Production and possession of marijuana, known as mbanje or dagga in southern Africa, was previously punishable by up to 12 years in jail. Recreational use will remain illegal.
Applicants for the licenses must submit detailed plans of their proposed production site and yield, according to the government notice published in the Harare Herald on Saturday.
Individuals applying for licenses must be Zimbabwe citizens or residents or have a waiver issued by the minister.
Those previously convicted of drug offences will not be allowed to apply.
The tiny state of Lesotho issued Africa’s first license for medical marijuana production last year.
A South African court last year ruled that private use of marijuana was legal, but the government appealed the ruling at the Constitutional Court.
Zimbabwe has been debating legalization of medicinal cannabis production as the government seeks new revenue streams for its agricultural economy.