Cape Town has announced that it will release vacant land for the production of medical cannabis, with the city hoping to get its foot in the door of what’s considered an ‘untapped sector’ in South Africa.
The set-up of the facility will bring with it an investment of R638 million in capital expenditure during the construction of phase one, the city said.
Additionally, a further R1.5 billion ($102,450,000) will be invested during phase two which is expected to commence in 2023.
The city estimates that by the end of phase two, employment opportunities for 250 individuals would have been created.
Mayoral committee member for Economic Opportunities and Asset Management, James Vos, said that the team in the city’s Enterprise and Investment Department along with Wesgro, have been pursuing and working with potential investors in this space to see how we can land their investment in Cape Town.
“Wesgro led the engagement sessions between the stakeholders (government and the private sector) to pave the way for this investment,” he said.
“As a forward-looking, globally competitive city, these are the new investment opportunities we will pursue and attract to Cape Town.
“Cape Town is known for health care excellence and for being the leader in this field as the home of the first heart transplant. With Cape Town’s proximity to excellent universities and world-class infrastructure there is much potential for research in this emerging sector.”
Vos said that this is the second facility planned for Atlantis, a similar facility for the cultivation and processing of medicinal cannabis into oils and capsules is being developed on a private farm in close proximity to the industrial area.
Other locally-based players in the industry include a manufacturer of modular cannabis cultivation kits in shipping containers in Somerset West, he said.