A rising number of African nations see cannabis as a way out of poverty, and global investment in this industry has poured in.
Global business experts are increasingly predicting a cannabis boom on the continent. Africa presently has seven legitimate producers.
South Africa, one of the continent's economic powerhouses, decriminalised personal growing in 2018 with a high court judgement and started awarding licences for commercial production of medicinal marijuana the same year.
Lesotho, South Africa's tiny landlocked neighbour, awarded the continent's first commercial growing licences in 2017 and is already producing for the worldwide medicinal market.
Major Canadian licenced producers have made huge investments, bringing the kingdom's longstanding criminal cannabis economy to light.
The Health Ministry also legalised medicinal marijuana growing in Zimbabwe in 2018, however no licences have yet been given.
Plans for commercial cultivation in Uganda were stalled last year due to requests from conservative cabinet members for a legal review, but the first licences were issued in December 2019, going to the Israeli business Together Pharma.
In December, Zambia's cabinet decided to legalise the production and export of cannabis for medicinal purposes. The decision was made when the nation was experiencing severe drought, a foreshadowing of aridification connected to global climate change in the larger southern African area. This might make Zambia an unwilling test case for cannabis drought resistance claims.
Kenya is another possible next entrance for cannabis on the continent, and it may soon follow Uganda as the second East African country to encourage cannabis trade.
The Pharmaceutical Society of Kenya is now lobbying the country's government to enact a law legalising medicinal marijuana—but only under the stringent supervision of the national Pharmacy & Poisons Board.
What Uganda Loses as a Result of the Plant's Delayed Legalization
Legalizing marijuana has the potential to provide enormous economic advantages on both a local and national scale.
It might also assist to safeguard the financial portfolios of individuals throughout the nation and beyond.
While marijuana remains illegal in Uganda, investors are finding it tough to capitalise on the industry's rise. While the number of marijuana-related firms trading on public stock markets is small, investors may use over-the-counter exchanges.
Also read: Bury Ignorance and Boost the Economy! Here's Why Uganda Should Legalize Cannabis Growing Right Away.
If marijuana is legalised, marijuana firms will be able to list their stocks on all Ugandan markets, increasing liquidity and providing access to many more investors. If the cannabis field continues to develop at the rate it has in recent years in Africa, it is probable that investors will take a great interest in the business.
Legalization of marijuana may also assist medicinal users of cannabis-based goods.
As marijuana becomes legal in more African countries. As a consequence of commoditization, the price is projected to fall overall.
This may not seem to be good news for total tax collections or marijuana businesses wanting to maximise profits. Individuals who use marijuana-based goods for medicinal purposes, on the other hand, stand to gain significantly from cheaper pricing for these things.
Meanwhile, there is widespread opposition to legalising marijuana throughout the nation. Critics point to the possibility for misunderstanding among Ugandans, concerns about rising homelessness or young drug use, and other issues, but are they important enough to prevent billions of dollars from entering Uganda's skyrocketing economy as earnings from this business?
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