The African cannabis industry has the potential to surpass the $7 billion forecast by 2023 because there are so many options - africantrendtv

 

The African cannabis industry has the potential to surpass the $7 billion forecast by 2023 because there are so many options.


The African cannabis industry has the potential to reach an estimated $7 billion by 2023 as there are many possibilities


•The African cannabis industry has the potential to reach an estimated $7 billion by 2023 as there are many possibilities


•Lack of legalization has long been a major factor holding back the economic potential of cannabis in Africa.


As more and more countries on the continent take steps to legalize the cultivation and production of cannabis, the industry's valuation has the potential to increase.


African countries have a favorable climate for growing cash crops and can even export to North America, where the demand is huge.

Due to continued demand and increasing legalization across the continent, the cannabis industry in Africa is expected to grow above the $7 billion mark by 2023. This offers opportunities for African countries that have not been able to reap monetary harvests for years.


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The opportunity is quite large, as emphasized by Danny Nell, CEO of the South African pharmaceutical company Afriplex. In a recent conversation with CNBC Africa, he said that there are opportunities throughout the cannabis value chain. This includes opportunities in growth processes, consumables production and consumable supply in retail.


There are also opportunities for secondary services such as advice, regulation and law. He said all of this would combine to ensure the expected growth of the African cannabis industry.


It should be noted that the lack of legalization is a major factor slowing down cannabis' potential in Africa for medicinal and recreational use. Elsewhere in the world, cannabis-centric companies like Curaleaf Holdings, Aphria and OraniGram, to name a few, have millions in annual sales and billions of dollars in market cap.


African countries have a favorable climate for growing crops. And has a very large export potential, in addition to the potential for very large local consumption demand. So the possibilities are truly endless. However, governments across the region restrict the cultivation and use of marijuana primarily for reasons of morality and the understandable possibility of marijuana abuse. Mr Nell said things were going better now, although there was still a long way to go.


“I think we still have a long way to go. Countries such as South Africa and Lesotho have agreed on legal frameworks for cannabis; for medical purposes. I have to distinguish between medical and recreational use. But there are also African countries that are introducing legal/regulatory frameworks to allow cannabis to be legally grown, processed and sold at retail to develop the final product,” he said.


He went on to explain that there is a tremendous need in Africa for medicinal and recreational cannabis. However, with most governments currently focusing solely on licensing companies that use cannabis for medicinal purposes, the use of entertainment products is booming on the black market. Therefore, to fully exploit the possibilities that medicinal and recreational marijuana offers, it is necessary to put in place the right regulatory framework.

writer: EMMANUEL ABARA BENSON

Source: Business Insider Africa



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