There has been a wave of new legislation, making the controversial drug, cannabis legal. It is increasingly being viewed in terms of its positive effects. More countries are not only starting to realize that the recreational consumption of cannabis will be safer if made legal and controlled by legislation but also the numerous uses it offers.
Canada is the most recent country to have changed its laws on cannabis. Although it is not a pioneer in this legislation, it is nevertheless a hugely developed and progressive nation in terms of its infrastructure and laws. Canada the second-largest country in the world and it is one of the world’s most educated countries. Therefore, its decision to legalize cannabis is particularly significant and has opened new doors and opportunities for the expanding medical cannabis industry in countries such as Colombia.
The “Cannabis Act” – Investment in Colombia
The Canadian ‘Cannabis Act’ came into force on 17th October 2018. Although regulations were established for the legal use of medical cannabis in July 2001, further legislation this year has been enacted for legalizing the recreational use of this drug as well. A strict framework has been laid out regarding the sale and possession of cannabis as well as the production and distribution of it. The legislation also focuses on the importance of inhibiting the youth from having access to it, preventing profits from the sale of cannabis reaching criminals and protecting the health and safety of the general public by giving adults access to the plant.
Here are a few key points under the new Cannabis Act:
- Medical cannabis is permitted provided permission is granted from the person’s healthcare provider.
- No person can provide or sell cannabis to anyone under 18 years of age:
- Offenses involving minors such as using an underage person to commit an offense can result in a maximum of 14 years of imprisonment.
- A person can possess up to 30 grams of dried cannabis in public:
- Possessing more than this amount will result in either a ticket for small amounts or for larger quantities, a maximum of five years in prison.
- A person may grow cannabis for personal use (a maximum of four plants per residence) provided the seeds are from a licensed seller.
Investment Opportunities in Colombian Medical Marijuana Industry
The uses of cannabis are gradually being realized by countries worldwide and as a result, both medical marijuana companies and investors are taking advantage of this rapidly growing industry. Whilst Colombia is already the medical marijuana hotspot in Latin America, it is also in an advantageous position for global domination in this industry. It aims to be the global leader in the production of cannabis and is most certainly not far off from achieving this. Colombia is already set to supply 44% of the global demand for cannabis this year.
Colombia is an attractive jurisdiction to invest in, with many opportunities for capital gain in this industry. What’s great is that it is the ideal place for cultivating the plant due to its proximity to the equator and the fact that producers are able to harvest cannabis all year round because of its ideal climate. This undoubtedly increases the probability of success and growth in this industry for foreign direct investment.
For those looking to invest in the cannabis industry in Colombia, this is undoubtedly a perfect time to do so. Jump on the bandwagon and gain the first-mover advantage by investing in the growing medical cannabis sector and capitalize on the new opportunities that have arisen due to the changes in Canadian law. With a population of over 37 million people and a GDP per capita of US $51,316, Canada’s increasing demand for a greater supply of cannabis is what foreign businesses in Colombia can exploit. The Canadian legislative changes provide new and exciting prospects with greater possibilities of supplying medical cannabis to the Canadian market. Hence why investors are increasingly looking to set up a medical marijuana business in Colombia.
It is important to remember that doing business in this industry involves complying with all the necessary legislation to ensure that your company is fully licensed to legally and responsibly produce and sell cannabis. For this reason, many people are working with local legal firms to assist in the formalities of investing in this industry; specifically with obtaining the required licenses and permissions required to produce, transform and export the final product.
Given the favorable conditions in the country and the region as well as the economic growth, Biz Latin Hub through its company Colombian Business Services offers the experience and support necessary for investors to have a successful market entry in Colombia. Feel free to contact us now.
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