The Eastern Cape government has welcomed an investment of R229 million per year from Medigrow as new cannabis investor. The initiative is set to generate about 490 job opportunities for the province.
The MEC of rural development and agrarian reform Nonkqubela Pieters said the province approved the Eastern Cape cannabis strategy aimed to champion legislative reform that allows for the commercialisation of cannabis.
“We laid the foundation of developing this sector in the province to have a skills base, business case, incubation, research and development,” Pieters said.
Multimillion rand investment
“It is important to note that the sector has provided support to more than 120 cannabis farmers to acquire hemp permits. We trained 126 cannabis farmers and 20 agricultural advisors through Eastern Cape Rural Development Agency, the ECRDA,” she added.
Pieters was joined by premier Oscar Mabuyane, who said the investment represents the biggest investment in the agricultural sector in the province and the provincial government hopes it would act as a catalyst for more investors to come through.
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“The initial investment pledge of over R100 million (for 2024) to commence with the indoor grow, packaging, cannabidiol (CBD) extraction, and cigarette manufacturing operations that will create about ±90 direct employment opportunities is welcomed by the province,” Mabuyane said.
“The investment pledge of R1 billion over five years is welcomed. We commit as the province to supporting the medicinal cannabis flower supplier programme as proposed by the investor in which it commits an immediate off take contract to the participating hemp permit holder farmers.”
Mabuyane explained that the 1 000 hectors cultivation target by Medigrow for the 2024 growing season could potentially generate over 3 000 employment opportunities. This is based on an estimate of three jobs per hectare.
“The target to cultivate about 10 000 ha over the five-year period has the potential to generate about 30 000 job opportunities,” he said.
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Reshaping the economy
Meanwhile, Pieters added that the ongoing trade and investment promotion programmes are targeting the private sector to invest in the Eastern Cape.
“We are diversifying our provincial economy to complement the good impact of the manufacturing sector in creating jobs and business opportunities for small micro medium enterprises (SMMEs).
“[The] agriculture sector is one of our growth engine sectors and its growth in other commodities show what can be accomplished when we have investors, financiers, entrepreneurs and government joining hands to grow an inclusive economy,” she said.
Medigrow’s involvement in the Eastern Cape extends beyond cultivation, with plans to establish facilities for processing, packaging, and manufacturing various cannabis products for both local and export markets.
Collaboration with local associations such as the Mpondoland Cannabis Association, demonstrates a commitment to leveraging local expertise and resources.
Overall, the Eastern Cape’s cannabis strategy reflects a comprehensive approach to economic development, leveraging partnerships, innovation, and strategic investment to create a sustainable and inclusive cannabis industry.
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