Cannabis to emerge as biggest cash crop in Zimbabwe, says Treasury

After legalizing the cultivation of cannabis for medicinal use Zimbabwe's export earnings outstrip tobacco by three-time when compared to 2019, according to a report by Moneyweb.

As per the reports, 44 licenses were issued by the government since September on the announced rules for growing cannabis and the prediction to make a $1.25 billion business in 2021, as said by Clive Mphambela, the Treasury spokesman, "(thirty producers) are ready and some were doing test production". Although he didn't comment on stocks of cannabis open for export.

Talking about the burden on cannabis production John Robertson, a Harare-based independent economist reportedly termed the projection 'ambitoius', as he said, "it’s a massive over-estimate and ignores that cannabis is grown in many markets outside of Zimbabwe". He further added, "it’s sold in grams, not in kilograms or tons, so there will be disappointment. The only enthusiasm will be from producers, but massive supply globally will depress prices.”

Whereas, Mthuli Ncube, the Finance Minister of Zimbabwe said that cannabis production for medicinal purposes holds "immense potential" generating export receipts and tax revenues.

According to the Tobacco Industry and Marketing Board, Tobacco productions hold the biggest share in agricultural export in southern African nations minting $444 million in 2020's marketing season closed in August.