Hemp – What can this do for the economy?

President Cyril Ramaphosa announced at his State of the Nation address in 2020 that government “will open up and regulate the commercial use of hemp products, providing opportunities for small-scale farmers; and formulate policy on the use of cannabis products for medicinal purposes, to build this industry in line with global trends.“

Differences between Hemp and Cannabis

Hemp is not cannabis (or dagga as it is also commonly known in South Africa)! It is very important to make this distinction very clear from the get-go. There is a very real and dangerous misconception that the two are the same. Yes, it is true that hemp and dagga is a variety of the Cannabis sativa plant and scientist do not distinguish between the two, the law certainly does.

The key difference between the two is tetrahydrocannabinol (THC) content.  Hemp has lower concentrations of THC and higher concentrations of cannabidiol (CBD). This higher concentration of THC decreases or even completely eliminates the psychoactive effects.

Hemp

Hemp is made from the fibre of the cannabis plant. The Fibres are extracted from the stem and are used in the production of various products, such as paper, rope, fabric and building materials. Vaperite and Cannarite offer a variety of hemp products.

Cannabis 

Cannabis is extracted from the same plant but is made by harvesting and drying the flowering tops (or buds) and is used for recreational purposes, most commonly smoked as a psychoactive (mind-altering) drug. Vaperite and Cannarite only stock  accessories and paraphernalia that make the use of cannabis possible. 

How Decriminalisation of cannabis has opened up a market for hemp and CBD related products in South Africa

More than two year ago, the South African Constitutional Court decriminalised the private use of cannabis and cannabis related products which includes hemp products. This opened the market to an influx of new cannabis and hemp products such as beverages, oils, soaps, creams and even foods infused with cannabidiol (CBD) oils.

According to the Agricultural Research Council, which has been researching the cultivation of hemp in the South Africa economy, the plant can be used to make over 25,000 consumer hemp products, such as paper, clothing, textiles, animal feed, plastic, food products, such as hemp seed, hemp milkhemp protein powder and hemp oil.

Tony Budden, founding partner at Hemporium, told The Citizen that hemp can also be used to manufacture a variety of Industrial and Medical products. The stalk of the plant has a variety of Industrial applications, including but not limited to the manufacturing of:

From a medical point of view, hemp seeds contain 25% digestible protein as well as Omega 3, 6 and 9 and essential fatty acids to boost the immune system. Cannabidiol (CBD) oils also offer a variety of additional medical benefits including:

  • Pain management
  • Stress and Anxiety Management 
  • Treatment of seizures and epilepsy 
  • Acne treatment

But how can Cannabis and Hemp products help to stimulate the South African Economy?

The South African economy, and world economy, has seen unprecedented challenges over the last few years and the ongoing Covid-19 pandemic is not helping the situation in any way. One thing that we have learned over the last year is that traditional methods of creating jobs and economic growth might be the ways of the past.

Over and above the Industrial and Medical benefits of hemp, there is also a massive Economical benefit to the decriminalisation of and cannabis related products. In 2017, the value of hemp products contributed $820 million (R12.3 billion) to the in the US economy, but sadly, these economic benefits have not yet been seen in South Africa where job creation (through farming, manufacturing, and new retail opportunities) and economic stimulation (through additional Tax revenue) should definitely be one of the top agenda items.

How hemp products can Stimulate the South African economy

  • Through Farming

In a country like South Africa where water is a scarce resource hemp can be seen as a sustainable crop. Hemp grows more vigorously than corn and most other crops and requires much less water to grow and maintain. It further needs much less herbicides, pesticides and fertiliser making hemp farming an eco-friendly alternative over other crop farming alternatives. Hemp plants are fairly drought tolerant, making it perfect for the South African climate.

In South Africa, where Agricultural employment is on the decline, hemp farming can create opportunities for farmers and the unskilled workers that are dependent on the agricultural industry that provides a livelihood to so many households. 

  • Through Manufacturing

Due to the Hemp industry being in its infancy in the South African economy, no information is currently available on how hemp product manufacturing can increase jobs in the South African market. “Should a market and proper planning put in place, the industry could create many job opportunities, particularly through processing the plant into many other products”, Budden further explained to The Citizen. 

In the US, the hemp industry added 77,300 jobs in 2020, a 32% increase compared to 2019. Cannabis is creating jobs at a rate faster than any other industry in the US.

CNBC published a report in 2019, stating that, “Hemp is going to dwarf marijuana for jobs”. “There are so many companies looking for people right now with industry experience and talent.” Says Joy Beckerman, president of the Hemp Industries Association]

  • Through construction opportunities

There are plenty of advantages to using hempcrete in construction. Hempcrete is fully biodegradable, has excellent insulation qualities and is non toxic. It is fire and mould resistant. Hempcrete is however more costly to use than traditional concrete, but is seen as an eco-friendly and sustainable construction material.

  • Through Retail opportunities

Over and above the medical retail opportunities, where Pharmaceutical retail chains such as Dis-Chem and Clicks have already added CBD products on their shelves, Vaperite and Cannarite also offer a range of accessories and paraphernalia that make the consumption of cannabis possible.

Not only does Vaperite and Cannarite offer products related to the consumption of cannabis, it also provides much needed education to consumers on the safe and responsible use of cannabis and CBD related products. Vaperite and Cannarite offers a huge variety of products specifically aimed at the safe and responsible consumption of cannabis and CBD related products such as:

With so many CBD products and consumption options out there, always make sure that you are purchasing from a trusted and authorised source. Trust your gut, if it feels dodgy, it probably is. Why buy products from the parking lot at the back of the shopping centre when you can legally buy it from us?

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