Zimbabwe's cannabis earnings forecast of $1.25 billion is 'ambitious': economist

Zimbabwe's export earnings projection from cannabis to reach $1.25 billion in 2021, three times more than tobacco, was called ambitious by an independent economist based in Harare, John Robertson.

The economist said Zimbabwe is massively over-estimating its earnings while ignoring that cannabis is grown in many areas outside of Zimbabwe.

Tobacco is the southern African nation’s biggest agricultural export and earned $444 million from the 2020 marketing season that closed in August, according to the Tobacco Industry and Marketing Board.

The Zimbabwe government has issued 44 licenses since September when it announced rules for growing cannabis.

South Africa, Lesotho, Malawi, and Zambia have also legalized medicinal cannabis.

In his budget statement on Nov. 26, Zimbabwe Finance Minister Mthuli Ncube expressed optimism about the “immense potential” said cannabis production for medicinal purposes in generating export receipts and tax revenues.

According to Ncube, a cannabis levy will be introduced next year, in line with export values. Taxes of as much as 20 percent will also be applied on cannabis oils, bulk extracts, and dried flowers.

Local growers, most of whom have international partners, can produce $40 million to $46 million worth of cannabis a month.