Original Source: www.cannabiz-africa.com
South African President Cyril Ramaphosa has instructed his staff to engage with the cannabis stakeholders to address their concerns about the bottlenecks in the fledgling legal marijuana economy. But, he’s concerned that the industry is too fragmented to speak with one voice and that government is faced with too many competing interests.
Ramaphosa Open to Engaging with Cannabis Industry
Two Cannabiz Africa sources have confirmed this, saying the lack of progress in cannabis reform was drawn to the President’s attention by a letter sent by the Cannabis Trade Association Africa and other major players in April 2021, requesting an urgent meeting to address their concerns. The letter addresses the same issues raised by the Cannabis Development Council of South Africa had in calling for a cannabis desk to be sent up in the presidency. Ramaphosa’s office has not issued any public statement on the matter.
Finance Minister Tito Mboweni has long been urging his cabinet colleagues to support legalization of cannabis as a job-creating “taxable product” and the legalization of hemp has the full support of the Premier of the Eastern Cape. Gauteng Premier David Makhuru has also endorsed cannabis legalization.
NCMP: ‘the wrong guys are in charge’ and the industry is hurting
Calls for the presidency to become involved in cannabis reform are consistent with advice from the United Nations, which is that countries embracing reform should have a strong institution in charge of policy and licensing – either within the presidency or as a constitutionally independent authority. The body should have the authority to co-ordinate the work of different government departments.
“One of the problems with cannabis reform is that they’ve put the wrong guys in charge of the Master Plan” another source told CA. “DALRRD (Department of Agriculture, Land Reform and Rural Development) does not have the capacity or the mandate to develop an economic model for cannabis, and, with respect they’ve put a plant pathologist in charge of reform whereas what we really need is the DTI (Department of Trade and Industry) to get the investment ball rolling”.
“The problem is that we don’t have a willing champion in government who understands the full potential of the plant” said the source, who wanted to remain anonymous for obvious reasons, “and until this happens the debate is going to be stuck at a technical level.”
Calls for government to speed up cannabis reform are becoming increasingly louder from the private sector which has invested well over R100 million in cultivation and processing facilities in South Africa. Many hemp farmers are at financial risk because their permits have expired and have to be renewed by a different department, while Cannabiz Africa understands that almost R2 million of SAHPRA-approved, imported CBD products have been held up at Durban Port for several months because of a lack of procedural clarity.
Nedlac seeks outside expert advice in cannabis discussions
Meanwhile, negotiators at the Trade and Industry Chamber of Nedlac have decided that they need expert input into their deliberations around the National Cannabis Master Plan (NCMP) hand have apparently approached Business Unity South Africa for assistance. Officially Nedlac is declining to comment on the cannabis discussions until a final report is drawn up for the Minister of Trade and Industry.
However, DTI, which has been absent from the legalization debate so far, appears to be finally stirring. Hemporium founder Tony Budden says he’s been in contact with the DTI, which is “bringing some important players to the party to get investment in the sector rolling”.
DALRRD says Justice Dept holds the key to cannabis reform going forward
DALRRD says it has a cannabis framework in place and is waiting on the Minister of Justice to move on the enabling legislation. DALRRD’s Thabo Ramashola, who’s driving the NCMP, says the main technical problem to getting the cannabis economy off the ground is the wording of the Drugs and Drug Trafficking Act of 1995, which prohibits the commercial use of any part of the cannabis plant unless licensed by the South African Health Products Regulatory Authority (SAHPRA) for export.
Cannabiz Africa Legal Desk partners’ Schindlers Attorneys say the Drugs Act is at odds with the constitution, in light of recent court rulings, notably the Gauteng High Court ruling on the relationship between minors and cannabis.
The other government department that is at odds with cannabis reform is Social Development, which views cannabis as a narcotic that breaks down the social fabric and contributes to criminal behaviour.
For the current status of the legalization debate in South Africa, read the Cannabiz Africa legal desk report here.
Original Source: www.cannabiz-africa.com
Labat and Leaf Botanicals Relationship Ends in Tears; N Cape Cannabis Producer Pulls Out of Deal with JSE Company
Unresolvable issues around value and quality
Northern Cape organic cannabis grower Leaf Botanicals has pulled out of its share deal with JSE-listed Labat Africa and wants out. That’s emerged after Labat, which owns 80% of Leaf Botanicals, posted an announcement on SENS to its shareholders on 17 March 2022 that there was a “quality issue” behind the breakdown.
Both sides seemed equally unhappy with their year-long marriage, with Upington-based Leaf Botanicals pulling the plug because of financial disappointment, and Labat saying the flower was not good enough for its international customers. Labat has gone looking for production elsewhere, picking up 80% of Eastern Cape grow op, Sweetwaters for R10 m – for which it paid cash. Leaf Botanicals’ intentions going forward have not been made public.
The company said the “Leaf Botanicals acquisition was terminated due to Leaf Botanicals no longer wishing to pursue the transaction following the discovery that the product was not up to standard and the inability to find a suitable way forward. Following further discussions, the termination has been accepted by Labat.”
Van der Colff activated suspensive clause after sale value plummeted by 75%
Labat purchased 75% of Leaf Botanicals in May 2021 from award-winning farmer, Johannes van der Colff.
Labat paid R11,25 million for its equity in the SAHPRA-licensed facility and paid the Gog van der Colff Trust by way of 11 250 000 Labat shares, taking a bet that the Labat share price would go up. Well it didn’t. It is currently trading around 25c a share, which means the R11,25 m van der Colff was paid for giving up majority control of his operation is now worth a mere R2,8 m, 75% down on the value of the striking price.
Van der Colff’s got out the deal by activating a suspensive condition in the purchase agreement which allowed him to pull out if Labat was trading below R1.00/share for the 30 days before the first anniversary of the deal, which is imminent. The issuing of his Labat shares is to be cancelled and those shares delisted.
Labat has endured a rocky ride so far, prospects are looking up
Labat has had a rocky ride as the mover with first advantage in the South African cannabis space. It paid for many of its acquisitions with Labat shares valued at R1.00/share. With the price languishing below 30c/share, those who accepted shares in return for giving up equity in their own businesses, have taken a haircut of 75% of the value of their shares. Nonetheless Labat appears to have stabilized, and has again been out shopping.
Gauteng Signs Township Act into Law; Calls for Entrepreneurs to Pitch Proposals to Industrialize Cannabis
New Act aimed at empowering community trade
The Gauteng government has invited entrepreneurs to come forward with commercial proposals for the provincial cannabis industrialization programme. It published the invitation in the Government Gazette on 29 April 2022, the same day that Premier David Makhura ratified the Township Economic Development Act (TEDA), aimed at empowering townships and informal settlements.
Agriculture MEC Parks Tau, who is in charge of the province’s cannabis strategy says TEDA’s benefits include:
cutting red tape by introducing model standard bylaws,
providing targeted tax incentives to unlock capital formation and job-creating investments, and
providing targeted funding and targeted procurement whereby 40% of government procurement from the Gauteng provincial government comes from companies in the TEZs.
Tau: Vaal River Smart City will be SA’s first real cannabis hub
Writing in the Sunday Times on 1 May 2022, Tau said TEDA was “ a welcome legislation to unleash the potential of the township cannabis and hemp sectors that will be fully licensed in the full hemp value chain and acting as gateways for the industry. This will make Gauteng a “green gold” mecca, as announced by Makhura, with the establishment in the Vaal River Smart City area of the country’s first cannabis hub focusing on cultivation of cannabis primarily for medical use and application”.
Tau said the implementation of TEDA would be done in conjunction with the private sector and community organizations. “TEDA is a whole-of-society call to action to build better townships and informal settlements reeling from the negative effects of the Covid-19 health and economic pandemic, the July 2021 civil unrest and the complex spillovers from the Russia-Ukraine war” he wrote.
“Moreover, this requires the introduction of a solidarity economy through, for instance, a service delivery co-production for municipalities where enterprises and organisations such as stokvels and mutual benefit societies provide their own communities with goods, services and knowledge that meets the local community’s needs”.
Gauteng wants to form partnerships with private sector
The Gauteng Department of Economic Development and the Department of Agriculture and Rural Development are championing cannabis reform as part of the province’s goal to create jobs and boost the economy by processing hemp and cannabis at an industrial scale.
Companies interested in partnering with the provincial government must take into consideration in their application that their proposals must include:
details of funding mechanisms,
cannabis-driven carbon reduction,
rehabilitation of compromised mining land,
and the inclusion of communities as partners.
In return Gauteng says it will provide support for private sector partners by:
offering leases on state owned or controlled land;
providing rentals at special economic zones, industrial parks
subsidies at private facilities;
funding input and administrative costs
facilitating collaborations with other state organs, aimed at removing barriers on projects.
Antony Moloto is the man riding point on the project. His contact details are below:
Email enquiries: Anthony.Moloto@gauteng.gov.za
Queries: Mr Anthony Moloto
Phone: 011 240 2684/ 083 408 5493
Upload a completed form here with CV’s, BBBEE certificate /affidavit, tax clearance certificate and proof of CIPC registration as well as a proposal. Application inclusive of attached documents must be no longer than 20 pages. Please complete the checklist at the end of the application form.
Now Musk’s Bought Twitter, Could This End The Cannabis Social Media Ban?
By Bruce Barcott, First Published in Leafly on 25 April 2022
Does this spell the end of cannabis prohibition on social media platforms?
Elon Musk has been an outspoken opponent of prohibition. Now he owns Twitter.
What began as a fun what-if last week ended as a startling fait accompli this afternoon: Twitter has accepted Elon Musk’s $44 billion bid to buy the company.
In the cannabis world, that deal could have profound ramifications.
The Tesla founder has been famously outspoken about his belief in cannabis legalization. In late 2018, Musk lit up a joint on the Joe Rogan Experience, inhaled, and launched a million memes.
In the summer of 2020, Musk added his voice to the chorus of those working to free America’s cannabis prisoners.
“Selling weed literally went from major felony to essential business (open during pandemic) in much of America & yet many are still in prison,” he wrote. “Doesn’t make sense, isn’t right.”
Musk isn’t so much an advocate as an ally. He’s not the guy who’s bankrolling state legalization campaigns; he’s the uber-bro with massive cultural influence who says, loudly: Prohibition is stupid!
And now he owns Twitter. At a purchase price of $54.20 per share. Ahem.
Will that change things?
What needs changing?
Anyone who works in cannabis can tell you: Social media platforms do not play well with weed. The continued federal prohibition of marijuana makes the major platforms—Facebook, Instagram, YouTube, Twitter, TikTok—extremely nervous. They often express that trepidation by blocking posts, enacting shadow bans, or deleting entire accounts.
It’s hard to find a cannabis company that hasn’t been blocked or banned from at least one social platform.
It’s hard to find a cannabis company that hasn’t been blocked or banned from at least one platform at one time or another.
Often the bans feel capricious. A post that seems utterly harmless can get flagged for violating a platform’s terms of service, while an edgier post can shine on with no trouble at all. ‘What did we do wrong? is an anguished cry that nearly every cannabis social media manager has shouted to the heavens.
These mysterious cannabis policies exist on a spectrum. On the far side of strictness sits TikTok, which allows no cannabis content whatsoever. Don’t even try. The Google-owned YouTube can be tricky, but it allows cannabis content within reason. Then there’s Instagram and Facebook, both owned by the parent company Meta. Because of the nature of the cannabis audience, Instagram is currently the most important and influential platform, and also the one that gives social media directors absolute fits when it comes to cannabis content.
Jungle Boys, one of the nation’s top cannabis brands, gave a wink to that situation earlier today:
Will Musk change Twitter’s cannabis rules?
The platform Musk just purchased has a reputation as being one of the most liberal in its treatment of cannabis. There’s upside and downside to that.
The upside is that Twitter is the best fit, culturally and temperamentally, with Musk himself. His public persona is much closer to that of the swashbuckling libertarian Jack Dorsey (Twitter’s founder) than to the aggressively flavorless Meta leader Mark Zuckerberg.
If anything, we should expect Twitter’s cannabis policies to relax even further under Elon Musk. Consider this tweet he put out upon the acceptance of his bid this afternoon:
Better gatekeeping, or an ugly free-for-all?
Musk’s championing of free speech could make Twitter the most 420-friendly platform—but it could also turn the entire Twitterverse into an ugly free-for-all of political propaganda, unchecked conspiracy theories, and hate speech.
One year from now Twitter could be the social platform most welcoming to cannabis companies and consumers. But will cannabis companies and consumers want to appear on Twitter one year from now?
It’s not just his company, it’s his voice
Beyond the changes he might enact at Twitter, Musk could change the environment for cannabis simply by virtue of his new role in the social media universe. After hearing about Musk’s bid over the weekend, I reached out to Arend Richard, the founder of WeedTube. Richard has been one of the leading advocates for social media freedom and fairness when it comes to cannabis. He founded WeedTube back in 2018 after finding himself blocked by YouTube for an innocuous cannabis post. Four years later the 420-friendly WeedTube is thriving, readying an ambitious new update to their app expected to launch later this summer.
“As a cannabis business owner and influencer, Twitter has been relatively easy to work with,” Richard told me. “But I want to get in touch with Elon, because we need him to help bring awareness to the situation with Meta” and their platforms.
Richard is currently gathering signatures on a petition demanding that Instagram reform its community guidelines “to treat all legally operating cannabis businesses equally.”
The heart of the grievance? Unequal enforcement, according to the petition:
“Instagram continues to suspend and delete the pages of licensed and legal cannabis companies for violation of their vague and outdated policy prohibiting “attempts by individuals, manufacturers and retailers to purchase, sell or trade” marijuana. This policy is not enforced equally, with large multi-state corporations being allowed to promote their products and locations, while smaller, independent operators lose access to their Instagram pages, which are essential marketing tools in 2022.”
Influence others by eating their lunch
Can Elon Musk demand a change in the policies of Instagram? Of course not. This is a situation where he could force a change, however, by simply opening his arms to cannabis companies and then gaining ground on Insta.
The Meta-owned giant has nearly ten times as many active monthly users as Twitter. Instagram is younger, hotter, and more hip. If a Musk-over of Twitter can change that perception and eat into that lead, Instagram could be forced to reconsider its stodgy and outdated cannabis policies. And that could lead to a change in the other Meta properties as well.
There are no guarantees, but it could work. Elon Musk alone couldn’t force GM and Ford to start making electric cars. The success of Tesla forced them to follow his lead or become obsolete. Let’s see what he can do with social media.
The post Now Musk’s Bought Twitter, Could This End The Cannabis Social Media Ban? appeared first on Cannabiz Africa.
Why Should We Care If Pot Offenders Get Released From Prison?
Fueled by Cannabis: Pot-powered Athletes are Focusing on Recovery
Coming Sometime Soon to a Roadblock Near You: THC Breathalizers!
Bud for Beginners: Growers Guide
Montana + Minnesota Move Towards Legalization
Oregon Allots $25M To Combat Illicit Cannabis Grows
Education3 weeks ago
The Landrace Effect: Africa as the Best Cannabis Purebred Strain Breeders
Politics4 weeks ago
Zimbabwe Tobacco Board Tells 145,000 Tobacco Farmers: “A Quarter of Your Income Must Come from Hemp by 2025”
Politics4 weeks ago
SAHPRA Issues Africa’s First License to Conduct Psilocybin Clinical Trials; Aim is to Treat Depressed Women who are HIV Positive
News3 weeks ago
Russian Invasion of Ukraine Drives Up Cannabis Input Prices; Solvents and Packaging Are Hardest Hit
News2 weeks ago
Gauteng Signs Township Act into Law; Calls for Entrepreneurs to Pitch Proposals to Industrialize Cannabis
Cannabis3 weeks ago
Higher Profile: MDbio, Cannabinoid Products Created by Doctors