Zimbabwe has moved to allow foreign investors in the medical cannabis industry to retain full ownership of their investment, among other key incentives for the budding sector.
This comes as authorities have announced a set of policies and operational mechanisms for investment into the production and processing of medicinal cannabis in the country.
The operational framework will be
administered through the Zimbabwe Investment and Development Agency (ZIDA)’s One Stop Investment Services Centre (OSICS).
ZIDA is the country’s investment agency responsible for promoting and facilitation of both local and foreign investment.
Said ZIDA chief executive Douglas Munatsi:
“This is the country’s strong statement of intent to nurture and grow this industry and become one of the leading players in medicinal cannabis production, fully optimizing the inherent comparative advantage Zimbabwe has in the form of skills, climate and agricultural expertise.”
The global medical cannabis market to grow at a compound annual growth rate CAGR of 15.3 percent between 2021 and 2026.
The agency’s chief investment and corporate affairs officer Tinotenda Kambasha said the move is a seismic shift from previous policies in this regard.
“This is a significant departure from previous policy which required investors to co-own investments in joint venture with Government or government entities and locate their investments at state prescribed locations,” he said.
“To further assure investor safety and protection, the government has finalized and agreed a legal instrument called the Investment Stability Agreement (ISA), which gives investors added security.
The ISA outlines the guarantees offered by Government for the protection of property rights, ring fencing investments against expropriation and protect investors against change in laws.
In addition, it provides a framework for monetary and fiscal incentives unique to medicinal cannabis sector.
According to ZIDA, the export retention regime is differentiated as follows: status unprocessed (2 years); semi-processed (3 years), and fully processed (4 years).
Government has also approved the
establishment of the Green Industry Fund, to promote local beneficiation, skills transfer and development of the local pharmaceutical industry.
The framework is a result of consultation with industry and relevant stakeholder players including the Ministry of Health and Child Care, Ministry Finance and Economic Development, Ministry of Lands, Agriculture, Fisheries, Water and Rural Settlement, Ministry of Defense and War Veterans Affairs and the Cannabis Industry Association of Zimbabwe (CIAZ).
Medicines Control Authority of Zimbabwe (MCAZ) acting director-general Richard Rukwata said his organization will play its part in ensuring regulatory oversight.
“MCAZ is very excited to be playing a strategic role in facilitating an enabling a progressive regulatory environment to encourage the growth of the medicinal cannabis industry.
“The ISA compliments Statutory Instrument 62 of 2018 (Dangerous Drugs Act) and we anticipate this will provide the comfort investors in this sector require.”
Said CIAZ president Peter Rhodes:
“The ISA is a welcome and genuine display of the GOZ’s desire to drive growth in the medicinal cannabis sector through providing stability and security to investors,” he said.
“CIAZ encourages its members and other players to take full advantage of the very positive steps taken by the Government to make the growth and production of medicinal cannabis competitive regionally and globally. We remain engaged with Government through ZIDA to continually improve and remain competitive.”