Southern Africa’s cannabis industry offers opportunity for open-minded investors - The Mail & Guardian

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The stigma around the plant needs to be addressed and citizens involved in new policies and processes in order for the market to change.

Legalisation of cannabis for medicinal purposes within a few Southern African states has been received with a great deal of enthusiasm. Most of these countries’ governments consider that the industry could contribute sizeably to their respective economies, through foreign earnings and reduced foreign pharmaceutical expenditure.

Most of the cannabis consumed for recreational purposes is smoked, with the remainder being consumed as edibles and vapours. Birguid’s study revealed that, at present, nearly all of the revenues are generated from the recreation segment. In 2019, the regional cannabis market is estimated to have generated just over $1-billion in revenue, with approximately 90% of the revenue generated from the recreational market.

A second consideration is potential tax earnings. Per Birguid’s research findings, Southern Africa’s cannabis market generates just over $1-billion a year and could double over the next five years. Most of this revenue is earned on the black market and thus does not generate tax. Legalising cannabis for recreational purposes could, therefore, enable respective countries to earn taxes from the commodity.

Sustaining the medicinal cannabis market will depend heavily on growing local consumption. For now, a major setback is limited research on both the viability of medicinal cannabis as a business and the potency/effectiveness of cannabis-infused drugs compared to existing alternatives. Further research, including clinical trials, is required to justify and contribute to further sector progression.

 

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420NewsSA Most definitely.

This is time for black South Africans and Coloureds who has been ploughing weed for many years .In and out of jail . Pleased not .

This shit saved my life! If I drank like I smoked I would have died of cirrhosis of the liver a decade ago.

Legalise cannabis now!

Stygma... think that's long passed.

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