South African Cannabis Ban Sparks Outcry and Economic Concerns

The South African Department of Health’s ban on all cannabis-derived food products has raised concerns among industry experts, who deem it unconstitutional and poorly informed. Advocates demand its reversal to prevent economic losses and maintain competitiveness in the growing global cannabis market. The ban threatens existing businesses and undermines potential job creation in the country.

The recent ban imposed by the South African Department of Health on all food products containing any part of the cannabis plant, including hemp and cannabidiol (CBD), has sparked backlash from industry experts. They argue that the prohibition, enacted without public consultation, is unconstitutional and detrimental to the nation’s economic prospects. Organizations in the sector have called for an immediate reversal of this ban, threatening legal action if necessary.

The ban was officially gazetted on March 7, following its signing on January 17. Despite this, President Cyril Ramaphosa highlighted the economic opportunities related to cannabis during his recent State of the Nation speech. Penny Campbell, the Director of Food Control at the Department of Health, stated that the regulation aims to prevent misleading labeling of foodstuffs, emphasizing safety and preventing access by children.

CBD, which possesses therapeutic properties without psychoactive effects, and THC, which is psychoactive, are critical components of the cannabis plant. Manufacturers must adhere to strict labeling regulations, according to Campbell. However, she announced that hemp has been reclassified as a foodstuff due to insufficient evidence of its nutritional benefits, a claim disputed by industry advocates.

Ayanda Bam, President of Friends of Hemp South Africa, criticized the ban as irrational, noting that hemp seeds provide a wealth of nutritional benefits and versatility as food or ingredients in various products. Experts suggest the Department of Health has not sufficiently researched the cannabis industry, which undermines informed decision-making.

Advocates are concerned that this ban would hinder the potential for South Africa to lead in the global cannabis market. The hemp seed market is expected to reach $10 billion by 2032, with food and beverage products constituting the largest share. Other countries that embrace hemp trade could leave South Africa at a disadvantage.

South Africa is home to over 1,400 legal hemp cultivation enterprises, with significant financial investments already directed towards the industry. The current ban threatens to undermine these businesses, leading to potential losses exceeding R80 million monthly. Furthermore, government investment in this sector has been substantial, fostering job creation and technological advancements.

Ben Sassman, founder of Hemp4Life, expressed that the ban fails to make the cannabis market appealing, rendering it unviable for cultivation or processing. Tebogo Tlhopane, CEO of Biomuti, lamented the lost opportunity for economic growth and job creation, predicting that a well-structured cannabis industry could generate millions of jobs while emphasizing the need for practical regulations.

The Department of Trade, Industry, and Competition plans to expedite the regulation and commercialization of cannabis, but lobbyists feel progress has been slow. Sinah Mosehla, a director at the Department, confirmed that companies involved in cannabis food production must cease operations, as the health department is expected to introduce a regulatory framework soon. However, the Department of Health had not provided a comment by the time of publication, and the South African Health Products Regulatory Authority maintained that the ban does not affect its regulatory responsibilities.

In conclusion, the South African Department of Health’s recent ban on food products derived from cannabis has ignited controversy and concern among industry stakeholders. Critics argue that the regulation is unconstitutional and lacks adequate justification regarding the nutritional benefits of hemp. As South Africa holds the potential to prosper in the global cannabis market, industry leaders emphasize the need for effective regulations and immediate action to foster economic growth and job opportunities within this sector.

Original Source: mg.co.za