Botswana’s entry into the global cannabis industry has been overshadowed by a growing public dispute over ownership, control and who stands to benefit after a Swedish firm announced it had secured the country’s first cultivation licence.
On its LinkedIn page, Hemp Holding AB, a Sweden-based company, declared that its local vehicle, Hemp Innovations Botswana, had ‘officially acquired the first license to cultivate both medical cannabis and industrial hemp in Botswana.’
‘This is more than a permit. It is the foundation of a new regulated industry – one built on compliance, science, sustainability, and international standards such as GACP and EU-GMP,’ the company said.
It outlined ambitions to position Botswana as a ‘trusted exporter to the EU and global markets,’ while promising job creation, skills transfer, farmer inclusion and the attraction of international capital.
But the announcement quickly triggered a backlash from regional industry bodies who warned that the project risks reproducing extractive economic models that have long disadvantaged African economies.
The African Hemp Consortium was among the first to respond as it warned that licence allocations must prioritise local ownership and governance.
‘Africa’s emerging natural capital industries cannot afford to replicate externally controlled extraction models under the banner of compliance or first-mover positioning,’ the consortium said.
It added that regulatory credibility would not be judged solely on export readiness, but on ‘who governs the asset, where value accumulates, and how domestic institutional capacity is strengthened.’
The intervention set off a back-and-forth exchange online with Hemp Holding AB defending its structure.
‘Good day, we have strong local partners and government bodies as partners and local shareholders in the company,’ the firm said. ‘All employees will be local apart from a few external experts or consultants bringing knowledge to the nation.’
However, concerns deepened as other industry players joined the debate.
The African Medicinal Cannabis Council (AMCC) warned that Botswana’s natural resources must not be reduced to inputs for foreign-controlled value chains.
‘Botswana’s land and natural capital must generate durable value for the people of Botswana, not function primarily as upstream supply for externally controlled processing and capital structures,’ the council said.
It cautioned against ‘regulatory capture and disproportionate external influence,’ arguing that long-term credibility of the sector would depend on where governance authority sits and whether value addition happens within the country.
The council also took issue with business models geared toward foreign markets, saying operators focused on developing products for Europe risk sidelining domestic benefit.
‘Africa’s medicinal and industrial cannabis industries cannot replicate legacy extraction patterns under a modern compliance framework,’ AMCC said.
The African Hemp Consortium doubled down, arguing that any model built primarily around export markets risks extracting value rather than generating it locally.
‘If a business is ‘developing bio products for Europe’s circular change,’ it must be recognised that the model relies entirely on Botswana’s land, resources and communities,’ it said. ‘Anything less is not sustainable or credible.’
Adding to the criticism, Cannabis Research UK warned that such models often fail to deliver meaningful benefits.
‘This is a concerning pattern. Research shows that companies prioritising external markets over local governance and value retention often fail to deliver meaningful community or economic benefits – and many ultimately fail or go into liquidation,’ the organisation said.
In response, Hemp Holding AB appeared to strike a more conciliatory tone, acknowledging some of the concerns.
‘Good day, I somewhat agree and we will of course grow for local needs (grains) and what the legislation allows us to,’ the company said.
The dispute comes as Botswana takes its first steps into regulating cannabis production, a sector seen globally as a high-growth industry with potential for export earnings, job creation and industrial diversification.
At the heart of the debate is a familiar question: whether Botswana can leverage the cannabis industry to build domestic capacity and retain value, or whether it risks becoming a low-value supplier in a globally controlled supply chain.