By Kudakwashe Pembere
The number of licensed producers of cannabis for medicinal and scientific use in Zimbabwe has shrunk from 60 to about 10, following the renewal of license fees. The decline follows several failed attempts at license arbitrage, a Medicines Control Authority of Zimbabwe (MCAZ) top official said on Tuesday.
Since the issuance of the first license in 2019, many holders have struggled to meet renewal requirements due to some of the conditions and challenges such as securing land for cultivation. License arbitrage refers to the practice of leveraging a valuable license acquired at a relatively low cost to attract high valuations or raise capital. It is a form of regulatory arbitrage, where limited-access licenses can create opportunities for monetization. The scarcity of such licenses enhances their leverage in the market.
In 2021, 57 producers had secured licences from MCAZ with the number marginally increasing to 60 by 2023.
Speaking to HealthTimes after a tour of MCAZ laboratories—including the cannabis lab—by Health and Child Care Minister Dr. Douglas Mombeshora and his permanent secretary Dr. Aspect Maunganidze, MCAZ board chairperson Dr. Micheck Chiware described the situation as unfortunate.
No, unfortunately now they’ve come down to about between 5 and 10,” Dr. Chiware said, referring to the current number of valid license holders.
He cited license arbitrage as a major reason for the drop.
“Some of the people who got licenses probably didn’t have the money, but they wanted to sell the license to those who did. They would say, ‘If you give us US$2 million to start growing cannabis, we already have a license.’ But when it came time to renew or secure land for cultivation—and given the conditions in place at the time—many failed to follow through,” Dr. Chiware explained.
Among the remaining license holders, some have begun exporting their cannabis.
“The real players—those who had the money and were genuinely interested in farming cannabis—are the ones still holding licenses. They’ve renewed and are now actively cultivating. Some have already started exporting,” he said.
Dr. Chiware noted that export destinations include countries like Italy and South Africa.
“Yes, that’s the lab we toured—under the medical devices division, we also have a cannabis section equipped with high-tech machinery and instruments to test any plant suspected to be cannabis. We analyze the CBD content and other chemical properties.
“A few years ago, the country committed to cultivating medicinal cannabis, and this lab plays a key role in supporting farmers. They bring in samples of what they grow, and we test the oils and chemical composition to grade the product before it’s exported—mostly to countries like South Africa, Italy, and others,” he added.
In 2018, Zimbabwe became one of the first African countries to legalize the production of medicinal cannabis. The global cannabis industry is projected to be worth US$272 billion by 2028, and Zimbabwe is targeting at least US$1 billion in market share.
Meanwhile, Health Minister Dr. Mombeshora expressed satisfaction with the MCAZ’s capacity, particularly its ability to test medicines from other countries such as Burundi after achieving the World Health Organization’s Global Benchmarking Tool Maturity Level 3 certification.
