Over the last few years, the cannabis industry has experienced a fast-growing and rapid evolution. While there are a few jurisdictions that have legalized cannabis for recreational use, there are others that have recognized the use of medicinal cannabis and have taken steps to legalize or decriminalize it. In September of 2018, following a Constitutional Courts Judgement, Zimbabwe became the second African country to legalize and commercialize the cannabis crop for scientific and medical purposes. South Africa’s Constitution is a radical piece of legislation that imposed an obligation on the judiciary and the legislature to promote and protect basic human rights, and a prime example of this was the evolution of the cannabis legislation. It was the right to privacy that led the way for reform to South Africa’s cannabis laws.
Recently, in May 2021, there has been an escalation and wide-reaching international interest on the view that medical cannabis should be decriminalized throughout the continent of Africa, which would boost the African economy tremendously. As Africa steps into decriminalizing medical cannabis, this topic has now sparked the interest of foreign investors as they are starting to see Africa as a lucrative destination for investment opportunities and law firms that are increasingly setting up global cannabis practices. These investors and firms see the continent as a promising future market.
While legalization would mean the removal of all legal bans against the production, possession and use of cannabis, decriminalization would mean that cannabis still remains illegal, however, no person can be prosecuted for possessing cannabis in limited quantities. In Africa, many countries rely on profits generated from cash crops such as maize and cotton, but there is always a threat of fluctuating prices in the global market. With the legalization of cannabis, these countries can not only benefit from the creation of an alternative and lucrative income stream but also from the jobs that will be created as a result of the legalization process. Other benefits include the production of goods ranging from textiles to cannabis oils and curbing illegal business activities. Recently in April, the Department of Agriculture, Land Reform, and Rural Development proposed its draft cannabis master plan, which aims to loosen regulations and decriminalize cannabis for private purposes by 2023. Mthuli Ncube, the finance minister of Zimbabwe, says that the cannabis industry alone could account for generating $1.3 billion by the year 2021, making it one of the most lucrative industry in the country. The lucrative cannabis industry of Uganda, which is worth an estimated $3 billion, is also expected to manifest benefits such as generating taxes, encouraging foreign direct investments and trade surplus as well as creating plenty of job opportunities. Moreover, in October, Rwanda has come forth as the latest country to decriminalize the use of medical cannabis and is now viewed as a key sector for generating profits, jobs and other economic benefits.
With a thriving cannabis market, decriminalization and regulation become very necessary in order to control the industry and ensure formalization of illegal production, all of which would stimulate additional tax revenue and economic development as a whole. In addition to that, regulation of medical cannabis could assist the continent in confronting serious diseases and ailments such as cancer and neurological illnesses since medicines can be manufactured in countries where medical cannabis has been decriminalized.
Africa has made substantial progress in decriminalization and it could eventually reap significant economic benefits with further legalization; however, the government remains skeptical of this process mainly due to the social stigma attached to the use of cannabis. Many governments believe that more liberal laws would lead to further addiction to recreational and dangerous drugs such as heroin and cocaine- which are often related to and result in crime/criminal activity. The perceived ‘social-ills’ related to cannabis use by politicians, as well as the cost and expense for establishing infrastructure required for cannabis production could be a major obstacle for nations lacking financial resources. The cutting-edge technology used for cannabis farming, such as automated irrigation systems and greenhouses, as well as the new licensing system introduced by the government in order to regulate and prevent illicit use are also very expensive. This prevents small farmers from entering and benefitting from the market. Subsequently, these factors would lead to the deceleration of the legalization process and increase resistance towards the same.
In December of 2020, an initiative of removing cannabis from the most tightly controlled category of narcotics was taken by the United Nations Commission on Narcotic Drugs. This historical development can also sharply boost the growth of the cannabis sector not only in Africa but around the world. It is time that more countries recognize the potential rewards of decriminalizing and eventually legalizing cannabis as they are far too significant to be ignored.
Very informative, amazing flow it