How dagga could become a cash cow for South Africa's economy

During his Budget Speech, Finance Minister Tito Mboweni said that there will be a change in policy regarding the cannabis industry so that it could become a potential source of revenue.

This is something that Lesotho has ventured into and it is starting to reap the profits.

Economist Jee-A van der Linde has been looking at the impact cannabis export has had on the Lesotho economy where, in 2017, it became the first African country to legalise the growth of cannabis for medicinal and research purposes.

If you consider the low-cost labour it has and the proximity to Europe in relation to other continents such as Asia or South America, it definitely entices investors.

Jee-A van der Linde, Economist

In 2018 it pumped in around 10 million Canadian dollars into the Lesotho Cannabis Industry and this prompted others to look into Lesotho's industry.

Jee-A van der Linde, Economist

It is currently not clear how much Lesotho is raking in with the cannabis exports but Van der Linde says the global legal marijuana market is estimated to reach $146 billion by the end of 2025.

But what would this mean for the South African economy?

Tapping into the cannabis industry could certainly help in tackling some of these issues that South Africa faces and we must never overlook the revenue gain that can nb collected from taxing the cannabis industry.

Jee-A van der Linde, Economist

To hear the rest of the conversation, listen below:


This article first appeared on CapeTalk : How dagga could become a cash cow for South Africa's economy


Recommended

by NEWSROOM AI
Read More
[LISTEN]  Jay Naidoo opens up about the use of cannabis for medicinal purposes

[LISTEN] Jay Naidoo opens up about the use of cannabis for medicinal purposes

The former minister and labour activist has penned an article about his wife's drastic health problems brought on by menopause.

Dagga home-growing kits sold at CT nursery kicking off race for biggest harvest

Dagga home-growing kits sold at CT nursery kicking off race for biggest harvest

The competition to grow the largest marijuana plant in Mzansi is giving away a R1000 cash prize for the best bushmastery.

Meet Eben Uys of Mad Giant, where mad science meets a massive love of beer

Meet Eben Uys of Mad Giant, where mad science meets a massive love of beer

Mad Giant was born from the desire to conquer the world and take chances with no fear of the outcome, says its founder Eben Uys.

[LISTEN] Don't think of going to work high on a joint...it can be tested

[LISTEN] Don't think of going to work high on a joint...it can be tested

A look at ways in which cannabis use can be tested in the workplace.

If you come to work high on dagga, you could get your company into big trouble

If you come to work high on dagga, you could get your company into big trouble

The law essentially says that every employer has a statutory obligation to ensure that people are not high or drunk at work.

Menthols far deadlier than regular cigarettes, finds FDA. BAT shares tumble 11%

Menthols far deadlier than regular cigarettes, finds FDA. BAT shares tumble 11%

A proposed FDA ban wiped R176bn from British American Tobacco's market cap. Bruce Whitfield talks to Dr Richard van Zyl-Smit.

3 best local and offshore shares to buy, right now (by Herenya Capital Advisors)

3 best local and offshore shares to buy, right now (by Herenya Capital Advisors)

The Money Show’s Bruce Whitfield asks Herenya Capital Advisors founder Petri Redelinghuys for his stock picks of the week.

Capetonians get crash course on how to grow dagga at first cannabis workshop

Capetonians get crash course on how to grow dagga at first cannabis workshop

Interest in learning how to grow cannabis is high after the ConCourt ruling that decriminalised the private cultivation of dagga.

How to get rich by investing in smoking hot US and Canadian dagga shares

How to get rich by investing in smoking hot US and Canadian dagga shares

Returns of 500% are not unheard of. Is this another crypto-like bubble? Not in the least, says Financial Advisor Warren Ingram.

Popular articles
'It turns out DA MP Natasha Mazzone was right about load shedding'

'It turns out DA MP Natasha Mazzone was right about load shedding'

Last month, Eskom shut down claims by the Democratic Alliance that load shedding was on the cards.

[WATCH] Commuters on station stop train from hitting passenger

[WATCH] Commuters on station stop train from hitting passenger

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] How many people does it take to park a car?

[WATCH] How many people does it take to park a car?

Khabazela shares tweets and Facebook posts that have gone viral.

'We discuss stocks and options with our children at the dinner table'

'We discuss stocks and options with our children at the dinner table'

Bruce Whitfield interviews Basetsana Kumalo about her attitude to money (hopes and fears, successes and failures, etc.).

'Had abuser been a male teacher, we would have had a crazy outcry from society'

'Had abuser been a male teacher, we would have had a crazy outcry from society'

Pundits discuss the sexual misconduct allegations at Bishops Diocesan College in Cape Town.

[WATCH] Boy explaining what he heard when parents had sex goes viral

[WATCH] Boy explaining what he heard when parents had sex goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

It's VW, but not as you know it - Why did Volkswagen change its logo?

It's VW, but not as you know it - Why did Volkswagen change its logo?

John Maytham asks what's behind Volkswagen's new-look logo...

[WATCH] Woman faints after hairdresser cuts 12-inch hair without telling her

[WATCH] Woman faints after hairdresser cuts 12-inch hair without telling her

Khabazela shares tweets and Facebook posts that have gone viral.