GrowOneAfrica has developed a “self-regulatory model that supports the non-commercial, responsible, cultivation, processing, and sharing of cannabis within private social clubs”.

BHB: How does that work in practice? What is your business model?

KS: The model is simple: supply follows demand. Some members sign up at clubs because they do not have the resources or cannot grow cannabis products for themselves, other members sign up because they have the capacity and skills to grow or process more than they can use.

Clubs are independent non-profit companies that host private spaces where adults can get informed on, appreciate, consume and share cannabis and cannabis culture.

GOAlite is the software as a service we offer to clubs, members, cultivators and processors to determine members’ needs, match these up with the cultivation and processing planning, manage membership base, facilitate agreements, manage sharing, reimbursements, taxes, compliance, and track and trace everything for transparency from seed to SARS including lab testing and a rating and review system.

Cannabis is not bought or sold, but rather members’ cannabis is grown and processed on their private property by their employees, by members for members, and at the sharing station members share each other's cannabis and merely reimburse the costs associated with their cannabis.

BHB: How many clubs have you helped establish and how many are still going?

KS: Since founding in 2020, we have responded to at least 500 club inquiries, 42 clubs were onboarded, 34 of the clubs actually opened up and of those only 18 are currently operating, with the balance either voluntarily leaving the GOA affiliation or having their affiliation terminated due to non-compliance to the model and standards, or just having ceased business altogether.

BHB: How many members in total are there? How many growers? How many jobs have been created?

KS: We have just less than 9000 members nationally, 140 cultivating and processing members and have to date created more than 1200 jobs directly or indirectly through employment by GOA, clubs and cultivating and processing members.

BHB: The clubs are diverse in nature – give us an example of the different cultures they exhibit?

KS: Clubs are well representative of the communities they are located in, from the tight shorts, moustaches and skate ramp of Pretoria East to a very high-end and exclusive bud bar and extraction lab in Knysna and everything in between. From the smokey lounges with pool and foosball tables, to educational spaces holding regular workshops, info sessions and industry development workshops. This family has it all!

VdS: What I love about our clubs is their uniqueness and that they all have their own specific club culture, focused on their communities and what their members enjoy. It’s quite an experience to walk into one of our clubs and see how the club owners and staff have such great relationships with their members. It’s amazing to see how invested our clubs are in their communities.

BHB: What has been the response of SAPS to the establishment of these clubs? Have you had problems with the police over the years?

KS: Despite constant correspondence with the NPA, SAPS, HAWKS and various DDPs since 2020, our family has had multiple interactions with the law and a total of 8 resulting in raids or arrests. Six of these cases have been withdrawn or struck from the roll and we are expecting a similar outcome with the two pending cases.

Although the SAPS appreciates our interpretation of the law, thorough compliance measures and commitment to harm reduction, they are only following orders and will continue to do so. They will only be 100% comfortable with what we do when we have legislation or a court ruling that supports our model.

For now, we endeavour to offer our clients the most defensible argument should they need to defend themselves. We will continue to put in the effort to help formalize the industry and future permit and license structures.

BHB: Realistically, what is it like to run a PCC, it sounds like one has to deal with a mountain of paperwork to be compliant?

KS: It takes a mountain of paperwork to keep any business compliant to CIPC and SARS requirements. The GOA model does not impose more compliance measures on a club, but rather offers GOAlite as a solution for clubs to maintain their own compliance by tracking, tracing and reporting on their activities.

It takes passion, guts and a few other “big body parts” to open a club, but it takes even more dedication and grit to do what must be done, day in and day out to remain compliant and become sustainable.

VdS: We simply expect our clubs to follow the good business and financial compliance measures that are practiced in other industries. By doing this we can show the lawmakers that it’s possible to regulate and legitimise this industry in South Africa. It’s much easier to justify and support something when you can see it in practice.

BHB: One of your notable slogans is ‘compliance from seed to SARS’: are PCC’s paying tax?

KS: Yes, cultivating and processing members (CPMs) lease out growing and processing spaces and are paid salaries by other members. CPMs pay income tax on lease amounts received, and pay VAT if they are registered, as well as 25% PAYE on top of the 2% UIF contribution on all salaries.

Clubs pay income tax on the admin fee they charge and must pay VAT if they are registered. GOA pays VAT, income tax and skills development levy and has to date made payments of over R11,5m to SARS on behalf of the group since 2020.

VdS: If we want to legitimise this industry, we have to pay our way, like every other legal business and industry.

BHB: Do you think that if full adult-use consumption of cannabis is legalized there will still be a role for PCC’s, and if so why?

KS: Clubs will always be the harm reduction and educational tool that the industry needs. Clubs and other non-commercial associations like cultural and religious groups have the opportunity to cement the role of the cannabis community in the industry. It is one of the ways to safeguard it from being hijacked by big business.

We must find an African solution for the responsible adult use market, and if managed well by communities, this non-commercial space could be the example of community empowerment while leaving full blown commercialisation for cosmetic, topical and industrial products.

VdS: I think there may even be a bigger demand for PCCs. I believe that the stigmatisation that is associated with cannabis will ease off once it’s legalised and people are better educated. People who drink have their local spots that they visit for after work or weekend drinks. I believe that PCCs will fulfil the same function – a place where friends can relax and have fun together, simply with cannabis replacing alcohol.

BHB: If I was thinking of starting a PCC, what would be your most important piece advice to me?

KS: Define your intentions well and securely set your moral compass, if you are in it for a quick buck, get out now! If you are passionate to help build a responsible industry, brace yourself for a very exciting, rewarding ride! And please, be authentic! Just be yourself, everyone else is taken!

VdS: Get to know the community that will make up your member base. Before you set up a club, it is vital that you have an idea of who will be coming into your club and what they may expect. The clubs that do the best in our group are the ones that cater to their member’s needs, offering them the facilities and experiences that suit their lifestyles and budgets.  

BHB: Everybody has a crazy story to tell in their cannabis journey. What would you each care to share?

KS: Since 2020 the GOA family has paid out hundreds of millions in reimbursements, tens of millions in taxes, travelled hundreds of thousands of kilometres, signed up tens of thousands of members, hosted thousands of hours of meetings, discussions and info sessions, played a part in the establishment of hundreds of businesses, and dozens of clubs opening have created scores of new jobs monthly. The craziest thing is that throughout these interactions the biggest risk we all face, is being caught with the plant!

Raids and arrests without prosecution, have caused tens of millions in reimbursement and stock losses, millions in lost tax contributions, millions redirected to the illicit market and hundreds of jobs lost and lives destroyed. It is utter madness to punish a victimless “crime” like this. For sanity to prevail we must move from an unregulated market to a regulated market now!

VdS: What’s really surprised me working in the cannabis industry, is the work ethic and level of commitment that I see keeping this industry going. I always say that I work with the highest functioning ‘stoners’ out there (more high functioning than stoners). There are incredible people out there, risking everything to prove that this industry is worth fighting for. There is so much unnecessary frustration and fear out there. All easily resolvable – regulate the cannabis industry!

BHB: What inspires you about South African cannabis culture and what drives you mad?

KS: The South African cannabis culture represents the very best, worst and most delectable aspects from every culture in our country. It inspires me that we are trying to root it in indigenous knowledge while applying our pioneering spirit and industrious nature, but still being guided by the learnings from our past. What drives me mad is that we have the solutions, but we create problems for ourselves by trying to copy western methodologies. We should lead the world - the African way!

VdS: South African people are resilient, resourceful and determined. We know how to pick ourselves up and try again, and our cannabis culture and current industry is the perfect example of this.

I am constantly amazed at how members of this industry think outside the box to create amazing products, experiences and businesses. Sometimes this is after being arrested, raided, losing everything. What drives me mad is that people are still struggling to work together for the greater good of the industry.

We need to work together to formalise this industry. There is no other way.

BHB: Finally, as we come to the end of 2024, how would you sum up the state of cannabis in the country, and what do you expect in the year ahead?

KS: It has been a long hurry-up-and-wait since decriminalization in 2018, but things are moving forward. In 2024 we saw the Private Purposes Act passed with regulations to be announced. Our new parliament has started moving ahead with the Phakisa outcomes and although delayed, there is movement by the private sector and government towards formalization.

In the year ahead we must dig our heels in when it comes to our ethics, guard against charlatans and corrupt business models and each do our best to help breathe more life into industry by regulating ourselves to the highest standards to be able to offer viable business cases for government consideration when commercialization legislation is drafted.

Let’s not wait for the government push to happen, but rather continue the well-directed industry pull towards commercialization.

VdS: It’s been a tough year for the cannabis industry. So many unnecessary raids and arrests. So much misinformation and drama....and the lack of cannabis Act knowledge amongst the South African Police Service is unacceptable. One cannot have people enforcing laws that they do not understand or know how to interpret.

This industry needs to be regulated or all the hard work that has been put into getting it where it is now, is going to be lost.

I’m a glass half-full kind of girl, so for the coming year I’m hoping that government is going to wake up to the gold mine that they’ve been ignoring. That they look at the data that GOA have available (remember that we’re a miniscule slice of this cannabis pie) and work out the potential value of formalising this industry.

BIOS:

Kobus Schoeman was born and raised on a citrus farm in the North-West province and so is no stranger to the farming community. He became committed to community upliftment when he saw people's poverty and the mining industry's destruction of the area. Along with his wife, Daleen, he began the club journey in 2018 and they started Grow one Africa in June 2020. He is currently the CEO of Grow one Africa.

Vanessa De Sousa was born in Mozambique, raised in Cape Town and moved to Wilderness with her 3 kids in 2008. In 2019, Vanessa started cultivating for Grow one Africa and in 2021, joined GOA as an administrator. Today, as General Manager, she oversees a team of 14 employees, all playing a vital role in keeping the GOA model relevant and working at its optimum.

Check out GrowOneAfrica's web-site here.

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