A draft national cannabis master plan released recently to the industry by the department of agriculture, land reform & rural development proposes legislative measures to lift the restrictions on the commercialisation of cannabis and hemp.
The purpose of the master plan is to provide a broad framework for the development and growth of the SA cannabis industry to contribute to economic development, job creation, rural development and poverty alleviation.
It is estimated that more than 900,000 small-scale farmers are growing dagga — especially in the Eastern Cape and KwaZulu-Natal — and the aim of the draft master plan among other things is to foster their growth and inclusion into markets.
Gauteng premier David Makhura has already announced his desire to make the province the industrial processing hub for cannabis.
The draft master plan lays out the steps that need to be taken to develop a sustainable seed supply system, which is the foundation of a cannabis industry. Currently seeds are treated as an illegal commodity. The plan also deals with producer support, enterprise and supplier development, manufacturing and product development, education and training, research, and communication and awareness. It also highlights the need for dedicated funding for farmers.
Africa Cannabis Advisory Group CEO Sibusiso Xaba said the draft master plan was quite comprehensive and recognised the commercial opportunities within the cannabis industry. He said it was encouraging that different government departments were collaborating to advance the commercialisation project.
However, Xaba urged that hemp be separated from cannabis so that progress on its legalisation and development could proceed quickly. He also stressed the need for rural and township communities to be prioritised in terms of access to and participation in the industry.
While holding out the promise the cannabis industry offers, the draft master plan also warns of the potential dangers of concentration in the industry, which is estimated to be potentially worth about R28bn in SA. The number of recreational dagga users in the country is estimated at 3.5-million. Concentration has occurred in Lesotho, the first country in Africa to allow cultivation of cannabis for medicinal purposes in 2017. However, an exorbitantly expensive licensing process has ensured the market is dominated by foreign companies, to the exclusion of small farmers.
Apart from recreational use, cannabis extracts are also used medicinally for, among many other ailments, the relief of pain and inflammation. This is allowed in SA under licence from the SA Health Products Regulatory Authority (Sahpra), but the licence application fee of R24,000 is a barrier to entry into the sector.
The draft document says a new regulatory framework is needed for both hemp and marijuana. This will include amendments of existing legislation “by removing existing constraints that are hindering commercialisation”. It notes that the cabinet took a decision in July 2019 that the country needs a national strategy to commercialise cannabis.
“There is a consensus that the current legislation on cannabis, namely the Medicine and Medicine Substances Act of 1965, and the Drugs and Drugs Trafficking Act of 1982, provide a solid foundation for providing a reliable regulatory framework for the future. There is a need to address the remaining restrictions in each of the two pieces of legislation. The proposed amendments would make it easy for SA to establish and grow a sustainable and globally competitive cannabis industry.
“With SA facing sluggish growth and society facing the effects of Covid-19, the commercialisation of cannabis has a net-positive effect on the country by potentially creating new jobs.”
The draft document notes that the Constitutional Court ruling in September 2018 that South Africans could smoke cannabis in the privacy of their homes “provided the impetus to recognise the commercialisation of cannabis”. The Cannabis for Private Purposes Bill, which is now before parliament, addresses the concerns raised by the court.
It is envisaged that a number of departments will be involved in implementing the master plan, including the departments of health, trade, industry & competition, small business development, justice and correctional services, among other entities. The specific tasks assigned to these departments stretch over the next three years.
The master plan proposes the establishment of an executive oversight committee comprising several ministers, farmers, manufacturers and retailers to drive its implementation. Provincial cannabis committees are envisaged for each province where there is production and manufacturing of the crop.
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