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Can the Hemp Industry create job opportunities in the Eastern Cape?

Writer's picture: Dean WeissDean Weiss

When I hear the word "hemp," I think of a versatile, durable textile used for centuries worldwide. Known for its strength, hemp is popular for clothing. I hadn't connected hemp with cannabis, even though both are varieties of Cannabis sativa. This distinction matters because hemp is grown for industrial use with minimal THC (tetrahydrocannabinol), unlike recreational cannabis. Despite their shared lineage, hemp and cannabis differ in uses, cultivation, and legal status. Hemp is gaining recognition for its sustainability and uses in commercial industries such as textiles, clothing, paper, construction, paint, insulation, biofuel, food, animal feed, personal care and biodegradable plastics. It is important to understand the benefits of hemp separately from the psychoactive components of cannabis as we adapt to evolving cannabis products and regulations.


Green cannabis leaf on a white background, with serrated edges and a symmetrical shape. The image conveys a natural and neutral mood.
Hemp leaf - iStock image

What is Hemp?


Hemp is a versatile and robust plant that belongs to the Cannabis sativa species, which has been cultivated for thousands of years for a variety of purposes. Unlike its more famous relative, marijuana, hemp contains only trace amounts of THC, the psychoactive compound that produces a "high." This characteristic makes hemp a non-intoxicating option, suitable for a wide range of applications.


The cultivation of hemp dates back to ancient civilizations, where it was used for its strong fibers in making ropes, sails, and clothing. The fibers of the hemp plant are known for their durability and resistance to mold, making them an ideal material for various industrial applications. In recent years, there has been a resurgence of interest in hemp due to its environmental benefits. Hemp grows rapidly and requires fewer pesticides and herbicides compared to other crops, which makes it an attractive option for sustainable agriculture.


In addition to its industrial uses, hemp seeds are highly nutritious and are considered a superfood. They are rich in essential fatty acids, protein, vitamins, and minerals, making them a valuable addition to a healthy diet. Hemp oil, extracted from the seeds, is often used in cooking and cosmetics due to its beneficial properties for skin and hair health. Hemp also plays a significant role in the production of biodegradable plastics and construction materials, providing an eco-friendly alternative to petroleum-based products. Its ability to absorb carbon dioxide during growth further positions hemp as a potential ally in combating climate change.


According to the Industrial Hemp Act, a licensed activity includes "the growing, processing, distribution, buying, export, and conducting of research on industrial hemp," which means the commercial cultivation of hemp is permitted. While growing hemp is permitted in South Africa, farmers must secure licenses and permits from the South African Health Products Regulatory Authority (SAHPRA) and adhere to certain regulations. Overall, hemp is a multifaceted plant that holds promise for various sectors, including agriculture, health, and environmental sustainability. Its rich history, combined with modern innovations, positions hemp as a crucial component in the movement towards a more sustainable and eco-conscious future.


Illustration of a surprised boy in a red shirt on a green background with red and purple question marks, expressing confusion.
Interesting Facts about hemp

  • The hemp plant can reach heights of up to 9 meters within 3 to 5 months, whereas trees may require up to 15 years to fully mature.


  • Hemp can filter water by efficiently removing impurities and heavy metals, making it a

    valuable option for water purification systems.


  • Hemp was among the earliest plants that humans spun into fibre.


  • Hemp can be cultivated without pesticides, whereas cotton uses 25% of all pesticides used in agriculture.


  • Growing industrial hemp needs only about 1/3 the land and approximately 5% the water used for cotton production.

The Origin of the Hemp Cultivation Initiative in the Eastern Cape


Who is driving the push for hemp cultivation in the Eastern Cape? This question arises as government officials, local farmers, and private investors express interest in hemp's economic and environmental benefits. Known for its diverse agriculture, the Eastern Cape is central to discussions on legalising and promoting hemp. The initiative aims for economic development, job creation, and sustainable farming. Hemp's versatility is increasingly being recognised. This strategic move seeks to revitalise the local economy and promote sustainable practices, with support from agricultural organisations, environmental groups, and research institutions.


28 March 2023


President Cyril Ramaphosa made significant progress in the hemp and cannabis industry, Since 2022, the SA Health Products Regulatory Authority has issued 83 cannabis licenses, four manufacturing licenses, and 30 research permits, while the Department of Agriculture has issued 371 hemp permits. These licenses have spurred investment, job creation, technology application, intellectual property development, and exports. In his 2023 state of the nation address, Ramaphosa emphasized the government's commitment to unlocking investment in this sector, aiming to create a conducive regulatory framework for diverse applications.


A competitive strategy is being developed to highlight South Africa's advantages, with financial experts creating a blended financing instrument. The Industrial Development Corporation has set up a sector fund for investments. Legal work is planned to address hemp and cannabis legislation. The Department of Science and Innovation and the CSIR are mapping research in tertiary institutions. The Department of Small Business Development and the CSIR have launched an incubation program for 30 SMMEs, focusing on prototype technologies in cosmetics, food, and medicines. The CSIR has acquired equipment for the Ngqura special economic zone to process agricultural products. The government is collaborating with mining companies on hemp use for mine rehabilitation, with two pilot projects underway.


8 May 2024

President Cyril Ramaphosa signed the Cannabis for Private Purposes Act (CfPPA) into law, regulating adult private cultivation, possession, and use of cannabis. The CfPPA removes cannabis from the Drugs and Drug Trafficking Act, amends the Medicines and Related Substances Act, and reforms the Plant Breeders Rights Act and the Plant Improvement Act to support cannabis industrialisation. The Bill regulates medically prescribed cannabis for children, protects them from undue exposure, and addresses prohibited use or possession by children, while banning cannabis dealing. The Eastern Cape, especially Mpondoland (located in the coastal belt of the Eastern Cape), is expected to benefit economically and in job creation.


21 January 2025

Medigrow's R100 million investment in an indoor cannabis cultivation project at Coega special economic zone in Gqeberha kicked off in February with hemp seed distribution to nearly 30 selected Eastern Cape rural farmers. This marks the province's launch as the country's cannabis industry hub. R30 million worth of imported equipment is on site, ready for assembly for production starting in February. The investment covers indoor cultivation, CBD extraction, packaging, and cigarette manufacturing.


After President Cyril Ramaphosa signed the Cannabis for Private Purposes Act, it addressed private cultivation and consumption, expungements, and related matters. The project spans 10,000 hectares, processing cannabis into medicinal products, creating about 30 000 jobs. The cannabis industry could add R6 billion to R25 billion to the GDP. Licensed rural farmers will receive hemp seed to grow cannabis for Medigrow's processing plant, producing export-ready products. Medigrow CEO Edgar Adams, motivated by personal experiences, stated the project is progressing well with strong government support. Production begins in February, targeting export markets like the US, Europe, and Australia.


Lush green cannabis plants in a sunlit field under a clear yellow sky, with dense foliage and a serene mood. No text visible.
Hemp plants

Positives and Negatives of Hemp farming


Hemp farming has garnered significant attention in recent years, particularly as the legal landscape surrounding cannabis has evolved. This versatile crop is known for its myriad uses, however, like any agricultural endeavor, hemp farming comes with its own set of advantages and disadvantages that must be carefully considered.

Positives:

  • Environmental Benefits: Hemp is recognised for its ability to grow quickly and efficiently, often requiring fewer pesticides and herbicides compared to traditional crops. Its deep root system helps prevent soil erosion, enhances soil health, and promotes biodiversity by supporting various microorganisms.

  • Versatile Applications: The hemp plant is versatile, used in industries from textiles, replacing cotton and synthetics, to construction materials like hempcrete. Hemp seeds are also rich in protein and omega fatty acids, enhancing health food products.

  • Economic Opportunities: As the hemp market expands, farmers can access new revenue streams, offering economic diversification, especially in areas where traditional crops are less profitable or viable due to climate changes.

  • Carbon Sequestration: Hemp plants absorb significant carbon dioxide during growth, making hemp farming an attractive option for reducing carbon footprints and mitigating climate change.

  • Renewable Resource: Hemp is a highly renewable resource that can be cultivated multiple times a year, offering a sustainable supply of raw materials for various industries due to its rapid growth cycle.

Negatives:

  • Regulatory Challenges: Despite growing acceptance of hemp, complex and varying regional regulations can deter potential farmers.

  • Market Volatility: The hemp market is unpredictable, with prices fluctuating due to demand, competition, and consumer trends, posing risks for farmers investing heavily without guaranteed returns.

  • Resource Intensive: Hemp requires water, nutrients, and care to thrive, possibly necessitating irrigation systems or soil amendments, which can raise production costs.

  • Potential for Contamination: Hemp is related to marijuana, posing a risk of cross-contamination. This can cause legal issues if hemp crops exceed the legal THC threshold, leading to penalties or crop loss.

  • Limited Infrastructure: In many areas, the infrastructure for processing hemp is still underdeveloped. This can create challenges for farmers who need to transport their harvests to processing facilities, potentially leading to increased costs and logistical difficulties.


Interview with Medigrow CEO Edgar Adams - YouTube

Conclusion

In summary, although hemp farming offers many advantages, such as environmental sustainability and economic opportunities, it also comes with challenges. Farmers need to carefully evaluate these pros and cons, taking into account their local conditions, market trends, and regulatory frameworks before starting hemp cultivation. As the industry progresses, continuous research and development will likely be essential in overcoming the challenges of hemp farming, leading to a stronger and more sustainable agricultural practice. Ideally, local employment opportunities will be created to benefit the Eastern Cape in the long run and reduce the unemployment rate in our province.


Folded black jeans on a green surface, showcasing detailed texture and stitching. Soft lighting casts gentle shadows, creating a calm mood.
Hemp denim - AI Image

Sources:

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