Vanuatu is still trying to get its medical cannabis sector off the ground after years of delays

Vanuatu is continuing its efforts to advance the development of its medical cannabis and industrial hemp sectors. A new legislative amendment, to be considered by Parliament in November 2026, aims to strengthen the regulatory framework and remove the obstacles that have been hindering the emergence of this industry—which holds great economic potential—for several years.

Because even though the passage of an initial law in 2018 and despite the issuance of several operating licenses, no commercial production has yet truly gotten off the ground. To break this deadlock, the government is now banking on more structured governance and the use of specialized expertise, in the hope of unlocking investment and finally realizing its ambitions.

A cannabis industry promising billions in economic benefits

When presenting the [...], to Parliament on November 10, the 2026 Bill to Amend the Legislation on Industrial Hemp and Medical Cannabis, the Prime Minister Jotham Napat highlighted the potential financial benefits of regulated cultivation.

According to the public broadcaster VBTC, Jotham Napat illustrated the sector's economic potential using a scenario involving the cultivation of 180 plants per hectare. According to his estimates, such a farm could generate up to 4 billion vatus (about 30 million euros), including 220 million vatus (1.7 million euros) would go back to the government in the form of tax revenue.

The Prime Minister also offered another estimate, citing a market value of up to 48 billion vatus per hectare, of which nearly 2 billion vatus could benefit Vanuatu.

These figures, while highly ambitious, should nevertheless be viewed with caution. They represent government projections, rather than revenue actually generated by an industry that does not yet exist. Furthermore, the economic assumptions underlying these various estimates remain unclear, particularly with regard to yields, production costs, and export opportunities.

Beyond these uncertainties, these financial outlooks partly explain the authorities' desire to make the medical cannabis and industrial hemp new avenues for economic diversification and tax revenue for the archipelago.

A dedicated coordinator to oversee the sector

The new reform focuses primarily on the implementation of the Coordinator's Office, an organization that is set to play a central role in the supervision and development of industrial hemp and medical cannabis sectors in Vanuatu.

According to the Vanuatu Daily Post, who had announced the project on November 3, 2026, the Secretary of Agriculture, Ian Wilson, was originally supposed to present the bill to Parliament. In the end, it was the Prime Minister Jotham Napat who presented it to the members of Congress during the parliamentary debates.

The goal is to address a shortcoming in the Law No. 31 of 2021 on Industrial Hemp and Medical Cannabis, which provided for the creation of this position without specifying the qualifications required to fill it.

The proposed amendment therefore aims to professionalize oversight of the sector by establishing specific hiring criteria. In particular, the future coordinator must hold a doctoral degree or a master’s degree in a relevant field, such as agriculture, law, public administration, or management.

In terms of professional experience, applicants must demonstrate more than five years of experience in agricultural project management, administration, or management, or at least three years in a management position in the hemp and cannabis industry, or in a comparable sector.

In addition to academic qualifications, the position will also require strong technical skills, ranging from cannabis cultivation and processing from regulatory compliance to financial management, market analysis, and business development.

Through these stricter regulations, the government aims to ensure transparent recruitment and entrust the oversight of this emerging industry to an official capable of managing its agricultural, economic, and regulatory challenges.

Should Vanuatu call on foreign experts?

The coordinator's appointment sparked a debate among lawmakers. The representative from Malekula, Paul Paolo, called for transparency and raised the possibility of hiring an international expert. Her colleague, Gracia Chadrack, wondered whether a domestic candidate could have sufficient technical experience, given that commercial cannabis cultivation has not yet begun in Vanuatu.

The Minister of Infrastructure, Xavier Harry, however, reiterated the hiring criteria established by the Civil Service Commission.

Minister Napat suggested appointing a local coordinator supported by a foreign expert, which would eventually make it possible to combine national administrative oversight with international experience in the sector.

Banking restrictions continue to hinder the cannabis industry

This debate follows years of regulatory uncertainty. Although Vanuatu legalized the production of industrial hemp and medical cannabis within a regulated framework in 2021, implementation has been blocked on several occasions.

Licenses were issued in 2023, but banking restrictions prevented operators from accessing bank accounts and securing investments. Further legislative changes followed in 2024, while Additional regulatory measures were introduced in 2025.

In December 2025, the Director General of the Ministry of Agriculture, Timothy Tumukon, had planned to begin operations during the first quarter of 2026.

This goal appears to have remained out of reach. During the parliamentary debate in November, Mr. Napat acknowledged that banking requirements continued to prevent licensed companies from conducting their business.

An exclusively export-oriented model awaiting implementation

In Vanuatu, the production of medical cannabis and industrial hemp is intended exclusively for export; consumption within the country is prohibited. Foreign companies must also partner with local landowners and meet strict requirements to obtain a license.

While the authorities are counting on this sector to generate new government revenue, The adoption of this amendment will not be enough to launch production. The real challenge going forward will be to remove financial barriers, ensure an effective regulatory framework, and turn the country's ambitions into a a fully operational cannabis industry.