Two weeks after Dr Aaron Motsoaled’s shock ban on cannabis in foodstuff, the Health Minister has yet to make a public statement or explain the intentions behind his actions which have wreaked havoc beyond the hemp industry. Neither has the DTIC nor the Presidency said a word about the major policy blunder that has derailed the Cannabis Master Plan and now become a political issue. Two weeks after Dr Aaron Motsoaled’s shock ban on cannabis in foodstuff, the Health Minister has yet to make a public statement or explain the intentions behind his actions which have wreaked havoc beyond the hemp industry. Neither has the DTIC nor the Presidency said a word about the major policy blunder that has derailed the Cannabis Master Plan and now become a political issue. 22 March 2025 at 10:00:00 Brett Hilton-Barber, Cannabiz Africa Political parties are now climbing into the hemp foodstuff ban saga as the ministers of Health and the DTIC retreat behind a wall of silence. The Presidency too has chosen not to comment on the issue which has exposed a deep rift at cabinet level over cannabis policy and has effectively scuppered the Cannabis Master Plan. Two weeks after the ban there has been no official comment at ministerial level, while less senior officials have put out contradictory statements on the reasons behind the ban. The Health Department’s DDG, Dr Anban Pillay has been fielding most of the media questions, telling News 24 that the ban was part of a "grand plan" to integrate SAHPRA into the regulatory framework, ensuring stringent quality and safety measures. He said that the gazetted regulations were the first step of the legislation to ensure the quality and the safety of food containing cannabis. "The intention [as a] whole is to exclude cannabis from being regulated through the food regulations and we want this to be done through the legislation that SAHPRA manages," Dr Pillay said. However, observers have pointed out that hemp falls outside of SAHPRA’s ambit so his statement does not make sense. The DA’s Health spokesperson Michéle Clarke called on President Cyril Ramaphosa to over-ride his Health Minister and reverse the ban, while GOOD’s Brett Herron has accused Dr Motsoaledi of ‘smoking his socks’ in coming to his controversial decision. Clarke said the Health Minister had disregarded public consultation and the voices of businesses and health experts. She told Business Day: "Instead of imposing restrictions, the government should support the hemp industry, which has the potential to boost jobs, improve public health, and drive sustainable economic development. The ban on cannabis-based foodstuffs smacks of the same reckless disregard for sound policy, stifling an industry that could significantly contribute to the economic security of the country," she said. "The DA is concerned by the process that led to this ban. Minister Motsoaledi has bypassed the required public consultation process, relying on a dubious claim that the regulations were needed without delay. GOOD party secretary-general Brett Herron said the health minister was “smoking his socks”. “It borders on lunacy for the president to trumpet the future of an industry (hemp), only for one of his ministers to ban its products, which have been sold in mainstream stores for years,” he said in a statement. Herron urged the president to overturn Motsoaledi’s ban and speed up work on the Cannabis Master Plan to ensure the sector was appropriately regulated. “The lack of a policy framework to organise and regulate SA’s cannabis industry since the Constitutional Court decriminalised its use, but not its sale, seven years ago is placing the future of the burgeoning industry and up to a million people’s livelihoods at risk,” he said. “Users of edible cannabis products have the right to know that what they consume is safe, which requires regulations, not a ban,” The ban has cast a spotlight on Trade, Industry and Competition Minister Parks Tau who earlier this month painted a rosy picture of the Master Plan, which effectively then collapsed on 7 March 2025 with the cannabis in foodstuffs ban. IOL reported on 19 March 2024 that in response to questions by DA MP Toby Chance earlier this month, Tau said a draft Hemp and Cannabis Value Chain Master Plan discussion document would be finalised by the end of the 2025/26 fiscal year, and subsequently presented for stakeholder engagement to ensure co-creation and alignment moving forward. Tau said this was a collaboration of the Department of Agriculture (DoA) with the Agricultural Research Council (ARC) to commission critical research focused on – Crop breeding for Hemp and Cannabis; Utilisation of fibre and other by-products; Plant disease surveillance and mitigation strategies; Indigenous germplasm collection (to preserve genetic diversity); and the Development of a sustainable seed system for these crops. While Tau was responding in Parliament, Dr Motsoaledi had already signed off on the controversial hemp foodstuff ban but had not informed the DTIC, even though Tau is chairman of the inter-ministerial cabinet committee on cannabis, and in this regard was higher up the management chain. And he had not informed President Ramaphosa that had already decided on the ban ahead of the 6 February 2025 SONA. A source close to Government says there have been contact behind the door meetings between the DoH and the DTIC and the Presidency has been pulled into the loop to help fix the blunder. He says the Health Minister’s job is not on the line: “He’s too close to the President and any action against him would be interpreted as an ANC backdown on the NHI (National Health Insurance scheme), which is politically unacceptable. They are going to rather find a way for him to save face". “Instead they’re working on a plan to ‘clarify’ the ban by removing hemp out of the equation. I don’t think the Ministers want to say anything until they’ve got consensus, but I think we can expect a statement soon.” Meanwhile the ban has already caused widespread damage in the hemp industry and several legal challenges are believed to be underway with claims for damages running into tens of millions of rands of damages. # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service Ministers Run for Cover as Hemp Foodstuff Ban Turns Into a Political Issue and Heads for the Courts

As absurd as the hemp foodstuff ban may be, it is legally binding until such time as the Minister rescinds it or it is set aside by a court. That's just how it is, says leading cannabis lawyer Paul Michael Keichel even though legal commentators have slammed the ban as 'unconstitutional', 'illogical' and 'unenforcable'. As absurd as the hemp foodstuff ban may be, it is legally binding until such time as the Minister rescinds it or it is set aside by a court. That's just how it is, says leading cannabis lawyer Paul Michael Keichel even though legal commentators have slammed the ban as 'unconstitutional', 'illogical' and 'unenforcable'. 22 March 2025 at 07:30:00 Muhammad Hussein Q&A with PM Keichel The Health Minister has provoked outrage from all quarters with his shock ban on cannabis in foodstuffs. Worse still Dr Aaron Motsoaledi has run for cover since the 7 March 2025 notice, and two weeks later has not explained the reasons behind the ban, nor made any public comment. News 24's Muhammad Hussien interviewed specialist attorney at Cullinan and Associates Paul-Michael Keichel ( pictured above ) on the new regulations. MH: How would you interpret the new cannabis edibles and hemp regulations Minister Aaron Motsoaledi quietly published last week? PMK: It's important to distinguish between cannabis edibles (like brownies and gummies), which contain the psychoactive compounds THC/CBD, and hemp food products, which are non-psychoactive and high in protein and nutrients. The regulations seem to target cannabis edibles, which were already illegal under existing drug and medicine laws. So, the new regulations don't really add anything new in that regard. It is redundant but understandable. However, the regulations also appear to ban the sale of hemp food products, which have been sold safely in stores like Dis-Chem, PicknPay and Wellness Warehouse for years. They are not marketed as THC or CBD at all. These are nutritional foods that have undergone the rigours of food safety regulations. MH: The department said the minister of health did this for public safety reasons. PMK: I'm not sure how the Health Minister thought he was protecting public health by banning the hemp components of the cannabis plants. Another issue is that the Foodstuffs Act has a provision that says he was supposed to put this regulation out for 90 days of public participation. Another provision says that if he thought it was in the public interest to avoid public participation, then he could bypass this. But given that we are eight years past the Constitutional Court [ Prince ] judgment (where dagga was decriminalised), why the sudden wake-up? MH: And why is it in the public interest to avoid public consultation? PMK: That provision to bypass public consultation is used when, maybe, an ingredient is found to have a serious health risk, then banning that ingredient and bypassing public consultation makes sense. Not when the discussion on cannabis has been ongoing since at least 2018 - what public interest has been served? MH: Does this mean that the regulation is null and void? PMK: Not automatically. There's a principle called Oudekraal that renders an administrative action valid until it is set aside, and this falls under that. So , this regulation is valid and binding until such time it is set aside by the courts. It is voidable but not automatically void. Many big industry players may be gearing up to challenge this regulation and have it reversed. MH: What can be done to avoid that? PMK: If the minister wakes up to the fact that he's made an administrative mess of this, he can either take his own decision on review or publish another notice in the Government Gazette saying, "I revoke these regulations." In the absence of that, these regulations are valid and binding law. MH: Does that mean penalties can be meted out? PMK: Yes, which they already were in respect of cannabis edibles. But now those places and companies selling hemp seed oil, hemp seed flour, and protein shakes with hemp seed, are all acting in contravention of a criminal prohibition. This is absurd as it also seems that the minister did not consult intragovernmental, as it affects departments like trade and industry, justice and police. MH: So, how will the enforcement take place? PMK: It all comes down to whether there is an appetite to enforce these laws. Technically speaking, if they wanted to, the Hawks and the SAPS could go and raid all these big stores and charge them criminally in terms of these regulations read with the criminal prohibition in the primary act. But it may be very questionable whether a court would agree to convict under these circumstances. MH: Could corrupt actors take advantage of this by seizing goods under this regulation? PMK: It would be a very risky move by these corrupt elements if they did take advantage of this given the high-profile media attention on it. But it is possible. MH: So, shakedowns are possible? PMK: Absolutely. But again, there's a distinction between cannabis edibles and hemp. People have been selling cannabis edibles and opening stores illegally for seven years now. This is just a new angle on a pre-existing prohibition. But the true absurdity here lies with hemp. # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service PM Keichel Warns Foodstuff Ban is Binding Even Though It is Legally Flawed

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Seven years after Government unveiled the Cannabis Master Plan, the sad truth has been laid bare: “There is no commercialization policy, there is no economic or industrial strategy, there is no plan”. That’s the view of leading private sector cannabis consultant M Ayanda Bam, who says all the stakeholder engagement with government now seems to have been a waste of time. Seven years after Government unveiled the Cannabis Master Plan, the sad truth has been laid bare: “There is no commercialization policy, there is no economic or industrial strategy, there is no plan”. That’s the view of leading private sector cannabis consultant M Ayanda Bam, who says all the stakeholder engagement with government now seems to have been a waste of time. 19 March 2025 at 20:30:00 Brett Hilton-Barber, Cannabiz Africa President Cyril Ramaphosa’s vision of cannabis as an economic driver went into sudden reverse on the evening of Friday, 7 March 2025, leaving the South African cannabis landscape in tatters. Barely a month after he told the nation that he wanted the country to be a leader in the commercialization of cannabis and hemp, the opposite has happened, as his Health Minister undermined him in a spectacular way, by gazetting a ban on cannabis in foodstuff that specifically included hemp and hemp-based products. Hemp Foodstuffs Ban a Big Body Blow to the Cannabis Master Plan The unexpected ban has already cost tens of millions of rand affecting almost 2 000 business entities and effectively removed a key market for the 1 500 farmers who have hemp permits. The DTIC, even though it was itself taken by surprise by the ban, has instructed affected businesses to comply or face the legal implication s. Now the President has two Cabinet members who are meant to drive the Master Plan forward, and not only are they not communicating, but are pulling in opposite directions. And as if to rub it in, the Department of Trade, Industry and Competition (DTIC) says it is to rebuild the Cannabis Master Plan from scratch, effectively ignoring stakeholder input from the President’s Phakisa Cannabis Action Lab initiative in June 2023 and public submissions to Parliament on the Cannabis for Private Purposes Bill since 2022. The Act, which the President signed off in May 2024, is still to be proclaimed into law as it has been held up by the Justice Department which has yet to produce a set of regulations that will empower the Act. In the meantime, the Drugs Act remains in force, despite Government's commitment to get it off the statute books three years ago, and SAPS has taken a hardline attitude to vulnerable communities such as the Rastafarians and legacy farmers, insisting on continuing with cannabis arrests. Meanwhile, the cannabis retail 'grey zone' has exploded into a multi-billion rand business beyond the control of regulators who have no clear law enforcement guidelines - this while the DTIC is still working on a 'commerciaization' policy that will "soon" be put out to stakeholders for their input, while the NPA is working on new cannabis guidelines which it will release "soon". Bam: Seven Years Later There is Still No Plan! M Ayanda Bam was deputized by Business Unity South Africa (BUSA) to help revive the Cannabis Master Plan which had been presented to Nedlac in 2021, but was thrown out because of a lack of private sector consultation. That is when he began engaging with senior Government officials and put together the private sector working group in 2022 to co-create a new Master Plan. The initiative fell apart because of Government turf wars in the cannabis space and undue interference in processes, leaving him profoundly disillusioned. Bam, who is also co-founder of Friends of Hemp SA (FOSA), said the situation remains absurd with the DTIC “always talking about the future”. Bam is also one of only two private sector representatives on the oddly-composed Cannabis Master Plan Steering Committee (Steerco) , which is yet to meet this year despite its formation nine months ago to speed up cannabis reform under the leadership of the DTIC. In other words, his views count. “The DTIC say they’re putting together a c ommercialization policy but its contents are completely opaque. There has been absolutely no engagement with anyone else as they have confirmed they’ve had internal discussions only”. “Let me remind folks” he told the Cheeba What the Hemp 2.0 webinar . “This is the same hymn sheet that was used in 2019, 2020, 2021, 2022. 2023 and 2024. It’s now 18 March 2025 and were still hearing about this commercialization policy that’s somehow out there in the ether. We’ve never had a chance to engage with it”. He then revealed the depth of his frustration at the hollowness at the centre of it all: “There is no commercialization policy, there is no economic or industrial strategy, there is no plan”. “So this idea that we’re moving ahead and whatnot, nah, these guys are really trying us, sorry, I hate to be disrespectful here, but I think I have to express some of the anger both from industry and civil society. We have attempted for years to engage these folk” said Bam. The ban puts paid to the President's vision of public/private sector partnerships driving the Master Plan as a myth with government relationships with the private sector trending towards litigation. The opportunity to engage with the public through a consultation process was deliberately shunned by Dr Motsoaledi, who with a single stroke of a pen has undermined what little trust the cannabis business community may have had in Government structures. Bam said the hemp foodstuff ban was inexplicable, unjustified and expensive, and the fact that it happened at all pointed to the dysfunction at the heart of South African cannabis reform. He said the DoH’s explanations to date were “complete nonsense and it’s a complete obfuscation of the fact that they made a major blunder that has consequences beyond the cannabis industry”. Meanwhile, as of going to press, there has been no official word from the Presidency or the ministers of Health and Trade although Cannabiz Africa understands there have been several intense discussions behind closed doors. The DTICl is understood to be working on an interim plan whereby hemp foodstuffs will be exempt from the ban which will then apply only to cannabis-infused foodstuffs. # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service Cannabis Master Plan Descends into ‘Omnishambles’ as Hemp Foodstuff Ban Reveals Serious Faultlines at Cabinet Level

As damages from the hemp foodstuff ban mount with no sign of the Health Ministry backing down, lawyers are being briefed to put together a court challenge. Industry anger is growing as millions of rand are being lost, and now there’s a call for responsible officials to be sued in their personal capacity. As damages from the hemp foodstuff ban mount with no sign of the Health Ministry backing down, lawyers are being briefed to put together a court challenge. Industry anger is growing as millions of rand are being lost, and now there’s a call for responsible officials to be sued in their personal capacity. 19 March 2025 at 10:00:00 Brett Hilton-Barber, Cannabiz Africa Friends of Hemp South Africa co-founder M Ayanda Bam says the Health Minister should rescind the ban immediately or face legal consequences. “We’re not going to be as kind as others are. We are not asking the Minister to withdraw this, we are demanding that he do so” said Bam. “And we are going to proceed with litigation should the DoH decide not to withdraw it or delay withdrawing it”. He told the Cheeba What the Hemp 2.0? webinar on 18 March 2025 that many businesses had been dealt a severe blow. “There are already damages and we can quantify them, and fortunately they’ve given us quite a lot of fodder for any other challenges we will pursue but this is absolutely absurd.” Bam said intervention was needed at the highest level.”The promises made by the President who is the head of state need to be followed. There is also a lead minister here, a new lead minister for co-ordinating all our cannabis and hemp industrialization and policy planning, and that is Minister Parks Tau. “These guys need to be held account here and if their officials are recalcitrant, they have to be put into line. I think that just goes without saying.” Cannabis Trade Association Africa chair Tebogo Thlapane ( pictured above ) agreed that Government policy makers were unreachable. Speaking on the Cheeba webinar, he said “We have very powerful people in very high positions. They are ignorant and making laws that affect millions and millions of people. We first need an injunction order against this whole thing and then we need to after these people personally." Thlapane said officials should be held personally liable for the financial havoc that they had caused. “Instead of using government money to protect themselves, we need to remove all of that and go at them personally; personally after the Minister of Health, personally after Anban Pillay and anyone else in that department”. “They must feel the heat that we are all feeling. They must feel the frustration we are feeling. People are losing money every day because of stupid laws that are made by people who don’t have knowledge of what they are doing, and they must pay”. Business Day reported on 19 March 2025 that some 1400 businesses had been affected and over 400 SMME’s by the hemp foodstuff ban. Bam said “What they’re talking about as the DoH is not the same as what was in the gazette; they are now backtracking, talking about labelling and whatnot, this is complete nonsense” “It’s a complete obfuscation of the fact that they made a major blunder that has consequences beyond the cannabis industry because these are products that have been legally traded in SA for decades without any challenges, Now they’re affecting folks the likes of Woolworths, Shoprite, Dischem, Faithful by Nature. We are talking tens of millions of rand in terms of damages from this. It’s wholly unjustifiable. We really do have a regulatory crisis at the moment, an example of what happens when you try and coordinate a plan across all these sectors. There's no consistency around this ban between DoH and its agency SAHPRA around this issue, and if they can't get this right were going to have a major challenge trying to get this altogether". # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service Make Them Pay! Call for Govt Officials Responsible for the Hemp Foodstuff Ban to be Held Personally Liable for Damages

Senior Health officials have started ‘walking back’ the controversial ban on hemp foodstuffs saying it’s part of a ‘regulatory process’ and that the Minister will ‘address the concerns raised’ by the hemp industry. Senior Health officials have started ‘walking back’ the controversial ban on hemp foodstuffs saying it’s part of a ‘regulatory process’ and that the Minister will ‘address the concerns raised’ by the hemp industry. 18 March 2025 at 15:00:00 Brett Hilton-Barber, Cannabiz Africa Health Minister Dr Aaron Motsoaledi pulled out of the Cheeba-organized ‘What the Hemp 2.0?’ webinar on 18 March 2025 at the last moment and instead sent senior Health Department officials to meet disgruntled stakeholders following his recent sudden ban on hemp foodstuffs . They say hemp industry concerns will be addressed but offered no clear rationale behind the blanket ban. Dr Mostoaledi sent the Health Department’s (DoH) Deputy Director General, Dr Anban Pillay (pictured above), and Director of Food, Penny Campbell, to explain to over 900 cannabis industry stakeholders the reasons behind the ban on hemp foodstuffs and what the process would be going forward. Dr Pillay is SAHPRA’s main point of contact with the DoH, and the man who famously told Parliament a few years ago that cannabis had no nutritional value ( Editors note: Dr Pillay is still believed to be a person of interest for his role in the Digital Vibes scandal after serving a three month suspension without salary for flouting departmental guidelines because of his involvement ). Dr Pillay let Campbell do most of the talking. She floundered through an explanation that the ban was all about labelling and part of a regulatory process that was centred around consumer safety. Asked by webinar moderator, Cheeba Africa’s Trenton Birch, to explain the ban and the rationale behind it, Campbell replied: “What we have done is prohibited anyone from calling either what has THC or CBD content, or even no content, from being called a foodstuff unless there is compliance with our labelling regulations and other health and safety regulations, and only then can it be construed as a foodstuff. “The reason for this is because SAHPRA updated the medicines schedule and it has always been classified that anything with a CBD level of less than 0,075 mg would be a schedule zero product if it’s for ingestion, and only if the DoH approves it under the Foodstuffs Act then does it become a food. “So to ensure that everybody out there fully understands, that when something is not a medicine or a health product, it doesn’t mean it becomes a foodstuff. So that was the rationale behind the ban…no not the ban, I mean prohibition”. Dr Pillay added: “If you look at a number of markets globally where cannabis is allowed to be sold as food there is a regulatory system….so the intention is not to ban them but to make sure that the contents of those products are acceptable, they’re safe, kept from children etc., and so this is a process obviously.” “But they are banned” responded Birch “I understand that people with hemp products have to legally remove them from their shelves; that’s very much against international trends; why so much overreach on the hemp side? We understand that THC is complicated, but why hemp?” “It depends on how you are marketing your product” replied Campbell. “If you are complying to the foodstuff regulations and your product has no THC and no CBD, then there should be no reference on the product to anything such as THC or CBD, or even the cannabis plant, because then you are misleading the consumer; The Foodstuff Act covers that the consumer who must not be misled by false or inaccurate description of what the product is. “So if a product is wanting to be termed a foodstuff, then it needs to be compliant with our regulations in terms of that”. Birch persevered: “But why hemp? There seems to be no logical reason to ban hemp. There are about 1 500 farmers with hemp permits out there and the biggest opportunity for them is to cultivate hemp for food because it’s a low tech application. “Essentially what you’ve done is cut the legs out from under the farmers and told them they can cultivate hemp but you’ve completely destroyed the market. I still don’t understand the rationale behind this blanket ban and I’d also like to know how you went about this; the industry wasn’t consulted, there was no dialogue, and it seems that there was over-reach here, whether that’s driven by paranoia or fear, we don’t know, but we’d really just like to know why it was a blanket ban and why it happened so fast and furiously?” Campbell responded calmly: “I think it’s important to mention that these hemp products and how they are marketed; they are marketed as health products, hence we have not banned them and said nobody must sell them; all that we’ve said is that you cannot call it a foodstuff, meaning that the environmental health practitioners at municipality level who enforce the Foodstuffs Act, have not had oversight of these products, whether they’ve been imported or manufactured locally”. Birch was clearly having difficulty with her answer. “But why is hemp not considered a foodstuff?” he asked, “it has more protein than meat, it is non-psychoactive provided it’s below the accepted THC levels, so why is it not a foodstuff? That’s completely illogical?” “It can be considered a foodstuff if it complies with the regulations published under the Foodstuffs Act” said Campbell. “But you have banned it in food, it’s just been a blanket ban” said Birch. “Yes, because the current market of products do not comply with the labelling regulations and we are still in the process of clarifying the regulatory landscape for hemp” replied Campbell. “And if we are using hemp, that is the varieties of Hemp 1 and 2 ( Editors note: SA1 and SA2 are local hemp varietals registered by the Agriculture Department ), which have always been available in this country to be industrialized; they were industrialized for the fibre content that they provide, so whether or not the current hemp seeds provide the nutritional value we have not seen the evidence as yet. We have ….” “I’m sorry, but you have not seen the evidence yet?” interrupted Birch with incredulity. “ Sorry, but you are completely contradicting international evidence as to the value of hemp as a human food, as a protein source, so I’m quite shocked that you would say something like that, I mean, I don’t understand the rationale. I do understand about labels, but take Woolworths for example, who do stock hemp products, they have very stringent labelling protocols; but you’ve just made a blanket ban without considering the different sides of the industry”. He paused momentarily: “For me what it shows is an ignorance of the industry in terms of the different sectors. We know there are challenges around edibles, but to put this blanket ban on hemp foodstuffs where research across the planet shows what benefits hemp has for human beings, is completely counter-intuitive to actually looking after our continent’s and our country’s health.” Campbell and Pillay looked at each other, before Pillay responded: “Look a number of parties have raised these issues that you are raising now with the Minister, so the Minister is looking at it, I’m sure, he’ll come up with a response to the concerns you and others have raised as well”. Watch a recording of the Webinar What the Hemp 2.0. here. PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service Minister a ‘No Show’ for Hemp Webinar But Senior Health Official Says Stakeholder Concerns ‘Will Be Addressed’

Over 1 000 businesses and 400 SMME’s have been affected by the Health Minister’s ‘inexplicable’ ban on hemp foodstuffs and are bleeding millions of rand. The shock announcement has derailed the President’s cannabis vision and laid bare the policy rot at the core of the Cannabis Master Plan Over 1 000 businesses and 400 SMME’s have been affected by the Health Minister’s ‘inexplicable’ ban on hemp foodstuffs and are bleeding millions of rand. The shock announcement has derailed the President’s cannabis vision and laid bare the policy rot at the core of the Cannabis Master Plan 19 March 2025 at 08:00:00 Brett Hilton-Barber, Cannabiz Africa Senior government officials’ attempts to explain the cannabis foodstuff ban and calm stakeholder nerves backfired spectacularly this week raising more questions than answers about the motive for the ban. Developments this week have also laid bare the utter dysfunctionality between the Ministries of Health, Trade Industry and Competition and the Presidency - and the woeful ignorance and incompetence of officials in the departments allegedly driving cannabis reform. It has now emerged that when President Ramaphosa delivered his SONA on 6 February 2025 in Cape Town, he was not aware that his Health Minister had already signed off on the cannabis foodstuff ban. Although the controversial ban was gazetted on 7 March 2025, Dr Aaron Mostoaledi authorized it on 16 January 2025. Sources close to Operation Vulundlela in the Presidency confirmed that no official notification was received about the Health Minister’s intentions prior to SONA and said most of his colleagues became aware of the ban only after it was announced. The official privately acknowledged that the ban was a major setback for the President who said in last month’s SONA that South Africa wanted to 'become a leader in the commercialization of cannabis and hemp'. The ban has already had a devastating effect on the fledgling cannabis industry, with DA health spokesperson Michéle Clark saying that “ Motsoaledi’s ‘ill-considered’ move threatened over 1,400 licensed businesses and 400 small, medium and micro enterprises.” She told Business Day that the DA was concerned by the process that led to the ban, as the Health Minister had bypassed public consultation. “Instead of imposing restrictions, the government should support the hemp industry, which has the potential to boost jobs, improve public health and drive sustainable economic development,” she said. Business Day also quoted GOOD party secretary-general Brett Herron as saying the Health Minister was “smoking his socks”. “It borders on lunacy for the president to trumpet the future of an industry (hemp), only for one of his ministers to ban its products, which have been sold in mainstream stores for years,” he said in a statement. Herron urged the president to overturn Motsoaledi’s ban and speed up work on the Cannabis Master Plan to ensure the sector was appropriately regulated. “The lack of a policy framework to organise and regulate SA’s cannabis industry since the Constitutional Court decriminalised its use, but not its sale, seven years ago is placing the future of the burgeoning industry and up to a million people’s livelihoods at risk,” he said “Users of edible cannabis products have the right to know that what they consume is safe, which requires regulations, not a ban,” he said. The DTIC was also caught off guard by the ban. During the seven weeks between the executive decision and the public announcement, the Health Ministry failed to inform or consult the DTIC of its intentions, despite the fact that it is a key member on the Inter-Ministerial Committee dealing with cannabis that is chaired by DTIC Minister Parks Tau. The proposed ban was also not put to the Cannabis Master Plan’s steering committee, Steerco, which is probably academic, as Steerco has not had an official meeting this year and appears beset with internal squabbles. Minister Mostoaledi chose not to appear on the Cheeba Africa webinar What the Hemp 2.0? on 18 March 2025 to explain the rationale behind the ban despite a prior commitment to do so. Instead he sent senior health officials to represent him, The DoH’s Food control head Penny Campbell’s shocked the 900 or so industry stakeholders participating in the webinar with her assertion that the nutritional value of locally developed hemp varietals had not been proven. DoH Deputy Director General Dr Anban Pillay tried to reassure stakeholders that the Minister had heard the concerns raised and that these would be addressed, but shed no light on the reasons for the ban. The DTIC offered little cheer, revealing that the Cannabis Master Plan is effectively back at Square One. DTIC representative on the Cheeba webinar, Thembelihle Ndukwana, said she looked forward to engaging with the private sector who would ‘soon’ be consulted on the department’s commercialization policy. She hoped the ban would be temporary, but said nonetheless that all businesses should comply or face the implications of breaking the law. The DTIC has halted all funding to businesses seeking to develop hemp-based food businesses, even though at least a dozen such companies have been incubated by the CSIR and the Department of Small Business. Although there has still been no official comment on the ban from the DoH, the DTIC or the Presidency, Cannabiz Africa understands that a series of backroom meetings are underway as to how to salvage the situation. Three different well-placed sources, say that the DTIC is looking to get an exemption from the ban for hemp-based products, while a regulatory framework is hammered out. # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service Health Minster Had Already Decided on the Hemp Foodstuff Ban Before SONA, so Why Didn’t He Tell the President?

It’s been six months since the DTIC was given responsibility for the National Cannabis Master Plan and since then cannabis reform has fragmented and turned ugly. The Department is putting together a special team to tackle cannabis commercialization, but without effective leadership at the top, it's being tasked with ‘mission impossible’. It’s been six months since the DTIC was given responsibility for the National Cannabis Master Plan and since then cannabis reform has fragmented and turned ugly. The Department is putting together a special team to tackle cannabis commercialization, but without effective leadership at the top, it's being tasked with ‘mission impossible’. 18 March 2025 at 09:30:00 Brett Hilton-Barber, Cannabiz Africa The DTIC is looking for a project manager for the National Cannabis Master Plan, which has not seen the light of day since it was handed over to the Department last year. DTIC Minister Parks Tau was given responsibility for resuscitating the Plan by President Cyril Ramaphosa in August last year, but since then, cannabis reform in South Africa has gone backwards. Cannabiz Africa understands Tau is taking cannabis reform seriously, as his new DG Simphiwe Hamilton who has assembled a cannabis team under a new section in the Department, Trade and Industrial Policy Strategies (TIPS). They will be picking up from where cannabis consultant Garth Strachan left off when his contract ends in a few months time. The new project manager will have his or her work cut out for her as South Africa’s cannabis reform programme is fragmenting rather than going forward. The President’s vision of cannabis as an economic driver, creating jobs and uplifting the rural poor, is in danger of falling apart because his Government is basically dysfunctional. Since Ramaphosa’s 6 February SONA in which he said South Africa wanted to take the lead in the commercialization of hemp and cannabis, his administration seems unable, or unwilling to provide any leadership at all in the face of the following unfolding crises in the industry: The unregulated and explosive growth of the ‘grey zone’, where more illegal cannabis shops are opening up around the country on a weekly basis, servicing an unprecedented level of consumer demand; The fiasco that the hemp sector has deteriorated into, with the latest inexplicable ban by the Health Minister on cannabis foodstuffs, and the stirrings of rural resistance in Mpondoland by legacy farmers resisting the importation of hemp seeds into the area; The continued harassment of vulnerable groups such as legacy farmers and the Rastafarian communities, where arrests and extortion happen on a daily basis; The persecution of ‘legitimate’ cannabis businesses attempting to comply with best practice in the absence of regulations; there is increasing anecdotal evidence of widespread extortion and bribery of SAPS officers as the ‘grey zone’ develops into a multi-billion rand industry; The lack of any guidelines from the NPA or SAPS governing the cannabis industry thereby enabling the potential for bribery and corruption; The ongoing regulatory vacuum whereby the Cannabis Act is still on the showroom floor awaiting guidelines from the Justice Department, while the Drugs Act, which was meant to be traded in ages ago, is still on the statute books, despite a promise from Government two years ago that it would be scrapped; The never-ending dysfunctional relationship between Government departments: the Presidency’s control has slipped, the DTIC and Health are pulling in opposite directions, Health and Agriculture are involved in a turf war over hemp; the Justice Department is still essentially prohibitionist by nature; Social Welfare is being left out in the cold; while the provinces have their own complications – for instance the Eastern Cape Agriculture Department and its subsidiary responsible for cannabis development – the Eastern Cape Rural Development Agency have made a mess of the start of Medigrow’s billion rand industrial cannabis project; There is a spiralling substance abuse crisis affecting working class youth as international narcotics syndicates establish secondary markets not only in the major metros, but also in the likes of Saldana, Hawston, Nelspruit and Polokwane, which are on the ‘smuggling corridors’; cannabis is being used in a dangerous mix of new cocktails and it is unclear where the Drug Action Plan fits into the Cannabis Master Plan, or how cannabis is to be ‘delinked’ as a drug from heroin, cocaine, crystal meth and other hard narcotics. SAHPRA-licensed cannabis cultivators are struggling to develop an international foothold because of quality and standards issues; there are hundreds of millions of rands of tied up capital in unrealized assets and there is no legal alternative for exporters to destroy what they cannot export. Finality on the status of private clubs which in law are currently neither legal nor illegal! At the end of the day, the one crucial element that is holding the entire industry back is the lack of a commercial framework for the domestic cannabis market. This should be the new project manager’s Number One priority. # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service SA Cannabis Reform Now Seriously Unravelling; Can DTIC’s New Team Fix the Mess Created by Other Departments?

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The DTIC says although the ban on hemp foodstuffs does not fit in with the Cannabis Master Plan, the law is the law, and dealing in all such products “must cease”. It said it would engage with the Department of Health to relook at the ban but offered little solace to stakeholders who stand to lose millions of rand in the meantime. The DTIC says although the ban on hemp foodstuffs does not fit in with the Cannabis Master Plan, the law is the law, and dealing in all such products “must cease”. It said it would engage with the Department of Health to relook at the ban but offered little solace to stakeholders who stand to lose millions of rand in the meantime. 18 March 2025 at 18:30:00 Brett Hilton-Barber, Cannabiz Africa The DTIC’s Sinah Mosehla appeared on the Cheeba webinar What the Hemp 2.0? on 18 March 2025 and warned companies that they should comply with the ban on cannabis foodstuffs gazetted on 7 March 2025. “The ban says no one should sell, manufacture, import, process or unprocess foodstuff containing hemp seed oil, hemp seed flour or powder ,so it is very specific for food containing cannabis powder and oils” she said. "So the impact that we at the DTIC will see, is that, because it is a new ban, those that are using cannabis to make foodstuff must cease production and those production lines will obviously have to stop because a ban is a regulatory tool of government. People who are doing anything against it, must be aware that of course there are implications. “So companies need to comply, but with the hope that soon, the Department of Health (DoH) will look at developing regulations that guide how cannabis or hemp should be used in food production, including how to label food products appropriately.” Mosehla’s colleague at the DTIC, Thembelihle Ndukwana, said the ban meant funding was no longer available for businesses using cannabis in foodstuff. “In terms of incentives, as soon as the ban is lifted and regulations are in place, companies that produce foodstuffs containing cannabis can start applying for funding from the DTIC.” Ndukwana told the 900 or so stakeholders listening in on the webinar that the Cannabis Master Plan would essentially be rebuilt from scratch. She said the DTIC was now in charge of the Cannabis Master Plan and would be reviving it through a commercialization policy for both cannabis and hemp. But, she said, the regulatory framework “needed to be on point”. She was confident that with DTIC Minister Parks Tau chairing the inter-ministerial committee on cannabis, that the “political will” to finalize the Master Plan was there. The DoH is represented on the committee and participates in one of the Master Plan ‘working streams’ and Ndukwana hinted that they would be persuaded to relax the ban. “Where things need to be unblocked, they will be unblocked so the sector can function” she said. “The shift is to focus on industrialization and commercialization” said Ndukwana, adding that the DTIC’s role would be one of “strategic intervention in growing and expanding manufacturing capacity”. She said: “We will be reconvening the government structures for the Master Plan which envisaged all purpose, ‘whole plant legislation for cannabis and hemp”. “The Master Plan is not a government document” she said, “it requires co-creation with other social partners” and that business would be included in finalizing the Plan and when approved it would be translated into new legislation. When pressed by session moderator Trenton Birch of Cheeba Africa as to whether a new law governing the commercial use of cannabis would be ready within the current financial year, Ndukwana said “We are on track for that. We are developing the cannabis and hemp commercialization policy and there’s been a lot of engagement internally from government, including bringing in funding institutions like the IDC (Industrial Development Corporation). Ndukwana said the IDC’s funding model would not cover the entire costs of any project so other government-related entities that could provide finance would also be roped in. “Say a company wants to put up a factory to produce cannabis-infused food, - hopefully the bans and the regulations are sorted - we will not be able to cover all the costs, that’s why the other funders are important”. She said the process of stakeholder consultation on the DTIC’s commercialization policy was imminent. “You should be on the lookout, we will be reaching out to you to co-create this Master Plan. We do believe it is an important industry, especially for our local farmers, especially those that have been in this industry from time immemorial. So we must make sure the sector works for them, that they can profit from this sector under which they have suffered for years”. She said it was important for consumer safety that both imported and locally manufacturered products were labelled correctly. She suggested the DoH come up with a campaign to educate consumers through labelling “so whatever they buy comes from an informed decision”. # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service DTIC: ‘Stop Dealing in Cannabis-Related Foodstuff Until Such Time as the Ban May Be Lifted’

ACS started off as a cannabis testing facility in the eastern USA in 2017. It’s journey has now opened the ‘Entheogen era’. Entheogen is a neologism to designate psychoactive substances employed in culturally sanctioned visionary experiences in ritual or religious contexts. ACS started off as a cannabis testing facility in the eastern USA in 2017. It’s journey has now opened the ‘Entheogen era’. Entheogen is a neologism to designate psychoactive substances employed in culturally sanctioned visionary experiences in ritual or religious contexts. 9 January 2024 at 12:00:00 Roger Brown, ACS News This is reproduced from an ACS blog published on 3 January 2024. 6 Trends to Expect in 2024 Kratom Specialization Hemp & Functional Mushroom Union Potent Alternatives to Delta-8 Amanita Goes Mai nstream Psilocybin Research & Development Growth Kanna Surge Bottom Line We started ACS Laboratory as a medical marijuana testing facility in 2017. Shortly after, we expanded into hemp and derivative products . We thought we were busy then. But the explosive demand for entheogens across diverse categories has again propelled our reinvention. In the past two years, we’ve added kratom, psilocybin mushrooms, functional mushrooms, and Amanita muscaria to our testing repertoire. We’ve also grown our cannabis program to include 30 cannabinoids and 38 terpenes. As a leading third-party laboratory, we speak directly with entheogen brands at the forefront of the latest trends. These conversations are the source of our testing evolution. And we are so excited to continue expanding our program in 2024 to meet their needs. Here, we reveal six entheogen trends to expect in 2024 across hemp, cannabis, kratom, mushrooms, and more. 01. Kratom Specialization Kratom is definitely not a new entheogen. The Southeast Asian population has been consuming this coffee plant cousin and opioid activator for generations. But kratom is undoubtedly having a moment in the West driven by the legal psychoactive plant trend. Kratom’s powerful stimulating and pain-relieving effects are not without safety concerns. However, the American Kratom Association (AKA) is proactive against regulatory overreach. The AKA has successfully supported legislation in 11 states, including Colorado, Georgia, and Nevada, to keep kratom legal while implementing common-sense rules like consumption age limits and labeling standards. Florida’s 2023 Kratom Consumer Protection Act is the most recent example. Kratom products are already available in various forms, from vapes and powders to drinks and tinctures. But 2024 will be a year of product specialization, sparking consumers to seek specific kratom colors, blends, and dosages to meet their wellness goals. Some products will focus on full-spectrum kratom benefits, while others may concentrate on mitragynine –its key psychoactive compound. As products become more specialized, kratom lab testing will be essential for multiple reasons. Brands that test for potency and purity will gain an edge over less reputable competitors. Lab testing will also reassure regulators and consumers that they’re receiving safe, effective, unadulterated formulations. 02. Hemp & Functional Mushroom Union Hemp and functional mushroom blends in beverages, edibles, and tinctures will see a banner year in 2024. These products offer incredible synergy, combining hemp’s anti-inflammatory and anti-anxiety powers with mushrooms’ gut, energy, and immune-boosting benefits. Medicinal mushrooms provide endless formula possibilities with various adaptogenic species like Lion’s Mane, Cordyceps, and Reishi to complement hemp’s CBD, CBN , and CBG compounds. Most consumers will ingest these products as standalone supplements for daily health, stress, and focus needs. Others will use these blends as stacking formulas to complement their psilocybin microdosing routine. We predict hemp and mushroom beverages will grow most substantially due to this administration method's higher bioavailability, faster onset, and flavor diversity. However, this largely untapped wellness space has incredible growth potential across verticals. 03. Potent Alternatives to Delta-8 Alternative cannabinoids with psychoactive prowess will continue encroaching into Delta-8’s market share in 2024. HHCP , THCH , and THCP, in particular, could see a notable rise due to their potency far exceeding Delta-9 THC. Additionally, non-tetrahydrocannabinol (THC) hemp derivatives like HHC will continue their trajectory due to avoiding regulatory hurdles related to THC potency limits. Alongside the power players, various alternative cannabinoids will continue appearing in psychoactive hemp blends, including: THCV Delta-8 Delta-10 Delta-6a10a (aka Delta-3) THCM Inevitably, the exotic cannabinoid trend will accompany FDA warning letters issued to brands with questionable-quality products. Some ingredients won’t match label claims, and formulas will be adulterated with dangerous compounds. This unfortunate reality will cause some reputational harm to the industry. However, respectable brands that conduct full-panel hemp testing for potency and purity will prevail. These brands will publish lab reports , known as Certificates of Analysis, to engender consumer and regulatory trust. Inevitably, the exotic cannabinoid trend will accompany FDA warning letters issued to brands with questionable-quality products. Some ingredients won’t match label claims, and formulas will be adulterated with dangerous compounds. This unfortunate reality will cause some reputational harm to the industry. However, respectable brands that conduct full-panel hemp testing for potency and purity will prevail. These brands will publish lab reports , known as Certificates of Analysis, to engender consumer and regulatory trust. 04. Amanita Goes Mainstream Amanita muscaria extracts have been picking up speed since Psyched Wellness added its AME-1 formula to Canada’s Natural Health Products Ingredients Database in 2021. Subsequently, Psyched Wellness is Generally Recognized As Safe (GRAS) as a bulk ingredient. The successful GRAS certification allows Psyched to legally sell its AME-1 products in the United States and is a key milestone in execution of the Company’s strategy. Since 2021, Amanita products, including tinctures and gummies, have increasingly appeared nationwide in smoke shops and wellness stores. But Psyched Wellness will be the primary reason this ethereal mushroom goes mainstream in 2024. The brand’s strategic distribution and licensing deals will bring Amanita’s pain-relieving, sleep-promoting powers to a new level of fame. Psyched Wellness’ flagship Amanita extract, CALM, is already in all Central Market (an HEB brand), Market of Choice, and Erewhon Market locations, as well as on Walmart.com. And in May, the company announced that My Crew Doses will sell AME-1-formulated gummies. Alongside Amanita’s wellness success, extracts will also rise in the alternative market. Psychedelic consumers looking for legal mind-bending experiences will drive this niche forward. At ACS Laboratory, our Amanita muscaria testing program is built for all brands selling high-quality products, compliant with federal laws. 05. Psilocybin Research & Development Growth Psilocybin clinical trials are entering phases II and III for treatment-resistant depression, and FDA approval could come in the next few years. Simultaneously, countless organizations are actively pushing psilocybin research forward for various medical needs, including anorexia, OCD, end-of-life anxiety, and PTSD. In December, the federal government greenlit a bill to create grants for studying psychedelic treatments for active duty service members. And many states, including Texas and Maryland, have enacted similar legislation. The burgeoning field of psilocybin research will invariably generate a rise in DEA-licensed mushroom growers and brands, like Rose Hill, the world’s first legal psilocybin exporter. These brands will inevitably require R&D and compliance mushroom testing to ensure safety and quality. Our ACS Laboratory team recently partnered with Rose Hill to refine our mushroom testing program. The partnership will also elevate Rose Hill’s product line with tested-safe and certified products. Rose Hill will be one of the first psilocybin producers to add QR codes to its products linked to lab test results, highlighting the importance of quality and transparency. We anticipate many more DEA-licensed psilocybin brands will do the same in 2024. 06. Kanna Surge South Africans have used native-grown kanna plants as an herbal remedy and natural mood-booster for centuries. Today, the Western psychedelic community has embraced and elevated this heart-opening entheogen to new heights. Psychedelic enthusiasts often refer to the plant as “nature’s MDMA” due to its empathogenic qualities. However, the term is a bit of a misnomer because kanna is entirely distinct. Unlike MDMA, kanna is only mildly psychoactive and contains no speedy amphetamines. Its heart-centered qualities come from mesembrine and mesembrenone, which synergize to boost serotonin levels, improve circulation, and lower blood pressure. People commonly consume kanna in dried or smokable form, but extracts are rising. In 2024, we predict brands will market kanna for its powerful anti-anxiety potential, similar to CBD, and recommend it for daily use. Others will focus on the psychedelic audience, suggesting kanna alongside psilocybin therapy to help reduce the fear that sometimes arises from high-dose journeys. We’re reviewing kanna testing methods and look forward to unveiling a comprehensive program in early 2024. Bottom Line We hope you found this blog informative and saw something that inspired your brand to continue innovating in 2024. Contact us today with questions about our entheogen testing program or to suggest new tests to meet your growing needs. # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service SA’s “Magic Plant”, Kanna, Predicted to Trend This Year Along With 5 Other Entheogens

The South African cannabis home grow market has been overtraded this year with many businesses closing down. Hydrobiz has bucked this trend by rapidly expanding into the SAHPRA licensee market. CEO Brett Young reflects on the current state of the market and unpacks who is buying what. The South African cannabis home grow market has been overtraded this year with many businesses closing down. Hydrobiz has bucked this trend by rapidly expanding into the SAHPRA licensee market. CEO Brett Young reflects on the current state of the market and unpacks who is buying what. 5 October 2022 at 10:00:00 Brett Hilton-Barber Up to seven grow shops in the greater Cape Town area are believed to have closed their doors in the last six months as competition sharpens for the home grow consumer. However, one of the businesses that is expanding rapidly is Hydrobiz, a Western Cape based company that has evolved from serving hobbyists to supplying the commercial cultivation market. Hydrobiz CEO Brett Young says the competition has been fierce. “In the retail market there is a lot of movement over the last four years. Initially there was a viral growth of retail stores and e-commerce sites. Almost every time I went on Facebook or Instagram there was another e-commerce site and in cities around the country there was an explosion of brick-and-mortar stores. For the first time this year I have seen a retraction in the market. This year I can count possibly six to seven store closures in greater Cape Town area alone. For example Somerset West had seven grow shops, which was not feasible. The market was simply over traded. Hydrobiz has bucked the trend and during the same time that many have been closing, we have been expanding”. Hydrobiz launched its fourth ‘bricks and mortar’ store in August this year in Table View and is looking at expanding to Gauteng in 2023. Young told Cannabiz Africa on 4 October 2022 that Hydrobiz was predominantly an importer and distributor to the commercial market and that 70% of turnover was coming from SAHPRA approved cultivation operations. “Currently we are very happy to list 58% of all SAHPRA licensees as customers” says Young. “The remaining 30% of our turnover is generated by our retail business and this is spread between income generated from our 4 store locations and online sales”. So what are SAHPRA licensees buying? Commercially, our SAHPRA customer orders range from numerous light dep tunnels to a pending turnkey multispan greenhouse project via Novagric, our greenhouse partners in Spain. We sell a lot of lights, both HID and LED, one in five licensees operates with our Nanolux. We can’t keep up with the demand for Quest dehumidifiers – we have one container on the water, a second being loaded and a third in production. Containers 1 and 2 are now presold and we are taking orders on the third. We sell a lot of rolling benches, fans, scrog nets. We sell a lot of daily consumables from Jiffy glueplugs, substrates, IPM products from Andermatt Madumbi and Koppert. We designed and manufacture Mega solution nutrients. It's running multiple SAHPRA projects and in the consumer market is gaining traction. Growers using Mega have consistently been in the top 1, 2 and 3 podium positions across multiple classes for the last four years at the Sannabis Cup. “One in five licences in SA run Nanolux lights, one in four run Quest Dehumidifiers, one in three operate Trolmaster and our sales growth of Grodan into the market is promising. Our challenge as a company is to increase our penetration into the remainder of the market and turn the smaller customers into larger ones” Young says Hydrobiz’s strength is I believe the strength of our company is leveraged off the good old-fashioned principles of quality and service. “We align with the best global brands in the cannabis industry and we have excellent product knowledge and technical support and with over R25 million in inventory, we can respond to most enquiries on demand”. He says connection to community is a key ingredient for success. “We work endlessly on our Instagram accounts and event management, where we give away loads of free stuff. Every two months we host a ‘stash and dash’, and three times a year we host the Hydrobiz Swap Meet. At the last swap meet we gave away R80 000 of free stuff to over 200 attendees. I think this goes a long way towards building our ties with our community”. Young says the biggest challenge facing the fledgling cannabis industry is “access to market and the regulatory environment”. “Locally, the government needs to put action behind words. With a free and open local market the challenges and access to market for many current and future growers would be alleviated” he says. “The export market will come, but here too the regulatory environment must change. Recreational cannabis will be more achievable for many growers and entrants. Medical cannabis is an important market but the barriers to entry especially for the European Union will be challenging, costly and time consuming. It won’t happen overnight. There is a long road ahead for many”. He said the recent Western Cape High Court ruling against the legality or private cannabis clubs had impacted Hydrobiz and many other businsses. “Our Woodstock store was in the ground floor of the Sensiva private club. Recently Sensiva closed all memberships and operations, and as a result we have to find new premises. So the impact of the court ruling in one microcosm is that 13 jobs are no longer in play. How many jobs are behind these 13? How many families are dependent on this one location?”. # PREVIOUS NEXT What Sets Us Apart ? Cannabiz Africa is the leading B2B news platform for the continent's cannabis industry, connecting you directly with key stakeholders. With over 4,000 unique monthly users and a growing audience of 1,500 engaged Newsline subscribers, we provide unmatched visibility for your brand. Advertise with us today to reach the heart of the industry! Click here, to advertise your brand, product and or service Dep Lights at the End of the Tunnel! How Hydrobiz Bucked the Consolidation Trend in Home Grow Retail