LESOTHO

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Why Lesotho?

Lesotho introduced legislation to legalise the cultivation and use of medical cannabis in 2008 under the Lesotho, Drugs of Abuse Act.

Lesotho’s regulations require all medical cannabis export shipments to be accompanied by a certificate of analysis (“CoA”).

Growing cannabis at scale requires sophisticated infrastructure to ensure the product ends up free of mold, mildew, bacteria, heavy metals and pesticides.

Lesotho’s pristine natural environment is very well suited to growing medical cannabis.

LEGAL FRAMEWORK

Lesotho introduced legislation to legalise the cultivation and use of medical cannabis in 2008 under the Lesotho, Drugs of Abuse Act.Regulations for cultivation and extraction have been promulgated and the regulations for local use and distribution of medical cannabis / hemp products are being drafted. Both sets of regulations are modelled on the Canadian framework.Lesotho is signatory to the three United Nations Conventions that regulate the international trade in narcotic substances, and is in regular contact with the International Narcotics Control Board (“INCB”) to ensure there is no diversion of product to illicit markets.Amendments to the Act are being considered to regulate the cultivation of “hemp” under the more stringent “cannabis” framework.

Ideal Cultivation Environment

Growing cannabis at scale requires sophisticated infrastructure to ensure the product ends up free of mold, mildew, bacteria, heavy metals and pesticides. To avoid exposure to these harmful contaminants, it is best to grow cannabis / hemp in an environment where there has been no previous use of agricultural chemicals, in particular the previous and ongoing use of pesticides on the grow facility or within a 5km radius.Lesotho’s pristine natural environment is very well suited to growing medical cannabis. It has an abundance of clean water, clean, dry mountain air and contaminant free soils. CGI’s sites are situated at least 2,000m above sea level. Cheap hydro power and relatively low cost of employment drives low production costs – less than 20% of Canadian peer group. Attractive fiscal terms – 10% manufacturing tax & no tax on dividends.

  • Fewer insects

  • Cold early mornings

  • Intense sunlight all year

  • Dry air (no humidity)

Key Facts

Lesotho facts v Switzerland (contextual comparative)

# SWITZERLAND KINGDOM OF LESOTHO
Size SqKm (SqMi) 41,285 (15,940) 30,355 (11,720)
Size Km E-W, N-S (Mi) 348 (216), 220 (137) 200 (124), 220 (137)
Population * 8.54 million (2018) 2.26 million (201 8)
Pop. Density / SqKm (SqMi) 207 (536), 450/km2 on plateau 74 (193)
Median Age 42 24
Ave Life Expectancy 82 54
Pop. Below Poverty Line (US$1.25/d) 0% 40%
Geography Mountainous and Landlocked in Central Europe Mountainous & Landlocked in South Africa
Government Federal Democracy, 26 Cantons Constitutional Monarchy with non-executive Royal Family, 10 Districts
GDP (per capita) US$ 660 billion (US$ 77,283) US$ 2.44 billion (US$ 1,079)
Highest Point 4,643 m (15,203 ft) 3,482 m (11,424 ft)
Lowest Point 193 m (633 ft) 1,400 m (4,593 ft)
Annual Precipitation 1,000 mm (39 in) on plateau (500-600m) 2,900 mm (97 in) in mountains (2,500m) 691 mm (27 in) on Lowlands (1,500 m) 1,200 mm (47.2 in) in mountains (2,500m)
Air Pollution Significant Impact – vehicle emmissions & acid rain Nothing in the mountains, marginal vehicle & open fire emissions in Maseru
Days Annual Sunshine (hours) ~190 days (2,000 hrs) 300 days (3,200 hrs)
Mountain Temp. Range -30 degC to 27 degC (winter mean -6.6 degC, summer mean 12 degC) -18 degC to 28 degC (winter mean -6.6 degC, summer mean 12 degC)
Plateau/Lowlands Temp. Range -7 degC to 30 degC -7 degC to 30 degC
Water Pollution Significant Impact – from agricultural chemicals and hydrocarbons from vehicles & industry. Marginal Impact -from open cast mining and soil erosion in mountains. Human and factory contamination in urban areas.
Renewable Water Storage 53.3 km3 2.9 km3 (2,908 million m3)
Water Use per annum 2,500 million m3 (92,000 US Gal per capita) 63 million m3 (7,367 US Gal per capita)
Capital / Pop. Bern / 121,600 Maseru / 386,000
Largest City / Pop. Zurich / 341,700 Maseru / 386,000
Official Languages German, French, Italian, Romansh Sesotho, English
Meical / Pharma Expertise Leading high quality pharma manufacturer Emerging high quality medical cannabis producer
Famous For Skiing & Chocolate Cannabis & Traditional Blankets