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Botswana Opens Doors to Cannabis Investment: A Guide to Licensing and Production

Botswana is taking a significant step into the global cannabis industry with the introduction of the Cannabis Bill, 2025. This new legislation is set to create a regulated framework for the cultivation, production, and sale of cannabis for medicinal, scientific, research, and industrial purposes. The bill aims to establish a robust and transparent system, providing a clear pathway for both local and international investors.

Introducing the National Cannabis Control Authority

At the heart of this new framework is the National Cannabis Control Authority, a corporate body responsible for regulating the entire cannabis value chain. The Authority’s main objective is to oversee the cultivation, manufacture, production, storage, distribution, import, and export of cannabis for the specified purposes. It will be the central body for issuing, amending, suspending, or revoking licences, setting standards, and monitoring compliance within the industry. The Authority will also manage a national cannabis register for all cultivation sites.

Licensing and Application Procedures

The new law outlines several types of licences available to prospective businesses, including:

  • Cultivation licences.
  • ⁠Manufacturing licences.
  • ⁠Import and export licences.
  • ⁠Cannabis medical products licences.
  • ⁠Transportation of cannabis licences.
  • ⁠Distribution licences.

The Minister may also declare an annual licence quota for these activities, based on the recommendation of the Authority.

To apply for a licence, an applicant must submit a police security clearance along with the application form and a prescribed fee. The Authority is required to approve or reject the application within five days of receipt and, if rejected, must inform the applicant of the decision and the reasons within seven days. Licences are subject to specific conditions and restrictions set by the Authority.

A licence is not permanent; it has a set period of validity and must be renewed before its expiration date. The Authority will renew the licence if the provider continues to comply with the licence conditions. Licences are non-transferable, and any violation of this rule is a serious offence.

Production and Quality Control

A key focus of the bill is to ensure strict quality control and security throughout the cannabis supply chain. The Authority will be responsible for setting standards and allowable limits for cannabis and its products. A licensee cannot sell, distribute, or export cannabis plant material or preparations unless they have been tested by an accredited independent laboratory. The Authority may also designate independent laboratories for this purpose.

Producers must adhere to specific practices to ensure product integrity. This includes non-involvement of minors in production, good cultivation practices, and careful management of soil, chemicals, and water. The new law also mandates that licensees implement a bar coding or tagging system for every final product.

Security and Site Requirements

The new law introduces rigorous security measures that licensees must comply with. These measures include:

  • Visual security monitoring of sites, either in person or electronically.
  • ⁠Access control measures to restrict entry to authorised personnel.
  • ⁠Physical barriers like fencing or armed guards to prevent unauthorised access.
  • ⁠Monthly inspections of intrusion detection systems.

The Authority will designate specific areas for licensed activities, considering factors such as the risk of diversion and environmental contamination. Licensees must not operate in areas and within a radius that may be prescribed, and cultivation must conform to security requirements.

The law also places a duty on landowners to report any wild cannabis plants found on their property to the Authority within seven days. The Authority will then have the plants cleared at the owner’s expense.

Record Keeping and Penalties

Licensees must maintain accurate and up-to-date records or inventories of all cannabis cultivated, manufactured, distributed, or otherwise disposed of. An annual return of all transactions must be submitted to the Authority by March 31st of the following year.

Failure to comply with the law can result in severe penalties. An unauthorised person who cultivates, produces, stores, or uses cannabis can face a fine of up to P1,000,000 or a prison sentence of up to 15 years, or both. The Authority can also impose administrative penalties of up to P200,000 for various contraventions.

Conclusion

Botswana’s new cannabis legislation provides a comprehensive and strict framework for regulating the industry. With a strong emphasis on security, quality control, and compliance, the country is positioning itself to be a credible and reliable player in the global market for medicinal, scientific, and industrial cannabis. Investors interested in this emerging sector are encouraged to familiarise themselves with the detailed requirements and procedures outlined in the bill to ensure successful entry into the market.

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