Malawi’s hopes that the legalization of cannabis exports would boost the economy and uplift the rural poor remain a dream lost in time. Four years on small-scale growers are disillusioned and damaged by costly inputs and a lack of promised government support.

READ: Cannabis Bill Delayed by Faith Healers' Objections

Now Malawi is expected to reduce the US$10k cannabis license fee to make it more affordable, but no details have yet emerged on this or what other reforms may be in the pipeline since it has been getting advice from the German government.

US$10k for a cannabis license in a ‘dollar a day’ country

Radio Deutsche Welle correspondent Chimwemwe Padatha reports from Llilongwe that an announcement will be made soon by the Government to reduce the high cost of cannabis license fees. Currently it costs US$10 000 to buy a license which has put it out of reach for almost everyone in a country where most people live on a dollar a day.

It's not known yet what other regulatory reforms the Cannabis Regulatory Authority may announce other than a drop in the cost of license fees. However, it is clear more needs to be done. 

Malawi legalized the export of medical and industrial cannabis in 2020 with a view to reducing dependence on tobacco exports. But this has not translated into any benefit for rural cannabis growers. Many of whom organized themselves into cannabis farming co-operatives to share costs.

Growers have become disillusioned and desperate

Padatha reported that one such co-op, the Cannabis Growers Association, had paid the requisite license fees but had not been able to meet other requirements and the license had now lapsed with no hope of refund.

He said these growers felt government had failed them in the provision of seeds and other inputs and that there had been no market development. He said many growers were not aware of export compliance requirements and the capital required, and this had stymied the industry.

Malawi has been getting assistance since 2023 from the German Federal Ministry for Economic Cooperation and Development (BMZ). The BMZ has  been working with the Cannabis Regulatory Authority (CRA) and the Department of Agricultural and Research Services (DARS) to provide strategic advice and capacity development.

The aim  is to strengthen the in-house expertise of Malawian authorities and ensure the inclusion of small farmers and responsible private-sector stakeholders in the process.  So far there is yet to be any tangible outcome.

Invegrow the only game in town right now

Padatha said only one Malawian company, Invegrow, had a license to export cannabis and had recently exported a ton to Europe and Australia that was expected to earn 1,7 billion kwacha (R1 = approx. 100 Malawian kwacha).

He said while the government would welcome this because of the country’s low foreign reserves, this was unlikely to have any marked effect on anyone other than government and commercial elites.

Invegrow is Malawi’s private sector pioneer and has worked with the Malawi government to develop regulations and guidelines for a number of years. Invegrow is believed to have begun exporting in 2023. It became the first licensed grower in Malawi and is producing a range of cannabis-related products as well as high THC flower for export (Jack Herer, Moby Dick, White Russian and Blue Diesel are there with a three-month lead ordering time, but sadly no sign of Malawi Gold!).

See the Invegrow Product Menu here.

Invegrow is owned by a mix of local and foreign investors and employs hundreds of people, growing cannabis from the nursery to the flowering and harvesting stage (see picture above). It also has a processing factory on site in the capital, Lilongwe, where they produce cannabis oil for local sales and export as well as other by-products like animal feed.

Although Invegrow provides support and consulting services to local growers, this has been limited. “Malawians are not benefitting from the legalization of cannabis exports” said Padatha. “It is now four years since the law was changed but people still have to reap the fruits of this. Instead they are still grappling with license and regulation issues”.

The only other major cannabis play in Malawi is the multi-million dollar cannabis processing facility being constructed in Llilongwe. The project is being implemented by MMC Laboratories Limited in partnership with Mbabzi Estate, the EDF and the Malawi Agriculture and Industrial Development Corporation.

The Secretary for Trade and Industry in the Ministry of Trade and Industry, Christina Zakeyo, said the project would benefit local farmers, providing them with access to markets, creating employment and reduce reliance on tobacco as an export commodity.

It is not clear when this project will be up and running.

MP tells Parliament: Legalize ‘Chamba’!

The slow pace has frustrated many politicians, who say reform should go further. During the Malawi Parliament’s mid-term budget review on 10 December 2024, the Malawi Congress Party (MCP) Member of Parliament for Dowa West, Abel Kayembe, raised concerns over the country’s failure to legalise local cannabis (chamba), saying it was the only way the country would generate revenue and jobs.

He said the Cannabis Biomass project is the only way to stabilise the economy as the government says it wants to intensify efforts to unlock additional revenues.

He is believed to have been referring to the Malawi Gold Cannabis Biomass Project. According to the Nyasa Times, the Malawian government has facilitated an export deal to North Macedonia with local off-taker NexGen Medical. The project, which has ambitious targets of generating US$500 million a year, was meant to come on line this year, but Cannabiz Africa has not been able to find out what the project status is.

MP Kayembe also wondered as to why Malawi was taking so long to legalise local ‘Chamba’, which he said was being grown in abundance in districts like Nkhotakota, and Kasungu.

“Why are we taking too long to legalise our local Chamba? This product can stabilise the economy,” he said.

#