Tue. Dec 10th, 2019

Cannabis industry welcomed with open arms by City of Cape Town

growing weed indoors vs outdoorsThey released land in Atlantis for the cultivation and production of medical marijuana.

cannabis industry welcomed with open arms by city of cape town 1024x853 - Cannabis industry welcomed with open arms by City of Cape Town

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The City of Cape Town is exploring the potential cannabis could offer to the local community by releasing land for the cultivation and production of medical marijuana in Atlantis.

The move to release the land, situated in the Atlantis economic development zone, is part of the city’s commitment to exploring new and emerging industries, according to a press release on their website.

Economic benefits of cannabis

The move appears to be an easy win for the city. Cape Town has always been fairly liberal when it comes to weed so there is unlikely to be much push back from residents, while the benefits of establishing a growing industry have been shown to be very positive elsewhere in the world.

“This move by the City gives us the opportunity to unlock the economic benefits with the resultant job creation opportunities that this emerging industry will present,” said the city’s mayoral committee member for economic opportunities and asset management, Alderman James Vos.

A 2018 article on Investopia claimed that the state of Colorado in America claimed more than $135 million in taxes from its medical and recreational marijuana industry in 2015.

According to the city, the initial sale of the land to private investors and their capital expenditure during construction will bring in R638 million, with a further R1.5 billion to be invested in the second phase of construction.

What it means for Atlantis

By the end of phase two, the city claims 250 jobs will have been created for the local community and will turn into somewhat of a greenbelt of the Western Cape as there is a similar facility being constructed on a farm nearby to produce cannabis oils.

“It is personally a very exciting opportunity to be on the forefront and driving the future possibilities that this landmark decision means for the city and the region,” said Vos.

“Council approval helps us to deliver on our commitment to facilitate investment and job creation in our prized Atlantis SEZ.”

Government policy

Early in 2019, South Africa finance minister Tito Mboweni revealed national government would be changing its policy on weed in order to explore its potential as a potential source of revenue.

The City of Cape Town appears to be the first metropole to actually do something about it though, and the benefits of being early adopters could be telling for the Cape economy. Industries do tend to stick together after all and there is no doubt sales will likely not be a problem.

In April 2019, the South African Health Products Regulatory Authority awarded the first ever Cannabis Cultivation License to a company called House of Hemp.

Economist Jee-A van der Linde revealed to Cape Talk that the value of the global cannabis industry is expected to reach $146 billion by the end of 2025 and South Africa’s progressive stance towards the green plant sets it up nicely to become a major player in the international market.

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