Ghana’s nascent cannabis industry is struggling to attract investors after the government gave formal approval for industrial hemp operations in March this year, with industry executives warning that high licensing fees and strict compliance requirements risk leaving the sector “dead on arrival.”
Dr. Mark Darko, president of Ghana’s Chamber of Cannabis Industry, said no licenses have yet been issued despite multiple applications, as potential operators struggle to meet financial and regulatory conditions imposed under the country’s framework for industrial hemp cultivation.
“What Parliament legalized was actually hemp, and industrial hemp,” Darko said in an interview with The High Street Journal. “At the moment, it’s not attractive at all to foreign investors.”
The comments originate from growing concern within Ghana’s cannabis sector that the country could lose out on investment, exports, and tax revenues at a time when several African countries are competing to position themselves as regional cannabis production hubs.
According to Darko, Ghana’s licensing costs remain significantly higher than those in competing jurisdictions. He cited licensing regimes in countries such as Australia, where fees are comparatively lower, arguing that Ghana’s structure creates barriers that discourage both local entrepreneurs and international investors.
Industry participants are now shifting attention toward cannabidiol, or CBD, products and medical cannabis opportunities while awaiting possible policy adjustments from regulators.
Darko said applicants are still waiting for approvals, and many have struggled to satisfy entry requirements, including financial thresholds and compliance documentation. “As far as we know, no licenses have been issued at the moment,” he said.
The slow rollout raises questions about the government’s broader strategy for the sector, which had been promoted as a potential source of export revenue, job creation, and agricultural diversification.
The chamber argues that unless entry costs are reduced and compliance requirements become more flexible, illegal cultivation and black-market activity will persist.
“One of the key reasons for legalizing industrial hemp was to bring legacy growers into the formal economy,” Darko said, referring to existing illicit cannabis cultivators. “If you make the entry requirements so difficult, they will continue doing what they are doing.”
The debate comes as Ghana continues to grapple with narcotics-related incidents that have intensified public scrutiny around cannabis regulation. Recent arrests involving suspected drug trafficking and local cannabis distribution cases have reinforced social and political sensitivities surrounding the industry.
Darko said such incidents also expose contradictions within the current system, where authorities tasked with regulating legal cultivation continue to arrest unlicensed growers who are unable to meet the formal market’s entry requirements.
Ghana’s cannabis framework was initially viewed by some investors as an opportunity to develop an export-oriented agricultural industry similar to emerging markets in parts of North America and Southern Africa. But industry executives say uncertainty and high costs are now pushing investors toward alternative destinations.
“We’ve spoken to several investors in North America and Europe, and everybody is amazed at how high the fees are,” Darko said. “They are looking at other investment destinations.”
The chamber is advocating a phased regulatory model that would allow operators to enter the market first and meet certain compliance obligations over time, rather than requiring full compliance before licensing approval.
Darko warned that without policy adjustments, expectations that cannabis could become a meaningful contributor to gross domestic product growth may not materialize. “If we don’t change the model, not even a dime will come into the economy from cannabis,” he said.
