PLAYERS in the cannabis industry were misty-eyed at President Cyril Ramaphosa’s pronouncements on fast-tracking the growth and processing of the plant to make it a major job-creating sector in the economy.
But the president said further engagement was necessary to tighten regulatory loose-ends and propel the sector on to the main-stage.
In his State of the Nation address (Sona), Ramaphosa told the nation that hemp and cannabis production could create about 130 000 new jobs.
He said that the government would review the policy and regulatory framework for a number of processes which would come as “sweet news” for the people of the Eastern Cape and KwaZulu-Natal. This for industrial hemp and cannabis to realise “huge” potential for investment and job creation.
The president said these products, which have been farmed for numerous purposes in the past, would now be industrialised. “We want to harness this (potential),” he said.
The Cannabis for Private Purposes Bill is still making its way through Parliament, following its introduction in September, 2020. The bill outlines possession rules for cannabis-users at home, and people who wish to cultivate the plant.
It also introduces new offences and provisions for people who were previously slapped with a criminal record for cannabis possession.
Goodleaf chief executive Warren Schewitz said it was encouraging that there was momentum on the issue which, given the president’s sentiments, meant public institutions including the Department of Justice, the SA Revenue Service, Department of Agriculture, and the South African Health Products Regulatory Authority (Sahpra) were on board in co-ordinating the growth of the sector.
Given South Africa’s geographic conditions, which were far superior for the growth of hemp and cannabis than Canada, that currently has more than $15 billion (R228.2bn) in tax revenue and generated an additional $40bn revenue from the plant, South Africa was well placed to catapult itself into the top spot.
“We have better sunshine, better opportunities for outdoor growth, strains and genetics, production facilities, and we have the best opportunities for low-cost and high-quality production,” Schewitz said.
Ramaphosa revealed that the production of cannabis in the country would soon be industrialised, with the government seeking to “harness” the economic benefits, setting up the Eastern Cape and KwaZulu-Natal as prime real-estate to kick off the process that has proved lucrative in neighbouring Lesotho and eSwatini.
“Industrial hemp and cannabis will have a pathway to industrialisation for the creation of jobs on farms in the Eastern Cape and KwaZulu-Natal, with production for a number of purposes,” Ramaphosa said.
Schewitz said the industry was likely to attract much-needed investment if there was more certainty regarding the regulatory framework needed for the growth of medicinal cannabis.
He said it would be ideal to have more engagement between the public and private sector.
In 2017, with the decriminilisation of cannabis for recreational purposes, a few licences were issued to kickstart the growth of the industry, but it only ended there.
There currently is no framework for the growth, distribution, grading and taxing of medical cannabis.
Schewitz said there was limited engagement with schedule 6 approved pharmaceutical companies to transform the flower into medically approved products, though there was a limited range of products already available in outlets such as Clicks, Pick n Pay, Spar and Woolworths.
banele.ginindza@inl.co.za
BUSINESS REPORT ONLINE