Industrial and Medicinal Cannabis in Ghana: Opportunities and challenges

In 2020, Ghana’s Narcotic Control Commission Act (Act 1019) was reviewed to permit the cultivation of cannabis with THC content of 0.3% or less to serve industrial and medicinal purposes. The country is yet to see implementation of the amendment as we await the necessary ratifications for the cost and regulatory frameworks.

The commission has, however, assured Ghanaians that very soon licenses will be issued out for the cultivation of industrial and medicinal cannabis. This is a significant step to diversifying agriculture in the country.

Cannabis sativa is gaining momentum as a plant that can potentially rival some notable cash crops in Africa. In 2017, Lesotho became the first African country to legalize the use of cannabis for medicinal research and purposes in an effort to achieve economic growth.

Countries like South Africa, Zimbabwe and Malawi have also charted the same path. In Malawi, for instance, the Cannabis Regulation Act, 2020 (Act 6) was enforced to allow the cultivation, processing, storage and export of industrial and medicinal cannabis in order to boost the economy, especially after the plummet in the production of tobacco – one of the country’s main exports for some years now.

It is noteworthy that Ghana is privileged to have one of the best agronomic climate conditions for the cultivation of the cannabis. The plant flourish under sunny weather and grows at a very fast rate. It is projected to mature in just three months and as a result we can have as much as four harvest seasons annually. In fact, Ghana is well positioned to dominate the cannabis industry insofar as the required structures are put in place to facilitate implementation of this policy.

What can Cannabis add to Ghana’s economy?

The overall global value of cannabis is forecasted at over USD 18 billion by 2027. This is due to the fact that cannabis is a versatile plant that can be used for a wide variety of products. It has been one of the earliest sources of paper, textiles, ropes and medicines.

Cannabis processing can be a heavy boost to Ghana’s economy. It can be cultivated and exported to fetch millions of cedis for the country, or at best, processed locally. Considering the country’s material footprint, cannabis processing can cut a lot of cost for the country. From 2017 to 2021, Ghana is estimated to have imported paper products worth over USD 340 million.

Meanwhile, according to the National Industrial Hemp Council of America, just an acre of two months old cannabis can produce the same amounts of papers as 4 to 20 acres of over 20 years old trees. Aside being a much more sustainable alternative, cannabis papers are highly resistant to discoloration and decomposition compared to wood pulps.

Also, the outer layers (bast) of cannabis stalk can be processed into durable and tensile fabrics as well as ropes. The inner layers (hurd) on the other hand, are usually good for the production of building materials (hempcretes), biofuels, animal beddings etc.

Health benefits of Cannabis

Cannabis comes with numerous medicinal benefits. The seeds are rich in calories, proteins and minerals such as iron, magnesium and zinc. It contains amino acids which improve the heart health. It also has anti-inflammation properties, facilitates neuro-protection, lowers blood pressure and effective in treating diseases like anxiety disorders, Post-Traumatic Stress Disorder (PTSD), depression, chronic pains etc.

Cannabis seeds are also rich in omega-3 fatty acids and vitamins which moisturizes the skin, hence, valuable in the skincare industry.

Possible Challenges to Industrial and Medicinal cannabis cultivation in Ghana

Despite being blessed with fertile soil and favorable agronomic climate for the cultivation of cannabis, Ghana must brace up for some setbacks with the implementation of this policy, especially at the initial years.

A typical challenge we’re most likely going to face is the infrastructural deficit within the agricultural setup, especially in the areas of transport and logistics, post-harvest storage facilities and modern technologies to boost production.

Secondly, there is a huge gap in research and technical expertise in the production of cannabis such as effective pest and disease control.

Also, farmers may encounter difficulties in securing funds. In South Africa, for instance, it has become quite challenging for hemp farmers to secure loans from banks and financial institutions to support their businesses. The main reason behind this is because cannabis is not yet a proven crop, thus, investing money into it is considered a very high risk. This has resulted in South Africa accounting for only 30% of licensed cannabis farmers being productive.

Additionally, a restrictive regulatory framework and exorbitant licensing fees will become a big disincentive. The conditions for securing a license must be flexible and affordable to favor both small-scale and large-scale farmers.

Finally, there are chances that enforcement of this policy may give rise to the proliferation of the recreational cannabis, otherwise referred to as marijuana.

This is because, albeit the limitation of the production to industrial and medicinal purposes, some people may secure the license as a smokescreen to cultivate marijuana.

It will take a lot of commitment and concerted efforts from the government and individuals to overcome these possible setbacks. The likes of Lesotho and Malawi have sustained the cannabis industry by fostering strong private-public partnerships, introducing tax incentives to woo investors as well offering loans with very little interests to small-scale farmers. These could be inspirations to Ghana as we look forward to establishing cannabis as a major boost to our agricultural gains.