By, Katherine Pretorius
The Eastern Cape is set for a significant economic uplift thanks to a groundbreaking medicinal cannabis project spearheaded by Edgar Adams, CEO of Medigrow. Driven by the potential of cannabis as a medicinal product and in memory of his daughter, who succumbed to cancer, Adams has embarked on creating the largest medicinal cannabis facility to date in the region. This new indoor facility in the Coega Special Economic Zone near Gqeberha is poised to produce cannabis products primarily for the export market, targeting the United States, Australia, and Europe.
Medigrow’s operations will commence within the next eight to twelve months, contingent on achieving stringent international compliance standards. The initial products to roll out from this facility will be cannabidiol (CBD) isolate, a highly purified form of CBD, and tetrahydrocannabinol (THC), the psychoactive compound in cannabis with numerous medicinal applications. The facility’s establishment is collaborative, involving the investment arm of the National Education, Health and Allied Workers’ Union and the investment company Al Mabroor Agri.
Medigrow, established in 2017, has primarily focused on consultancy services for medical cannabis producers. The company has assisted clients in obtaining necessary licenses, setting up operational frameworks, and ensuring smooth off-take processes. Adams shared his initial hesitation about venturing into the cannabis sector, especially after selling his successful medical waste business. However, the medicinal potential of cannabis, particularly in the context of his daughter’s battle with cancer, compelled him to accept the challenge.
Adams and his team faced numerous hurdles in understanding and meeting the South African Health Products Regulatory Authority (SAHPRA) requirements. Over time, they have streamlined their processes, enabling them to achieve approvals swiftly. Adams emphasises that the stringent regulatory framework is essential given that cannabis, in this context, is treated as a pharmaceutical product, necessitating rigorous compliance with quality standards.
The significance of this new facility extends beyond its immediate economic benefits. Medigrow has invested in advanced technologies, including an R30-million ethanol extraction machine from a Swiss company, which will be integrated into the facility once modifications to control dust pollution are complete. The initial investment commitment exceeds R100 million for 2024, focusing on indoor cultivation, packaging, CBD extraction, and cigarette manufacturing operations. This venture is projected to create approximately 90 jobs initially, with a broader investment commitment of R1 billion over five years, promising further employment opportunities.
Eastern Cape Premier Oscar Mabuyane has lauded the project, recognising the contributions and resilience of the province’s indigenous cannabis growers who have historically faced significant challenges. He noted the provincial government’s concerns regarding the slow implementation of resolutions from the Cannabis Phakisa Action Lab, which aims to create a supportive framework for the commercial exploitation of cannabis.
The provincial government sees Medigrow’s investment as a catalyst for attracting local and international regional investors. Nonkqubela Pieters, the MEC for Agriculture and Agrarian Reforms, highlighted the potential for job creation, with projections suggesting up to 3,000 jobs initially and as many as 30,000 in the future. The involvement of local universities and colleges, including Nelson Mandela University, Rhodes University, Walter Sisulu University, Fort Hare University, and Fort Cox College, is expected to bolster the province’s global competitiveness through a sector innovation program.
Medigrow’s initiative is not just a boost for the Eastern Cape economy but a testament to the potential of medicinal cannabis to transform lives and communities. As this project progresses, it stands as a beacon of hope for economic rejuvenation and medical innovation, reflecting a synergy between tradition and modernity in the heart of South Africa.