Five years ago, Malawi legalised cannabis farming for industrial and medicinal use, sparking hope that “green gold” would replace tobacco as the nation’s top foreign-exchange earner, promising revenues of up to $700 million annually.
Today, that venture has collapsed into widespread farmer debt, regulatory confusion and dashed livelihoods.
What began as a headline-grabbing opportunity has left thousands of prospective farmers stranded, cooperatives insolvent and the national economy reflecting zero contribution from the industry.
Records from the Cannabis Regulatory Authority (CRA) show that in 2022, over 7 000 farmers―primarily small-scale―expressed interest in growing hemp.
Yet, the high cost of entry with licenses alone pegged at up to $10 000 (about K18 million), forced many to borrow heavily to invest in seeds, inputs and expensive greenhouses.
Maquenda Chunga, who formed a cooperative with 15 other farmers, is a prime example of the financial disaster. His group invested K450 million, a debt they are struggling to repay because they have not sold a single crop.
“Cannabis farming started with hype and high expectations. But when reality dawned, we realised many things were not done properly. Access to seedlings was chaotic, and training was minimal,” said Chunga.
In their first year, Chunga’s group harvested industrial hemp that filled over four containers, but there was no market in sight and they ended up burning them.
“We had a contract with a certain company offering between $80 and $150 per kilogramme.
“We stored the harvest in warehouses, waiting for a buyer the government was supposed to secure. We had hope, we borrowed money from the bank, confident we would repay it but now we’re in huge debt,” said Chunga.
Chunga’s experience mirrors that of farmers in Mchinji, Salima and Kasungu who also invested heavily in cannabis farming only to struggle in finding markets.
Chauncy Maupo Jere, a cannabis farmer from Chipoka in Salima, said the lack of market access was due to inadequate market research by the CRA.
“Over 100 farmers in our cooperative were left stranded after cultivating cannabis varieties the market didn’t actually require. It was like the market wanted white beans and Malawi grew red beans. In the end, there was no market. That frustrated many farmers, who eventually pulled out,” he said.
Jere, who continues to grow cannabis in Salima, insists that a market does exist but blames the CRA for failing to follow proper procedures in securing buyers.
“Planting right certified cannabis seeds is the key. Malawi has its own Identity Preservation certified cannabis seeds which could capture the whole Southern African Community Development [Sadc] region but it has not been explored. That could be the entry point” added Jere.
Invegrow is private firm that has been growing cannabis on large scale from 2019 and has aided 100 farmers find markets and expertise about the crop.
Managing director of the company Nerbert Nyirenda said the crop has had slow start to life because there are a number of underlying issues which include lack of market intelligence and buyer engagement by CRA.
“The Cannabis Regulatory Authority should facilitate establishment of a centralised platform for market data, buyer requirements and export opportunities which would empower farmers and cooperatives to align production with demand.
“Also, many small-scale farmers face hurdles in navigating the regulatory framework. Simplifying processes, making the licences affordable and offering technical assistance can accelerate participation,” said Nyirenda.
A strong advocate for cannabis farming and former CRA board chairperson Bonface Kadzamira said the current challenges stem from poor preparation and underfunding.
“Having chaired the board for nearly three years (2020–2022), I realized there were things we did not do right. Lack of funding crippled the CRA’s operations and the industry as a whole.
“We also did not train farmers adequately. We just told them to start growing only to discover later that the market required greenhouse production. That is what caused the chaos in the first year when we had products but no buyers,” he said.
However, Kadzamira believes all is not lost.
“Even the local varieties have a market. What is needed is bold government leadership to organise farmers and find stable markets. If we start orderly, we can surely reap the benefits,” he said.
Agriculture think-tank Mwapata Institute executive director William Chadza said the cannabis industry’s rough start is as a result of skipped steps and poor feasibility assessments.
“It seems like one of those rushed programmes initiated without sufficient feasibility studies or a clear understanding of the measures required for success such as infrastructure, regulation, and access to quality seeds,” said Chadza.
When contacted for comment, CRA director general Ketulo Salipira referred us to the authority’s communications officer Fanny Namonde who was yet to respond to our questionnaire as we went to press.
Minister of Agriculture, Irrigation and Water Development Roza Mbilizi Fachi on Friday said she has called for a meeting to understand CRA’s operations and the broader state of cannabis farming in the country.
Mbilizi said concerns regarding market access would be addressed, adding that policy direction on cannabis farming will be clarified after her meeting with relevant authorities.
Over the past five years, the Annual Economic Reports published by the Ministry of Finance have not reflected any contribution from cannabis farming to the national economy.
