MG Health CEO on Africa’s role in the global cannabis economy

The legalization of cannabis for both medical and recreational purposes has gained momentum in recent years, with several countries around the world moving towards allowing its use. One of the pioneers in this movement is Lesotho, a small landlocked country in southern Africa. Lesotho became one of the first countries to legalize cannabis, opening up new opportunities for pharmaceutical companies like MG Health, based in the capital city of Maseru. The CEO of MG Health, Andre Bothma, recently sat down with CNBC Africa to discuss the company's ambitions in the European market. When asked about the potential of the African market in the cannabis industry, Bothma emphasized the significance of achieving accreditations and certifications. He expressed hopes that more African countries would follow in Lesotho's footsteps and enter the global market for medical cannabis products. MG Health prides itself on being the first pharmaceutical company in Africa to receive such accreditation. In terms of competition with established players in the global market, Bothma highlighted Africa's cost advantage in production. He explained that the lower cost of production in Africa due to labor-intensive operations could give the company a competitive edge. However, he also emphasized the importance of ensuring that the agricultural value chain is not exploitative but beneficial for local farmers involved in the process. The conversation then turned to investment in the industry, which is heavily dependent on regulations and legal landscape. Bothma acknowledged the challenges of navigating these complexities but credited his team's hard work in securing the necessary approvals. He also stressed the stringent standards required for producing medical-grade cannabis products, emphasizing the need for compliance and quality control. Discussing the regulatory environment, Bothma pointed out that many African countries still lack the necessary laws and regulations to align with international standards for cannabis production and export. He identified this as a key barrier holding back other nations from tapping into the economic potential of the industry. One important distinction made by Bothma was MG Health's focus solely on producing medical cannabis products, as opposed to entering the recreational market. He emphasized the company's commitment to serving patients and maintaining high standards of pharmaceutical-grade production. Despite the potential profitability of the recreational market, MG Health's licensing restrictions limit them to medical use only. Overall, the conversation with Andre Bothma shed light on the opportunities and challenges facing the cannabis industry in Africa. As more countries consider legalization and regulation of cannabis, companies like MG Health are poised to play a significant role in shaping the future of the global cannabis economy.