eBusiness Weekly
Business Writer
At least five hemp farmers have now reached the harvesting stage for the crop that is expected to contribute significantly to the country’s export earnings, Business Weekly can report.
Hemp is a type of cannabis plant that has very low levels of THC — the intoxicating substance in marijuana.
Although hemp has many advantages for its medicinal interest, there are other composites that can be available that it can be used such as textiles, pulp and paper.
The global cannabis industry is expected to be a US$46 billion business worldwide in three years — up from US$16.47 billion this year according to reports. Zimbabwe, through the Zimbabwe Investment Development Agency, has been on an aggressive drive to push investment into hemp or medicinal cannabis and has to date licensed a total of 57 investors that are now at different stages of making use of their licenses.
Of the 57 licensed investors, 16 have already started operations, according to Tino Kambasha, ZIDA’s chief investments and corporate affairs officer.
“We have at least 16 who have started their operations and about five who have reached the harvesting stage,” Kambasha said.
Commenting on the potential size of local hemp operations, Kambasha said each of the investors is targeting about 10 hectares.
“This is mainly because medicinal cannabis production is capital intensive and should be done in Greenhouses to control the conditions that required by some of the varieties,” Kambasha explained.
Zimbabwe recently scrapped rules requiring sole state ownership for cannabis farming to encourage investment into the sector.
As part of measures to boost investment, ZIDA also had to draft the Investment Stability Agreement (ISA) meant to offer incentives and guarantees to investors.
“When ZIDA took over the application process, it is important to realise that ZIDA had to engage stakeholders to address the investment climate-related questions.
“This led to the drafting of the Investment Stability Agreement (ISA) to offer incentives and guarantees to investors,” Kambasha explained.
