Africa’s Cannabis Industry Projected To Be Valued At $7 Billion By 2023

According to Business Insider Africa, the continent’s cannabis industry could be valued at $7 billion by 2023 because of the increasing demand for legalization in both recreational and medical fields.

There are countless opportunities for African countries to take advantage of what’s referred to as “the cash crop.” During an interview with CNBC Africa, Danie Nel, chief executive officer of South African pharmaceutical company Afriplex, said these opportunities are monumental, especially regarding the cannabis value chain.

There are abundant opportunities to cultivate and produce consumable cannabis and regarding the supply of consumables to retail storefronts. Nel said these combined opportunities would guarantee projected growth in Africa’s burgeoning cannabis industry.

The reasons for Africa’s slow-moving cannabis industry are simply due to the lack of regulatory frameworks and legalization in both the medicinal and recreational markets. Take big cannabis companies, for example, like Curaleaf Holdings, Aphria, and OraniGram, which have generated millions in annual revenue and have contributed billions to market capitalizations.

If African countries were to tighten regulatory frameworks and legalize cannabis for medical use, recreational use, or both, they would reap the rewards of such a favorable climate to grow the plant—not to mention the potential for export aside from the local demand for the crop.

Although there are limitless opportunities, governments across Africa have kept the plant restricted because of moral beliefs and the notion that cannabis abuse is relatively easy. Keeping the crop restricted was Africa’s way of keeping the continent safe, but unfortunately, it led to individuals obtaining their cannabis through the black market.

Although plans are changing for the better, Nel mentioned there is still a ways to go. He added that countries like South Africa and Lesotho have already approved legal frameworks for medicinal cannabis.

Nel is happy that more African countries are moving forward and putting the legal frameworks in place to “allow for the legal growing of cannabis, the processing thereof and the development of final products to retail,” he told CNBC.

Nel added that there is a prominent demand for both medical and recreational marijuana in Africa, but since most governments are focused on licensing companies to create medical products, the recreational side of the crop has been selling like hot cakes in the illicit market.

For Africa to fully take advantage of the many opportunities for medicinal and recreational cannabis noted above, the continent needs to implement more regulatory schemes and legal frameworks to make it happen.