An untapped economic opportunity is emerging in South Africa after recent changes to its medicines laws, and a landmark Constitutional Court judgment lifted the ban on the private use of marijuana.
‘The value of the global cannabis industry is expected to reach $146 billion by the end of 2025,’ according to economist Jee-A van der Linde speaking on the local radio station, Cape Talk.
Cape Town will host the country’s first medicinal cannabis plant, producing medical cannabis, cannabis oil and capsules.
‘This is a landmark decision and a first in the country, said Cape Town’s Mayoral Committee Member for Economic Opportunities and Asset Management, James Vos.
He hopes the business will put a dent in high unemployment rates, while also providing a much-needed economic boost in the area.
Spectrum the Canadian-listed pharmaceutical company, will build the secure, high-tech plant, investing:
- R638 million for phase one (includes transfer of land)
- R1,5 billion for phase two
An estimated 250 jobs will be created. ‘It’s a demonstration of how a municipality is working with the private sector to explore new economic opportunities to grow the local economy,’ said Vos.
- Spectrum will set up shop in the Atlantis Economic Zone, investing millions in the area.
Renewed hope for Atlantis Special Economic Zone
Atlantis sits 40 kilometres north on Cape Town on South Africa’s west coast.
For years, the Atlantis Special Economic Zone failed to attract new industrial businesses to the area, eventually becoming riddled with crime, and high unemployment.
President Cyril Ramaphosa re-launched the Atlantis Special Economic Zone in December 2018
The 124.5-hectare site has since attracted several green-technology companies, becoming a major hub in the Western Cape province.
“The Atlantis Zone has already attracted four, large green tech investors, which are fully operational,” said President Cyril Ramaphosa at the launch.
Source – The Africa Report