THE medical cannabis industry has received a major boost after approved projects were allowed to retain 100 percent of their export earnings.
The move comes at a time when the country’s investment promotion agency is receiving enquiries from local and external business people interested in projects within the cannabis medical industry.
In a joint press statement, the Zimbabwe Investment and Development Agency (ZIDA), Medicines Control Authority (MCAZ) and the Cannabis Industry Association of Zimbabwe (CIAZ) announced te operational framework will be administered through ZIDA’S one stop investment services centre.
“Investors can have 100% of their investments and locate their facilities anywhere in the country without prescription. This is a significant departure from previous policy which required investors to co-own investments in joint venture with government or government entities and locate investments at state prescribed locations,” read part of the statement.
Government has also finalised and agreed to a legal instrument called the Investment Stability Agreement (ISA) which gives investors added security.
“The ISA outlines the guarantees offered by the GOZ for the protection of property rights, ring fencing investments against expropriation and protect investors against change in laws,” read the statement
Announcing the framework, ZIDA Chief Executive Officer, Mr Doug Munatsi said, “This is the country’s strong statement of intent to nurture and grow this industry and become one of the leading players in medicinal cannabis production, fully optimizing the inherent comparative advantage Zimbabwe has in the form of skills, climate and agricultural expertise”
Mr Munatsi also outlined the importance of incentives for the industry.
“Indeed we expect such incentives to bring more value and enable the sector to get the relevant projects,”said Munatsi.
Responding to the significance of an investment survey, Mr Munatsi spoke about its impact in restoring business confidence.
“It is coming at the right time and we need it to assess how far we are going as an investment portfolio,” he said.
Government this week announced several tax and export incentives for several projects in an effort to increase foreign currency generation in the country.