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Covid-19 has created a new concept – social distancing. Trend analyst Deon Chang said it could deepen a trend among Generation Z, who are technologically advanced and spend virtual time with friends. Virtual happy hour is an example since the Covid-19 outbreak, and people will find ways of being social online”. – www.Joburgtoday TV.
KWAZULU-NATAL UNLOCKING THE
FACT
TRADE & INVESTMENT POTENTIAL OF CANNABIS
In November 2019, the KZN Department of Economic Development, Tourism and Environmental Affairs (EDTEA) held the Cannabis Investment Protocol-State of Readiness in KZN. The breakfast event, held at the Inkosi Albert Luthuli International Convention Centre in Durban, was officiated by MEC for Economic Development and the Leader of Government Business, Ms Nomusa Dube-Ncube. The launch marked the beginning of a series of information- sharing sessions with public and private sector role-players discussing key issues related to the cannabis industry, particularly driving the intention of provincial government to support co-operatives and small-scale farmers to produce marijuana, to stimulate trade and investment and to create jobs.
During his 2020 State of the Nation Address (SONA) in February, President Cyril Ramaphosa confirmed that the next 12 months would see the commercial use of hemp and cannabis products accelerated. This means that markets like medical marijuana will be allowed to boom with government support and approval. Ramaphosa announced that small- scale farmers and independent cannabis manufacturers would soon receive guidelines on how they would be allowed to operate.
“This year we will open up and regulate the commercial use of hemp products, providing opportunities for small-scale farmers; and formulate policy on the use of cannabis products for medicinal purposes, to build this industry in line with global trends. The regulatory steps will soon be announced by the relevant ministers,” Ramaphosa said.
Available statistics show that the global cannabis industry is worth more than R100 billion. The United Nations suggests that South Africa produces 2, 300 tons of marijuana annually – making the country the third-largest producer of the plant and related products in Africa. The African Cannabis Report of March 2019, published by Prohibition Partners, estimates that by 2023, the total value of the South African cannabis industry will be around $1.8 billion.
Economists estimate that the cannabis market will reach $146 billion by the end of 2025 and predict that South Africa will become a major player. Mike Schüssler of Economists.co.za says cannabis cultivation has the potential to help South Africa advance in many ways and emphasised the need for
the legislative framework to be in place to ensure that it becomes a fully-functioning sector of the economy. Schüssler estimates a potential 100 000 jobs being created in the industry and highlighted the the large growth potential within the rural economy in particular. Many farmers would benefit from licensed cannabis cultivation, particularly in KwaZulu-Natal, which has the ideal climate for the cultivation of cannabis.
KwaZulu-Natal is readying itself to leverage the lucrative cannabis industry. KZN public entity, Moses Kotane Institute of Technology, has conducted a detailed study on the Commercialisation and Beneficiation of Cannabis on the Development of the Rural Economy of KwaZulu-Natal which highlights the extensive economic opportunities available.
KwaZulu-Natal is well poised to become a leading exporter of cannabis. The province is strategically located for trade and includes two world-class harbours and a globally- recognised multi-modal logistics complex at Dube TradePort Special Economic Zone. This, coupled with KZN’s diversified economy, provides the province with a unique opportunity to fully exploit global export opportunities. In just one decade, KZN’s exports have doubled from an estimated R70 billion in 2007 to R142 billion in 2017.
Speaking at the launch of the KZN Cannabis Investment Protocol, MEC Dube-Ncube said, “Our focus as government is on ordinary communities in rural areas because they have a long history of growing and consuming
cannabis – though they have been doing it illegally. Now that government is opening up opportunities, we don’t want ordinary members of society to be marginalised. We want oGogo noMkhulu from Umsinga, Impendle, Mzimkhulu, Bergville, eShowe and many other areas to be involved in the export of cannabis. Through the Moses Kotane Institute of Technology, the government of KwaZulu-Natal is in the process of assisting communities to acquire licenses in order to trade in marijuana.”
Dube-Ncube added: “’The Department of Health in consultation with the Medicines Control Council is to establish a dedicated Medicinal Cannabis Unit to oversee cultivation, manufacturing, dispensing, clinical aspects and research and development. I wish to state that we are continuing with discussions with the national government as part of efforts to ensure that ordinary members of society benefit from cannabis. Importantly, we do not want reckless use of cannabis and ensure compliance with the laws of the country. The Department of Agriculture and Rural Development, both the Provincial and National, would assist in land access, testing, fencing, business support from agricultural perspective.
In addition, as the department and our public entities: Trade and Investment, Dube TradePort, Richards Bay IDZ ,Moses Kotane and Agribusiness Development Agency. We are ready to support the SMMEs/Co- operatives in training, mentorship and funding for the projects.
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