CA$H, CA$H, POT... REALLY?
Finweek English|9 July 2021
finweek analyses the legal requirements for producing cannabis and looks at what producers are doing to increase production and where to invest in this growing industry.
Timothy Rangongo
CA$H, CA$H, POT... REALLY?

South Africa is a country abundant with natural resources, one of which is cannabis. The country’s climate is perfect for growing cannabis and the mild, sunny, seasonal climate has enabled SA to become one of the largest producers of unregulated cannabis in the world. Interpol rated SA as the fourth largest producer in the world, according to the government’s recently published National Cannabis Master Plan (NCMP).

The Eastern Cape, KwaZulu-Natal and Limpopo are particularly well suited to cannabis farming. If legitimised, the country could boast a multibillion-rand legal cannabis market. The NCMP puts the current value of the SA cannabis market at about R28bn, a fraction of which is legal.

Understanding cannabis

Cannabis refers to all products made from the dried flower heads and leaves of the plant, cannabis sativa, explains the NCMP. Cannabis contains a complex mix of unique cannabinoids along with many other chemical compounds. The main active ingredient responsible for the “high” produced by cannabis is tetrahydrocannabinol (THC).

Thus, marijuana, weed or dagga as referred to locally, refers to parts of or products from cannabis sativa that contain THC. Other related substances in cannabis include cannabidiol (CBD) and cannabinol (CBN), both of which have quite different pharmacological effects. CBD is a cannabinoid with mostly medicinal properties.

The legal status of cannabis in SA

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