By Lehlohonolo Lehana.
Eastern Cape premier Oscar Mabuyane has expressed concern over the slow progress of the country’s policymakers in speeding up the full implementation of the Cannabis Phakisa resolution.
Operation Phakisa is a fast results delivery programme launched in July 2014 to help implement the National Development Plan, with the ultimate goal of boosting economic growth and to create jobs.
The National Development Plan (NDP) is South Africa’s socioeconomic development blueprint which enjoins us to create a better life for all citizens in an inclusive society.
He was speaking at the Coega Special Economic Zone on Monday during the official investment announcement by the company Medigrow, which will establish an indoor cannabis growing and processing plant for the export market.
Mabuyane said in his maiden State of the Province address in 2019 he said the political leadership of the 6th administration would investigate cannabis as an economic stimulant.
“Whilst we await the whole plant, all-purpose legislation, we further implore the National Cannabis Steering Committee chaired by Minister Thoko Didiza and Cannabis Advisor at Presidency PMO to expedite the “sandbox regulatory interim reform, “he said.
Mabuyane said the “interim regulatory reform” will look at integrating existing and historical cultivation of cannabis by indigenous communities and Black rural farmers into the value chain across multiple demand pathways.”
Medigrow CEO Edgar Adams said that small-scale farmers would be supplied with seeds to grow the hemp plant which would then be processed at the SEZ into oil or isolate.
He added that the production process would commence once the building was fully compliant and the necessary machinery installed.
He said through their facility they would be able to help address the problem of rural development by outsourcing the growing of hemp for oil and isolate that will be manufactured in the facility.
Adams said they will also outsource the growing of Hemp for the manufacture of hemp cigarettes with our 17,000 outlets that have become available to them in Europe.
“We have more than 100 licenses that have been issued in SA by SAPHRA,” he added.
Medigrow concluded a five-year agreement with the Department of Rural Development and Agrarian Reform and with the Educational Resource Development Centre as well as with the body that represents the grower in the EC.
“Our target is 100ha of land use with immediate effect and will want to increase this by 1000 ha by September this year and by 2029 we should achieve 10 000 ha.
“This will give us 20,000 to 30,000 new jobs in the market. These are direct jobs. We are not counting the jobs in the manufacturing sector.
“The investment by the Medigrow group by the end of this year would be R246 million and this would bring us to an investment of about R850 million rand by 2029,” Adams said.