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Entrepreneurs, analysts, and prospective investors who have major faith in the money-making potential of the local cannabis industry believe that, should the production and distribution of cannabis be legalised, South Africa could be one of the top players in the African cannabis markets by 2023.

City Press reports that according to the World Health Organisation, South Africa is the third-largest illegal cannabis producer in the world already, with about 2 500 tons grown a year.

Although cannabis became decriminalised for personal and private use in 2018, it is still not legal to sell, and this is causing confusion and severely limiting its economic potential.

During a webinar for 300 attendees who pitched for the presentation of the government’s draft master plan, several speakers said that a regulatory policy system that eliminates ambiguity for entrepreneurs is necessary soon.

According to the fifth version of the draft master plan, the cannabis market in South Africa is worth R28 billion, with an estimated 3,5 million users.

That’s a lot of money that we may be losing while the government takes their time with the plan for cannabis trade in the country.

The ‘dagga belt’, which is the area from the Eastern Cape to KwaZulu-Natal, is the best place for cannabis growth and also happens to be one of the country’s poorest areas.

That is why this area, among others, needs to be identified and zoned according to the draft master plan, so that we can lift the country’s people out of poverty and unemployment.

There is a massive demand for all cannabis products, locally and globally:

Hemp is used for various commercial and industrial products, including rope, textiles, clothing, ceiling boards, bricks, paints and biodegradable plastics.

Marijuana is mostly used for medication, cosmetics and recreational purposes.

Globally, medicinal cannabis could generate $82.9 billion (R1.2 trillion) in revenue by 2027, according to the draft document.

The only current way to get involved in the cannabis trade in the country is to obtain a medical marijuana license from the SA Health Products Regulatory Authorities (SAHPRA), but that can cost more than R6 million for the setup and application.

Anyway, government wants to finalise many of the goals in the draft master plan within the next three years.

Let’s hope the country can get higher (economically!) soon.

[source:citypress]