Ghana cannabis industry faces investment hurdles due to high fees

Ghana’s regulated cannabis industry is struggling to attract investment due to high entry costs and operational restrictions. Dr. Mark Darko, head of the Ghana Chamber of Cannabis Industry, reports that licensing fees of approximately $45,000 are deterring potential investors, especially when compared to fees of $50 in South Africa and $1,000 in the United States.

Since the passage of laws governing regulated cannabis cultivation three years ago, only two companies have received licenses, and neither has commenced operations. Challenges include cultivation limits that undermine the commercial viability of industrial hemp and difficulties in securing buyers within a competitive cannabidiol (CBD) market.

The Chamber is currently lobbying the government to review the licensing framework and increase consultation with industry participants. While Ghana offers advantages in political stability and climate, the estimated three-year timeline to break even may deter investors lacking patient capital.