Uganda: Cabinet Of Ministers Approves Cannabis Production Rules

New rules for the production and sale of Ugandan cannabis were approved on March 2

The Ugandan cabinet met on Monday to approve new guidelines on growing and selling Ugandan marijuana. Ministers proposed a new pre-licensing regime that requires Uganda's new cannabis industry to ensure buyers are present before granting licenses, reports the Daily Nation.

The new proposal to the cabinet subcommittee on cannabis comes from the National Drugs Authority (NDA) and the Ministry of Health. The architects of the new proposal hope such a sweeping measure will streamline matters and help the government drive speculators out of the multi-billion dollar medical cannabis industry.

“We need serious people, not salespeople. We don't want people who are going to get a clearance and then start selling medical cannabis licenses… We want serious investors who are going to produce cannabis for medical purposes only ”, explained NDA President Dr Medard. Bitekyerezo.

Under the proposed revised guidelines for this trade, more than 100 companies and individuals with pending applications will be asked to present evidence of buyers before obtaining licenses to grow or export products from cannabis.

Sources close to the Cabinet Subcommittee on Cannabis told the Sunday Monitor that meetings are being held to decide whether all who have submitted an application should be asked to resubmit applications with "binding purchase agreements." ”. Negotiating such agreements takes months, if not years.

Agreements are made between producers and buyers to buy or sell a certain amount of future production. They are usually negotiated long before a factory is built to ensure that it can be used for future production.

The obligation to enter into purchase agreements comes just one month after the Cabinet sub-committee on medical cannabis proposed a minimum capital of $ 5 million (18,3 billion shillings) and a similar bank guarantee.

They also demanded a tax relief certificate from the Uganda Revenue Authority. In addition to lists of employees and their job descriptions, a valid business license, proof of added value to cannabis and audited accounts. The other requirement is to ensure that these cultivation farms are not located near schools, hospitals and residential areas.

Tags : AfricaAgriculture / GrowLaw

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