Botswana’s economy has been built on mining, tourism and agriculture, with barely enough evidence of diversification to new industries. Diamonds have been the main driver of Botswana’s GDP, providing more than 80 per cent of export revenues and as much as 35 per cent of its GDP in the early 2000s.
Botswana cannabis outlook promising if done properly
Recently, the diamond revenues have dropped by 30% between 2018 and 2022 due to a decline in global demand. On the other hand, agriculture has a growth rate of 2% to the Botswana’s GDP while 30% of the population is engaged in agriculture, this shows that there is low productivity and minimal exploration of production of high value crops such as medicinal cannabis.
It is estimated that in Botswana, a well-regulated cannabis industry could generate an estimated BWP 2.5 billion in annual revenue across cultivation, processing and distribution sectors within the first five years of legalization, and create about 15,000 direct and indirect jobs.
However, it is only when cannabis is brought into the formal economy that several barriers to its integration can be overcome, including regulatory barriers, financial barriers, and societal skepticism.
The other important factor that will influence the growth of Botswana’s cannabis industry is the capacity to develop a stable, a systematic, and a technological value chain that meets the international standards.
Technologies such as AI smart farming, blockchain supply chain management and digital market access platforms have changed cultivation, processing and distribution methods in regulated markets.
These technologies have also addressed product traceability, standardization and security risks which are important for both regulatory compliance and consumer confidence.
Use technology to increase yields
It is recognized that innovation and technology play a crucial role in enhancing efficiency, compliance and market access in the medicinal cannabis and hemp value chains. Through the use of smart farming, AI technology has enhanced the cultivation by monitoring soil composition, moisture and nutrient levels in real time.
These advancements lead to increased yields, resource wastage is reduced, and sustainability is improved and this is especially advantageous to SMEs operating under conditions of limited resources.
Successful implementation of smart farming techniques has been noted in countries such as Canada and the Netherlands to standardize cultivation and ensure product quality under strict regulatory standards.
Given Botswana’s semi-arid climate, it would be beneficial to use AI-driven irrigation systems and climate controlled greenhouses to optimize production and reduce environmental pressures.
Blockchain enhances supply chain transparency
As well, South Africa has also started the use of blockchain technology in its cannabis supply chain to enhance the transparency of the supply chain as well as strengthen the security of the sale from seed to sale.
Thus, blockchain technology can help Botswana to strengthen its regulatory framework, increase consumers’ confidence and reduce the incidence of trade illegal practices.
Moreover, digital platforms have enabled market accessibility for SMEs in relation to consumers, investors and international markets. Trade processes have been simplified, entry barriers reduced and compliance tracking enhanced for cannabis enterprises as a result of the proliferation of e-commerce solutions, mobile applications and online regulatory portals.
Digital trade platforms have helped to direct local cultivators in emerging cannabis markets like Lesotho to global pharmaceutical companies and therefore enable the commercialization of cannabis products efficiently.
Tech is an expensive but necessary investment
It is therefore possible to suggest that similar models could be used in Botswana to create a structured, technology driven market that includes SMEs and where compliance mechanisms are seamlessly embedded in digital regulatory frameworks.
The adoption of technology in the cannabis industry remains a challenge especially for developing countries.
Lack of not only technical skills, but high capital costs also that come with adoption make it difficult for SMEs to integrate new technologies in their production processes.
Overcoming these challenges will necessitate Botswana to engage research institutions, technology providers and industry experts. Incentives from the government, capacity building, and setting up of cannabis research centers could help enhance the adoption of technology and support growth in the industry.
Through implementation of these strategic measures Botswana can emerge as a leader in cannabis innovation and so guarantee that its nascent industry remains viable, sustainable and in sync with international standards.
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