6 Million US Dollars to Legally Grow Cannabis in Uganda

Kidete

New Member
Any licensed grower that plans to set up shop in the pearl of Africa – a nickname coined by Winston Churchill, has to pay $1,000,000 to acquire a license. The government also expects each interested party to have at least $5,000,000 in the bank as reserve capital.

Do you think the government is overcharging investors? Here's the post where I read the article...

 

Nyaga

Junior Soil Food Web Consultant
Zimbabwe has a similar scheme. As an African myself I've become accustomed to corrupt financial injection schemes African Dictatorships attract foreign investments which benefits the ruling government, while its own population have to live in poverty. Uganda is not the pearl of Africa. Do not trust these "investment opportunities". There are better opportunities.
 

Burned Haze

Really Active Member
They will lower once they have more competition , look at wines and beer. Yes expensive brands but also cheap as fuck!
 

Nyaga

Junior Soil Food Web Consultant
There are places in Africa Where you can get a license for less than USD10 000 - USD50 000 and build an off grid medical grade facility for less than USD 3 000 000 and have more than a 100 acres of land to work with.

It looks cheap from outside the USA but that is exactly the issue its too expensive for African Growers. African producers is cut out of the loop because foreign money is easy to make compared to other countries as it looks lucrative and cheap. The tax for foreign company in Africa in medical cannabis is usually 30-50% and its still cheaper for a US seller to have a facility in Africa.

Let me put it into perspective for you. You can have a facility In Africa that produces +400kg (881.849LBS) every 3 months and the cost to produce 1gram of flower in these facilities is less than USD 2 per gram.

I am in Africa and you can buy wholesale indoor medical grade at 3-4 USD per gram or round 112USD per ounce. It will be cheaper for a US seller to import from Africa than it is to produce and sell in USA. In fact the African market can demolish the local producing USA market once the framework is in place in Africa.

I over simplified it but I have my numbers right
 

treefarmercharlie

🍆
Admin
There are places in Africa Where you can get a license for less than USD10 000 - USD50 000 and build an off grid medical grade facility for less than USD 3 000 000 and have more than a 100 acres of land to work with.

It looks cheap from outside the USA but that is exactly the issue its too expensive for African Growers. African producers is cut out of the loop because foreign money is easy to make compared to other countries as it looks lucrative and cheap. The tax for foreign company in Africa in medical cannabis is usually 30-50% and its still cheaper for a US seller to have a facility in Africa.

Let me put it into perspective for you. You can have a facility In Africa that produces +400kg (881.849LBS) every 3 months and the cost to produce 1gram of flower in these facilities is less than USD 2 per gram.

I am in Africa and you can buy wholesale indoor medical grade at 3-4 USD per gram or round 112USD per ounce. It will be cheaper for a US seller to import from Africa than it is to produce and sell in USA. In fact the African market can demolish the local producing USA market once the framework is in place in Africa.

I over simplified it but I have my numbers right
Those costs are still prohibitive for a lot of people in the US who are trying to get into the industry. I'm pretty sure that the restrictions in the US also prohibit manufacturers and suppliers from producing their flower anywhere except the state in which they are licensed.
 

H.A.F.

a.k.a. Rusty Nails
Those costs are still prohibitive for a lot of people in the US who are trying to get into the industry. I'm pretty sure that the restrictions in the US also prohibit manufacturers and suppliers from producing their flower anywhere except the state in which they are licensed.
There's also the international factor. Now that we have legal and non-legal states it's a free-for-all. Unless they decide to guard state borders there's no recourse for law enforcement but to keep pissing in the wind. Doing what they can to suck up some of that "war on drugs" money - to be used elsewhere for actual crimes LOL

The international border will always be an issue - even if legal it would be tarriffed and taxed out the ass.
 

Nyaga

Junior Soil Food Web Consultant
There's also the international factor. Now that we have legal and non-legal states it's a free-for-all. Unless they decide to guard state borders there's no recourse for law enforcement but to keep pissing in the wind. Doing what they can to suck up some of that "war on drugs" money - to be used elsewhere for actual crimes LOL

The international border will always be an issue - even if legal it would be tarriffed and taxed out the ass.
Looks like its legal. Found a Cali company growing in Africa. Premium brand, i know canadian, eu and South American growing on Africa too. Whats you minimum wage in cali? In Africa its between 20 cents and 1.2 usd per hour dependent on country
 

H.A.F.

a.k.a. Rusty Nails
Looks like its legal. Found a Cali company growing in Africa. Premium brand, i know canadian, eu and South American growing on Africa too. Whats you minimum wage in cali? In Africa its between 20 cents and 1.2 usd per hour dependent on country
No doubt the cost of labor is a slave wage compared to here. Cost of living is also vastly different. Employee expense is nominal compared to the other things you have to pay for. And if it's an outdoor grow then most of those employees will be seasonal at harvest.

It is not legal to ship weed from another country into the US. Not saying it doesn't happen, or that you can't - just that there will be consequences if caught. When THAT part of it is legal, then the import/export stuff and taxes will make it a non-starter profit-wise. So your market would have to be other than the US for the time being - and maybe forever depending on the tarriffs and such.
 

High kev

Yankee seeds
Breeder
What will happen if I snuck over their and planted a massive outdoor gorilla grow crop without paying anyone and someone found out about it?
 

Nyaga

Junior Soil Food Web Consultant
No doubt the cost of labor is a slave wage compared to here. Cost of living is also vastly different. Employee expense is nominal compared to the other things you have to pay for. And if it's an outdoor grow then most of those employees will be seasonal at harvest.

It is not legal to ship weed from another country into the US. Not saying it doesn't happen, or that you can't - just that there will be consequences if caught. When THAT part of it is legal, then the import/export stuff and taxes will make it a non-starter profit-wise. So your market would have to be other than the US for the time being - and maybe forever depending on the tariffs and such.
The cost of living is different in some aspects but everything else is pretty much the same. You have to remember the taxes is also different which makes "cost of living" different.

Even though the cost of living is lower (food is cheaper, and medical care is cheaper) everything else is more expensive and unaffordable for the majority of the African population in their own countries. Ownership of land, housing, rent, cost of water and electricity, municipal tax, income tax, cost of fuel, cost of a vehicle(usually double that what it is in the US), cost of education (it is cheap for a foreigner but expensive for locals).

Also in Africa all forms of growing is done, indoor, outdoor, light dep, greenhouse. It is also not financially feasible to do "seasonal" harvests for corporate companies especially those that is publicly listed (like the company in my previous post) as they want revenue streams that shows quarterly growth for their disconnected investors. So supplemental lighting is used in times of the year when its needed. You also have a higher rate of success incase something goes wrong its possible to recover losses within 2 grow cycles.

Usually that is how it goes you have 4 harvests a year so one for each quarter which is 3 month cycles of 2-4 weeks veg (from clone dependent on strain), 8 weeks flower, 1-2 week dry, 2-4week cure. Or you can do fresh rosin extraction. Regardless of which direction you go large grow ops is in full perpetual cycles so its non stop.

You also have to look at it this way in the said link I did of that company and the location in Lesotho. Lesotho is run by a monarchy which has strong relations to the British empire and the diamond trading industry. Majority of the population lives in extreme poverty while a few fat cats sit at the top.

It is not as simple as "Investing in Africa" because that investment may be financial support to keep the poor poor and oppressed so you have to ask yourself some difficult questions internally and approach it in a way that makes it possible for you to sleep at night.

Who you partner up with will determine if you are going to succeed short term and disappear, or struggle short term and succeed + be stronger long term.
 

Nyaga

Junior Soil Food Web Consultant
What will happen if I snuck over their and planted a massive outdoor gorilla grow crop without paying anyone and someone found out about it?
Well you can do that in South Africa and Lesotho plant it in your backyard you can do trees but you'll never see it to its full potential because people steal the plants :ROFLMAO:. You have to live in a remote area to have a successful harvest of trees.
 
Any licensed grower that plans to set up shop in the pearl of Africa – a nickname coined by Winston Churchill, has to pay $1,000,000 to acquire a license. The government also expects each interested party to have at least $5,000,000 in the bank as reserve capital.

Do you think the government is overcharging investors? Here's the post where I read the article...

wow the CCP grows it in Oklahoma a lot cheeper...lol
 
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