Advancements in technology have not only brought great improvements in important sectors like communications, transport and computation power, but have also given us tools to perform better research in areas like medicine and biology, allowing for discoveries that could even have the potential to shift the conceptions of society regarding certain topics, including medicinal use of cannabis.
With more governments reducing their restrictions on both medicinal and recreational use, the opinion of investors on this topic is becoming more positive, which drives more projects focused on the efficient and sustainable production of high-quality cannabis. Eco Equity, a Zimbabwe-based project launched in 2018, is aiming to grow further in this market, riding the wave of legalization and popularity that is spreading around the world.
Starting from the Roots
The research on cannabis and its medicinal properties is one of the most varied in the world, with studies focusing on its positive effects regarding pain, nausea, and certain neurological conditions. Since results are still not conclusive, more research will still be needed, which increases the demand for high-quality flowers and oil. This, combined with the foreseeable boom in legalization, is what drove Jon-Paul Doran to launch his project nearly two years ago. Eco Equity intends to become the biggest producer of CBD oil in Southern Africa and the Caribbean through first mover advantage, supplying extracts and products such as GMP-Flower and GMP-Oil to the pharmaceutical industry as an API (Active Pharmaceutical Ingredient).
With their three facilities located in the surrounding areas of Harare, the capital of Zimbabwe, offer enough land to cover their current scope and potentially increase their operation in case the predictions of a rise in demand come true. Their main goal is not only to produce enough cannabis, but to also ensure that all their products meet all the regulatory and legal requirements while keeping low contamination levels, low production costs and high yield.
It is predicted that the legal cannabis market can hit $57 billion by 2027, with the United States and Canada representing around $46 million, and has reported YOY growths of over 30% in recent years, assuming advances in legalization for both medicinal and recreational use are still pushed. However, Eco Equity plans to focus on distribution to Africa and the Caribbean, regions where the largest growth rate is expected, from $52 million reported back in 2017 to over $2.5 billion in 2027.
Should these predictions come true, the social acceptance of recreational cannabis (projected to cover 67% of the market) can give additional motivations for researchers to study the medicinal properties of the plant, which increases the demand that Eco Equity is planning to cover.
Clearer Vision, Better Plans
The main advantage that Eco Equity has over their competitors is the condition of the cannabis market in Africa. Considered as an emerging market, good initial results and projections call the attention of governments and encourages them to keep supporting these projects, and this is making analysts consider Africa as a contender to take the top market share of cannabis production from Europe.
The state-of-the-art facilities, lack of local competition (there are only five licenses for authorized production of cannabis in Zimbabwe) and great reviews from outlets like yahoo Finance, Bloomberg, and The Investment Observer have given Eco Equity an additional boost in popularity and momentum, which can help them in reaching their funding goals for the planned opening of their first indoor facility in Q1 2021.
Currently in their second fundraising stage, Eco Equity plans to have 350 hectares of land permits by 2022, allowing them to expand their operations and building two additional greenhouses and to generate income within its first full year of operations, allegedly making it a safe investment option and an entry into a market that is not only expected to grow financially, but to also ride the wave of positive sentiment to fully clear the picture of cannabis and its medicinal benefits and, if the research shows positive results, improve the quality of life of many patients with high-quality, natural solutions.