In their State of the Province addresses (Sopa) the premiers of both Gauteng and the Eastern Cape were very positive about the potential that cannabis production and processing can hold for their provinces.
In his Sopa yesterday, Gauteng Premier David Makhura said the province had been particularly focused on the cannabis industry in the last year and has set up a dedicated team to deal with all the issues around the commodity.
According to the premier, after extensive interaction with role players in the past twelve months, they have identified the unique economic opportunities of the industry in Gauteng.
Makhura said, “This year we will establish a dedicated unit within the provincial government to work with the industry and national government to address regulatory and licensing issues, attract investment, and facilitate black participation in this new sector that has enormous medicinal and industrial potential.”
Private sector investments
He repeated an announcement made in April 2021 that the province was set to receive a R20 billion boost for agri-processing activities, as part of the province’s West Rand Special Economic Zone (SEZ).
“A new major development to report towards the realisation of the West Rand Agri-SEZ is the commitment by Maximum Group to invest R20 billion in an agri-processing hub and industrial park.” The investment from Maximum Group was announced by the real estate company in April 2021.
The West Rand is known for its mining activities. Makhura pointed out that it would also be the province’s “agri-processing hub”. It is said that the development project expected to be ready in about five years, will also contain an industrial park.
“Work is continuing on the N12 Corridor development with the mining houses and other private sector partners to facilitate and speed up investments on solar farms, urban agriculture, green hydrogen as well as the expansion of the Busmark manufacturing facility,” said Makhura.
Another “major new development” regarding the Vaal River SEZ Makhura pointed to was the R45 billion commitment by local investors. The billion-rand investment commitment was also made last year in October 2021 during the Sedibeng Investment Conference.
“The Vaal River SEZ will host the following critical sectors: the new Vaal River Smart City, Green Hydrogen Innovation Hub, the cannabis hub, agro-logistics, aerotropolis, aerodrome, air freight and the revitalised steel manufacturing sector,” Makhura explained in his Sopa.
The province is also planning to focus on strengthening food security and encourage urban agriculture.
Makhura explained that they would be implementing “targeted urban interventions, with a focus on enhancing the sustainability of livelihoods, encouraging, and supporting urban agriculture, increasing access to food programmes, and strengthening social protection.”
The province will also attempt to expand township agriculture, so it is higher in the value chain, by pushing for retailers and government social programmes to stock produce supplied by township farmers.
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E Cape’s R332-million for agri development
Makhura’s sentiments around food security were echoed by Eastern Cape Premier Oscar Mabuyane during his Sopa on Friday (18 February 2022).
“We are calling on our people to work the land, to ignite the spirit of self-reliance, foster sustainable livelihoods and to ensure food security,” Mabuyane said in his address.
The province is setting aside R332 million to support and develop the agricultural value chains next year. Value chains that include both crop production and livestock. Mabuyane plans to expand the cannabis industry in the Eastern Cape.
“We are pleased to announce that hemp has been de-scheduled from the restrictive schedules of the Medicines and Related Substances Act of 1965 and this paves the way for hemp to be declared as an agricultural crop. Our medium-term strategic goal is to establish five Cannabis Production Corridors focusing on creating a value chain for medicine, fibre, fuel and food,” he said.
Mabuyane also highlighted agricultural growth, the Rural Enterprise Development (RED) Hubs, and the Ncora irrigation scheme as some of the province’s achievements.
According to him the primary agriculture sector grew by 16.5%, and the citrus industry specifically yielded R3.4 billion in exports in the last season.
“With the support of government, black citrus farmers grew by 25% from 2019 to 2020. Our two export abattoirs, namely the East London Red Meat and Sovereign Poultry abattoirs recorded an export output of 4 593 tons, valued at R359 million, during the period April 2020 to January 2021, and provided employment for 2 152 workers,” Mabuyane pointed out.
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