Cannabis Licences in Malawi

Eligible Applicants

The Cannabis Regulation Act 2020 makes provision that CRA shall issue a license or permit only to a “qualifying legal person” in respect of the activity for which they are licensed to undertake under this Act. Based on this provision, the following entities stand a chance to be awarded a license upon meeting all requirements: (a) Farmer organisations, (b) Corporate companies and (c) Corporate partnerships. The Cannabis law is therefore promoting farmer participation in the Cannabis value chain through registered groups and not individual farming. The farmer organisations, corporate companies and partnerships intending to participate in Cannabis production and marketing are required to meet the following eligibility requirements:

a) Farmers Organizations
Farmer organisations must,
  1. Possess a formal registration of their grouping
  2. Be composed of a minimum of 10 and a maximum of 100 farmers
  3. Possess a minimum land size of 5 hectares within a 5 kilometers radius from the most centrally located farm and a maximum of 10 fragmented pieces
  4. Submit a Police Clearance Certificate for Board of Directors or senior management of the farmer organization
  5. Submit off-taker agreement, if the organization will not process its own Cannabis
  6. Submit a business plan for the Cannabis enterprise
  7. Present GPS coordinates, size of land in hectares and the physical address of the plots
b) Formal Partnerships
Formal partnerships must,
  1. Possess a legal agreement of their partnership
  2. Possess a minimum of un-fragmented land size of 5 hectares
  3. Submit a Police Clearance Certificate of the partners
  4. Submit off-taker agreement, if the partnership will not process its own Cannabis
  5. Present GPS coordinates, size of land in hectares and the physical address of the plot
  6. Submit a comprehensive business plan for the Cannabis enterprise
c) Corporate Companies
Corporate Companies must,
  1. Show proof of incorporation in Malawi
  2. Possess a minimum land size of 5 hectares that is not fragmented
  3. Submit a Police Clearance Certificate for Board of Directors
  4. Submit off-taker agreement, if the partnership will not process its own Cannabis
  5. Submit title deeds and GPS coordinates
  6. Submit a comprehensive business plan for the Cannabis enterprise

Security Requirements

The security requirement for Cannabis is dependent on whether it’s grown for medicinal or industrial purpose. Cannabis regulations stipulate security plans that are applicable to industrial hemp and medicinal cannabis. Industrial hemp Interested applicants for industrial hemp license shall be required to develop a security plan that prevents access to the industrial hemp premises by unauthorised persons by establishing a natural or a physical barrier around the farm. Medicinal Cannabis Interested applicants for medicinal cannabis license shall be required to develop a security plan that prevents access to the premises by unauthorised persons by:

  1. Establishing physical barriers which will secure perimeter access to all points of entry by setting up a fence around the ground that is at least two metres high and secured by a gate
  2. Locating the field at least three kilometres from public institutions and places such as hospitals, schools, markets, unless if cultivation is done in a greenhouse surrounded by a barrier.

Fees and Charges for Licences and Permits

Fees for licenses and permits are dependent on the type of Cannabis enterprise. The licenses are awarded for each activity such as cultivation, processing, storage and distribution while permits are given on exportation, importation, research and laboratory tests. Licenses, including research and laboratory tests permits are valid for a period of twelve months after which it may be renewed for another period as may be prescribed by the registrar. Import and export permits are valid for a period not exceeding four months. The fees are as follows:

i. Industrial Hemp

Id Description Amount (USD)
Licences
License to cultivate and sell 2,000
License to process 5,000
License to store (Warehousing) 500
License to distribute (Transport) 2,800
Permits
Permit to Import (Cannabis seed) or Export (semi or fully processed products) 0.5% of the consignment value
Permit to conduct laboratory tests
- Private laboratory 2,000
- Government laboratory 200
Permit to conduct research
- Medical research includinng clinical trials 1,000
- Breeding and agronomy research 1,000
License Amendments:Change of location/responsible person/ board of directors 1,000
Renewal of licences and permit
Licence to cultivate and sell 2,000
License to process 5,000
Licence to distribute (Transport) 2,800
Licence to store (Warehousing) 500
Permit to conduct research 1,000
Permit to conduct laboratory
Private laboratory 2,000
Government laboratory 200

Application Procedure

Applications for licenses or permits should be made to the Director General of Cannabis Regulatory Authority. The applications shall be made using a prescribed form which can only be obtained from the Cannabis Regulatory Authority offices.

For more enquiries, contact the Director General on

+265 (0) 991386779

Or email

ketulosalipira@gmail.com

Enquiries may also be sent by post to:

The Director General
Cannabis Regulatory Authority
P.O. Box 30779
Lilongwe 3

Inspection, Sampling and Testing

The Cannabis Regulatory Authority shall upon issuance of a license or a permit, conduct regular inspections and take samples for the purpose of testing or analysis to check compliance with the Cannabis Regulation Act 2020 for all licensed activities.

Offenses

Any person who is found cultivating, processing, storing, distributing, researching, testing, exporting, importing and using cannabis in contravention of the Cannabis Regulation Act 2020 commits an offence and shall, on conviction, be liable to penalties as stipulated in the Act.