Malawi

Cannabis is an important crop in Africa. It provides income to rural communities and distributors in urban areas. However, most of this income still stems from illicit activities. Currently, an estimated 25% of globally traded cannabis is produced on the continent, with Malawi being one of the largest producers in Southern Africa.

Meanwhile, the country is facing economic challenges due to the drastic decline in demand for tobacco, Malawi’s main export crop. Therefore, cannabis serves as a much-needed income source for rural farming communities in areas where legal agriculture has become economically or environmentally unsustainable. Due to persistent illegality, growers have long cultivated cannabis in remote, sometimes protected areas to go undetected, often hampering their access to public services while taking a toll on the environment through excessive pesticide use or uncontrolled irrigation.

In 2020, however, Malawi took an important step towards more sustainable solutions and new economic pathways. The 2020 Cannabis Act paved the way for the legal cultivation, production, processing, and export of medicinal cannabis as well as hemp for industrial purposes. With the Cannabis Regulatory Authority (CRA), the Act also established a new entity to oversee this nascent market.

Sustainable and equitable value chains

As Malawi strives for new economic opportunities, participation in the global medicinal cannabis value chain could prove a promising way forward. The market for high-quality medicinal cannabis products is rapidly growing on a global scale. According to experts, it moved US$ 9 billion in 2020 and could reach US$ 49 billion by 2028.

Besides their medicinal use, cannabis and hemp are increasingly sought-after, versatile products that can be used in textiles, construction materials, cosmetics, and a variety of other applications. By participating in this global value chain, Malawi could diversify its economy and support small cannabis farmers in securing licit livelihoods. Hemp products might not only be attractive for global export – they can also be marketed and used on the domestic market, substituting some currently imported goods.

Crucially, Malawi offers optimal climate conditions for outdoor cannabis growing which, compared to indoor cultivation, consumes about 98% less energy, requires less fertilizers – thereby also reducing production costs - and emits fewer greenhouse gases. Cannabis farming has a long tradition in Malawi, which is why many rural communities are keen to contribute their knowledge and become part of the country’s transformation towards a legal cannabis market.

How does GPDPD support?

This transformation, however, requires further support, infrastructure, and institutional capacities. Malawi’s administrative support systems for the new value chains are still in their infancy. For the future, cannabis regulators, agricultural authorities, and farmers need more access to technical know-how and expertise on issues ranging from international quality standards or reliable seed production to agronomic practices or pest and disease control.

Without industrial capacities, favourable investment conditions, as well as access to financial and agricultural services, many small rural farmers run the risk of being excluded from the new legal market. To ensure their effective participation, an adequate support infrastructure needs to be in place. For this reason, Malawi has been looking for strategic, regulatory, and agricultural guidance.

Since 2023, on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), GPDPD has been working with Malawian institutions involved in the country’s budding cannabis industry, such as the Cannabis Regulatory Authority (CRA) and the Department of Agricultural and Research Services (DARS). GPDPD’s objective is to provide strategic advice and capacity development to strengthen the in-house expertise of Malawian authorities, all while ensuring the inclusion of small farmers and responsible private-sector stakeholders in the process. The ultimate goal is to establish a socially equitable, environmentally friendly and economically sustainable cannabis value chain in Malawi. With the right policies, regulatory steps, and support infrastructure in place, Malawi could soon become a player in the global cannabis market.