DURBAN - THE KwaZulu-Natal government received more than 200 applications for cannabis cultivation permits in the past year, a sign that there is a great deal of interest for many to enter the industry.
This was revealed by the Moses Kotane Institute (MKI), which is an entity that falls under the Department of Economic Development, Tourism and Environmental Affairs.
After President Cyril Ramaphosa’s announcement last week regarding government’s efforts to move towards formalising cannabis trade, several roleplayers, including farmer formations, have expressed interest in exploring cannabis cultivation, saying it could be the game-changer for the South African economy.
MKI chief executive Dr Thandeka Ellenson said they had in the past conducted research on the cannabis industry and this prompted the province to consider the economic opportunities that could be brought forward.
“During the period 2020/21, MKI received 236 hemp cultivation permits. The permits applications were directed to Sahpra (the South African Health Products Regulatory Authority) for processing, because at the time that was the national entity geared towards this function,” Ellenson said.
She said MKI assisted growers with business plans, site plans, costing and legal advice, funding applications assistance, farm verifications and extension services while waiting for the regulations from the Department of Agriculture.
The 236 applicants have since been moved to the Department of Agriculture by the provincial agricultural department.
“Once the applications are approved at the national department, the permits will be issued to growers and planting will commence for those growers that are ready,” she said.
University of Zululand political economist Professor Irshad Kaseeram said the cannabis industry could be the magic bullet that would help transform South Africa’s economy, ensuring the participation of mainly African entrepreneurs who had been on the sidelines for a long time.
Kaseeram said other countries had achieved some level of economic growth owing to the cannabis industry and it was important for South Africa to look at how this had been achieved.
“In countries such as Canada and the Netherlands, cannabis is used for recreational and medicinal purposes and we can take lessons from them,” he said.
He said that because planting cannabis was labour intensive, it had the potential of absorbing a large number of unskilled people.
Despite the government’s efforts to tackle poverty, the levels of inequality were still evident in many parts of the country, especially in rural communities, he said.
“South Africa needs to identify new business opportunities that will stimulate economic growth and cannabis trade is one such area that will help do that, because it is largely untapped,” Kaseeram said.
“More than anything, it provides a good opportunity for African entrepreneurs who often struggle to access capital to gain access to what could be a very lucrative industry.”
He said it was important for the government to swiftly develop a regulatory framework so that the sector could be formalised.
African Farmers Association president Jabulani Mthembu said they were excited by Ramaphosa’s announcement, but wanted further information.
He said dagga had been used for ages in communities, often at the risk of jail time for those caught trading in it.
“We hope that when the time comes for a more formalised form of trading, the people who have borne the risk in the past are not suddenly overlooked when things get formal,” said Mthembu.
He added that while there was a lot of interest, those in the agriculture industry and new entrants would need to be guided on the legislative requirements when they were formalised.
“This form of trade, like many, requires that one holds a valid licence and acquiring it is not that easy and requires quite a lot. We hope the historical context will be considered when our members and any other new entrants will be guided through the process, so that they become part of the economy and not just bystanders or consumers, but are at the production end of the economic scale,” Mthembu said.
An Eastern Cape resident told The Mercury that he hoped the formalising of the cannabis trade would be quick so that people could get a chance to earn a living.
He decried the poverty levels in his province and said that some of the locals, including himself, had started cultivating cannabis as a way out of poverty.
“If the government can move with speed, that could be of great help to many of us in the region,” said the resident.
Lobby group the Fair-trade Independent Cannabis Association said they were of the view that through enabling laws the government could open the door for a new and promising industry which would bring with it billions of dollars from foreign investors while also generating revenue through the local industry.
THE MERCURY