The KwaZulu Natal Treasury has shifted financial control of the proposed Insangu yoKhahlamba Processing Facility (Okhahlamba Insangu Project) to the Council for Scientific and Industrial Research (CSIR). A provincial Treasury note says R5 million was moved from the ‘Provinces and Municipalities’ budget line to ‘Public Corporations and Private Enterprises’ whereby the CSIR would be the disburser of funds.
The money to develop a R10 million cannabis hub in the Bergville was originally earmarked for the Okhahlamba Local Municipality a year ago when it was launched by Economic Development MEC Musa Zondi. But now the province wants the CSIR to be the implementing agent and has set aside R5 million to make this happen. The CSIR is already sourcing new processing equipment for the site as per a public tender that closed last month.
MEC Zondi said in May 2025 that the construction of the ‘Shared Cannabis Processing Facility’, in which the CSIR and the Industrial Development Corporation (IDC) are partners), was aimed at enhancing rural development through the “formalisation and expansion of the cannabis and hemp sector, not as a side project, but as part of a centrally focused legitimate industrial activity”.
He said the aim of the project was “to support oil and fibre production and incubate small growers, ensuring traditional producers enter the value chain meaningfully.”
However, the municipality’s finances appear to have hit the skids during the course of last year. KwaZulu-Natal Department of Cooperative Governance and Traditional Affairs (CoGTA) found that there was widespread corruption within the Municipality and that funds were being looted: “The department’s financial assessment revealed significant liquidity challenges within the municipality. This includes substantial cash flow deficits. Cash flow projections provided by the municipality indicate that it will have a cash deficit of R34.6-million and may be unable to pay salaries”. The provincial Treasury is also probing R11 million in missing pension contributions at Okhahlamba.
The financial instability of Okhahlamba prompted KZN to give the CSIR full control of the project which has been piloting cultivation programmes among traditional growers for the past three years.
The KZN Treasury recorded in Vote 4 of its Summary of the Adjustments Estimate for 2025/26 that the CSIR was now in charge:
“Due to the municipality being unable to undertake the project, the department identified CSIR as a suitable implementing agent for the project based on proven technical expertise, extensive experience in managing similar complex scientific and industrial initiatives, and their public mandate to support national and provincial development priorities. The purpose of the funds remains unchanged”.
The CSIR recently put out a tender request for quotation (RFQ) for “the supply and delivery of a portable NIR device that can accurately identify and quantify cannabinoids for the Insangu yoKhahlamba Processing Facility (Okhahlamba Insangu Project). Tenders closed on 12 March 2026.
The Brief for the Device:
“We require a portable, handheld cannabinoid screening device that can rapidly identify and quantify cannabinoids in cannabis plant material and extracts, through onsite analysis. The device must be capable of measuring key cannabinoids such as THC, CBD, other related compounds and provide immediate, reliable results without the need for complex sample preparation or laboratory-based testing.
The device should operate using spectroscopic measurement technology supported by integrated software and calibration models, enabling consistent and repeatable screening. It will be used as a quality control and decision-support tool to verify cannabinoid profiles, monitor process consistency to support regulatory and compliance requirements in field and production environments. Item description”.
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