Gov’t targets 2026 start for hemp and cannabis industry
December 1, 2025 10:14 pm | Posted in Business News | Share now TwitterFacebook
By Ezra Toara & Kizzy Kalsakau.
Director General (DG) of the Ministry of Agriculture, Livestock, Forestry, and Biosecurity (MALFB), Timothy Tumukon, says Vanuatu’s industrial hemp and medical cannabis sector is expected to show early operations by the first quarter of 2026, following years of delays despite the law being passed.
Although Parliament approved the law three years ago and licences were issued in 2023, no progress occurred in 2024 on importing, planting, processing, or exporting industrial hemp and medical cannabis. Tumukon attributed the delay to gaps in legislation, which lacked key provisions needed to operationalise the industry.
“The law was passed, but several essential components—such as policy, strategy, and regulatory details—were missing. This prevented licensed companies from opening bank accounts and starting investment,” he said.
A stakeholders’ meeting with the Prime Minister and Deputy Prime Minister on 19 March 2024 addressed banking issues. Banks had been refusing licence holders access to accounts, blocking capital inflow and stalling operations.
In late October, the Government completed amendments, adding the Industrial Hemp and Medical Cannabis Policy and Strategy to support implementation and guide sector development. The amended law was approved by Parliament, signed by the President, and gazetted, bringing it fully into force.
Under the updated law, all cannabis and hemp products must be exported, as domestic use remains prohibited. The DG noted that cannabis remains illegal in neighbouring countries, including Australia and New Zealand, though the global industry is growing. Returning workers under the Recognised Seasonal Employer (RSE) scheme and Seasonal Worker Programme (SWP) have observed its expansion overseas.
Revenue from the industry will include compliance fees and licensing arrangements. Tumukon said one hectare of medical cannabis can generate over VT1 billion, with nearly 70% going to the Government. If licence holders expand operations to multiple hectares, national revenue could reach VT10–15 billion within two to three years, potentially contributing up to five per cent of general revenue.
Currently, four active licences remain after initial screening to ensure compliance. Each licence costs VT12 million and requires a minimum of 10 years of experience in the industrial hemp or medical cannabis sector abroad. Foreign companies must partner with local landowners to operate.
DG Tumukon also addressed misconceptions, noting the plant has been used medicinally for centuries and restrictions arose only in the past 50–60 years due to misuse. “The plant is a natural gift. Its beneficial components can be used responsibly,” he said.
Vanuatu may explore medical cannabis use for patients with non-communicable diseases in the future, but only once production is safely managed. For now, all licence holders must ensure land lease agreements and required documentation are complete.
“Our goal is to see early operations by the first quarter of 2026. Even if not fully operational, we should at least see signs of activity,” Tumukon said.
