Cabinet to approve marijuana growing with strict restrictions, companies must have a combined minimum capital and bank guarantee of Shs22b

As Uganda is seeking to have more companies secure licenses to join the sector of medical marijuana growing, cabinet is expected to come to conclusion and approve the 15 guidelines of growing the ‘controversial’ drug.

According to some of the set rules, individuals and companies seeking to grow or export marijuana will be required to have minimum capital and bank guarantee of Shs18 billion and Shs4 billion respectively.

Foreign investors will be required to present a tax clearance certificate from the Uganda Revenue Authority; list of employees attached with their job descriptions, a valid trading license, evidence of value addition to cannabis, and audited accounts.

On the location of the farms/sites, they should not be near schools, hospitals and residential areas.

Upon agreeing on the listed guidelines, Health Minister Dr Ruth Aceng will have to present them before Parliament. A confidential list of more than 100 companies and individuals are seeking permission to grow and export the crop for medical purposes.

The Narcotic Drugs and Psychotropic Substances Act 2015, allows the cultivation, production and exportation of medical marijuana and mandates the Minister to issue written consent for medical marijuana.

Industrial Hemp Uganda Ltd, a private company based in Hima, Kasese District, has since 2017 been enjoying the monopoly working with Industrial Globus Pharma Uganda Ltd (a subsidiary of Together Pharma from Israel) to grow medical marijuana for export to Germany and Canada.

Some of the companies with pending licenses include; Natgro Phama (U) Ltd, Medraw (U) SMC Ltd,  Urban Properties (U) Ltd,  Prime Ranchers,  Silver Seeds (U) Ltd, Dave and Dave Group, Seven Blades,  Cannops Africa, Quest Worths International Group, Premier Hemp, Sativa Agro-tech Ltd,  Zeus Agro Ltd and Owesia (U) Ltd.

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