Critique of South Africa’s Cannabis Foodstuffs Ban and Its Economic Implications
The South African Department of Health’s ban on all cannabis-derived foodstuffs has faced strong criticism from industry experts, who argue it is unconstitutional and detrimental to economic growth. Organizations demand a reversal or risk litigation. The ban, enacted without public participation, contradicts President Ramaphosa’s promotion of cannabis opportunities, jeopardizing the potential of South Africa’s burgeoning hemp market and its associated job creation.
The South African Department of Health’s recent ban on all foodstuffs derived from any part of the cannabis plant has provoked considerable criticism, with industry experts deeming it unconstitutional and misinformed. Organizations within the cannabis sector have vehemently urged the department to rescind the prohibition or face legal action. This ban, quietly gazetted on March 7 and signed on January 17, was enacted without public consultation, despite President Cyril Ramaphosa promoting cannabis-related opportunities in his recent State of the Nation address.
Penny Campbell, the director of food control at the Department of Health, clarified that the ban forbids labeling any food product containing CBD or THC as “foodstuff.” CBD, recognized for its therapeutic properties, does not induce a high, while THC possesses psychoactive effects. Campbell emphasized the importance of ensuring safety and proper labeling to protect consumers, particularly regarding products intended for children.
A point of contention is the decategorization of hemp as a foodstuff due to claimed “lack of evidence” supporting its nutritional benefits. Ayanda Bam, president of Friends of Hemp South Africa, argued that hemp seeds are versatile and nutritionally rich, with potential uses extending to smoothies, cereals, and oils for food and cosmetic applications. He criticized the Department of Health for insufficient research, stating, “The health department has not done their homework, and that’s the challenge.”
Experts recognize a significant opportunity for South Africa to capitalize on the global hemp market, projected to potentially double in value by 2032. Countries such as the United States and Canada have embraced cannabis food products, while South Africa, housing over 1,400 compliant hemp businesses, faces challenges in leveraging this industry due to the new ban. Bam highlighted the substantial financial losses faced by businesses in the sector, estimating a loss of more than R80 million in inventory and R25 million in monthly revenues based on a mere 10 businesses surveyed.
Moreover, the economic implications are substantial. Tebogo Tlhopane, chief executive of Biomuti, emphasized that the ban undermines job creation prospects, with his projections indicating potential for 4 million jobs in the cannabis value chain. The necessity for sensible legislation to support economic growth and foster a homegrown industry is pressing.
While the Department of Trade, Industry, and Competition is formulating support for cannabis regulation and commercialization, progress remains slow. Sinah Mosehla, a director at the Department, indicated that pending regulations will guide the future of cannabis use in production and marketing. By the time of publication, the Department of Health had yet to respond to inquiries regarding the ban, and the South African Health Products Regulatory Authority chose to refrain from commenting, stating that the ban did not impact its mandate.
In conclusion, the South African Department of Health’s ban on cannabis-derived foodstuffs has sparked significant backlash from industry experts and organizations. Critics label the ban as unconstitutional and lacking understanding, while emphasizing the economic potential of the cannabis sector. Legislative reforms are urgently needed to foster a sustainable cannabis industry that could enhance economic growth and job creation in South Africa. The future of cannabis regulation remains uncertain as stakeholders await the government’s next steps.
Original Source: mg.co.za
