Rwanda nears completion of Sh1.2bn cannabis production facility in Musanze

The construction of a cannabis production facility in Rwanda's northern district of Musanze is set to be finalised by early September, according to reports from local media.

The plant is being developed by King Kong Organics (KKOG) Rwanda, a subsidiary of the U.S.-based KKOG Global, which was granted a five-year licence by the Rwandan government earlier this year to produce cannabis for medicinal purposes.

The Rwanda Development Board (RDB) authorised KKOG to cultivate cannabis specifically for medicinal extraction and the export of various medicinal products.

On Wednesday, the New Times newspaper quoted KKOG Founder and CEO Rene Joseph, who confirmed that the facility is on track for completion in the coming weeks.

KKOG has invested $10 million (approximately Sh1.29 billion) in the project, covering costs related to machinery acquisition, facility construction, land acquisition fees, contractor payments, and the importation of genetically modified cannabis seeds.

According to Joseph, the plant was initially slated for completion in May, but the timeline was pushed back due to the need for a new access road to the site.

“We are at 70 per cent to complete the facility set-up, and we expect to finish by the first week of September,” Joseph said.

He noted that the production of cannabis oils, which will primarily be exported, will be made possible through the Rwandan government's partnership. The government has committed approximately Sh 387 million ($3 million) to support the project.

The government has also pledged to provide essential infrastructure, including access roads, fencing, surveillance systems to prevent the leakage of plants and their products, and electricity for the facility. This will ensure the secure cultivation of high-value medicinal crops like cannabis.

Rwanda legalized medical marijuana in 2021, although the use and sale of recreational cannabis remain prohibited. Cannabis plants typically take four to six months to grow, and KKOG aims to produce at least 5,000 kilograms of marijuana per hectare.

In the 2023/2024 fiscal year, the RDB allocated approximately Sh69 million (Rwf700 million) to the cannabis project, with this year's budget increasing to more than  Sh197 billion (Rwf2 billion).

Officials anticipate that a hectare of cannabis could generate up to approximately Sh1.29 billion ($10 million) in revenue, a figure that is 30 times higher than the Sh 38,700,000 ($300,000) yield per hectare for flowers.

Globally, revenue in the medical cannabis sector is projected to reach $20.24 billion in 2024, with an expected annual growth rate of 2.10 per cent, reaching Sh 2.6 trillion ($22.46 billion) by 2029, according to data from Germany-based research firm Statista.

KKOG is currently the largest licenced cannabis company in Africa, with other extraction facilities in DR Congo, Zimbabwe, Malawi, Uganda, and South Africa, among others.

In contrast, neighbouring countries such as Kenya and Tanzania have yet to legalize cannabis, though illegal production continues to occur in significant quantities.