Recent contradictory governmental regulations have left the local cannabis and hemp industries vulnerable.
This is according to Nazeem Shaik, an employee at JOY Medical Cannabis, a local dispensary selling THC-infused foodstuffs and medical cannabis products.
Local producers are seeking clarity from lawmakers, two weeks after the most recent change in legislature, said Ezrall Kruger, an employee at The 420 Doctor in Stellenbosch, a local cannabis dispensary.
“We want to know where we stand and not have to worry about any unforeseen news that we’ve been selling or stocking products now considered illegal without our knowledge,” he said.
Hemp being grown at Zola Bud Hemp Nursery and Dispensary, located on the premises of M’hudi Wines on Koelenhof Road in Stellenbosch. PHOTO: Kiara Wales
Changing legislature
The Department of Health (DoH) published new regulations on 7 March, prohibiting the sale, importation, and manufacturing of foodstuffs containing components derived from either hemp or cannabis plants.
Eighteen days later, on 25 March, the presidency released a media statement withdrawing the motion and stating their intention to undergo consultations with stakeholders and the DoH before publishing revised regulations. The regulation’s repeal was welcomed by Dr Ivan Meyer, Western Cape government minister of agriculture, economic development, and tourism, according to a media statement released on 26 March.
Cannabis being grown on the premises of Zola Bud Hemp Nursery and Dispensary, located on the premises of M’hudi Wines on Koelenhof Road in Stellenbosch. The nursery operates under a hemp permit, a requirement stipulated by the South African Department of Agriculture, Forestry and Fisheries since hemp’s recognition as an “industrial crop” in 2021, according to their website. PHOTO: Kiara Wales
Impact on local businesses
“We have lost customers, revenue, and suppliers’ trust because of [regulations] changing,” said Kruger.
“[The] recent ban, combined with unclear regulations and limited communication from government, risks undermining investor confidence in this growing sector,” said Stuart Grobbelaar, communications manager for Stellenbosch Municipality, in correspondence with SMF News.
“[The recent changes] definitely taint future operations, but it is difficult to decide how to move forward when our government itself is unpredictable,” said Shaik.
According to Kruger, The 420 Doctor stopped selling any foodstuffs containing cannabis immediately following the initial prohibition, and has not yet returned them to shelves due to the “grey area regarding what is legal”.
He said this measure has resulted in a 20% loss in monthly revenue.
Foodstuffs and cosmetics containing components of cannabis and hemp plants on display at JOY Medical Cannabis in Stellenbosch. Employee Nazeem Shaik said he believes that the government’s abrupt prohibition on cannabis and hemp products caused an increase in illegal sales excluding dispensaries, as “suppliers are still breadwinners that need to put food on their tables”. PHOTO: Kiara Wales
Calls for cooperation
“We need official confirmation from the government that we won’t be punished, fined, or have our licence revoked if we continue to operate,” said Kruger. “We’re not getting any proper answers.”
In the media statement released on 26 March, Meyer said that the proposed consultations with stakeholders should foster an understanding of “the contribution the cannabis and hemp value chain can make to the Western Cape’s economic, social, and environmental objectives”.
“Only through inclusive dialogue can we develop balanced, evidence-based policies that unlock the full potential of the cannabis and hemp industry – to drive job creation in agriculture, enhance public health, and stimulate economic growth,” said Grobbelaar.
Empty cannabis foodstuffs on display at The 420 Doctor on Dorp Street, Stellenbosch. “We are hesitant to return the products to shelves until clarity is provided on what is approved by SAHPRA [The South African Health Products Regulatory Authority], and we feel safe to operate without fear of another ban happening,” said employee Ezrall Kruger. PHOTO: Kiara Wales