Unlocking job opportunities: KZN's cannabis processing facility initiative
Image: Pexels
With grim employment statistics released yesterday, a new cannabis initiative in KwaZulu-Natal aims to unlock job opportunities, especially in rural parts of the province.
The Department of Economic Development, Tourism and Environmental Affairs (Edtea) has recently detailed its plans for the sector, including a partnership aimed at piloting a Shared Cannabis Processing Facility.
This project is critical, with at least one municipality, the Okhahlamba (Bergville) Municipality, hinging its hopes on it to address unemployment and boost the municipality's budget. The central focus of the project is processing cannabis into various products.
Addressing unemployment needs urgent attention as Statistics South Africa's latest quarterly labour force survey, which was released yesterday, indicated that the unemployment rate has increased by one percentage point from 31.9% in the last quarter of last year to 32.9% this year.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
Musa Zondi, the MEC for Edtea, stated that the industry presents an opportunity to enhance the rural economy. Edtea's rural economy strategy includes the formalisation and expansion of the cannabis and hemp sector, not as a side project, but as part of a centrally focused legitimate industrial activity.
'In this regard, we are piloting a Shared Cannabis Processing Facility in Bergville, in partnership with the Council for Scientific and Industrial Research (CSIR) and Industrial Development Corporation (IDC). This initiative will support oil and fibre production and incubate small growers, ensuring traditional producers enter the value chain meaningfully,' Zondi remarked recently.
Okhahlamba mayor Vikizitha Mlotshwa expressed pride in their cannabis growing operation, stating it is 'excellent' and unique compared to other parts of the country. He mentioned that they have identified a facility in the area that could be used as a processing site. They have received one machine needed to process cannabis into other products and are waiting for an expert to service and assemble the machine while they work on acquiring a larger machine to process bigger volumes.
'We have received support from Edtea and other organisations. We hope to raise up to R10 million in funding in the coming months to invest in the project,' he said. 'This project started slowly; we planted, harvested, and then hosted an exhibition where many government officials came to see our progress. Edtea was one of the departments that were impressed with what they saw and committed to investing. Other entities have pledged about R5 million already.'
He explained that the aim is to have the capacity to process their products. 'We want to produce about 400 products from cannabis, ranging from bath soap to lotion. We do not want to sell our product as raw material, as it yields little profit. Currently, we harvest and sell at low prices to someone who then makes real products and sells those for substantial profits.'
The mayor noted that if the project works as anticipated, it could be a windfall for the youth and the municipality.
'Currently, we are facing youth unemployment close to 35%. If we launch this well, we could create jobs and reduce this to around 10%.'
'This could also be a significant boost for the municipality. We currently have a budget of R266 million, and with this project, our projections show that this could grow to nearly a billion due to the value chain that will be created,' he added.
The project has been welcomed by Edtea committee members. Hannah Lidgett, DA MPL and spokesperson on Edtea, expressed support for the proposal, stating that the industry has immense potential.
'The hemp and cannabis sector could be a significant source of revenue and job creation in KZN. The shared cannabis processing facility is a fantastic project, but it must get off the ground as soon as possible. It is a step in the right direction, but we could create far more opportunities,' she said.
'The government needs to provide the support and enabling regulatory environment to allow this sector to grow. Many communities, especially in rural areas, could benefit. However, we need a comprehensive plan. I have submitted written questions to Edtea requesting whether the department has conducted research into the sector and the potential revenue and jobs it could create, as well as the plan to develop this sector given its enormous potential,' she stated.
Chairperson of the Edtea committee, Mafika Mndebele, remarked that the announcement by the MEC to establish a shared cannabis processing facility in Bergville is a bold and progressive step toward unlocking the full economic potential of the rural economy. 'This initiative is not just about industrialisation—it's about localisation, beneficiation, and empowerment. Cannabis has long been part of traditional livelihoods in many rural areas. By formalising and processing it locally, we create a sustainable value chain that ensures communities are not just producers but participants in the entire economic ecosystem—from cultivation to commercial products.'
'The shared nature of the facility also promotes inclusive participation by cooperatives, small farmers, and youth-led enterprises—creating jobs, stimulating entrepreneurship, and contributing to local revenue,' he added. 'As the Committee, we will ensure there is strong oversight to avoid gatekeeping and ensure that this project becomes a model of rural industrial development, with broad-based participation and tangible benefits for the people of Bergville and the province at large," the chairperson concluded.
THE MERCURY
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
a day ago
- IOL News
New mixed-use development in Tshwane: A step towards affordable housing
Kholofelo Morodi, Member of the Mayoral Committee for Corporate and Shared Services, has expressed optimism about Tshwane's proposed multimillion-rand mixed-use development, which is set to transform 16 municipal properties into affordable rentals. Image: Supplied/ City of Tshwane The City of Tshwane's proposed multimillion-rand mixed-use development is set to transform the northern gateway precinct into a vibrant and economically active zone with affordable rentals and student accommodation. The project involves demolishing 16 city-owned properties currently housing municipal workers to make way for a new development. The council gave the municipality the green light on Thursday to put the properties up for tender through an open process, aiming to secure a private partner for a maximum 50-year lease to finance the development. The standalone properties, located next to the Pretoria National Zoological Gardens, are ideal for a mixed-use residential development due to their proximity to the Pretoria CBD. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Council parties, including DA councillor Dana Wannenburg, supported the proposal with a recommendation that the development report specify an initial 30-year lease with a possible 20-year renewal. Wannenburg said the recommendation would acknowledge the long-term and complex nature of the lease, allowing the council to maintain oversight without compromising its decision-making authority. According to the council report, the properties are over 50 years old and will require significant investment to bring them up to standard. "It is therefore recommended that the properties be demolished to allow for new development," the report said. The properties are currently occupied by families who are council employees with expired leases. They will be required to vacate the properties after receiving notices but will have the option to rent properties in the new development, with preference given to them. 'In order to enhance the revenue value of the properties, the 16 standalone properties will be consolidated to form a total extent of approximately 1,1hectares,' said the council report. Kholofelo Morodi, Member of the Mayoral Committee for Corporate and Shared Services, said the proposed development was approved by council following a public participation process with no objections received. She said: 'Public feedback was sought to ensure transparent governance and community alignment as part of the city's catalytic land development programme. No objections or submissions were received, signaling shared public support for the transformation of the northern gateway precinct into a vibrant, affordable and economically active zone.' She said reclaiming the precinct enables Tshwane residents to live closer to their workplaces and educational institutions, thereby reducing commuting burdens and boosting foot traffic in the inner city. She explained that the city will retain ownership of the land throughout the 50-year lease period, ensuring long-term public value. 'Upon expiry of the lease, improvements and land will revert to the municipality, ready to serve future generations in a renewed urban context,' Morodi said.
IOL News
a day ago
- IOL News
Squirrel Away: the South African fintech app turning gifting into investment
Sibongile Maputla, a seasoned financial expert with more than 24 years of global experience across South Africa, the UK, and the USA. Image: Supplied. In a bold leap for South African fintech innovation, a new app is reimagining the way we give and invest. Squirrel Away, a first-of-its-kind platform in the local market, offers a simple yet powerful alternative to traditional gifting: instead of toys or gift cards, friends and family can now contribute directly to a child's financial future. Launched in May 2025, Squirrel Away has quickly gained traction on both the Google Play Store and Apple App Store, drawing in hundreds of users within its first few weeks. At its core, the app enables anyone to gift investments, without any minimum deposit requirement, through a user-friendly interface. More than just a convenient tool, it's a platform with a powerful purpose: fostering long-term wealth and financial literacy, starting from childhood. A Vision Born from Experience Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ At the helm of this innovative venture is Sibongile Maputla, a seasoned financial expert with more than 24 years of global experience across South Africa, the UK, and the USA. A former executive at Benguela Global Fund Managers, she was part of the leadership team that helped the asset manager scale from inception to managing over R7 billion in assets within just five years. Maputla's credentials are as impressive as her vision. Holding a BCom in Statistics, an MBA, and further certifications in financial regulation, she has long been driven by a blend of analytical insight and social purpose. Through Squirrel Away, she's now channeling both to tackle a new frontier: accessible wealth creation for everyday South Africans. 'For years, I've watched families pour money into short-lived gifts,' Maputla said. 'I wanted to create something that had the power to outlive the moment, something that grows with the child and builds a solid financial foundation.' Transforming the Culture of Gifting What sets Squirrel Away apart is its simplicity and inclusivity. Users can easily set up profiles for children and invite others, parents, godparents, aunts, uncles, and friends to contribute investment gifts that grow over time. There are no minimum deposits, no complex paperwork, and no financial jargon to navigate. The app's underlying mission is twofold: democratise investing and instill financial literacy from a young age. By linking each financial gift to an investment account, it gives children a head start in understanding how money can grow over time. More importantly, it invites communities to participate in building generational wealth, a concept too often out of reach for many South African families. Bridging the Wealth Gap In a country with persistent wealth inequality and low rates of savings and investment, Squirrel Away presents a powerful solution. It's more than a fintech product, it's a platform for economic transformation. 'There's a huge opportunity to change how we think about money and how we teach our children about financial responsibility,' Maputla added. 'Through something as simple as a birthday or holiday gift, we can help shape a child's future and empower entire families.' As a registered Financial Services Provider (FSP no. 54219), Squirrel Away offers regulatory compliance and peace of mind, along with a compelling user experience that speaks to South Africa's rising digitally-savvy consumer base. With its focus on community-based investing and long-term impact, Squirrel Away has the potential to become a household name in financial planning and education, while also challenging conventional notions of consumerism and instant gratification. What's Next? As user numbers grow, the Squirrel Away team is already planning enhancements. Future developments may include educational content, milestone tracking, and broader integration with financial institutions. The goal, according to Maputla, is to create an ecosystem where wealth-building becomes second nature, not a luxury. Squirrel Away isn't just an app; it's a movement to reshape the financial future of South African children, one investment gift at a time. BUSINESS REPORT
IOL News
2 days ago
- IOL News
Enhancing disaster response in KwaZulu-Natal through community partnerships
The rehabilitation of Shembe Road in KwaDukuza Municipality ward 13 following flooding in KwaZulu -Natal. This was one of the projects undertaken from disaster management grants Image: Disaster management report The KwaZulu-Natal government does not have sufficient resources to manage disasters in the province, so they have engaged in many Memorandum of Understanding (MOU) with various social partners to assist. These partnerships promote an inclusive, well-coordinated, and responsive disaster management system within the province, remarked Dr Joey Krishnan, the Cooperative Governance and Traditional Affairs (Cogta) acting HOD. Krishnan was speaking on Friday, at a presentation to the KZN Legislature Cogta portfolio committee on the disaster management report. She said the social partners assist Cogta with various types of support, relief material, food, blankets, as well as specialised training, and they come to the front when there are disasters. She said the collaboration was aimed at enhancing disaster management operations across the province. The presentation to the committee highlighted grants transferred to the various municipalities, post-disaster grants, and progress on the grant expenditure and implementation. In response to ongoing fiscal constraints, Cogta has been instructed by the Provincial Treasury to implement cost-cutting measures. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ As a result, several Provincial Disaster Management Centre (PDMC), projects have been deferred to the 2026/2027 and 2027/2028 financial years. Krishnan said that despite these constraints, a R2 million allocation has been made for the 2025/2026 financial year to support the maintenance of integrated communication systems. She said that the cooperation agreements signed on 20 February significantly strengthened the KZN PDMC's capacity across all phases of disaster management. The national DMC transferred grants to municipalities to repair damaged infrastructure due to disaster-related incidents. These include the disaster response grant, which is implemented within six months, and the disaster reconstruction and rehabilitation grant, implemented within 12 months. The total funding received by KZN municipalities between 2019 and 2025 was R4.1 billion. 'The PDMC also collects a comprehensive portfolio of evidence during project implementation, including business/implementation plans, GPS coordinates, photographs, reports, receipts, and close-out reports,' Krishnan said. According to the report, the main challenges identified were compliance-related and implementation related issues. Compliance-related issues include the non-submission of monthly reports, the submission of reports that fail to meet compliance requirements, and the failure to provide supporting documents, such as proof of payments. One of the recurring impediments to effective project implementation is the presence of internal challenges in addressing Supply Chain Management (SCM) issues. Bonginkosi Mngadi, MPL Umkhonto Wesizwe Party (MKP) suggested that the portfolio committee receive a close-out report for the monies that are allocated to the municipalities meant to assist society. 'There is a tendency that when the money gets allocated for a disaster and the project does not get finished, only to find that the money is gone. It will be vital if we start managing the issue of close-out reports so that we get value for money,' he said. Marlaine Nair, Cogta portfolio committee chairperson said that the department of Cogta must find an additional budget to be able to do much more in the province in terms of preparation for disaster preparedness and prevention. 'We have suggested collaboration with the private sector. After all, it is in the interest of everyone, especially businesses, that as a province we have the best possible plan and system in place when a disaster strikes. We are also concerned about disaster grant spending in the various municipalities and have called for close-out reports on the various projects. We must ensure that grants spent on rebuilding are used to build better,' she said.
