Nestled in the heart of East Africa’s Great Rift Valley, the Republic of Rwanda is making bold strides to become a key player in the global medical marijuana market. In 2021, the country took a significant step forward by legalizing medical cannabis use, production, cultivation, import, and export. This landmark decision came after a decade of contemplation, with the Minister of Health first proposing the reform in 2010.
One of the first companies to capitalize on this opportunity was King Kong Organics (KKOG), a subsidiary of the US-based KKOG Global. In March 2023, KKOG Rwanda secured a five-year license to cultivate cannabis for medical purposes. The company invested a substantial $10 million to develop its production facility in Musanze, a region renowned for its fertile land and favorable climate. The facility is expected to be fully operational by September 2024.
According to NewsWeed, KKOG CEO Rene Joseph recently confirmed that 70% of the construction is complete, and the production launch is on track. The Rwanda Development Board projects that one hectare of cannabis cultivation could generate a staggering EUR 10 million ($11.05 million) in revenue. For comparison, Rwanda’s well-established horticultural flower sector generates around $300,000 per hectare. KKOG aims to produce an impressive 5,000 kg of cannabis per hectare.
The global cannabis market is experiencing explosive growth, with projections reaching $444.34 billion by 2030, up from the current $57.18 billion. This surge is primarily driven by the rising demand for medical marijuana, particularly for pain management. In 2022 alone, combined sales of CBD, medical marijuana, and recreational cannabis reached $45 billion, according to Prohibition Partners, a leading data and analytics company in the legal cannabis industry. Prohibition Partners predicts the market could surpass $101 billion by 2026.
Recognizing this phenomenal growth potential, Rwanda has identified cannabis production as a top investment priority, actively seeking foreign investment. The government has allocated 35 hectares of land in the Musanze district to five potential investors, with KKOG Rwanda being the first to commence construction. While acknowledging the high production costs due to limited machinery availability in the region, Joseph emphasizes that potential profits significantly outweigh the initial investment. He highlights the importance of strong government partnerships in fully realizing this opportunity.
It’s worth noting that recreational cannabis use and sale remain strictly prohibited in Rwanda, with severe penalties imposed for any violations.
