22 May 2023 - NW1378
Tarabella - Marchesi, Ms NI to ask the Minister of Higher Education, Science and Innovation
What (a) are the details of the profit revenue that has been generated from Cannabidiol (CBD) as at the latest date for which information is available, (b) is the actual variation in percentage between use of the CBD for recreational purposes versus its use for health, (c) total number of jobs have been created from the CBD economy and (d) total number of (i) women and (ii) persons living with disabilities are employed in the specified sector?
a) South Africa is in the process of developing the Cannabis Industrialisation Masterplan, which is led by the Department of Agriculture, Land Reform, and Rural Development (DALRRD). The Master Plan has several pillars in regulatory systems, sustainable seed supply systems, research and innovation, enterprise and suppliers and market development, and education and communication/awareness – lead by the Departments of Justice (DOJC); Health ((NDOH); Agriculture, Land Reform, and Rural Development (DALRRD); Science and Innovation (DSI); Small Business Development (DSBD); Trade, Industry and Competitions (DTIC); Social Development (DSD); and Government Communication and Information System (GCIS) respectively. The South African cannabis market is attested to be R28 billion, however the DTIC reported to the Master Plan Committee that a service provider has been appointed to investigate the actual economic potential and actual revenue of cannabis per sector in South Africa.
b) The DSI’s African Natural Medicines Platform has documented that the entire cannabis plant can be used for health purposes. It is the tetrahydrocannabinol that is generally used of recreational purposes through inhalation (smoking) and not the other ingestible products. The projected Compound Annual Growth Rate (CAGR) for health and recreation is 30% and 31% by 2027 respectively.
c) It is projected that a total of 900 000 general population and 250 000 traditional health practitioners may be part of decent jobs created through aspects of the value-chains including primary production, product development, agro-processing, manufacturing, distribution, warehousing, marketing, and commercialization. The Presidency has commissioned the Industrial Development Corporation (IDC) to fast-track the approval of the Masterplan including documentation of key economic milestones reached.
(d) There is no data on the total number of people employed in the cannabis industry in South Africa. It is the mandate of the DTIC to investigate the economic potential of the Cannabis Industry, including women, youth and people living with disabilities, per sector, e.g., medicines, textile, cosmetics, etc.