The global legal cannabis market is set to reach $90 billion by 2030, with the US leading the way with largest market share driven by recreational use. Europe is one of the fastest growing due to healthcare systems potentially footing medical cannabis bills for patients.
The African cannabis market is set to reach $7.1 billion by 2023; it is poised as one of the continents fastest growing sectors. South Africa, Zimbabwe, Zambia, Lesotho, Morocco, Uganda, Malawi and Rwanda have legalized cannabis, mainly for medicinal cultivation and export.
Although Africa has the climate for outdoor cultivation, at present the global standards for medicinal cannabis exports requires producers to meet EU Good Manufacturing Practices (GMP). This requires substantial investments into infrastructure, which many producers are unable to finance due to the lack of trade finance available to Africa’s agricultural sector and the traditional financial institutions staying clear of the cannabis sector due to its grey nature. The sentiment of traditional finance towards the cannabis market makes it one of the largest underbanked industries.