The Cabinet has approved a concession agreement between the Government of Rwanda and InipasvalleyRw Ltd for the High-Value Therapeutic Crops Project.
The decision was announced in resolutions from a Cabinet meeting chaired by President Paul Kagame on Friday, July 24.
The approval comes as Rwanda continues to promote investment in high-value therapeutic crops, specifically marijuana.
Medical marijuana is the only known high value therapeutic crop (HVTC) that is legalised to be grown and produced in Rwanda.
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In 2021, the country legalised the cultivation, processing and export of cannabis for medical and therapeutic purposes while maintaining a ban on recreational use.
However, it is not clear whether the approved concession is specifically for production of medical cannabis.
The New Times contacted the chief executive officer of the Rwanda Development Board (RDB) for clarification, but efforts to get further details were futile.
First marijuana licence
Following the legalisation of medical marijuana in 2021, King Kong Organics (KKOG Rwanda) became the first company in 2024 to secure a five-year licence to cultivate medicinal cannabis, process it into therapeutic products and export them.
The company said it had invested $10 million in developing a production facility in Musanze District.
However, the company's chief executive Rene Joseph told this publication that the project has stalled due to failure to raise more funding as well as failure by RDB to honor its commitments.
According to him, his company signed a Memorandum of Understanding (MoU) with the government, under which he expected $2.5 million in government funding. He claims the funding was never disbursed despite repeated follow-ups.
Joseph also maintained that he has been unable to resolve land title issues over the property in Musanze where KKOG's processing facility was supposed to be set up.
