EDF, Maiic team up in K18bn cannabis factory
Malawi has made a leap towards becoming a significant producer and exporter of pharmaceutical and wellness products from cannabis following the launch of the construction of a $10 million (about K18 billion) processing factory.
United Kingdom-based MMC Laboratories has partnered Export Development Fund (EDF), Malawi Agriculture and Industrial Investment Corporation (Maiic) and Balon Estate to set up the factory that is considered a major boost in the industry.
MMC Laboratories Limited board chairperson Brian Tempest said at the project site in Lilongwe on Tuesday that the factory will produce highest standard cannabis products for global supply.
He said they expect the factory to be ready by the beginning of next year and start processing the already avaialble cannabis stock being produced at Balon Estate, one of the major tobacco producers in the country.
EDF managing director Fredrick Chanza said they are involved in the venture through equity investment.
“We believe in this project because as EDF, our mandate is to grow and diversify the country’s export base and cannabis provides a big opportunity,” he said.
Chanza estimated the country’s potential exports of cannabis products at up to $300 million (about K525 billion) in the next three to four years, thanks to this venture and others to come.
Reserve Bank of Malawi representative Chimwemwe Magalasi expressed optimism that the project will not just create economic activities, but also bring forex in the fast growing industry of cannabis.
“In 2020, the global market of cannabis was $9 billion (about K16 trillion) and in 2028 the market is estimated at $49 billion (about K86 trillion). As Malawi, we need to have a piece of that $49 billion,” he said.
However, the project faces challenges as the company expressed worry over constrained foreign exchange access that threatens timely completion of the project as they have to import high-tech equipment needed at the factory.
Ministry of Trade and Industry Principal Secretary Christina Zakeyu said the investment provides a new pathway in forex generation as the country strives to diversify the economy and export base.
She said the country is making efforts to exploit high value oil seeds opportunities like soya beans, groundnuts and the cannabis industries.
Maiic acting managing director Arnold Banda said their injection into the investment owes to the manufacturing aspect of the venture which will help create a market for farmers and anchor the growth of the industry.
Meanwhile, Cannabis Regulatory Authority chief executive officer Ketulo Salipira expressed relief that the venture will address cannabis market problems that farmers in Malawi have been expressing.
He said that another company from Dubai in United Arab Emirates will be in the country soon to process their investment application for production of various products.
