The third-largest licensed cannabis producer in Canada has revealed its plans to develop a company that will filter comfortably into the African cannabis market. Ontario-based Canadian cannabis cultivator Aphria has joined forces with Verve Group of Companies (VGC) in South Africa.

This partnership will lead to the development of a brand new supplier called CannInvest Africa Ltd.

Canadian cannabis cultivator Aphria signs deal for $3 million

Aphria is rumored to have struck the deal for somewhere in the $3 million range. Considering the sheer size of the cannabis industry at large, this is a fairly small number. However, it is an indication of big things to come, as Africa gears up for cannabis legalization and begins the hunt for suppliers.

“Our partnership with Aphria is a game-changer for the cannabis industry” says the Managing Director of VGC, Richard Davies. “We are very excited to be working with Aphria, who are undoubtedly the most agile and forward-thinking company in the cannabis space, period. Together, we aim to effectively network with multiple opportunities across the African continent with a keen focus on jobs creation, and most importantly community participation.”

Lesotho has legalized cannabis production and sale

At the current time, the production and sale of cannabis are only allowed in Lesotho. This landlocked kingdom bagged its first licensed producer in March of last year when Verve Dynamics saw an opportunity to supply the continent with quality cannabis.

Lesotho isn’t the only African country that will get involved in the legal cannabis industry, however.

This May, Zimbabwe legalized cannabis production for research purposes. Two months prior to this, South Africa legalized cannabidiol (CBD) for medicinal use following the termination of a cannabis ban under a Supreme Court ruling.

By investing in Africa’s cannabis market, Canadian cannabis cultivator Aphria will become a major competitor in foreign markets.

Overseas cannabis deals announced by major suppliers in Canada

Cannabis reform is happening throughout Canada, with the Canadian Senate recently voting to pass the legalization bill. This solidifies a promise made by Prime Minister Justin Trudeau back in 2015.

Aphria isn’t the only major cannabis supplier in Canada to announce cannabis deals in foreign markets.

Aurora Cannabis and Canopy Growth Corp. are two other Canadian cannabis cultivators that have recently struck deals with overseas companies. Projects are brewing in countries like Australia, Denmark, and Germany.

The future of Africa’s cannabis market is uncertain

Will Aphria’s investment be worthwhile?

Not everybody is so sure, with some investors concerned about it being too early to predict the outcome.

Despite the fact this Canadian cannabis cultivator is being wise in preparing itself to supply a future market, seeking out buyers on the continent could take some time. Earlier this month, the first cannabis dispensary opened in Durban. If we continue to see South Africa hitting headlines for cannabis-related ventures like this, investor interest is sure to grow.