“Cannabis has been identified as an industry with enormous growth potential in South Africa and the African continent, mainly due to our favorable climate, the affordable land, and relatively low labor costs. However, due to the nature of the product, in order for this industry to flourish, it is of the utmost importance that regulations are in place.” That is the message André de Lange of Cliffe Dekker Hofmeyr shares in a webinar titled ‘Industrial Cannabis – A pragmatic approach to South Africa’s Hemp Industry’. In this webinar, Shaad Vayej and Liëtte van Schalkwyk from Cliffe Dekker Hofmeyr and Tony Budden, a cannabis industry expert, share their views on the South African cannabis market, its opportunities, and its challenges.
Cannabis master plan
“Cannabis is one of the fastest-growing markets in the world. For South Africa, too, it is a promising plant. Hemp has been categorized as an agricultural crop under the Plant Improvement Act 53 in 1976, and this is a serious step in developing a Cannabis master plan,” Shaad Vayej explains. “Such a plan aims to provide a broad framework for the development and growth of the South African cannabis industry. For South Africa to achieve its true potential in this market, developed and integrated value chains are needed. These chains could boost the economy, and 25.000 jobs could be created across these chains.”
However, even though the African market offers a lot of potentials, some serious hurdles need to be overcome. Shaad mentions that costs of cultivation could prove a pitfall, as could legislative limits placed on hemp production, over-supply, and corruption in his presentation.
Following Shaad Vajey’s presentation, Tony Budden shared some views on the opportunities for cannabis and hemp in the South African market, and Liëtte van Schalkwyk talked about the Lesotho cannabis industry. Curious? Check out the full webinar below.