Sunday Times

Samantha Enslin-Payne Hey, bro: is legalising weed the way to go?

- Samantha Enslin-Payne Enslin-Payne is deputy editor of Business Times

Just think how large-scale commercial production of cannabis, along with processing, packaging, distributi­on and retailing, could swell the state’s coffers with additional taxes and create much-needed jobs.

But could legalising marijuana have unintended consequenc­es?

Last week, Zimbabwe decided to allow commercial production of cannabis for medical and research purposes, following Lesotho.

In the US, growing and consuming cannabis for medical and recreation­al purposes is now allowed in some states.

Is South Africa missing out on a big export opportunit­y?

Is our cash-strapped government turning a blind eye to a potential source of additional tax?

After all, sin taxes on tobacco and alcohol net the state billions each year, and sales of cannabis oil and lotions could, for example, bring in additional VAT.

In March last year, the High Court in Cape Town ruled that it was permissibl­e to possess, cultivate and use dagga at home, for private use.

The court also ruled that the Drugs and Drug Traffickin­g Act and the Medicines and Related Substances Act need to be amended within two years of the judgment.

But that was not the end of it. The minister of justice and constituti­onal developmen­t, with four other ministers and the NPA, took the matter on appeal to the Constituti­onal Court, where judgment is now pending.

Even if the Constituti­onal Court concurs with the judgment, it doesn’t follow that commercial production will ensue.

But should that be the next legal endeavour?

In Zimbabwe, to get a licence to cultivate the plant will reportedly cost $50 000 (about R633 000) and the licence will likely need to be renewed, meaning small growers will be sidelined by those with deep pockets.

Currently, the growing and sale of cannabis in South Africa is mostly the preserve of those who have limited options because of high unemployme­nt.

Legal commercial production in South Africa would push out small producers who are providing much-needed income for their families.

And while those who are unemployed should not have to resort to a risky occupation to make ends meet, in many cases there are just no other options. For example, in rural areas in the Eastern Cape and KWAZULU-NATAL, the expanded unemployme­nt rate is 50% and 41% respective­ly.

The harvesting, processing, packaging, branding, advertisin­g and retailing of cannabis products could create jobs, but with increasing mechanisat­ion of much of the production chain, perhaps not as many jobs as expected.

If cannabis production was commercial­ised, for existing growers in South Africa to get consistent yields in order to supply processors for various oils, lotions and other products they would likely require temperatur­e- and light-controlled greenhouse­s. This requires investment.

So it’s no guess who would be the winners if marijuana was legalised.

But legalising commercial production could have unintended side effects

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