Market Date:19 September, 2020

Zimbabwe can rake US$19m from cannabis

Zimbabwe can rake US$19 million in tax revenues and produce involving 60 000 and 90 000 jobs over a five year interval from the creation of medical cannabis and industrial plants, a new report states.

Based on study from New Frontier Data titled Hemp Cultivation in Africa: Zimbabwe Case Study 2019 released lately, the nation stands to benefit efficiently from controlled cultivation of cannabis.

“Although Zimbabwe has deployed a limited medical cannabis programme, the country is looking closely at how to create a more robust and expansive regulated system,” the report states.

“Following the full implementation and activation of a regulated cannabis market, both taxes and employment would increase.”

New Frontier Data estimated that joint tax revenues from domestic sales and exports within a five-year interval could reach almost $19 million while producing between 60,000 and 90,000 jobs.

“Successful deployment of a regulated system will depend upon many factors, primarily how to maximise economic and medical benefits to Zimbabweans without stifling the nascent industry’s growth and development,” it included.

“By leveraging experience and experience from different markets, Zimbabwe can avoid many implementation problems encountered by other nations.

“Zimbabwe’s market represents enormous potential, especially if maximising first-mover benefits while other nations debate that the formulation of policy”
Cannabis gives potential to create jobs, decrease expenditures, and supply opportunities to Zimbabweans for a long time to come, ” it included.

Zimbabwe this past season became the second African nation to legalise the production of cannabis for medical and scientific purposes, but a couple of licenses are granted.

“By establishing its programme, and expanding it to include industrial hemp and allow for legal exports, Zimbabwe can reduce healthcare costs while generating an estimated $19.5 million in tax revenues,” that the New Frontier Data report included.

The researchers stated Africa’s overall economy accounted for US$37.3 billion in the US344.4 billion worldwide cannabis marketplace in 2018, that was a blend of legal and illegal sectors.

“ Zimbabwe’s population of 16.5 million includes 1.1 million cannabis consumers annually, with an estimated current cannabis consumer spending market value of US$200.1 million,” the report included.

In October, the Zimbabwe Industrial Hemp Trust sowed six forms of industrial cannabis, which eventually became the nation’s first authorised hemp harvest.

Industrial hemp is many different cannabis that’s grown for industrial applications in textiles, paper, rope and edible seeds.