The Moderator: Mr Neville Matjie

Dr Sakhile Ngcobo (Chairperson of MKI)

CEO of Moses Kotane Institute of Technology

Our panel members: -

- Ms Bongiwe Julayi (Manager Innovation: MKI

- Mr Henk Krebs (CEO: Agri-BioMed)

- HDr Thandeka Kunene (CEO: House of hemp)

Ladies and Gentlemen

From the onset, I wish to express my appreciation to all of you. We thank you for setting aside time to be with us to discuss ways and means of unlocking the potential of the Cannabis industry.

During the Business Breakfast of the KZN Growth Coalition held on the 27th August – we indicated our intention to support co-operatives and small scale farmers to produce marijuana as part of job creation and fighting unemployment.

We expressed our commitment as government to inform communities about development around this matter.

We raised concerns about the fact people were being charged for attending workshops and seminars on Cannabis.

We stated, categorically, that as government we will never be associated with any event where people are charged to get information that they can get free of charge from the government they elected.

Ladies and Gentlemen, today is the beginning of a series of information sharing on the issue of Cannabis.

We believe that, there are endless opportunities to use the cannabis industry to stimulate agriculture and many other sectors.

Some call in dagga, marijuana and others call it weed.

To the AIDS or cancer patient, marijuana is the plant that fights nausea and appetite loss.

To the nutritionist, its seed is second only to the soybean in nutritional value and is a source of cooking oil and vitamins.

To the paper or cloth manufacturer, it is the plant that provided much of our paper and clothing for hundreds of years and produces four times more fiber per acre than trees.

To the environmentalist, it is the plant that could greatly slow deforestation, restore robbed nutrients by other crops.

Ladies and Gentlemen, our speakers today we elaborate more about Cannabis.

Available statistics shows that the Cannabis industry worth more than R100 billion. The United Nations suggests that South Africa produces 2, 300 tons of marijuana annually– making the country the third-largest producer of the plant and related products in Africa.

In addition, the African Cannabis Report of March 2019 published by Prohibition Partners estimates that by 2023, the total value of the South African cannabis industry will be around $1. 8 billion. This is based on the assumption that government would move with speed with the regulation of the cannabis industry.

We are further informed by economists that the cannabis market is estimated to reach $ 146 billion by the end of 2025. South Africa is predicated to become a major player.

We all know that KwaZulu-Natal has the potential to become an enormous cannabis market. This is due to the favorable climate that makes growing weed easier than in many other countries especially in Europe.

As government we don’t want ordinary members of society who have been involved in the planting of marijuana to be left behind. Our focus as government is ordinary communities in rural areas because they have a long history of growing and consuming cannabis – though they have been doing it illegally. Now that government is opening up opportunities, we don’t want ordinary members of society to be marginalized.

Ladies and Gentlemen, we want oGogo noMkhulu from Umsinga, Impendle, Mzimkhulu, eShowe and many other areas to be involved in the export of Cannabis.

From a continental perspective, 31.3% of South African exports by value are delivered to Asian importers, 26.5% goes to fellow African countries and just slightly less than 25.4%, ends up in Europe. With Cannabis, I have no doubt that our export to Europe will increase drastically.

Close onto 65% of the country’s exports are mineral and agricultural products. It is this predominance which initially transformed South Africa’s economy into one based on raw material exports.

Unfortunately, due to the decreasing demand for our mineral exports such as platinum, coal, gold, iron ore and diamonds, we have seen profound implications not only for the sectors concerned but also the country’s overall export trajectory.

In order to maintain its status as a continental superpower, South Africa has to ensure that it doesn’t merely follow the herd blindly. Instead, the country must navigate its own path. Due to economic pressure in SA's traditional markets, many exporters have started venturing elsewhere in order to lessen their dependence on many trading partners.

The Middle East, with its rapidly growing, affluent population has emerged as an important new destination, with exports of South African fruits almost tripling over the past three years. It is now the second largest market for South African nectarines and has the ability to open other doors as well.

We are currently one of the five largest producers of Halaal-certified meat worldwide, with the country’s export industry experiencing rapid growth since 2001.

Beef exports increased from 8,292 tonnes in 2001 to 31 888 tonnes in 2017 with the UAE, Kuwait, Jordan and Qatar being the top Middle Eastern destinations for beef exports.

KwaZulu-Natal needs to capitalise on this by being a leading exporter of Cannabis.

The province is blessed with an enviable location which includes two world class harbours and a globally recognised multi-modal logistics complex.  And this, combined with a diversified economy, gives it a unique opportunity to fully exploit an export orientated growth orientation. A proof of this is probably to be found in the fact that in just one decade, the province’s exports, have doubled from an estimated R70 billion in 2007 to R142 billion in 2017.

Ladies and Gentlemen - with Cannabis, I have no doubt that we will double this figure.

It is important to note that out of 54 countries on the African continent, only three -- Lesotho, South Africa and Zimbabwe -- permit medical use of Cannabis. Zambia has a legislation allowing medical marijuana that but it has not been enacted.

In Egypt, recreational use is illegal, but tolerated. In, Morocco, the prohibition of medical and recreational use is often unenforced, although it is illegal.

The first and only country in the region that allows legal cultivation is Lesotho, a landlocked, mountainous country that has a favorable climate, abundant water and fertile soil for cannabis growing.

According to the Morocco Network for Industrial and Medicinal Use of Cannabis, the clandestine cannabis industry in Morocco is valued at 10 billion US dollars and employs 800,000 people.

Ladies and Gentlemen, it is very interesting that in countries such as Zimbabwe, where medical cannabis cultivation is legalized, cultivation license applicants can only come from citizens or residents of Zimbabwe and not from international businesses, as a way of safeguarding local interests.

As I stated earlier on – we want ordinary members of society to have licenses as they have enough experience. They have been able to grow weed despite insufficient irrigation technologies.

In conclusion, Ladies and Gentlemen, the important question is where are we?

On 14th February 2014, The Medical Innovation Bill of 2014 was published. The purpose of the Bill was to:

Make provisions for innovation in medical treatment apart from conventional treatment regimens especially when they are not supportive of patients.

To Legalise and regulate the use of cannabis for medicinal purposes.

To Prevent reckless, illogical and unreasonable departure from standard practice.

To Legalise cannabis for industrial and commercial use.

The South African government has committed to this change that no person should have to choose between breaking the law and suffering. In these exceptional cases people can safely access medical cannabis products.

The Department of Health in consultation with the Medicines Control Council is to establish a dedicated Medicinal Cannabis Unit to oversee cultivation, manufacturing, dispensing, clinical aspects and research and development.

I wish to state that we are continuing with discussions with the national government as part of efforts to ensure that ordinary members of society benefit from Cannabis.

The Department of Agriculture and Rural Development both the Provincial and National would assist in land access, testing, fencing, business support from agricultural perspective.

In addition, as the department and our public entities – we are ready to support the SMME’s/Co-operatives - in training, mentorship and funding for the projects.

The important Agencies are Trade and Investment, Dube Trade Port, Ricahrds Bay IDZ Moses Kotane and Agribusiness Development Agency. 

The Department of Co-operative Governance and Traditional Affairs will assist in ensuring the participation of traditional leaders.

The Department of Community Safety and Liaison and SAPS will play a critical role in ensuring safety and security measures during planting and harvesting.

The Department of Social Development will assist in the overall provision of social services.

Ladies and Gentlemen – I thank you. Let us have a conversation