Guidelines for medical cannabis

Government has announced a set of policies and operational mechanisms for investment into the production and processing of medicinal cannabis.

The operational framework will be administered through the Zimbabwe Investment and Development Agency (ZIDA)’s One Stop Investment Services Centre (OSICS).

According to ZIDA chief investment and corporate affairs officer Tinotenda Kambasha, investors can have 100 percent ownership of their investments and locate their facilities anywhere in the country without prescription.

“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 finalised 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 (two years); semi-processed (three years), and fully processed (four years). Analysts expects the global medical cannabis market to grow at a compound annual growth rate (CAGR) of 15,3 percent between 2021 and 2026.

Cannabis has been approved for medical use in a number of countries, with varying degrees of legal restrictions.

These countries include, Brazil, Canada, Chile, Colombia, Czech Republic, Germany, Italy, Mexico, Spain, the United Kingdom, the United States and Uruguay.

Government has also approved the establishment of the Green Industry Fund, to promote local beneficiation, skills transfer and development of the local pharmaceutical industry.

“To give effect to the investment ecosystem of medicinal cannabis growth and production in Zimbabwe, an Inter-Ministerial Committee of all the relevant stakeholders superintends this very important new industry,” added Mr Kambasha.

“Investors are expected to install smart technology on all medicinal cannabis production premises for security and monitoring purposes. All investments are administered through ZIDA’s OSISC which facilitates the licensing of all investments in medicinal cannabis.”

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).

Announcing the framework, ZIDA chief executive Doug Munatsi said:

“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.”

Said Medicines Control Authority of Zimbabwe (MCAZ) acting director-general Richard Rukwata:

“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.”

CIAZ president Peter Rhodes welcomed the initiative.

“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.”-herald.cl.zw