Stem Pro, the first company to obtain a cultivation and manufacturing license in Swaziland?

Profile Solutions, a leader in the distribution and production of CBD-derived products in the United States through its subsidiary Elite Products International, joins forces with Stem Venture, a Californian financial services consortium, for the production of cannabis and related products in the Kingdom of Swaziland, now known as eSwatini. eSwatini or Swaziland is a state in southeast Africa, bordering Mozambique and ruled by a king and queen. Cannabis cultivation is common but not industrialized. If the joint venture between Profile Solutions and Stem Venture is successful, they will be the first and only to date to produce in eSwatini.

The joint venture

The two companies each contributed $2.5 million to the project. The joint venture consists of creating StemPro, a company owned 51% by PSIQ and 49% by Stem Venture. The majority shareholder and decision-maker is therefore PSIQ, and with good reason, as it will be supplying the production license currently awaiting the King and Queen's approval. Stem Venture on the other hand, will provide financial services and its investor base.

For the time being, the Stem Venture are selected on the online platform Escrow until February 15 (or longer if both companies agree), and their transfer will depend on whether PSIQ obtains the production license. This license concerns the cultivation and processing of medical cannabis and industrial hemp. Dan Oran, CEO of PSIQ, explains: «to become the only licensed cannabis and hemp producer and manufacturer in eSwatini, our mission has been to secure the necessary licenses, permits, land, resources and capital to begin operations».

The cost of labor and the amount of arable land available effectively make Africa very attractive to foreign cannabis producers. PSIQ may be the first to set up in eSwatini, but it certainly won't be the last, because once the King and Queen have granted an initial permit, it's highly likely that other producers will follow suit. For the time being, foreign companies have only especially in Lesotho who has legalized cannabis cultivation in 2017. The eSwatini region also has a lot to offer: cannabis grows very well here, and the locals already have the know-how. landrace called Swazi Gold.