The cannabis market in Africa is expected to surpass a $7 billion valuation by 2023, thanks to rising demand and legalization across the continent. This creates potential for African countries who have been unable to profit from the cash crop for many years.
According to Danie Nel, Chief Executive Officer of South African pharmaceutical business Afriplex, these prospects are enormous. He stated there are opportunities across the entire cannabis value chain while speaking to CNBC Africa recently. These include opportunities in the cultivation process, consumables production, and consumables supply to retail locations.
Secondary service options, such as consulting, regulatory, and legal, are also available. All of these, he claimed, will combine to ensure the cannabis industry’s predicted expansion in Africa.
It should be mentioned that the lack of legalization has been the most significant issue limiting cannabis’s potential in Africa for both medicinal and recreational purposes. Cannabis-focused companies throughout the world, such as Curaleaf Holdings, Aphria, and OraniGram, to name a few, earn millions of dollars in annual revenue and have market capitalizations in the billions.
The climate in African countries is ideal for growing the crop. Aside from a possibly large local consumer demand, there are tremendous export potentials. As a result, the possibilities are truly limitless. Governments across the region, on the other hand, have mostly limited the growing and consumption of cannabis due to moral concerns and the understandable risk of abuse. Mr Nel stated that things are improving, despite the fact that there is still a long way to go.
“I think we have a long way to go. Countries like South Africa and Lesotho have already approved the legal framework for cannabis; for medicinal use. I have to distinguish between medicinal use and recreational use. But there are more African countries coming along, putting the legal/regulatory frameworks in place to allow for the legal growing of cannabis, the processing thereof and the development of final products to retail,” he said.
He went on to say that there is a great demand in Africa for both medicinal and recreational cannabis. However, because most governments are currently focused on licensing enterprises that utilize cannabis for medicinal purposes, the illegal market for recreational usage has prospered.
As a result, the correct legal frameworks must be put in place in order to fully exploit the benefits afforded by both medical and recreational cannabis.
Source: Africa business insider