Proposal on the transformative integration of the Cannabis economy through existing legislation and regulation.

The worldwide realization of the absurdities of Cannabis prohibition has unlocked the economic potential of the crop in many progressive countries.

South Africa had the opportunity to lead the way when they started Industrial Cannabis (“hemp”) research 27 years ago.

In 2017, a set of guidelines for medical Cannabis production was published by the South African Health Products Regulatory Authority (SAHPRA), with the first license issued in 2019.

A 2017 Western Cape High Court ruling declaring certain sections of the Drugs and Drugs Trafficking Act 140 of 1992 unconstitutional was confirmed by the Constitutional Court in September 2018. This ruling made headlines around the world. An extended deadline of 24 months to amend the act expired in September 2020. Attempts have been made by Parliament to prepare a Bill focused only on private consumption, with segments later added on “hemp” farming and the inclusion of IKS communities. Forcing a weak and unsubstantiated piece of legislation through Parliament will lead to years of legal challenges in our courts, with substantial arguments to various aspects around it already lined up.

Finally, in 2022, industrial Cannabis permits were issued to aspiring low-THC farmers, with a research farm in the Western Cape being one of the first recipients.

Also, our current president has referred to the potential of the industry various times in State-Of-the-Nation Addresses (SONA).

Despite all this, the South African industry now finds itself lagging the world in many aspects, with neighbouring countries like Lesotho, Zimbabwe and Malawi leading the way with “hemp” and Cannabis production.

South Africa has 88 medical Cannabis facilities without any products on the South African market. Very few international markets accept our exports. Various companies attempt to enable medicinal Cannabis access through Section 21 applications, for instance, IntroCann™️.

The “hemp” industry is hampered by strict regulations with no scientific base. Being subject to the Plant Improvement Act for the cultivation of low-THC Cannabis is daunting to many aspiring and traditional farmers.

Most interpretations of the Constitutional Court ruling favour the elite, with private clubs enabling adult consumption of Cannabis in many suburbs and town centres. The Dagga Private Clubs protect their members and growers with varying levels of internal regulations and procedures to ensure compliance. These also create financial and sophisticative barriers to entry.

These clubs are still, however, targeted by the police, using the current Drugs and Drug Trafficking Act to harass, arrest and rob those supplying and consuming Cannabis in what they believe is a constitutionally sound system. In a recent judgement against arrested operators of such a club, the judge referred to them as drug dealers.

In the meantime, market forces and continuous enforcement of an unconstitutional Act still hamper legal access to Dagga in the informal sector and our townships. Since the Covid lockdown, the link between indigenous growers and the local market has all but disappeared and South Africa has become a net importer of low-grade Cannabis, with our traditional growers finding themselves in serious financial difficulty. International research has been done highlighting the problem and potential solutions.

It is obvious that all current efforts by the state to enable the industry through legislation and regulation has failed in its goals, especially on transformation.

These efforts led to the following fragmented documents and proposals:

• The Cannabis Master Plan
• The Cannabis for Private Purposes Bill
• Amendments to the Medicines Act
• SAHPRA guidelines for medicinal Cannabis Production
• Hemp regulatory system

These attempts at Cannabis reform had very little impact, with all parts of the plant still illegal under the Drugs Act. People are still getting arrested and harassed for negligible amounts of Dagga or plants. A weak regulatory system hampers international expansion. Outdated and unscientific regulations hamper local product and market development.

Attempts from industry and lobbyists to be included in the processes were often ignored by the state. A comprehensive manifesto for Cannabis reform by Fields of Green for ALL has been snubbed and does not feature in any of the proposed regulations.

The current processes of attempting to regulate the Cannabis industry on a production level will prove to have little effect. The industry should be regulated at a product level within the sector regulations as prescribed by the product classification. For instance: Cannabis for fibre treated like cotton and wood; Cannabis for construction treated like building materials; Cannabis for food treated like other grains; Cannabis for medicine treated like traditional medicine under international IKS guidelines; and adult-use Dagga treated like alcohol.

It can be scientifically proven that Cannabis is less harmful than alcohol. Let’s treat it that way under the law.

Through the Liquor Act, we have a good model for safe distribution of a potentially harmful product through a tightly regulated industry. Harm reduction, taxation, supply, manufacturing, distribution, and sales have all been integrated in the regulations. Transformation is also enabled through targeted programs with many successes in the wine and beer industry. Many small farmers are currently supplying sugarcane, barley, and grapes for alcohol production. An aggregator model where products can be graded, processed, packaged, taxed, and then distributed will immediately enable rural and traditional growers to supply their product into a regulated market. If the retail market is regulated through a similar split between on- and offsite consumption, it will be easy to integrate into existing licensing models, with layers of power and enforcement all the way down to local government. Access to Cannabis in our townships and informal settlements can be enabled and regulated like alcohol through a similar system to how shebeens and beerhalls are regulated. The Liquor Act specifically deals with traditional and micro manufacturing and distribution as well as the transitional aspects of transformation, with powers settled in provincial government structures to ensure informed decision making.

Research during this roll-out will most likely prove limited harm to self and others, but in the very improbable event of Cannabis harm being proven to be higher than that of alcohol, the state can reduce such harm through properly promulgated legislation and regulations. For previous examples of similar legal rollouts of potential harmful activities, we can look at the gambling and pornography industries in the 1990’s. Both those industries went unregulated and then tightly legislated and regulated afterwards when harm was shown by government and civil society.

The potential economic benefits of the Cannabis Industry have been well documented. A recent report commissioned by the Western Cape Government estimates the potential of the industry at R28 Billion, with the potential to create between 10 000 and 25 000 jobs. Not only do we have the potential to create jobs through a new agricultural crop, but we will also be able to unlock the entrepreneurial potential of traditional communities through the thousands of potential products from the plant.