AN initial R100 million investment in an indoor cannabis cultivation project by Medigrow at the Coega special economic zone in Gqeberha got underway in late January with the distribution of hemp seed to 26 selected Eastern Cape rural farmers.
The initiative is a collaboration between the Eastern Cape Rural Development Agency (ECRDA), the Department of Rural Development and Agrarian Reform (DRDAR) and Medigrow ZA.
The Eastern Cape government has invested millions in hemp seed production to bolster the cannabis industry in the province. It says a total of 26 local farmers from various districts across the province signed an offtake agreement with the Eastern Cape government to receive hemp seeds. DRDAR MEC Nonceba Kontsiwe says this key milestone will place the province on a competitive edge in the cannabis industry.
“I’m glad that we’re finally at this stage of the programme where we are implementing more than we are talking, we have such rich land and as the Premier would usually say, our time to thrive is now. With the help of Medigrow, the farmers and other stakeholders involved, we will see an improved economy that will yield job opportunities. The export prospects and the demand for this product for medicinal use will place us as a country among the best producers and we couldn’t be happier”, said Kontsiwe.
The project is set to create a network of employment opportunities and strengthen economic growth through exports. As one of the key stakeholders in this partnership, Medigrow ZA CEO Edgar Adams says it’s imperative to bring this investment to the Eastern Cape due to the natural growth of cannabis in some parts of the province.
“Many people in South Africa don’t know the importance of this plant, and apart from its medicinal use, it has fed families in this province. This facility, with the help of the farmers, will save cannabis in Africa,” Adams said.
Through training and financial support, the 26 beneficiaries will be given cultivation permits to be fully equipped to grow the plant. One of the beneficiaries from Indyebo Estate Co-operative Treasure Ntoto has welcomed this bold step in the industry.
“We are excited to be among the pioneers of the cultivation of hemp in our province. The programme will assist many emerging farmers to commercialise their operations and will create jobs which are most needed especially in the Nelson Mandela Bay area,” said Ntoto.
According to City Press, imported equipment valued at R30 million is already on site, awaiting assembly in readiness for actual production due to start in February. The initial investment is for setting up the indoor cannabis cultivation facility, cannabidiol (CBD) extraction, packaging and cigarette manufacturing. The initial R100 million investment forms part of Medigrow’s five-year R1 billion plan.
