When we began this project in 2003 we made a joke about including dagga in the table of contents with a note like “banned” or “removed” on the referenced page; we laughed and continued research on the other chapters. Sixteen years later we began work on the chapter with a quiet sense of irony, the (updated) page that you are looking at now.
The judgement confirmed by the Constitutional Court that cannabis was no longer illegal for private use unleashed a flood of interest and many business plans by companies and government departments (see “National strategy and government contact” heading) on how to capitalise on the development. Prohibition Partners estimates that global cannabis sales could be worth more than $101 billion (R1.8 trillion) by 2026 (Prohibition Partners, 2023), something on which South Africa could capitalise. The Department of Agriculture’s Cannabis Master Plan (2021) estimates the local sector to be worth R28-billion with a potential 25 000 employment opportunities. According to Agbiz’s Wandile Sihlobo, a potential cannabis value chain would/should focus on international trade (export) and domestic medicinal use, which would see accompanying economic activity and job creation particularly in the rural areas.
Globally, the legal cannabis market was estimated to be worth approximately $50.3bn in 2021. It is forecast to increase by a massive compound annual growth rate (CAGR) of 26.5%, to reach $417.2bn by 2030 (Insight Survey, 2022).
Find information here:
Some articles:
The policy framework for the legal production of cannabis may still take a long time to be clarified with the danger that benefits for farmers will not be realised (Mathibe, 2023; Erasmus, 2019). Countries where production is legal currently supply the South African market for medicinal cannabis.
Progress, following the introduction of the Cannabis Master Plan, has largely stalled (Mathibe, 2023). The steps necessary to maximise the potential of the crop (Qobo & Sihlobo, 2019) remain:
The Cannabis Development Council of SA (CDCSA) identified several other economic sectors which could be involved in a successful cannabis economy (includes hemp):
The provinces best suited climatically for possible cannabis cultivation are KwaZulu-Natal, Eastern Cape and Limpopo. High profit margins and ease of production are included as benefits of the crop (Mpofu, 2019). Apart from new employment opportunities and economic growth, a tax on the cannabis value chain would also be another income for government.
Controlled, international trade in cannabis and its products, and medicinal use locally is where the focus should be. Increased research will assist policy makers in evaluating the benefits and possible unintended consequences (Sihlobo, 2019).
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A webinar held by Cliffe Dekker Hofmeyr (CDH) (2021, November) saw industry experts take the viewers through the new hemp licensing framework, its opportunities and potential pitfalls, and provided insight into cannabis as a viable agricultural commodity. The YouTube video is an excellent introduction to cannabis and its potential.
Further reference:
For guides on processing cannabis, contact role players (see later heading).
The Law on cannabis:
Further reference:
Find role players at the Cannabis Expo www.thecannabisexpo.co.za and at https://cannabiscontacts.co.za.
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