AN established cannabis cultivator, Medigrow, has pledged to invest in a new facility in Zone 3 of the Coega SEZ for the cultivation of indoor medicinal cannabis strains which will also be processed and packaged for domestic and export markets.
Medigrow was established in 2017 and has 14 medicinal cannabis farms across the country. The new Coega-based facility positions the Eastern Cape as South Africa’s cannabis industry hub. The company aims to establish a network of superior cannabis producers in South Africa and envisions that cannabis will become a widely accepted form of medicine.
Speaking at the launch event, Eastern Cape Premier, Oscar Mabuyane hailed the socioeconomic impact of the project, saying that thousands of jobs would be created in the sector over the next few years: “The investment represents the biggest investment in this subsector in the province. The initial investment pledge of over R100 million for 2024 to commence with the indoor growing, packaging, extraction and cigarette manufacturing operations will create about 90 direct employment opportunities.
“We are working on attracting more investors to the Eastern Cape region as a national nodal point,” said Mabuyane.
The MEC for Finance, Economic Development, Environmental Affairs and Tourism, Mlungisi Mvoko said the significant impact of welcoming new investments into the economy: “The launch of yet another investment holds promise for job creation, especially in areas where cannabis cultivation is prevalent. These linkages serve to strengthen the economy by providing a ready market for local producers. Furthermore, this investment marks just the beginning of a broader initiative, signalling potential for further economic expansion. The establishment of such ventures also nurtures connections with other regions, such as the Western Cape Province, and supports various processing activities,” said Mvoko.
Mabuyane also announced opportunities for farmers as well as plans for various research and development programmes.
Medigrow adds to Coega SEZ’s burgeoning agro-processing sector, joining the likes of Dynamic Commodities, the Natural Fibre Hub and Coega Biomass to name a few.
