Playing to win in emerging cannabis markets – Part 1

Germany’s recent decision to legalize adult use cannabis should not overshadow the potential of other legalizations in less developed but still very appealing countries in Africa, South America and Asia. 

I have advised companies entering Thailand, Zimbabwe, Rwanda, and Columbia (as well as some of their respective governments) on regulatory requirements and market entry strategies. The potential rewards are high, yet, the risks and uncertainties should not be underestimated.   

How do you decide which emerging markets offer the best risk/reward calculus? Start with these 5 questions:

1.     Do you know the real political-bureaucratic landscape?  Appearances can be deceiving, and the decision-making process and stakeholder groups may be quite different than back home; 

2.     Is there regulatory clarity?  Legalization is not enough.  You will want to see a clear and detailed policy framework; 


3.     Do they have a reliable infrastructure?  When basic services like banking, power and water are dodgy, your chances of failure increase;


4.     Are your planning assumptions judicious?  Key assumptions around time to revenue, size of domestic & export markets, and workforce quality & availability must be validated;


5. Can you have a local presence?  Being on the ground gives you, Fingerspitzengefühl, a German term describing the talent for having great situational awareness and the ability to react most appropriately and tactfully.

#Thailand #Germany #Africa #SouthAmerica #emergingmarkets #globalcannabis #legalization #regulations