The legalization of cultivation and export of medical cannabis in Rwanda seems like a doorway to success for many companies, but it also spells economic growth potential the country can derive from the once-forbidden crop.

Now, King Kong Organics (KKOG), a subsidiary of KKOG Global, is so bullish on the future of the industry that it says it has already invested $10 million (approximately Rwf12.8 billion) to kick-start the cannabis industry in Rwanda.

KKOG secured a five-year license from the Rwanda Development Board (RDB) to operate cannabis production, becoming the first company in Rwanda to secure such license.

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The license allows the company – which has extraction facilities in Zimbabwe, Malawi, DR Congo and South Africa, among others – to cultivate cannabis for medicinal purposes, extraction, and export various medical products.

Rwanda identified cannabis production as a top investment opportunity, seeking to attract at least Rwf19 billion (about $17.5 million) investment in the production of the high-value therapeutic crop.

The global cannabis market size is projected to grow from $57.18 billion in 2023 to $444.34 billion by 2030, at a compound annual growth rate of 34.03 per cent during the forecast period, according to Fortune Business Insights.

The projected growth represents a significant avenue for economic growth.

Rene Joseph, the Founder and CEO of KKOG Rwanda, said that the infrastructural development, business environment, and proximity in the East African region made it ideal for for the company to invest in Rwanda.

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According to him, venturing into this extremely lucrative industry is expensive in terms of knowledge since it is not widespread and the cost of production is high given the limited availability of machinery and technology involved in the value chain.

"We have already invested $10 million in machinery, facility construction in Musanze [District], payment of fees in land acquisition and contractors, as well as importing the genetically modified cannabis seeds, among others,” Joseph said.

RDB has allocated about 35 hectares to five potential investors, five hectares each and 10 hectares for communal use and security purposes, in Musanze District.

Joseph told The New Times that the company anticipates to start production by the end of May 2024. The production involves the extraction of cannabis oils which will be exported to the targeted markets.

KKOG targets to produce at least 5,000 kilogrammes per hectare whereby cannabis plants grow within a period of four to six months.

"We have global demand which by far exceeds the capacity of land available to produce cannabis. If we had more land, we would produce even more but we are currently staying within the RDB parameters and we have to show proof of concept,” said Joseph.

Cannabis is the most widely cultivated, trafficked, and consumed drug worldwide, according to the United Nations Office on Drugs and Crime (UNODC).

This speaks to its high demand. In particular, the demand for medical cannabis – that prescribed by doctors to patients – is expected to grow exponentially.

Prohibition Partners estimates that, in 2022, the global sales of CBD, medical and adult-use cannabis amounted to US$45 billion and could be worth more than US$101 billion by 2026.

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Joseph said that Africa can leverage cannabis as an alternative to most medicine, especially pain-related drugs, imported from outside. This would contribute to enabling the continent to reduce its medical import bill, which the African Development Bank estimates to be $14 billion.

He noted that the company prioritizes knowledge sharing to contribute to Africa's realization of this industry’s potential through employing local staff in countries where it has a presence. The staff will be exposed to technical activities from farming, extracting, distilling, and more.

Asked whether the company intends to make additional investment in the near future, Joseph said they would definitely inject more money to scale up production.

"With the right government partners, we can scale this opportunity that is as big as it is and hopefully command the commodity on the global market,” he added.

Although Rwanda legalized medical marijuana, recreational cannabis uses and sales remain illegal in the country and there are strict penalties for the illicit production, distribution, and consumption of cannabis.

The law governing narcotic drugs, psychotropic substances, and precursors, imposes fines of between Rwf500,000 and Rwf5 million and prison terms of between three to five years for anyone found illegally using marijuana.