Cannabis, a term we are all familiar with in one way or another, however, in the past, our associations with it have been negative, fuelled by stereotypes that focus on the psychoactive elements of the drug. However, governments across the globe are increasingly changing their perceptions of cannabis down to a remoulding of its image carried out by pioneers advocating the positive opportunities that can come from legalising the use of cannabis in medicine and industry. If you have an interest in the use of cannabis in the medical or construction industries, it comes as no surprise that Latin America leads the way as a leading region and could be argued as the home to the largest legalised cannabis investment platform in all of the world, especially given the possibility of Mexico joining the club of countries with positive cannabis legislation and becoming the largest single market in the world.
In this article, we will not be focusing on Mexico, however, but rather Ecuador. Situated in north-western Latin America, it is a country with a climate suited towards the cultivation of crops making the agricultural sector very strong, as well as having an ecosystem full of biodiversity, making Ecuador so intriguing as a nation with regards to the types of investment opportunities to be found there. So, if this is making you more interested, there is not only natural beauty and an idyllic climate on offer, the Ecuadorian legalised cannabis industry is extremely dynamic, demonstrated in recent years where development has been constant following the approval of new regulations in 2020. These regulations will see the introduction of seven licenses allowing different types of cannabis cultivation, and we will outline them below:
Importation and commercialisation of hemp seeds and cuttings (including seeds for industrial use)
Sowing and production of hemp seeds and cuttings (including seeds for industrial use)
Hemp cultivation
Industrial hemp cultivation
Hemp processing and production of hemp derivatives
Plant breeding and/or germplasm banks, and research
Acquisition of derivatives and/or biomass or hemp flower (including biomass for industrial use) for export
It is clear that in less than a year, the barriers to cannabis access have been largely removed. Just by reading the list it is evident that industrial cannabis in the form of hemp is encouraged through these licenses, and on our blog, there are a number of articles about hemp being used in this way in order to help the environment and provide an alternative to the pollution incurred through construction. So, if you are involved in this sector, perhaps investment in Ecuador could be the answer to sustainable hemp cultivation, as it is both legal and viable. Not only this, but it is possible to hold more than one license at a time, providing multiple avenues for investment, and with more available combinations with more licenses, the potential returns on any investments increase exponentially!
The above licenses are sanctioned by the Ministry of Agriculture and Livestock, and all cannabis cultivated legally once a permit is obtained cannot contain more than 1% THC, the psychoactive element of cannabis. This is convenient as the THC limit for medicinal cannabis in Ecuador is also 1%, making the newly introduced licenses a helping hand for the nation’s medicinal cannabis industry, while also attracting a new investor base from abroad. Medicinal cannabis comes to the aid of people with a number of debilitating illnesses, such as epilepsy and multiple sclerosis, creating a necessity for further relaxation of the grip on cannabis legislation to make it easier and cheaper for these people. This move by Ecuador is a start, putting them ahead of many other nations not just in Latin America, but also the world as a whole, consequently forming a platform upon which progress can be increased.
So, if you think investment in Ecuador in the form of cannabis cultivation licenses could be the next step in your professional career, do not hesitate in contacting us today. At Creimerman, we have an experienced team ready to work on your cross-border business plans and help make them a success, with a tailor made and friendly approach to make the process as stress-free as possible.