In response to rising unemployment rates, the KwaZulu-Natal government is initiating a Shared Cannabis Processing Facility aimed at generating job opportunities, particularly in rural regions of the province. The Department of Economic Development, Tourism and Environmental Affairs (Edtea) has outlined plans for this initiative, which includes a collaborative effort to establish the facility.
The Okhahlamba (Bergville) Municipality is particularly hopeful about this project, as it seeks to reduce unemployment and improve its financial situation. Current statistics show that the unemployment rate in South Africa rose to 32.9%, up from 31.9% in the previous quarter, underscoring the urgent need for solutions.
Musa Zondi, the MEC for Edtea, emphasized the importance of the cannabis sector in revitalizing the rural economy. The strategy includes formalizing and expanding the cannabis and hemp industries, framing them as legitimate industrial sectors rather than side projects.
“We are piloting a Shared Cannabis Processing Facility in Bergville, in collaboration with the Council for Scientific and Industrial Research (CSIR) and the Industrial Development Corporation (IDC). This facility will focus on oil and fiber production and support small growers, allowing traditional farmers to participate more meaningfully in the market,” Zondi stated.
Mayor Vikizitha Mlotshwa of Okhahlamba expressed pride in their cannabis cultivation efforts, noting their unique position compared to other areas in South Africa. The municipality has identified a site for the processing facility and has already received one processing machine, with plans to acquire larger equipment to handle more substantial volumes of cannabis.
“We aim to raise R10 million in funding over the next few months for this project,” Mlotshwa said. “So far, we have secured around R5 million in pledges from various organizations. Our goal is to produce around 400 different cannabis products, including bath soaps and lotions, rather than selling raw materials, which yield minimal profits. Currently, we sell our harvest at low prices to third parties who then create and sell the finished products at much higher prices.”
Mlotshwa believes that successful implementation of this project could significantly reduce youth unemployment, which currently stands at approximately 35%. He added, “If executed well, we could decrease this rate to around 10%. This initiative could also be a game-changer for our municipality’s budget, potentially increasing it from R266 million to nearly R1 billion due to the new value chain.”
The initiative has garnered support from Edtea committee members. Hannah Lidgett, a member of the provincial legislature, highlighted the sector’s potential for job creation and revenue generation in KwaZulu-Natal. “The shared cannabis processing facility is a promising venture, but we must expedite its development. There are numerous opportunities to explore,” Lidgett stated. She has also inquired whether Edtea has conducted research on the cannabis sector’s economic impact and job creation potential.
Mafika Mndebele, chairperson of the Edtea committee, praised the MEC’s announcement as a progressive step towards harnessing the economic potential of rural areas. “This project is not just about industrial growth; it’s about community empowerment and creating a sustainable economic ecosystem. By processing cannabis locally, we ensure that communities benefit throughout the entire supply chain—from cultivation to the final product.”
Mndebele added that the facility’s shared nature would encourage participation from cooperatives, small farmers, and youth-led enterprises, leading to job creation and stimulating local entrepreneurship. “We will ensure strong oversight to prevent gatekeeping, making this project a model for rural industrial development that delivers real benefits for the people of Bergville and the province as a whole.”
Overall, the Shared Cannabis Processing Facility represents a significant opportunity for KwaZulu-Natal to leverage its agricultural resources, stimulate economic growth, and address pressing unemployment issues in the region.
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