The Narcotics Control Commission (NACOC) of Ghana has announced that it would begin the issuing of licences for medicinal and industrial cannabis cultivation.
It stressed that only entities meeting the commission’s stringent licensing conditions will qualify for licences, a move interpreted as sounding the death knell for hopes of a majority participation.
The announcement ends weeks of speculation after Ghana’s Parliament unveiled a licensing regime late last year, which hemp advocacy group Hempire Association of Ghana (HAG) immediately threatened to appeal.
HAG CEO Nana Kwaku Agyemang (pictured here) described the fees as “the highest in the world”. He told Cannabiz Africa that the tiered and exorbitant fees structure favoured established entities and disadvantaged the small farmers and small-scale investors that a cannabis industry was meant to uplift.
The licence regime has 11 categories and requires an upfront non-refundable application fee of $1 000. Licences for the first tier or entry-level category costs $11 500 to cultivate 0.4 hectares or a single acre. Only hemp is licensed under the regime, which sets a THC threshold of 0.3% of cultivated cannabis.
A NACOC statement issued late last week said that applications will be approved only if they met certain stringent criteria, including security protocols, product traceability systems, quality assurance standards and full compliance with applicable laws and regulations.
The statement also cited various organs, departments and ministries that NACOC would work closely with to ensure effective implementation, monitoring, enforcement and compliance. These include the Ministries of Interior and Agriculture, Ghana Standards Authority and the country’s Food and Drug Authority.
The announcement caps a three-year ordeal for investors and stakeholders who had been waiting in the wings to join a cannabis industry. It comes three years after Ghana approved the Legal Instrument (LI) giving the Narcotics Control Commission 2020 (Act 1019) some teeth.
The legislation also established the Chamber of Cannabis Industry. Chamber President and CEO Mark Darko has forecast a $1-billion annual windfall for the local cannabis economy
He told MMJ News on that investor interest in Ghana’s cannabis sector has grown rapidly.
Within six months of the Chamber’s formation in July 2023, it received over 1,000 inquiries, with more than 60% from foreign investors, mainly from the United States and Canada. North American firms are attracted by Ghana’s year-round sunlight and lower production costs, while domestic interest comes from legacy growers seeking to transition from the black market into the formal regulated economy.
The sector is projected to rival traditional exports such as cocoa. Industrial applications include textiles, paper, biofuels, cosmetics, and construction materials, alongside pharmaceutical uses such as antioxidants, anti-inflammation, and seizure treatments.
Darko highlighted that the regulated industry can retain economic value that would otherwise be lost to illicit markets.
While public and medical concerns about mental health risks and potential abuse persist, Darko maintains that a tightly regulated legal market is preferable to prohibition. He pointed to successful examples in other jurisdictions where regulated cannabis markets coexist with restrictions on recreational use.
However, patience is needed for the process. The long wait periods between legislative passage, the drafting and passing of a licensing fee structure and the commencement of the issuing of the licences is said to have estranged many aspiring stakeholders.
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