The process of legalizing medical marijuana in Uganda has been dragging due to what a Cabinet sub- committee termed as “lack of proper guidelines” in licensing private companies.
Over 100 firms applied for government permits to grow and export medical marijuana to South Africa, Israel, UK, Germany, Canada and US.
However, for close to a year, a committee Prime led by Minister, Dr Ruhakana Rugunda, Health minister Dr. Ruth Aceng, Trade and Industry Minister Amelia Kyambadde, Matia Kasaija of Finance, Agriculture’s Vincent Ssempijja, Internal Affairs Minister Gen. Jeje Odongo and other government agencies like National Drug Authority (NDA) has had several meetings ending up in a stalemate.
Cabinet is stuck with policies like who to award the permit as the country continues to lose revenue amounting to $345 billion in the global market for the drug.
Only two companies have been allowed by government to legally deal in the growing of this lucrative product and they are: Industrial Hemp (U) Ltd and Together Pharma Ltd.
13 more firms that have pending licenses include: Natgro Phama (U) Ltd, Medraw (U) SMC Ltd, Urban Properties (U) Ltd, Prime Ranchers, Silver Seeds (U) Ltd, Dave and Dave Group, Seven Blades, Cannops Africa, Quest Worths International Group, Premier Hemp, Sativa Agro-tech Ltd, Zeus Agro Ltd and Owesia U Ltd.
Cabinet had resolved to expedite the process by mid- February but it appears the discussions had been shelved due to interference by top ranking officials in security.
Army Cited in Failing Local Companies
In what can be termed as a well calculated move to frustrate local companies, cabinet has been guided by “external forces” to lock out local firms claiming that they can’t raise proposed shs 22.4 billion compelling government to invite foreign companies to take over the industry.
This website understands that some of the local firms deliberately locked out have expressed readiness to pay the required stake to participate in the business but in vain.
A source in cabinet who asked not to be named citing sensitivity of the matter said, “the people at the center of this marijuana saga are none, other than top army officials who are benefitting handsomely and are not ready to allow anyone else.”
“There are many generals in the business and they will not allow any local company to compete with them. Never,” the source added.
The foreign firms which government opted for include: Naturalgro, Barak, Cannops Africa, Quest Worths International Group, Prime Ranchers and Together Pharma Ltd, a listed cannabis company in Israel.
A source without substantiating said that many army officials have high stakes in companies listed above.
In Kasese district, a local firm Industrial Hemp working with Israel company has been growing marijuana for the last four years.
It has already established farms in Hima and Kasese areas.
This website understands that for a long time now, Ministry of Internal Affairs has subjected local applicants under scrutiny before issuing letter of consent to Ministry of Health.
“The local companies have provided all the documentation required. Therefore, taking a long time scrutinizing the files is a deliberate move to fail them,” a source added.
This development comes against backdrop of heightened pressure on government to raise the GDP per capita of $1,301 (Shs3.8m) and put the country into middle income status.
Create jobs for the millions of unemployed youth roaming in Kampala streets while others forcefully engage in criminality as a means of survival.
Because there are no ways Ugandans and government have no other means to generate revenue, government has opted for borrowing which has worsened the debt burden with loans currently standing at shs 46 trillion.