an increasing number of countries (e.g. Portugal) that charge such producers a huge fee per gram of such product to ‘convert’ it to GMP, even if it is produced outdoors and under a certification from GACP ( a sovereign standard for cultivation) practices for other crops).

It is clear, at least to the leaders in such economies, that cannabis represents a golden opportunity, especially given the continued intransigence on reforms that include domestic cultivation in most parts of the world.

However, as more countries get into the growing and processing game, the lower prices will fall. There will be a race to the bottom, and fast, in a market where prices are already so high that even in Europe only a privileged few can afford them.

Regardless, hemp and cannabis are also increasingly valuable crops for other reasons. This starts with industrial and environmental applications, as well as the ability to provide a much cheaper and widely used drug for diseases that people in developing countries still do not have direct access to.

Even the most cynical world economist will see good in this.

It also seems that many parts of the world are also moving towards creating sustainable agriculture, and for all the right reasons.

So there is reason to be happy that another African country has joined the cannabis club.