Parliament, Thursday, 7 March 2024 – The Portfolio Committee on Small Business Development was briefed yesterday by Hemp4Life and the South African Health Product Regulatory Authority (SAHPRA) about opportunities, challenges and licensing in the cannabis and hemp industry. According to Hemp4Life, both cannabis and hemp plants look and smell the same, but when sold in their raw form, the former has more economic value than the latter. For it to acquire more economic value, hemp needs to be processed first to extract cannabidiol (CBD) crude oil or CBD isolate. Although SAHPRA described the cannabis and hemp industries as demand-driven in the value-chain, Hemp4Life spoke of the challenges it faces in securing both private and government funding. SAHPRA reiterated the need to support small businesses in the farming and manufacturing sectors of the cannabis and hemp industries, pointing out that at the moment opportunities are only exploited by big businesses with a monopoly of the market. The committee welcomed SAHPRA’s recommendation that the government should take action to allow optimal participation by small growers. This includes expunging criminal records associated with illegal possession and trading of cannabis and hemp, bringing the industry into the mainstream economy, and protecting localisation for the small growers. The committee Chairperson, Mr Faiez Jacobs, said South Africa needs to destigmatise the use of cannabis and hemp, since the government and the Constitutional Court have provided a legislative framework. “The committee has welcomed the recommended actions by SAHPRA and we believe that some of them should be followed through, such as making sure that small businesses participate in the entire value chain,” Mr Jacobs said. ISSUED BY PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON SMALL BUSINESS DEVELOPMENT, MR FAIEZ JACOBS. For media enquiries or interviews with the Chairperson, please contact the committee’s Media Officer: Name: Mr Justice Molafo Cell: 081 424 7481 Email: jmolafo@parliament.gov.za
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