Rwanda’s burgeoning cannabis industry is poised for a significant leap with the imminent completion of a major production facility in Musanze District. The new plant, being developed by King Kong Organics (KKOG) Rwanda, a subsidiary of the American corporation KKOG Global, is expected to be operational by the first week of September, according to recent reports from local media.
KKOG Global secured a five-year license from President Paul Kagame’s government earlier this year, granting them permission to cultivate cannabis for medicinal purposes. This development marks a pivotal moment for Rwanda, which legalized medical marijuana in 2021. However, it is important to note that the use and sale of recreational cannabis remain prohibited under current Rwandan law.
The construction of the plant has been a significant investment, with KKOG pouring $10 million (approximately Ksh.1.29 billion) into various aspects of the project. This substantial investment covers the costs of machinery, facility construction, land acquisition, and the importation of genetically modified cannabis seeds. The plant’s construction has reached 70% completion, and the company’s CEO, Rene Joseph, has projected that it will be finished by the first week of September.
The facility’s initial completion date of May was delayed due to the need for a new access road to the site. Despite this setback, KKOG remains optimistic about meeting the new deadline. Once operational, the plant will significantly contribute to Rwanda’s growing cannabis sector, which has seen considerable support from the Rwanda Development Board (RDB).
In the 2023/2024 financial year, the RDB allocated Rwf700 million (about Ksh.69 million) to the cannabis project. For the current fiscal year, this allocation has increased to over Rwf2 billion (approximately Ksh.197 billion). This investment underscores the government’s commitment to developing a robust medicinal cannabis industry.
KKOG’s facility will focus on the cultivation, extraction, and export of medicinal cannabis products. The company aims to produce at least 5,000 kilograms of cannabis per hectare. The financial prospects of the cannabis sector are promising; a hectare of cannabis is projected to generate up to $10 million in revenue, which is 30 times more than the revenue generated from a hectare of flowers.
KKOG is distinguished as the largest licensed cannabis company in Africa, with additional extraction facilities in countries such as the Democratic Republic of Congo, Zimbabwe, Malawi, Uganda, and South Africa. This positions the company as a significant player in the African cannabis market, which is gradually expanding in response to growing global demand for medicinal cannabis.
In contrast, Kenya and Tanzania have yet to legalize cannabis, though both countries are known to produce the commodity illicitly. The ongoing developments in Rwanda may influence neighboring countries to reconsider their stance on cannabis legalization, especially as the medicinal cannabis industry demonstrates its potential for substantial economic benefits.
The anticipated launch of the KKOG production facility is set to be a milestone for Rwanda’s medicinal cannabis sector. As the facility nears completion, it will likely attract further investments and set a precedent for the region’s approach to cannabis cultivation and exportation. The successful establishment of this plant could herald a new era for Rwanda’s economy, contributing significantly to its growth and positioning the country as a key player in the African cannabis industry.
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