Medigrow is in partnership with the Eastern Cape government to develop an industrial cannabis economy in the province centred around the Coega industrial area outside Gqeberha. 

Medigrow has pledged R1 billion to the development, of which over R200 million is believed to have been paid, while the Eastern Cape government has put R4 million into the project. Medigrow says may inject over R6 billion into the provincial economy over the next five years and bring up to 30 000 small-scale farmers into the network.

However, the ambitious scheme ran into trouble shortly after the first hemp seeds were distributed to farmers in late January, with many legacy growers expressing concern that the low-THC imported seeds would compromise their high-THC landrace plants.

The Mpondoland Cannabis Belt Association (MCBA), representing eight municipal areas in the Eastern Cape, said there would be “no hemp in Mpondoland” and blamed the Eastern Cape Rural Development Agency (ECRDA) for misleading them about what seeds would be planted. The ECRDA and the MCBA had signed an MoU which recognized the importance of protecting local landraces and accused the ECRDA’s Sunshine Blauw of reneging on the deal by introducing hemp seed into the area.

In a statement to Cannabiz Africa on 26 February 2025, Medigrow CEO Edgar Adams (pictured above with the MEC for the Eastern Cape Department of Agriculture,Nonceba Kontsiwe on his right) said his company was not involved in the selection process of farmers receiving hemp seeds which was the ECRDA’s responsibility.

Adams explained that Medigrow has an MoU in place with the ECRDA, which had been approached by the Eastern Cape Hemp Producers Association (ECHPA) to find offtake for their products. The ERCDA, which is part of the province’s Agriculture Department, then identified Medigrow to fulfil this role. Medigrow in turn outsourced the “growing of CBD Hemp to the ECHPA farmers under the guidance of the ECRDA”.

“Medigrow did not select the hemp farmers” says Adams. “These farmers were presented to Medigrow by the ECHPA and the ECRDA. All parties are aware from the offset that they must, at all times, protect the landrace in the Eastern Cape.”

Adams said all farmers knew of the 'cannabis belt' that separated hemp designated areas from landrace ones in the Eastern Cape.

“Unfortunately, it has become clear that there has been a misunderstanding around the border line of the cannabis belt with some farmers” he said.

Adams said according to his knowledge “the CEO of the ECRDA invited the MCBA to meet to discuss the matter and an undertaking was made to have the seeds removed.

“Medigrow also met with Mr Dlamini of the MCBA. The meetng was arranged by a Mr Shaad Vayej of Open Farms. The matter between the partes has been addressed and understood.”

The ERCDA has not yet responded to Cannabiz Africa’s request for comment.

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