The cultivation of medicinal cannabis has a massive potential to grow economies, with the worldwide legal spending estimated to exceed $40 billion within five years.
According to cannabis research firm BDS Analytics, worldwide legal cannabis spending will increase to $15 billion in 2019 and exceed $40 billion by 2024.
The City of Cape Town’s mayoral committee member for economic opportunities, James Vos, said on Thursday it was not often that one witnessed the emergence of a new industry with such great potential for growth.
"The cultivation of medicinal cannabis has a massive potential to grow our economy and create jobs and the City of Cape Town is open for business. This morning (Thursday), I had the opportunity to address the 2019 edition of the cannabis conference taking place in Cape Town," he said.
The introduction of South Africa’s licensing framework for the cultivation and manufacture of medicinal cannabis for scientific and clinical research purposes will open new investment opportunities for the region. Foreign investment interest in this space is huge and can potentially bring significant income, jobs, and skills, according to Vos.
He said the city had already attracted significant investor interest, based not only on its strength in agriculture but also because Cape Town is fast becoming Africa’s leader in pharmaceutical research and development, as well as health and biotech.
"I look forward to more fruitful interactions and partnerships with those who are ready to invest in Cape Town. I am proud of the city council’s decision in May this year to free up around 10 hectares of land in Atlantis for production of medical cannabis. This was a pioneering decision, which set the foundation to unlock Cape Town’s potential in this untapped sector," Vos said.
He added that it was also a testament to the city’s commitment to partner with the private sector to explore new opportunities to grow the economy, attract investment and create employment.
"We are embracing new technology in order to overcome climatic challenges. Examples of these new technologies include controlled environment agriculture as well as precision agriculture, with intense greenhouse agriculture increasing by 43% between 2013 and 2017. Approximately 186 hectares of land is currently under tunnel infrastructure," said Vos.
- African News Agency (ANA)
