Moroke Sekoboto
MEDICAL cannabis holds significant potential to drive job creation and economic growth, presenting both immediate and long-term opportunities for Basotho.
This according to Bokang Matsipa, a medical cannabis expert and pioneering producer of cannabis in Lesotho, who stressed the importance of strengthening policies and regulations to unlock this potential.
Mr Matsipa shared these insights during the recent Rise of the African Cannabis Industry seminar, a virtual event that brought together cannabis experts from South Africa, Zambia, Rwanda, Zimbabwe, Malawi, Kenya, Botswana, and Ghana.
Mr Matsipa underscored the need for Lesotho to establish a streamlined licensing process that reduces bureaucratic red tape and ensures clarity for all industry participants.
“This can be achieved through the development of standardized regulations and transparent application procedures for growers, processors, and distributors,” Mr Matsipa said.
“Additionally, introducing online licensing platforms can expedite approvals and save valuable time.”
He further recommended the establishment of an independent oversight body to ensure accountability in the licensing process.
According to Mr Matsipa, smallholder farmers should be actively engaged in policy reforms and provided with resources, knowledge, and access to markets.
“Government can offer targeted financial support to smallholders for crop transitions, infrastructure, and equipment. Fair pricing mechanisms and platforms should also be created to allow smallholder farmers to sell directly to licensed processors. Policies must protect smallholder land access and prevent land monopolisation by large corporations.”
Mr Matsipa said Lesotho’s cannabis industry was well-positioned to tap into international markets, particularly in Europe, where demand for medicinal cannabis products is growing. He also highlighted opportunities in Australia, which boasts one of the fastest-growing legal cannabis markets, and in regional trade within Africa for both medicinal cannabis and industrial hemp.
“The Europe demand, combined with Lesotho’s favourable climate and regulatory framework, positions the country as a key supplier. Australia’s proximity to Lesotho provides cost-effective export routes, while regional demand offers significant potential for intra-African trade.”
The global cannabis industry is projected to reach USD$68.47 billion by 2025, with an anticipated annual growth rate of 2.33%, leading to a market volume of USD$75.09 billion by 2029. Medicinal cannabis is expected to contribute substantially to this growth.
“By aligning with global market demands, Lesotho could generate export revenues in the hundreds of millions of USD annually, depending on operations,” Mr Matsipa said.
“The sector could also create thousands of direct and indirect jobs, from farming to processing, packaging, and distribution, reducing unemployment and boosting the local economy.”
Mr Matsipa advocated localising cannabis processing to maximise value addition.
“Instead of exporting raw cannabis, Lesotho can invest in local processing facilities for extraction and manufacturing.
“This includes building facilities for Cannabidiol (CBD) and delta-9-tetrahydrocannabinol (THC) extraction and the production of cannabis-infused products. Partnering with international firms with expertise in cannabis processing technologies can enhance product quality and efficiency.”
The cannabis industry’s growth, according to Mr Matsipa, must be driven by skilled local labour.
“Lesotho can establish cannabis-specific training programs focused on cultivation, processing, regulatory compliance, and research and development.
“Collaborations with local universities and research institutions can offer specialised courses and certifications in cannabis-related fields. Public-private partnerships (PPPs) can also create job-training programs to empower communities and support economic mobility.”
Mr Matsipa stressed the importance of integrating informal cannabis growers into the formal economy to promote social equity.
“Lesotho can create clear pathways for informal growers to transition into the formal market by providing support with licensing and regulations. Programs should also educate informal growers on the benefits of participating in the formal market and the legal requirements involved.”
The government can further facilitate community-based cannabis cooperatives, allowing local farmers to collectively manage production, processing, and marketing.
“Fair profit-sharing mechanisms must be implemented to ensure that local communities benefit equitably from the cannabis industry’s growth,” Mr Matsipa said.
