Online Reporter
The local cannabis industry is still small, but its potential to become a meaningful contributor to exports, employment, agricul-tural diversification and industrialisation is big.
A recent visit by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube to Thathokuhle Farm in Douglasdale near Bulawayo provides an important reminder that the country can create new sources of foreign currency if it supports productive enterprises and moves decisively up the value chain.
The Government legalised cannabis cultivation for medicinal and scientific purposes in 2018, opening the door to an industry that could eventually supply international pharmaceutical, wellness and industrial markets. Thathokuhle Farm demonstrates what can be achieved when farmers combine commercial agriculture, technology and processing. Its cannabis operation employs dozens of workers and has the capacity to dry and prepare products for export.
But we must avoid repeating the mistakes associated with exporting unprocessed agricultural commodities. The greatest economic opportunity lies not simply in growing cannabis, but in processing it into higher-value products locally. Extracts, pharmaceutical ingredients, industrial hemp products and other derivatives can generate significantly more revenue, create skilled employment and build domestic expertise.
To unlock this potential, authorities need to make the regulatory environment predictable and competitive. Licensing requirements should be transparent, affordable and processed within clearly defined timeframes. Government agencies must also coordinate their oversight to avoid imposing overlapping requirements that discourage investment.
Tax incentives, such as those extended to Thathokuhle, can help promising businesses expand, but they should form part of a broader industrial strategy rather than remain isolated interventions.
Government should consider incentives for local processing, research and development, laboratory testing, export certification and the production of cannabis-related equipment and inputs.
We should also establish strong quality-control systems that enable local products to meet international standards. Without credible testing, traceability and certification, access to lucrative overseas markets will remain limited. Authorities should therefore work with universities, research institutions and the private sector to develop local expertise in genetics, cultivation, extraction and pharmaceutical applications.
The proposed out-grower model for industrial hemp is particularly worth pursuing. If properly regulated, it could bring smallholder farmers into higher-value agriculture, spreading the benefits of the industry beyond commercial estates. Farmers would need access to certified seed, finance, extension services, guaranteed markets and technical training.
On licensing requirements, we are glad to state that authorities recently drastically reduced the cost of basically all permits and the fees in relation to cannabis farming and processing.
However, we must highlight that cannabis cannot be a substitute for traditional agricultural and mineral exports, or be treated as a quick source of foreign currency. Global competition is growing, while regulatory requirements in importing countries can be stringent.
The objective should instead be to build a credible, export-oriented cannabis and hemp industry anchored in local processing and supported by science. Thathokuhle’s experience shows that the foundations exist. What is required now is consistent policy, efficient regulation and investment in the value chain.
If we get this right, cannabis could evolve from a niche agricultural experiment that it largely is now, into another pillar of a more diversified and resilient economy.
