The development of cannabis in emerging markets- Evaluating the prospective value chain, market accessibility, and commercialisation

Abstract

In recent years, the significance of small businesses in the growth of developing economies has been acknowledged, along with their ability to foster social development, create employment opportunities, advance innovations, and contribute to economic growth. The agricultural sector serves as a catalyst in building a strong economy by increasing income and employment opportunities for the poor while nurturing natural resources. This is evidenced by the vision stated in the Government’s National Development Plan (NDP), which proposes to create close to 1 million jobs by 2030 within the agricultural sector. This study aimed to determine the “strategic interventions required to ensure that South Africa is aligned with the regulatory, social, economic, and knowledge base needed for the effective commercialisation of the cannabis market”. In doing so, knowledge experts were consulted through open-ended interviews to ascertain their views on the growth and trajectory of cannabis as an economic driver. This qualitative study adopted the Wengraf pyramid model to relate the “progression from the Central Research Questions (CRQ) differentiated into several Theory Questions (TQ) and the particular Interview Questions (IQ) and the non-verbal Interview Interventions (II)” (Wengraf, 2001). The selected qualitative method was best suited for this research as it assisted in breaking ground on themes that have limited literature, such as the current research. The data was collected from subject matter experts through open-ended interviews, allowing the participants to freely express and share their knowledge, views, and experiences. An ‘inductive content analysis’ method was used to analyze the data by transcribing and coding the information to identify common themes, links, and categories and gain more understanding of the data received. The study claimed that cannabis has the potential to uplift the economy and alleviate poverty through its commercialisation and that the legal frameworks or lack thereof pose a barrier to the growth and development of this market. The research revealed that there is a greater gap in the market where the knowledge, expertise, and financial instruments are being underutilized therefore rendering South Africa a laggard with considerable ramifications for our global competitiveness. With much at stake and our staggering economy, the common theme was that erratic and deliberate action is required especially in a market where other countries that have legalized cannabis appear to be well under control and thriving. Cannabis has become one of the biggest disruptors of mainstream industries over the last decade, impacting sectors from pharmaceutical, food, and wellness to cosmetics. The subject experts collectively agreed that South Africa is missing out on a multibillion-dollar opportunity.