In the past 18 months, Gauteng-based Nexus Pharmaceuticals has established a base from which to launch itself as a major processor of South African cannabis. Its new Pretoria facility is expecting GMP certification shortly, plans are afoot for a Cape Town operation and initial German investment interest in Nexus is likely to be formalized in the next month with the arrival of key players in town.

Nexus founder and CEO Johann Slabber (pictured above) says it’s premature to name German investors but that they represented a ‘powerhouse’ within that country’s industry and their interest in South Africa bodes well for Nexus and the broader cannabis cultivation community.

Nexus to Use Malmsbury as its Western Cape Base

Slabber told Cannabiz Africa on 25 February 2025 he expected GMP certification for the Pretoria facility within the next few months but that ultimately the focus of Nexus’s manufacturing arm will be in the Malmsbury in the Western Cape. Slabber says SAHPRA certification for the Malmsbury, facility is expected this year.

*Once operational, we’ll be positioned to process tons of cannabis flower, offering a wide range of high-value end products, from oils and distillates to APIs, capsules, and more" said Slabber.

“Our primary focus is on the raw cannabis flower, providing local cultivators with a sustainable outlet for their inventory. Phase two will see the expansion into processing and the creation of additional products to further enhance our commercial offering.

National biomass surplus coming down

Slabber says the Malmsbury facility will help reduce the ‘biomass’ build-up that the country’s 100 or so licensed cultivators are facing. Fewer than 20 are believed to be successfully exporting their product and much of the excess inventory is finding its way onto the local ‘black market’.

Slabber says the national inventory of legal cannabis is coming down, but compliance issues for most cannabis farmers remain formidable.

“The biomass stockpile has shown improvement compared to last year, and while the industry still faces challenges, we remain confident in the potential for growth and innovation.”

“ At Nexus Pharma, we’re also looking beyond cannabis, with a vision to develop dietary supplements, functional foods, and health-focused products, including vitamins, minerals, and polyphenols. By starting with a contribution of at least 10 tons, we’re building a commercial footprint that drives growth, opportunity, and innovation in local and international markets.

 Slabber says there are two main objectives to the Nexus strategy:

·      Export Market Focus: Nexus is prioritizing international market access, helping South African farmers secure offtake agreements, particularly to ‘high demand’ regions like Germany;

·      Support for Local Industry Growth: Nexus sees its future in domestic market growth by providing essential processing and compliance services. In particular it is looking at the creation of added-value products like active pharmaceutical ingredients (APIs).

'Success is Grounded in Compliance'

Slabber says one cannot underestimate the role of regulatory compliance for businesses seeking to grow in the cannabis space: “To succeed in this industry, businesses must be grounded in compliance.”.

He says “while South Africa’s cannabis regulations are still evolving, the future will bring a unified set of standards for growers, exporters, manufacturers, and retailers. It is essential for businesses to adopt international best practices now, in anticipation of the regulatory framework that will shape the future of the industry”.

Nexus, which has received support from both the private and public sectors, is formalizing its strategic partnership with the German investors who are due in the country next month. He did not want to elaborate at this stage as to who the German investors are, other than to say they are a ”powerhouse in the global cannabis industry, headquartered in Germany”.

He said their visit would formalize a strategic partnership that Nexus has been working on for over a year. He said the partnership “aimed at enhancing access to the local market for all GACP-licensed facilities and will help accelerate the development of South Africa’s cannabis industry, creating new opportunities for local stakeholders.”

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