MEDICAL CANNABIS: A CAN’T MISS OPPORTUNITY
Medicinal cannabis holds great potential for Colombia with more international investors intending to explore the market's opportunities.
As cannabis is recognized more and more as a legitimate medical treatment, Colombia offers a new market and regulatory example for the unconventional product.
On August 11, 2017, the Colombian national government finalized the regulation for the cultivation and manufacture of cannabis for medical and scientific purposes. Since last summer, the Ministry of Health and Social Protection became the sole institution in the country in charge of issuing licenses for medicinal cannabis derivate.
Former President Santos and Minister of Health and Social Protection Alejandro Gaviria welcomed the introduction of the bill, stating that the therapeutic use of marijuana must be understood as a practical measure to reduce the pain of patients.
However, voices against the bill have also been raised. Former Attorney General Alejandro Ordóñez argued the danger of introducing a bill that allows the manufacturing of medical cannabis, as it could potentially lead to the legalization of the same for recreational purposes.
The proponent of the project, Senator Juan Manuel Galán, emphasized that the bill focuses on the regulation of the use of cannabis as containing those substances, so-called medical cannabinoids, which have been studied and further identified as beneficial during the treatment of terminal diseases and other chronic problems.
The debate continues in the scientific field where doctors, researchers, and academics offer different opinions regarding the use of medical cannabis. Among the several positions taken, there is, on one hand, the alleviation of symptoms related to several types of diseases, while on the other hand the development of dependence and even intoxication.
Despite the controversy regarding its positive or negative effects, the regulation of the production and transformation of cannabis for medical and scientific purposes not only opened the Colombian economy to a completely new industry but also raised interest among foreign investors.
In fact, Colombia's medical cannabis industry has seen major growth with 43 licensed companies as of June 2018. Moreover, investors from different countries, including the US and more particularly Canada, are showing interest in the country's new industry.
Since the legislation passed, six companies completed the licensing processing and subsequently formed the Colombian Association of Cannabis Industries. Among these six, three set their headquarters in Toronto, despite being founded in Colombia. Unsurprisingly, Canada has the most advanced capital market for financing cannabis ventures.
One example is Khiron Life Sciences Corp., which was successfully built in Colombia and mainly supported by Canadian investments. According to its president of the board of directors, Sidney Himmel, Colombia has great potential for becoming a major player in the medical cannabis industry.
2018 is an important year for Colombia's cannabis industry. As a former director of Colombia's Pharmaceutical Industry Chamber said, “Investment is coming to Colombia because of the quality of the terrain.”
Moreover, given Colombia's favorable climatic conditions, growers have the opportunity to cultivate cannabis year-round for a fraction of the cost required in the US, Canada, or other countries.
Colombia's market potential is also strengthened by the rare strains that can be found in the country and that add notable interest to international investors.
The increasing interest in the region has made Colombia an example when it comes to regulation of such a controversial product. According to Senator Galán, countries like Peru and Costa Rica are watching the experience of Colombia closely. “Progress in Colombia has been very significant in a short time since the adoption of the law,” said the senator.
MEDICAL CANNABIS: A CAN’T MISS OPPORTUNITY
TABLE OF CONTENTS
Guest Speaker
François-Philippe Champagne, Minister of International Trade, Canada
TBY talks to François-Philippe Champagne, Minister of International Trade of Canada, on making globalization work for all Colombians and Canadians, supporting the environment and mutually progressive causes, and increasing technological and educational ties.
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Juan Gabriel Pérez, Executive Director, Invest in Bogotá
TBY talks to Juan Gabriel Pérez, Executive Director of Invest in Bogotá, on rounding a turning point, the opportunities for foreign investment in infrastructural PPPs, and finding the perfect investors for adding value on a local scale.
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Patricia Tovar, Executive Director, Colombian British Chamber of Commerce (Britcham)
TBY talks to Patricia Tovar, Executive Director of Colombian British Chamber of Commerce (Britcham), on finding new strategies in trying times, supporting Colombians investing in the UK, and the rising importance of ecotourism.
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Orlando Velandia Sepúlveda, President, Agencia Nacional de Hidrocarburos (ANH)
TBY talks to Orlando Velandia Sepúlveda, President of Agencia Nacional de Hidrocarburos (ANH), on Tax Refund Certificates, developing pedagogical programs, and the Territorial Strategy of Hydrocarbons.
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Diego León Vélez Velásquez, General Manager, Ingeniería y Gestión Administrativa (IGGA)
TBY talks to Diego León Vélez Velásquez, General Manager of Ingeniería y Gestión Administrativa (IGGA), on predial management, virtual technical file, and working with different economic models.
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Iván Herrera, Vice President , Business Solutions and Government of Huawei Colombia
TBY talks to Iván Herrera, Vice President of Business Solutions and Government of Huawei Colombia, and Cao Wei, Country Manager of Consumer Business Group of Huawei Colombia, on their growth plans for the country.
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Carlos Alberto García Montes, General Director, National Institute of Roads (INVIAS)
TBY talks to Carlos Alberto García Montes, General Director of the National Institute of Roads (INVIAS), on developing Colombia's road networks, linking intermodal transport, and establishing private partnerships.
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María del Carmen Araujo Grijalva, Executive President, Hidalgo e Hidalgo (HeH) Colombia
TBY talks to María del Carmen Araujo Grijalva, Executive President of Hidalgo e Hidalgo (HeH) Colombia, on contributing to productivity and growth in Colombia, working closely with local communities, and areas of opportunity.
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Santiago José Castro Agudelo, Rector, Universidad La Gran Colombia
TBY talks to Santiago José Castro Agudelo, Rector of Universidad La Gran Colombia, on providing first-rate affordable education, constantly innovating whilst remaining true to one's values, and changing Colombia's risk-adverse culture.
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Andres Hernandez, General Manager, Mareauto Colombia S.A.S,
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City of Gold
Colombia's regulatory policies are generally regarded as welcoming to foreign investment, as seen by the World Bank's 2018 Doing Business report, which ranked the country's business environment 59th globally. Chief among the country's appeal to foreign investors are its stable political and economic system, rich natural resources, and geographically important location at the crossroads of two oceans and continents.
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