South Africa’s evolving cannabis legislation

South Africa’s cannabis industry is facing a period of transition as the Health Minister recently imposed a ban on the sale, importation, distribution, and manufacture of cannabis and hemp-based foodstuffs. Johann Slabber, CEO of Nexus Pharma, joined CNBC Africa to provide insights into the evolving regulatory landscape. The Minister's move has sparked controversy within the industry, with concerns raised about the abruptness of the decision and its potential impact on businesses involved in the production of edibles. In response to the ban, Slabber highlighted the nuanced nature of the issue, acknowledging the nutritional benefits of cannabis-infused products while emphasizing the importance of quality assurance and safety regulations. He underscored the need for industry collaboration to ensure responsible practices and consumer protection. Slabber also addressed the challenges facing the cannabis sector, including regulatory loopholes and the proliferation of substandard products in the market. He criticized the lack of support from the public sector in fostering a conducive environment for industry growth and emphasized the importance of adherence to high standards in cultivation and manufacturing. The interview delved into Nexus Pharma's strategic partnerships and initiatives aimed at driving the industry forward. Slabber discussed the company's recent agreement with a leading German cannabis firm for the supply of cannabis flower, highlighting the potential for South Africa to become a significant player in the global market. Furthermore, the discussion touched on the pricing dynamics of the cannabis industry, with Slabber noting the varying price points for raw cannabis material and the opportunities presented by export markets, particularly in Europe. He emphasized the importance of meeting stringent pharmaceutical standards to access international markets and maximize the industry's potential. Looking ahead, Slabber outlined his engagement in discussions around the cannabis master plan and advocated for enhanced collaboration between the public and private sectors. He underscored the need for a unified approach to industry development, emphasizing the value of collective action and shared responsibility. As South Africa navigates the intricate landscape of cannabis legislation, stakeholders like Nexus Pharma are at the forefront of driving innovation, quality, and sustainability in the industry. With a concerted effort towards regulatory compliance and market expansion, the country holds significant promise in establishing itself as a competitive player in the global cannabis market.