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 3/3 – Opportunities for hemp in Cape Town and South Africa’s construction materials value chain]:
- Globally, the cannabis sector is growing, and is currently 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 sector. In his State of the Nation address in February 2022, President Cyril Ramaphosa indicated the sector could be worth R406 billion by 2026.
- In Cape Town, and more broadly in South Africa, one of the key opportunities for investment in the sector lies within the construction materials value chain. Hemp can be used as a substitute raw material in the manufacturing of construction materials.
- As the hemp processing sector is nascent in South Africa, local manufacturers have to import hemp components which increases the price of hemp construction materials and negatively impacts market demand.
- Cape Town is well-positioned to become a hemp construction material hub in South Africa. It is already home to two companies that sell hempcrete, hemp insulation and hemp plaster, as well as the world’s largest industrial hemp-made building.
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.