Rwanda Becomes Latest African Nation to Allow Cultivation of Cannabis for Medical Purposes

Rwanda will join African countries Lesotho, South Africa, Kenya, Zimbabwe, Morocco and Uganda, among others, which are already developing legal cannabis production strategies. The Rwandan government approved the regulatory guidelines on the cultivation, processing and export of high-value therapeutic crops on October 12, 2020. This latest development for Rwanda demonstrates its readiness to meet the increasing and fast-growing markets in the United States and the European Union.

The guidelines issued by the Rwandan Development Board will now enable the Rwandan government to issue licenses for growing cannabis for medical use. The newly passed legislative document, the National Pharmaceutical Product Pricing and Containment Policy. 

It’s all about economics. “Medical cannabis produced in Rwanda is solely for export markets,” stated the RDB. This strategy puts the government of Rwanda in the position to generate significant export revenues and employment opportunities in high-value agriculture and agro-processing. These license applications will be sent in by investors interested in cannabis, even though cannabis consumption in the country still remains illegal. 

The Rwandan Minister of Health, Dr. Daniel Ngamije, said of the recent legislation shift:

“From tea to coffee, all these are plants that are exported and they are able to be some sort of remedies to various diseases. The same thing applies to this plant called cannabis. It is going to be planted in a safe way. Even those that are allowed to grow it will have to apply and be given the go-ahead to do so and grow it in a safe place and then export it so that the pharmaceutical industry can meet its needs.”

Dr. Ngamije contends that the demand in medical cannabis byproducts has led to this decision: “Cannabis will be strictly grown for export to pharmaceutical industries abroad which convert the different strains into medicine and also for research.”

Clare Akamanzi, the CEO of the Rwandan Development Board, believes cannabis cultivation is an opportunity in both investment and job creation. “Some of these crops have a value of where you can get ten million dollars with a single hectare of production. If you compare that to roses and flowers, for example: if you grow roses on a hectare you can expect to make $300,000. Compare that with the cannabis plant, where you can make $10,000,000, a huge difference.

Economically, it’s potentially really good for the country. We also expect this industry to create thousands of jobs if it goes well and there also is the expectation for taxes and other types of levies for money that will come back to the treasury. These are the main benefits of the cannabis plant: the health benefit, the economic benefit and the employment benefit.” For reference, in 2018 the state of Colorado alone, cannabis cultivation employed 18,000 people and created $50,000,000 in profits. 

A statement from the RDB reads: “Medical cannabis produced in Rwanda is solely for export markets. Rwanda is a signatory to all relevant UN conventions relating to narcotics, and will continue to ensure full compliance with international law. The guidelines establish quality standards, the requirements for licenses and permits, as well as strict security measures designed to prevent any illicit diversion or use of the product.”

Rwanda’s geography and ecological conditions are ideal for cannabis and the country has all the endowments necessary to be globally competitive in the production and processing of cannabis. Given the ideal climate conditions that Rwanda shares, from temperature to rainfall and good terrain, Rwandan production of medical cannabis is something to get excited about. Any interested producers of commercial cannabis must be licensed by the Rwanda Food and Drug Authority (FDA), while production zones are expected to be under tight security on the farm and throughout the production chain. All products will be 100% exported.