LeDinPro is Looking Forward to Meeting You at Cannabis EXPO in Johannesburg, SA.
August 27, 2019
Dear Customers and partners
LeDinPro is pleased to invite all interested parties to drop a visit of our stand # 11C in the Cannabis Expo 2019, which kicking off on Nov 28 and finishing on Dec 1 in Johannesburg, South Africa. New generation LED grow lights manufactured by LeDinPro with smart control systems will be demonstrated in the fair. Before we get to the field, here we would like to share some information about SA market. African cannabis is abundantly stocked and produces more than 10,000 tons per year.
DOPE, a magazine covering the development of the legal cannabis industry worldwide, said in an article published on its website in September that cannabis produced in Africa accounts for a quarter of the world's total cannabis. “It is estimated that approximately 38.2 million African adults (7.7% of the adult population) use cannabis each year, which is much higher than the world average of 3.8%”
Cannabis is widely cultivated throughout South Africa for export and domestic sales. A US State Department report stated:
“South Africa is a major source of cannabis herbs in the UK and continental Europe”.
Cannabis is an important cash crop in rural South Africa and is particularly prominent in Eastern Cape and KwaZulu-Natal, the second largest province in South Africa.
The American Cannabis magazine High Times also listed Durban Poison, a cannabis variety from South Africa, as one of the 20 most outstanding cannabis varieties ever. It can be seen from the above that the status of South African cannabis in the global market cannot be underestimated.
Natural conditions in South Africa:
Climate conditions, temperature and average rainfall have an important impact on cannabis growth and yield
• South Africa is affected by the Mediterranean climate from the southwest, with the inland plateau being dominated by temperate climates; the northeastern region is dominated by subtropical climates. Most of the area is warm, sunny during the day and cool and pleasant at night.
• Temperature is affected by changes in altitude, terrain, and ocean currents greater than latitude.
• More rainfall in South Africa is during the summer months (November to March in the Southern Hemisphere). In the southwestern part of Cape Town, rainfall usually occurs during the winter months (June to August).
The South African Supreme Court passed the Private Cannabis Legalization Act on September 18, 2018, and the country became the third country in Africa to pass a similar bill.
(The other two countries are Lesotho and Zimbabwe)
The reason why the South African government enacted the laws and regulations on the “acceptance of marijuana” , for my analysis are as follows:
(1) The South African cannabis industry has great potential in the fuel, pharmaceutical, fiber and other industries, which means the economic value of billions of Rand; and cannabis cultivation can help the rural areas of South Africa get out of poverty.
(2) Legalization can bring huge taxes to the government.
(3) Under the illegal ban on cannabis, the crime rate will be higher in the poorer areas, especially in the Eastern Cape. After legalization, under the law, the crime rate will drop. It will also reduce a lot of pressure on the judicial system, and the police can concentrate on combating real crimes.
With South Africa's open cannabis cultivation license, people believe that it is now the best time to enter the market to divide a piece of cake. This will bring huge potential business opportunities to the South African market.
A Canadian-listed pharmaceutical company will invest in South Africa to build safe, efficient, technology-intensive factories:
• The first phase of investment is 638 million rand (including land transfer)
• The second phase of investment is 1.5 billion rand
It is estimated that the project investment will create more than 200 job opportunities. The new project leader said: “This shows that the local government wants to cooperate with the private sector to explore new economic opportunities to develop the local economy.”
But the first companies that starts up the business still face the risk of breaking the law. They are waiting for the South African Parliament to legalize cannabis and the Constitutional Court's agreed policies and regulations.
The Cannabis Exhibition, held in Pretoria, Gauteng, South Africa in December 2018, is said to be the first professional cannabis exhibition in Africa. Many “healthy, legal” cannabis-related products are available, including energy drinks containing cannabis oil, beer, etc. These products do not contain THC (the hallucinogenic ingredients.) Some South African pharmacies are also starting to sell cannabis drugs that don't make people “fly”, but they still need prescriptions to buy. This has formed a development trend.
It is estimated that SA cannabis market by 2023, will reaches $7.1 billion annually (recreational cannabis will take the most parts in the market).