Cannabis-infused food ban: A blow to South Africa’s economy

The health minister recently published regulations that criminalise the sale or distribution of cannabis-infused food items.

This action comes despite a Constitutional Court ruling that decriminalised the possession and cultivation of cannabis for personal use.

The state appears to need revenue sources, yet it is criminalising an industry that could potentially be worth billions of rands.

The minister published regulations under the Foodstuffs, Cosmetics, and Disinfectants Act of 1972, which make it a criminal offence to engage in any commercial activity related to cannabis food items.

This issue – characterised by legal absurdity, violations of rights and a disregard for the judgment of the Constitutional Court – became apparent from the moment the state enacted the Cannabis for Private Purposes Act of 2024.

The regulations state: “No one may sell, manufacture, or import processed or unprocessed foodstuffs containing: (a) any part of the plant or component from the genus cannabis, includes Cannabis sativa, Cannabis indica, Cannabis ruderalis, hemp seed oil or powder from powder derived component derived from of Cannabis sativa L and various and its or subspecies in subspecies.”

These new regulations have disrupted an industry that is still in its infancy.

The various cannabis clubs and businesses that were already operating in the grey areas established by the Cannabis for Private Purposes Act will now encounter increased uncertainty.

The negative impact of uncertainty on businesses is well documented and South Africa does not need to face those consequences.

Investment in any industry depends on a certain level of assurance that the activities one engages in will, at the very least, remain legal in 10 or 20 years.

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For instance, fixed capital requires extended periods to generate profitable returns for investors.

Consequently, for such capital to be established initially, an investor must have the confidence that their investment will not become illegal in the coming years.

This certainty, or its absence, is one of the reasons why some jurisdictions attract capital and experience the associated benefits – such as economic growth, low unemployment, and improved living standards – while others fail to do so.

Certainty in law is fundamental to the prosperity of any jurisdiction.

The uncertainty created by these new regulations undermined South Africa’s economic stability.

While the South African government sought sources of revenue to finance its ongoing expenses, the health department effectively criminalised an entire industry.

Why? The argument regarding the negative health effects of cannabis in a jurisdiction that has justifiably decriminalised the consumption of alcohol and cigarettes – substances that are equally, if not more, harmful than cannabis – is flawed.

For the health department’s regulations to demonstrate consistency, it must also criminalise alcohol and tobacco foodstuffs, rather than perpetuating the current perception of cannabis as a uniquely vilified substance.

Why would a government, that released a master plan which detailed how the cannabis industry could be worth up to R28 billion and created up to 130 000 jobs, come out with a set of regulations, which will make the attainment of these goals impossible?

These are the questions South Africans should ask themselves. In a country with our lacklustre growth coupled with high unemployment numbers, any law or regulation which will frustrate the creation of an industry that even the government acknowledges will create jobs, should be rejected.

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Irrespective of what one may think about cannabis, alcohol or cigarettes, the reality is the consumption of these substances does not violate the rights of another person.

As such, the state does not have any basis, in natural law, to criminalise the consumption or the sale of these substances.

Legislation which seeks to do so, is unjust and a violation of the natural liberty of individuals.

The criminalisation of an industry does not make sense.

The South African government already collects taxes from the consumers of alcohol and cigarettes, taxes which are currently and for the near future, will be desperately needed.

Effectively closing off another avenue of revenue is shortsighted to put it mildly.

The new regulations criminalising cannabis foodstuffs must be scrapped.

South Africa desperately needs whatever economic activity it can get and the sale of cannabis-infused foodstuff products, which harms no one’s rights as has been stated, can be that activity – if the numbers of the government’s own master plan are to be believed.

The executive needs to be coordinated. The Presidency must ensure that the foundational principles of programmes like Operation Vulindlela are understood across his entire Cabinet.

This will eliminate the prospect of industry-killing regulations like the cannabis ones being released and, hopefully, start the journey to get South Africa out of the road to serfdom.

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