Unconstitutional Cannabis Ban Threatens South Africa’s Market Potential
The South African Department of Health’s ban on cannabis foodstuffs has drawn criticism for being unconstitutional and lacking public consultation. Industry experts demand a reversal, citing detrimental economic impacts and loss of job opportunities. Hemp advocates stress that the ban undermines potential growth in the cannabis market, which holds significant promise for South Africa’s economy. Regulatory changes and better understanding of the industry are needed to lift the ban and support cannabis development in the country.
The South African Department of Health’s recent ban on all foodstuffs containing any part of the cannabis plant, including hemp and cannabidiol (CBD), has been criticized as unconstitutional and poorly informed. Industry experts demand an immediate reversal of the ban or potential legal action. The move was announced quietly on March 7, following a January 17 signing, and occurred without public participation, despite President Cyril Ramaphosa promoting cannabis opportunities in his State of the Nation address.
Penny Campbell, the director of food control at the health department, clarified that the ban prohibits the labeling of products containing CBD or tetrahydrocannabinol (THC) as “foodstuffs.” CBD, known for its therapeutic benefits, does not cause a high, whereas THC is psychoactive. Manufacturers must comply with existing hygiene and safety regulations, ensuring product safety.
The department has also decategorized hemp as foodstuff, citing insufficient evidence of its nutritional benefits, a stance contested by industry lobbyists. Ayanda Bam, president of Friends of Hemp South Africa, argues that hemp seeds are healthful and versatile. They can be milled into powders for consumption, rich in essential fatty acids and proteins, thus considered superfoods.
Bam criticized the health department for lacking understanding of the cannabis industry, highlighting that their decisions could be uninformed. He emphasized a significant imbalance of knowledge, leading to illogical regulatory decisions. Ramaphosa’s earlier remarks positioned South Africa as a potential leader in cannabis production, but experts suggest the ban undermines this vision, hindering market growth and international trade prospects.
The global hemp seed market, valued at $5 billion in 2023, is expected to double by 2032, with a substantial portion attributed to food and beverage products. Several countries recognize hemp as a food source, which puts South Africa at a disadvantage in global markets. The local sector comprises over 1,400 compliant hemp businesses, and at least five major retailers are actively trying to establish market presence.
Friends of Hemp South Africa estimated over 80 million Rand in inventory losses caused by the ban, with a monthly revenue loss of 25 million Rand. Cumulative investments exceeding 4 billion Rand by both government and private sectors could be jeopardized by the ban’s implications, threatening jobs and industry growth.
Ben Sassman, founder of Hemp4Life, pointed out that the ban renders market participation unviable, making it difficult for businesses to profit. Tebogo Tlhopane, CEO of Biomuti and chair of the Cannabis Trade Association, highlighted the lost economic opportunities and job creation potential, projecting that prudent cannabis legislation could generate up to 4 million jobs.
Efforts are underway by the Department of Trade, Industry and Competition to support regulatory frameworks for cannabis commercialization, but critics argue progress is slow. At a recent webinar, Sinah Mosehla from the health department mentioned that producers of cannabis-based foodstuffs would need to halt operations under the ban and noted ongoing collaboration between health and trade departments to revise regulations. The Department of Health has yet to respond to inquiries regarding the ban’s implications.
The Department of Health’s ban on cannabis-related foodstuffs has sparked significant concern among industry leaders. It is seen as a detrimental move, halting growth potential within the cannabis sector in South Africa. Advocates argue for a reversal of the ban to safeguard investment, job creation, and global competitiveness in the cannabis market. The need for informed legislation that supports local industries is critical to harness the economic benefits of cannabis cultivation and utilization.
Original Source: mg.co.za
