President, cannabis expo gives sas cannabis industry high hopes

Cannabis production could spur employment in South Africa, but the regulatory framework of the industry is not being formulated at the desired pace, says independent writer Shamin Chibba. There is R billion of value in the local industry waiting to be unlocked. In , Prohibition Partners released its African Cannabis Report, which forecast the value of the South African medicinal cannabis market and that of the recreational cannabis market at R11 billion and R20 billion by , respectively.

South Africa has the capacity to become a leader in this dynamic space. The country enjoys a strong head start on others, a good reputation internationally for quality of product, and is rated number one in Africa for technical competence and cost of production. In addition, its favourable climate, loosening laws, arable land and pre-existing experience in farming and hemp production make it a formidable force.

Despite all this, the industry remains in the very early stages of ironing out the various legal, political, economic, regulatory and social obstacles standing in the way of its potential.

President, cannabis expo gives sas cannabis industry high hopes: The Cannabis Expo taking place in

Germany, for example, has recently become the most developed market to allow the use of cannabis to treat medical conditions, with recreational cannabis adult use to be ratified within the next 12 months. Investment drive A number of European countries have relied on South African producers to source medical cannabis products. This may explain why the JSE-listed cannabis giant Labat Africa Limited was on a major investment drive that ended in late In March , Labat acquired Sweetwater Aquaponics with its working capital requirements , a medicinal cannabis cultivation and processing facility in the Eastern Cape worth R11,5 million.

The group is also funding its own biodata observational research into the replacement of opioids for pain management by medicinal cannabis.