The construction of a cannabis production facility in Rwanda’s northern district of Musanze is expected to be completed by September, according to local media reports.
The plant is being established by King Kong Organics (KKOG) Rwanda, a subsidiary of the American corporation KKOG Global, which obtained a five-year license from President Paul Kagame’s government in March to produce cannabis.
The Rwanda Development Board (RDB) has authorized the company to cultivate cannabis for medicinal purposes, extract, and export various medicinal products.
The New Times newspaper reported on Wednesday that a KKOG executive stated the plant is 70% complete and is expected to be finished by the first week of September. “We are at 70% completion of the facility setup and expect to finish by the first week of September,” said KKOG Founder and CEO Rene Joseph.
The company has invested $10 million (Ksh 1.29 billion) in acquiring machinery, constructing the facility, paying fees for land acquisition and contractors, and importing genetically modified cannabis seeds.
Initially slated for completion by May, the project was delayed due to the need for a new access road to the site. Rwanda legalized medical marijuana in 2021, but the use and sale of recreational cannabis remain illegal. Cannabis plants take four to six months to grow, and KKOG aims to produce at least 5,000 kilograms of marijuana per hectare.
In the 2023/2024 financial year, the RDB allocated Rwf700 million (approximately Ksh 69 million) to the cannabis project, and for the current fiscal year, it allocated over Rwf2 billion (about Ksh 197 billion).
Officials estimate that a hectare of cannabis can generate up to $10 million in revenue, significantly more than the $300,000 generated from a hectare of flowers. KKOG is the largest licensed cannabis company in Africa, with additional extraction facilities in DR Congo, Zimbabwe, Malawi, Uganda, and South Africa, among others.
In contrast, Kenya and Tanzania have yet to legalize cannabis but continue to produce it illegally in substantial amounts.
($1 = Ksh 129.35; Ksh 1 = Rwf 10.19)