Ethiopia's cannabis potential valued at 10 billion US dollars
New study examines regional and global opportunities for cannabis and hemp for Africa. According to an African regional report and this study conducted by New Frontier Data, the industry outlook for 2019 indicates that flowering plants of the Cannabinaceae family, known for their medical or recreational uses, have a potential for 9,8 billion in the Ethiopian market, ranking second on the African continent only after Nigeria's 15,3 billion.
New Frontier Data: Authority for Data Analysis and Business Intelligence on the Global Cannabis Industry, Announces Publication of its Latest Report, Africa Regional Hemp and Cannabis Report: Estimating the Total Cannabis Market Africa at 37,3 billion US dollars, more than 11% of the total world cannabis market. The report will be published at the InterCannAlliance Africa Symposium, the first African event on hemp and cannabis, the 24 and 25 May in Victoria Falls, Zimbabwe.
Since the Lesotho has become the first African country to legalize cannabis for medical purposes in 2017, the annual rate of cannabis use in Africa has almost doubled: according to the report, the global cannabis consumption rate is 6% while the rate of Africa's consumption is 11,4%, almost double the world rate.
"The demand for CBD products continues to grow in Europe and many countries like Canada are using Colombian imports to meet the growing demand, seeking to profit from it. It will be interesting to see if Africa's proximity to the old continent and its many agro-industrial economies could be better positioned to provide a more profitable supply, "said Giadha Aguirre de Carcer, founder and CEO of New Frontier Data.
"Not only is hemp a low-tech, high-margin potential crop to reinvigorate African economies, but it could also support the current United Nations goals of sustainable development, such as the promotion of inclusive regional economic growth and the creation of sustainable jobs ".
The main conclusions of the report are as follows
This report covers 13 African countries, more than 565,4 million people, and it is estimated that nearly 42,8 million of them consume cannabis at least annually.
By 2050, Africa's population is expected to double, representing 58% of the total population growth worldwide during this period.
The largest cannabis markets in Africa are those with the largest population, with Nigeria (15,3 billion USD) and Ethiopia (9,8 billion USD) leading the way.
The report further states that "the growth of the continent presents opportunities for both medical cannabis and industrial hemp. Hemp is a source of fiber and oilseed grown today in more than 30 countries.
Due to confusion between industrial hemp and medical cannabis, which is based on the visual similarities of very different cannabis strains, the use and movement of hemp has also been limited worldwide. By definition, industrial hemp is high in fiber and low in tetrahydrocannabinol (THC), the psychoactive ingredient that makes some varieties a valuable flower.
The plant and the industries that surround it can support many of the UN's sustainable development goals, including those that are the highest priority for African citizens, and some of the inexpensive and affordable industrial hemp applications can to be rapidly activated to support health and growth in Africa in the coming decades. "
While the market estimate stands at 9,8 billion, the study indicates that the current estimated market value of cannabis use in Ethiopia is 9,8 million. In addition, he said cannabis could help Ethiopia achieve its goals, particularly in the textile sector, if it pays more attention to industrial hemp than to cotton planting.
"The textile and clothing industries are fast-growing sectors in the Ethiopian economy but the production flow in the cotton supply chain is very weak: currently Ethiopia is not growing enough cotton to supply its textile manufacturers, which requires the import of cotton. The government launched the National Cotton Development Strategy with the aim of becoming the largest African cotton producer by the 2030 years to supply the garment and textile industries. However, cotton cultivation requires a considerable amount of water, and the variability of seasonal and annual rainfall in Ethiopia could affect yields ", the report says.
"Hemp fabrics of local origin can be a viable complement for Ethiopian cotton textile and clothing industries. Hemp cultivation requires about a quarter of the amount of water needed for cotton production, and hemp can be planted much more densely, resulting in higher yields, "says the report.
Although it is forbidden to use cannabis in Ethiopia for any reason, the study indicates that it is planted freely in many parts of the country, "particularly in the Shashamane region, which has been populated with immigrants rastafari under the reign of King Haile Selassie I ".
There has never been a single investment in cannabis in Ethiopia, and efforts to establish one in the regional state of Amhara have caused public outcry and the cancellation of the plan by an Ethiopian and Canadian company named Africana. Cannabis Holdings.
Health Minister Amir Aman tweeted that "the Ministry of Health's position regarding the cultivation of cannabis for medical purposes in Ethiopia has neither been recognized nor sought. And no regulatory approval has been given. Requests for such investments have been and will continue to be denied. "
Investment Commissioner Abebe Abebayehu also reiterated that the government will not issue an investment license for cannabis in Ethiopia.
But, whether for medical or other purposes, Ethiopia rejects any demand for investment in the sector, even with a revenue potential of 10 billion.