Lesotho attracts another major investor in medical cannabis

The the first African country to regulate medical cannabis continues to attract investment, this time from a major Canadian producer.

Supreme Cannabis will invest 10 million Canadian dollars to acquire a 10% stake in Medigrow Lesotho, which holds a license to grow cannabis and produce medications from its oil.

Medigrow and Supreme hope to export their products to Canada and other countries.

«The country's climate, political and economic environment, and the team's expertise all make Lesotho a natural choice,» said John Fowler, CEO of Supreme Pharmaceuticals.

Since its decision to legalize medical cannabis, Lesotho has become Africa’s gateway for medical cannabis producers. Aphria (Canada) and Verve Dynamics (South Africa) have already announced that they have entered into production agreements with local companies. The target markets include Lesotho’s neighboring countries—namely South Africa, Zambia, Zimbabwe, and Swaziland—as well as exports outside the continent.

The 2008 law authorizing the local industry to grow cannabis was, in fact, intended for exports. However, prescribing medical cannabis remains complicated in the country.

Lesotho is already one of the largest illegal producers of cannabis in Southern Africa, but it is unlikely at this time that major investments in the medical cannabis sector will benefit the communities that currently grow cannabis.