New rules for the production and sale of Ugandan cannabis were approved on March 2
The Ugandan cabinet met on Monday to approve the new guidelines for growing and selling Ugandan marijuana. Ministers proposed new pre-license scheme which requires Uganda's new cannabis industry to ensure buyers are present before granting licenses reports Daily Nation.
The new proposal to the cabinet subcommittee on cannabis comes from the National Drug Authority (NDA) and the Ministry of Health. The architects of the new proposal hope such a sweeping move will streamline things and help the government chase speculators out of the multi-billion euro medical cannabis industry.
“We need serious people, not sellers. We don't want people who are going to get a license and then start selling medical cannabis licenses… We want serious investors who are going to produce cannabis for medical purposes only, ”said NDA President Dr. Medard Bitekyerezo.
Under the proposed revised guidelines for this trade, over 100 companies and individuals with pending applications will be invited to submit evidence of buyers before obtaining licenses to grow or export herbal products. cannabis.
Sources close to the Cabinet cannabis subcommittee told the Sunday Monitor that meetings are being held to decide whether all those who submitted a request should be invited to re-submit requests with “binding purchase agreements ”. Negotiating such agreements takes months, even years.
Agreements are made between producers and buyers to buy or sell a certain amount of future production. They are usually negotiated well before the construction of a factory to ensure that it can be used for future production.
The obligation to conclude purchase agreements comes only a month after the Cabinet subcommittee on medical cannabis proposed a minimum capital of 5 million dollars (18,3 billion shillings) and a similar bank guarantee.
They also demanded a tax relief certificate from the Ugandan Tax Authority. In addition to the lists of employees and their job descriptions, a valid business license, proof of the added value of cannabis and verified accounts. The other requirement is to ensure that these crop farms are not located near schools, hospitals and residential areas.