Rwanda’s medical cannabis project at 83 per cent completion, government says
Rwanda legalised the use of cannabis for medical purposes in 2021, but recreational use of the drug remains prohibited.
Rwanda's ambitious medical cannabis off-site infrastructure project in Musanze District in the country's Northern Province is now 83 per cent complete, the Rwanda Development Board (RDB) has announced.
The project has so far spent over Rwf1 billion (around Sh115 million) out of the total Rwf2.2 billion (approximately Sh253 million) allocated for the 2024/2025 fiscal year, representing a 46 per cent financial execution rate.
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According to Joseph Cedrick Nsengiyumva, RDB's Chief Financial Officer, outstanding work on the project involves installing a double-layered security fence, a crucial requirement to comply with international safety regulations.
"The overall progress of the work stands at 83 per cent. The remaining tasks include general double-layer fencing. The works related to drainage layout were completed but have yet to be invoiced," Cedrick told the Rwandan Parliament on Tuesday.
The project is part of Rwanda's broader strategy to tap into the medical and pharmaceutical sectors, aiming to support global health research while diversifying the national economy.
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 in 2024 to produce cannabis for medicinal purposes.
According to The New Times, KKOG initially invested $10 million (approximately Sh1.3 billion) in setting up the project, covering machinery, construction of facilities, land acquisition fees, contractor payments and the importation of genetically modified cannabis seeds, among other costs.
The project was slated to be launched in May 2024 before being moved to September the same year, with KKOG Founder and CEO Rene Joseph attributing the delays to the need for access infrastructure.
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 Sh387 million ($3 million) to support the project.
Rwanda legalised the use of cannabis for medical purposes in 2021, but recreational use of the drug remains prohibited. Cannabis plants take about four to six months to grow, with KKOG planning to harvest at least 5,000 kilograms of cannabis from each hectare of land.
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.
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