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‘Develop the Local Market as an Insurance Policy Against Declining International Prices’

The global cannabis industry is highly competitive and rapidly becoming over-subscribed, meaning the best guardrail against weak exports is to strengthen domestic markets. This was one of the the key takeaways from the Cheeba Summit, which ran alongside the Cannabis Expo at the Sandton Convention Centre this past weekend.

Cheeba’s Summit was a far more tightly programmed this year, bulked up with speakers and the panel discussions restricted to a half an hour apiece. This gave the summit an intense pace with over 30 speakers crammed into the B2B and policy think-tank. 

 

Responding to how regulators can catch up with an industry steaming ahead of slow-moving official legislation, eight years after private personal use was decriminalised in South Africa, panel speakers highlighted the stark divide between the illicit and legal markets.

 

“I don’t think a lot needs to be done. It just needs a push. South Africans need cannabis. Over-regulation is not necessary,” said Mark Packman, a market access and commercial strategy specialist at Bassani Health.

 

Packman lamented that the current regulatory environment was a disincentive to compliance – most operators found it far easier to participate in the market illegally than with a licence. He noted that while acquiring a Section 21 licence to legally operate a medicinal cannabis entity remains cumbersome, the process is less restrictive for a Section 22A or a social club model framework.

 

The session focused heavily on the divergent dynamics shaping the pharmaceutical (medical) versus consumer (recreational) cannabis sectors, alongside the strategies required to navigate them. The urgency to develop local markets is compounded by a tightening global export space.

 

Packman warned that global competition is likely to intensify even further with anticipated over-investment and regulatory opening in the United States, the world’s largest cannabis market. To buffer local economies, panel speakers urged a shift in focus toward local infrastructure. Packman noted that frameworks already exist in provinces like the Eastern Cape to vet legacy produce and support small-scale growers.

 

Regulatory compliance specialist Wanda J. Bruce echoed the call to protect local legacy farmers and informal traders, though she noted the massive hurdle of international standards. While local cultivators must meet domestic entry protocols, they face far more stringent EU Good Manufacturing Practices (GMP) to access lucrative overseas markets like Germany, where demand for medicinal cannabis is exceptionally high.

 

“We the people have to stand up and take the bull by the horns since government is not in sight,” Bruce said, calling for a coherent national strategy. “We need incubation and training in the Eastern Cape, bringing in the youth and local people to kickstart true industrialisation.”

 

However, entering any market, local or international, requires uncompromising quality. 

 

Bruce further iterated: “If South Africa only builds a pharmaceutical industry, we are building a playground for big capital. If we formalize the informal sector, we are building a foundational economy for the people. The critical task for 2026–2027 is not just ‘legalizing’ but ‘industrializing’ the legacy grower.”

 

Adrian Coutts, a Lesotho-based compliance and cultivation specialist, emphasised that strict adherence to Good Agricultural and Collection Practices (GACP) is vital for building market confidence. Ultimate success, Coutts noted, relies entirely on giving consumers peace of mind by delivering safe, genuine, and verified products.

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