A wave of laws legalizing the use and sale of cannabis is already spreading across Europe, and with it comes a plethora of commercial prospects that were formerly all but impossible.
While only Luxembourg and Malta have legalized cannabis for recreational use as of yet, this number is soon likely to increase, with nations that have already legalized cannabis for medical use being the most likely to break through the next barrier.
For instance, Germany has declared that a proposal to fully legalize marijuana might be drafted by the end of the summer. Indeed, according to Health Minister Karl Lauterbach, the consequences of not legalizing cannabis for recreational use exceed those of legalization.
Coincidentally, Sadiq Khan, the mayor of London, just established a commission to assess the efficiency of the UK’s drug laws, with a focus on cannabis in particular. This shift in emphasis is crucial for the future of any country taking it into consideration economically as well as from a perspective of justice, ending decades of unjustified arrest.
A chance that cannot be passed up
To understand how large of an opportunity there actually is, one only needs to consider the advantages realized in jurisdictions where marijuana use is legal.
For instance, since Canada legalized cannabis for recreational use in 2018, the business has increased the GDP of the nation by tens of billions of dollars and added more than 150,000 jobs. Colorado, one of an increasing number of US states that have legalized cannabis for recreational use, has seen another triumph. Colorado received more than $423m in tax income in 2021 from more than $2 billion in sales.
To understand how large of an opportunity there actually is, one only needs to consider the advantages enjoyed by nations that have legalized cannabis.
By 2027, the value of the entire cannabis market in Europe is predicted to reach $37 billion. Germany, the UK, and France are the countries where legal spending is anticipated to increase the greatest. That potential market might expand even further if a tsunami of anticipated legalization sweeps across Europe. The legal cannabis market in Africa is predicted to be worth over $7 billion by 2023. It is obvious from this that national governments would benefit financially from legalizing cannabis, but that there will also be enormous business opportunities for those who can recognize them.
The best strategy
However, it’s critical that businesses adopt the appropriate strategy if they want this chance to be truly productive. Building an industry that values the environment, the people it serves and creates for, as well as sound corporate governance, is necessary to achieve this. Failure to do so could have severe consequences. Fortunately, it is feasible to address the influence of the work we undertake in a far more thoughtful manner.
In fact, Akanda has worked to achieve this goal from the company’s inception. Our most recent acquisition of Holigen, a cultivator, manufacturer, and distributor with operations in Portugal, gives us the ability and the route-to-market to deliver medical cannabis with EU-GMP certification to approved EU markets. By expanding our current medicinal cultivation plant in Lesotho, Southern Africa, we can fulfill a constant seed-to-patient paradigm by having year-round production available. Beyond that, it’s a strategy that has enabled us to grow in accordance with tight environmental standards while creating worthwhile employment in locations where it’s required.
Additionally, it is essential that the sector adhere to all rules, particularly in the medical sector. The same rules that apply to any over-the-counter drug sold in a pharmacy or behind-the-counter drug must be followed and adhered to by industry participants in the UK and Europe. They must be shelf-life stable and nearly the same quality you would associate with a box of paracetamol. This includes safety regulations and testing to produce a consistent product within a very small range of variability. In terms of corporate governance, the same ought to apply to businesses operating in the industry. The cannabis sector can make sure that its contributions in nations where its usage is allowed are beneficial by putting the appropriate oversight institutions in place.
