Rwanda's First Medical Marijuana Cultivation Facility Will Soon Be Ready To Operate

Republic of Rwanda, a landlocked country in the Great Rift Valley of East Africa, is working on positioning itself as a key player in the global medical marijuana market. In 2021, Rwanda legalized medical cannabis use, production, cultivation, import and export. The legalization came some 11 years after the Minister of Health initially proposed the refrom.

King Kong Organics (KKOG), a subsidiary of KKOG Global, a US corporation was the first company to secure a 5-year license to cultivate cannabis for medical purposes in March. KKOG Rwanda invested $10 million in the project to develop its production facility in Musanze, which is expected to be complete in September 2024, writes NewsWeed according to translation.

CEO Rene Joseph recently confirmed that 70% of the installations had been completed and that the production launch is expected to start on schedule.

The country's climate and fertile land are said to be suitable for marijuana growing, and the Rwanda Development Board projects that one hectare of cannabis could yield up to EUR 10 million ($11.05 million). For comparison purposes, horticultural flowers, which is a well-developed sector in Rwanda, generate around $300,000 per hectare. KKOG is set to produce 5,000 kg of cannabis per hectare.

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The global cannabis market is projected to reach $444.34 billion by 2030, from currently $57.18 billion, according to Fortune Business Insights. This growth is mostly driven by medical marijuana demands, mostly for pain treatments.

Read Also: Most Important Medical Potential Of Marijuana? Cannabis For Pain Relief Says Biotech CEO

Potential Profits Exceed Initial Investment

In 2022, global combined sales of CBD, medical marijuana and recreational cannabis reached $45 billion, according to Prohibition Partners, a data, media and tech company operating in the legal cannabis industry providing specialist information and data analytics. Prohibition Partners projects that the market could surpass $101 billion by 2026.

Rwanda wants to be a part of this growth and it has identified cannabis production as a top investment opportunity, looking to attract foreign investment. The government allocated 35 hectares of land in the Musanze district to five potential investors, out of whom KKOG Rwanda was first to start construction.

Joseph acknowledged that the production expenses are high due to the limited availability of machinery in the region but added that potential profits exceed the initial investment.

"With the right government partners, we can develop this opportunity," he said.

Recreational cannabis use and sale remain strictly prohibited with severe penalties imposed.

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