GreenCape, in partnership with the City of Cape Town, has published a new series of industry briefs that highlight opportunities for investment in the hemp and cannabis value chain in South Africa, with a focus on Cape Town.
Key insights [Industry brief 1/3 – Opportunities for cannabis in Cape Town’s pharmaceutical industry]:
- Globally, the cannabis sector is growing, valued at $51.28 billion in 2023.
- In South Africa, recent policy and regulatory changes create an enabling environment that is opening up local opportunities for investment and job creation within the cannabis sector.
- In Cape Town, and more broadly in South Africa, one of the key opportunities for investment in the cannabis sector, lies within the pharmaceuticals industry.
- Opportunities exist across the medicinal cannabis value chain, not only in the cultivation and processing but also in the companies that provide the required agro-technologies and services. Agro-technologies such as lighting, fertigation, drip irrigation, and water treatment are expected to see a growth in demand due to the emerging medical
- The City of Cape Town is well-positioned to become a medicinal cannabis hub. Industrial zones, such as Epping, are well-suited for start-ups looking to repurpose existing warehouses and set up indoor facilities.
- Cape Town, which is already a leading destination for medical travelers in Africa, is an attractive location for investment in medical tourism that includes medicinal cannabis as a niche product.
As the medical cannabis industry is nascent in South Africa, it faces a number of barriers, including difficulty in accessing finance and vulnerable export markets. However, the regulatory environment continues to become more enabling for this emerging sector.
To read the full industry brief, please click on the PDF download button above. To read to the other industry briefs, click on their respective links below.