Page 113 - Daggabay Magazine Issue 9

Fields of Green for ALL • Collectively Reforming South African Cannabis Laws

4. education & Training 5.2.1.3 Optional services
Hubs have a responsibility to implement
or source training for growers, distributors 7. advanced Product analysis
and retailers in all sectors, but particularly Best practice and international standards should be
in the Rural and Kasinomics sectors. The followed.
training should include a merit system as an
incentive for industry participants to attend 8. advanced Training & education
training courses on topics like Horticulture,
Botany, general Health, Safety and Hygiene. International standards and best practices should help
Partnerships between Hubs and private shape community-based education and training but
companies and / or government institutions it is vital that all training incorporates aspects of South
are essential for the rollout of training and African traditional and ethnobotanical knowledge and
education programmes. takes careful note of the diverse backgrounds of our
Cannabis community.

5. Tax / VaT Collection
If the tax level for legal Cannabis trade in 9. Packaging For Kasinomics
South Africa is set too high, the unregulated Aside from providing labels of affiliation and quality,
market will continue to thrive, and rightly Hubs can advise Kasinomics members on packaging
so. If previously disadvantaged Cannabis and storage options to maximise return on their
communities do not see clear advantages to products. Hubs can also provide packaging services
operating within the regulations, there will be on site.
little appetite for compliance. This has been well
documented internationally. 10. anonymous auctions
An auction model should be seen as a viable option
It would be unwise to assume that the use of a for the wholesale trade in Cannabis products at the
potentially psychoactive substance is without Hub. This is a prudent way of protecting growers
risk or cost to communities and society. A from bid hedging or price fixing by wholesale buyers.
proactive, evidence-based approach should be An anonymous bid system of a single private bid
taken to quantify a tax structure applicable to per prospective buyer would ensure that the seller
retail products. Existing legislation may already receives a fair price in terms of what is sustainable for
apply regarding the distribution of taxes related both seller and buyer.
to such products. It would, however, be ideal to
target this tax revenue for distribution towards
harm-reduction programmes for substance-use 11. Warehousing
disorders, and towards research, but this is a Producers, wholesale buyers and retailers may wish
decision for the South African Treasury. to house their raw or finished products onsite or
with third-party service providers. Regulations for
As is the case with many other industries in best practice will need to be considered with respect
South Africa, Cannabis businesses must also to logistics, security, and storage with respect to all
receive tax relief for supporting training and products.
community development.
12. Hemp
6. Trade Between Hubs By-products and Waste Waste and by-products
Business members of a Hub are free to trade from processed Cannabis plant materials may not
between themselves. However, outside a contain sufficient value or components to warrant
particular Hub, all Cannabis products must regulation other than that of the laws and regulations
transit from the seller’s Hub to the buyer’s Hub of the markets or industries in which they enter, eg:
in order to comply with basic traceability in construction or energy production. Adult-use tax and
both Hubs and avoid diversion. There can be certification requirements would not apply to the use
provision for mandates for offsite transactions in of or trade in these products.
the standard operating procedure of the Hub.

CANNABIS IN SOUTH AFRICA • THE PEOPLE’S PLANT • A Full-Spectrum Manifesto For Policy Reform 69