HomeNewsLocal Cannabis Producers Locked Out As Swedish Firm Secures First Licence

Local Cannabis Producers Locked Out As Swedish Firm Secures First Licence

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Botswana’s emerging cannabis and hemp sector is facing growing controversy after local producers raised alarm that they are being effectively locked out of the industry, even as a Swedish-backed company has secured what is reported to be the country’s first cultivation licence.

The development comes amid escalating tensions between regulators and the Cannabis Association of Botswana (CAB), which has now accused authorities of undermining civil society participation and transparency in the sector’s rollout.

“This raises fundamental questions about who really benefits from Botswana’s cannabis economy,” said one local producer who requested anonymity. “We are being told to comply, yet the first major licence goes to a foreign-linked entity while locals remain stuck in regulatory limbo.”

Hemp Holding AB, a Swedish-based company operating through its local subsidiary Hemp Innovations Botswana, recently announced it had obtained a licence to cultivate medical cannabis and industrial hemp. The announcement has ignited national debate over foreign ownership, value retention, and whether local entrepreneurs are being sidelined in a sector widely expected to generate jobs and export revenue.

“This raises fundamental questions about who really benefits from Botswana’s cannabis economy,” said one local producer who requested anonymity. “We are being told to comply, yet the first major licence goes to a foreign-linked entity while locals remain stuck in regulatory limbo.”

Cannabis farm

At the centre of the unfolding dispute is CAB, which says it has been denied a Certificate of Registration by the Registrar of Societies for over a year despite what it describes as full compliance and repeated follow-ups.

“The continued refusal to register our association has effectively muted civil society participation in a sector that demands openness and accountability,” CAB said in a statement. “We have engaged legal counsel and formally written to the Registrar, but there has been no response.”

“We remain committed to neutral, evidence-based advocacy and public education,” the statement added. “However, civil society cannot be excluded from shaping a sector of national importance.”

The association confirmed it has now escalated the matter to Ditshwanelo-The Botswana Centre for Human Rights, seeking guidance on what it calls an “administrative impasse with serious constitutional implications.”

CAB says it is preparing to convene an urgent press conference to present a detailed timeline of events, outline legal concerns surrounding the registration delay, and disclose its engagements with government stakeholders.

“We remain committed to neutral, evidence-based advocacy and public education,” the statement added. “However, civil society cannot be excluded from shaping a sector of national importance.”

Cannabis crop

The situation has intensified scrutiny over regulatory fairness at a time when Botswana is positioning itself as a competitive entrant into the global cannabis and hemp market. Industry observers warn that delays in licensing local players could distort market development and discourage domestic investment.

It is understood that the licensing of Hemp Innovations Botswana has added further fuel to concerns about equity in the sector’s early stages, with critics arguing that the framework risks favouring well-capitalised foreign entrants over local producers still navigating regulatory approval.

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