Cannabis products manufacturer MMC Laboratories Limited (MMCL) says the commissioning of its multi-million-dollar processing factory in Lilongwe has been delayed due to persistent foreign exchange shortages.
Construction of the state-of-the-art facility at Mbabzi Estate in Lilongwe, which will extract medicinal cannabis for active pharmaceutical ingredients and other cannabis-related products, commenced in 2024.
In an interview with Times Business, MMCL Financial Controller Martin Sabola said the company had initially planned to begin production by September 2025, but delays in installing critical equipment, largely due to foreign exchange constraints, have pushed back the timeline.
“We were supposed to be operational by September 2025, but the installation phase has been delayed because of difficulties in accessing foreign currency to procure equipment,” Sabola said.
He said the company now expects to commence production next year and that MMCL requires about $10 million to complete the full factory build-out by the end of 2026.
- Advertisement -
“That projection is based on all things being equal. The biggest challenge we face is forex availability. Most of our investment is in Malawi kwacha, making it difficult to source foreign currency for capital expenditure, particularly equipment purchases,” Sabola said.
Once fully operational, Sabola said the factory will have the capacity to produce and export about 700 tonnes of cannabis products annually, generating estimated export revenues of around €100 million.
He said the products will mainly target the European market, where MMCL already has an established presence in Germany.
“Just our company alone, on full production, we can generate more than what the tobacco industry as a whole is producing. So, it is something which I believe, with full government support, will transform the Malawi economy,” Sabola said.
- Advertisement -
- Advertisement -
He added that the company is currently exporting about 100 kilogrammes annually to the Czech Republic from cannabis grown in-house at Mbabzi Estate, with plans to expand into out-grower schemes once the factory is fully operational.
When contacted for comment, Reserve Bank of Malawi (RBM) spokesperson Boston Maliketi said the central bank fully supports initiatives with the potential to boost the country’s foreign exchange earnings.
He indicated that the central bank is taking a keen interest in exploring ways of supporting the realisation of the venture.
“The governor is passionate about supporting such export-generating ventures if validated to be viable. He has not met MMC and has requested that we arrange a meeting so he may link them with the financial industry,” Maliketi said.
Economist Marvin Banda said the delays faced by MMCL highlight the structural foreign exchange challenges the country continues to face, which are hindering capital-intensive export projects.
Banda suggested that addressing these constraints through targeted financial support and the prioritisation of export-oriented investments could help unlock value-adding industries.
“The economic framework we currently have is not conducive to export-oriented economic development, especially through foreign direct investment, while forex leakages and mis-prioritisation continue to render many industries ineffective for national development,” Banda said.
MMCL was incorporated in 2023 under a multi-shareholding structure. RBM, through the Export Development Fund, holds an 18 percent stake, while the Malawi Agricultural and Industrial Investment Corporation also owns 18 percent.
