Proposal to investigate

COMMERCIAL MEDICAL AGRO-PROCESSING CASE STUDY In Lusikisiki,

A proposal submitted by House of (Pty) Ltd in partnership with the University of Free State (IKS Research Unit, Dept. of Pharmacology), ARC (IIC and VOPI) and CSIR (Biotech and Materials & Manufacturing).

Prepared for the

INDUSTRIAL DEVELOPMENT CORPORATION (IDC)

11 February 2016

1 PROJECT SUMMARY

Project title Commercial Case Study Project Management House of Hemp (Pty) Ltd(HOH) and University of Free State(UFS) and Agricultural research council (ARC) and Council for Scientific and Industrial Research (CSIR) Project location Lusikisiki Proposed starting date 1 April 2016 Project duration 2 years Amount required to conduct A case study growing R4,580,000.00 agricultural plants plan and developing natural products with commercial medicinal potential in rural areas Requested from the IDC (50% of the total) R2,290,000.00

Total to be fundraised by House of Hemp from its R2,290,000.00 declared strategic partners (50% of the total)

This 2 Year (2016 to 2018) Commercial Research project is supported by the following Government departments and agencies:

1. Department of Science and Technology. 2. Department of Trade and Industry. 3. Department of Agriculture, Forestry and Fisheries. 4. N.A.M.C (National Agricultural Marketing Council) 5. Eastern Cape Department of Rural Development and Agrarian Reform (DRDAR) 6. Dohne Research Institutions 7. Ingquza Municipality, Lusikisiki (Eastern Cape)

Letters of support and MOAs describing above professional relationships can be availed upon request.

2 Table of Content

PROJECT SUMMARY ...... 2 ACRONYMS ...... 4 INTRODUCTION ...... 5 THE PROPOSAL ...... 7 BACKGROUND TO CANNABIS ...... 8 MEDICAL CANNABIS WORLD CLAIMS...... 9 CANNABIS HISTORY...... 11 OBJECTIVES OF THE DST MEDICAL CANNABIS RESEARCH ...... 15 THE PROPOSAL TO I.D.C...... 17 PROPOSED PILOT ACTIVITIES ...... 17 ESTIMATED BUDGET ...... 21 PROJECT BENEFICIARIES AND BENEFITS ...... 23 PROJECT MONITORING AND EVALUATION ...... 25 IMPLEMENTING AND MONITORING TEAM ...... 25 CONCLUSION ...... 26 REFERENCES ...... 27

Appendices  Permits HoH and ARC  Letters from DST  Front page UFS and HoH  Front page HoH and ARC  Front page HoH and CSIR  Front page CSIR and ARC

All above listed MOUs detailing support and above professional relationships can be availed upon request.

3 ACRONYMS

- ARC: Agricultural research council - CBD: - CDA: Central Drug Authority - CSC: Cannabis Steering Committee - CSIR: Council for Scientific and Industrial Research - DAFF: Department of Agriculture, Forestry and Fisheries - DEA: Department of Environmental Affairs - DOH: Department of Health - DST: Department of Science and Technology - DTI: Department of Trade and industry - EC: Eastern Cape - EDD: Department of Economic Development - GAP: Good Agricultural Practises - HOH: House of Hemp - HRD: Human Resource Development - IKS: Indigenous Knowledge systems - KZN: KwaZulu Natal - MCC: Medical Control Council - NAMC: National Agricultural Marketing Council - NHCF : National Hemp and Cannabis Foundation - NHF: National Hemp Foundation - NMCAP: National Medical Cannabis Access Program - NMCRI: National Medical Cannabis Research Institute - RDI: Research, develop and innovate - SAPS: Services - SME Small and Medium Enterprises - THC: Delta-9 - UFS: University of the Free State - WC: Western Cape - WHO: World Health Organisation

4 INTRODUCTION

This proposal is a response to the call by IDC that was advertised in the Sunday Times of the 17 January 2016. This proposal is submitted by House of Hemp (Pty) Ltd (HoH) jointly to be implemented with its expert research team the University of Free State (UFS), Agriculture Research Council (ARC) and Council for Scientific and Industrial Research (CSIR) who have all the necessary permits, pertinent expertise and relevant networks to make this proposed case study successful.

The joint research team (HoH, UFS, ARC, CSIR) has an extensive network that allows for the leveraging on existing partnerships with higher education; science & technology organizations, communities and the private sector to use research/innovation to build local competitive advantage in rural area production and to minimize export leakage through increasing local manufacturing of capital goods.

This proposed case study is linked to the recently initiated 5 Year Medical Cannabis Research Study that was commissioned by the DST and co-coordinated by UFS and HoH. Both the CSIR and the ARC are part of HoH’s technical team in the DST study with their professional collaboration dating from 1999 with the launch of the National Hemp Foundation’s (NHF) industrial cannabis (hemp) research.

House of Hemp (HoH) is currently the co-ordinator of the National Hemp Foundation phase 2 pre- commercial trials (2009-2015) aimed at investigating the viability of setting up a hemp industry in and to scrutinize trends of THC level stability. Prior to this, HoH also coordinated the Human Resource Development (HRD) of the NHF’s first phase (1999-2005) and developed sustainable models for ensuring socio-economic benefits of industrial cannabis also accrue to the poor areas. HoH currently has valid legal permits by the Department of Health to allow for legal handling, possession, cultivating, processing and marketing of cannabis and related products for NHF research purposes.

University of Free State (UFS) is currently part of the DST Research Consortium where it coordinates research on the African Alternative Medicines research thrust. The UFS has expertise in traditional medicines health research and in the pharmaceutical development of traditional medicinal products. The team has expertise in Pharmacology (laboratory and clinical pharmacology) basic pharmacological drug development and testing, toxicology, clinical trials and clinical research, chemists, pharmacists, social scientist with medical anthropology expertise, and expertise in medicines regulation.

Agriculture Research Council – Vegetables and Ornamental Plant Institute and the Institute for Industrial Crops (ARC - V.O.P.I. and I.I.C.)

The ARC is the principal agricultural research institution in South Africa with the mandate to conduct research, develop and transfer technology related to agricultural products and services from

5 production to products, to resource-poor and commercial farmers. ARC has a positive track record in conducting innovative, need-driven and environmental-friendly research, technology development and technology transfer on different aspects of medicinal plants, industrial crops, grains, tropical and subtropical crops to improve food and nutrition security, crop productivity, competitiveness, sustainability as well as wealth and job creation. The ARC has established itself as an important partner organization in the Indigenous Knowledge Systems (IKS) Platform of the DST, especially with regard to the cultivation practices of indigenous crops and medicinal plants.

ARC I.I.C. currently has valid legal permits by the Department of Health to allow for legal handling, possession, cultivating, processing and marketing of cannabis and related products for NHF research purposes. The Institute for Industrial Crops (IIC) has extensive expertise in research and development for industrial crops. Research work on cannabis has been going on in the institute for more than 20 years with a successful local development of fibre cannabis varieties suited to the South African growing conditions. Cannabis production research (crop agronomics, harvesting and processing) has also been done and the production guidelines manual developed. The Institute has infrastructural (greenhouses, secured trial sites, cannabis breeding facilities and processing research equipment) and human capacity (plant geneticists and breeders, crop protection experts and agronomists) capabilities to do sound research on cannabis. The Institute currently has valid legal permits from the Department of Health for legal handling, possession, cultivation, processing and marketing of cannabis and related products for NHF research purposes. With the long standing research experience and expertise on cannabis, IIC is well positioned to contribute ground-breaking work that will add value to the understanding of medical cannabis potential in South African farming systems.

Council for Scientific and Industrial Research (CSIR) Materials Science and Manufacturing (MSM), through its research centre of nonwoven and composites, boast world-class facilities (fibre preparation technology, needle-punched & spunlace nonwoven technology, short staple spinning, VARTM, compression & injection molding technologies) to undertake research and product development experimental work for hemp based product prototypes. These include fibre cottonisation, nonwoven textiles and composite product development. The centre has the necessary technical expertise to carry out research relating to the full beneficiation of hemp straws derived from the harvest of hemp grown for fibre as well as for medicinal purposes.

The CSIR Biosciences has extensive research development and innovation capabilities in the bio- prospecting and development of technologies in natural product and processing to further enhance industry and SMME competitive advantage. CSIR Biosciences has a diverse team of scientists, engineers, analysts, business development and project managers in areas that cut across lead discovery, technology identification and agro processing of large quantities of material. Typical research conducted by CSIR Biosciences on plant material ranges from: plant extraction, characterisation of the extracts, screening of extracts and compounds, determining bio accessibility, product development and formulation and upscaling.

6 The CSIR team through its Enterprise Creation and Development (ECD) supports the growth and development of the rural economy through agro-processing and creating agro-industries to improve the lives of the rural communities of South Africa.

THE PROPOSAL

This proposal demonstrates that the research team can set up a case study to investigate the commercial medical cannabis agro-processing in Lusikisiki. This agro-processing pilot will form part of the Medical Cannabis Research program set up by the Department of Science and Technology (DST). The DST Medical Cannabis Research study was requested by the Parliamentary Science and Technology Portfolio Committee that recommended a detailed research, development and innovative study of how South Africa can increase access to medicinal cannabis for sick people in-line with global trends. This is to be done in a manner, which will ensure quality, safety, efficacy and more importantly control of the (currently) illegal substance to be effectively regulated within a framework of strict legal controls. This request by the Parliamentary committee was a response to the late IFP M.P. Ambrosini proposed Medical Innovation Bill of 2014.

Over and above the 2 objectives that were part of the request by Parliamentary Committee (access and safety) the DST further adopted objectives towards a substantial involvement of IKS holders in the research study; the commercialisation of research results and ensuring that IKS communities of practise that have traditional claims to Cannabis also benefit substantially in the envisaged commercialization of medical cannabis. Thus the DST study includes determining the factors/variables that will influence the commercialization of and processing in South Africa for improved quality of life and sustainable livelihood. From these other objectives another outcome of the DST medical cannabis research would also be to establish regulated Ubuntu based cultivation and manufacturing industries to support an ongoing and reliable supply of medicinal cannabis for patients; locally and globally. Furthermore this study will also address one of the key recommendations of the 2015 NHF Report that stated that the NHF should also include research for medicinal cannabis applications due to the presence of cannabidiol (CBD) in the hemp (industrial cannabis) crops.

To this end, the DST set aside seed funding for research, innovation and development study and subsequently contracted the University of Free State (who in turn subcontracted House of Hemp) to implement. The DTI indicated possible financial support towards the setting up of a related medical cannabis agro-hub pilot.

This proposal is a response to call for expression of the IDC. We believe the IDC resources for research will leverage on the recently started research program to set up the first indigenous community based commercial medical cannabis agro-processing case study in Lusikisiki.

7 The rest of this document is divided into four sections, namely: 1. Background to cannabis. 2. The South African Medical Cannabis Research Study. 3. Aims, objectives, activities and deliverables of the proposed medical cannabis case study. 4. Implementing team and partnerships.

BACKGROUND TO CANNABIS

Cannabis Sativa L. is a summer annual crop that is grown for different purposes and managed differently depending on the purpose for which it is grown. Generally the crop is grown for fibre (plant stems), seed (grain from females) and (produced on trichomes of the bracts on female flowers) production. The crop is mostly dioecious having male and female flowers on the different plants. Depending on the harvestable portion of the crop the male may be desirable or unwanted. The crop is strongly photosensitive flowering according to the day length and not physiological maturity. The most prominent of the known cannabinoids produced by the cannabis plant are delta-9 tetrahydrocannabinol (THC) and cannabidiol (CBD). THC is responsible for the “high” experienced when using drug type of cannabis in an appropriate formulation. CBD on the other hand is known to be anti-drug and it’s said to cancel the effect of THC. There are two types of the crop based on the quantity of THC content. The drug type, commonly referred to as in SA has a high content of THC. The non-drug type commonly known as industrial hemp has low content of THC (≤ 1%). The two types both developed by targeted breeding are also morphologically distinguishable. Industrial hemp grows mainly as a single stemmed, less branched and a tall plant of usually more than 2 meters in height. Agronomically, the crop is grown in dense population to further suppress branching and restrict stem girth if grown for fibre or in less dense population to allow for some branching for those variants selected for increased seed production or dual (fibre and seed) purpose. On the other hand the dagga grows out more branched, and it is shorter in height and bushier in appearance.

The L plant family has been used for many centuries as a source of fibres, seed-oils and medicines. Despite its many uses, the cannabis family was banned in 1928 due to high THC content of Cannabis Sativa plants (commonly known as dagga in South Africa). However, the early 1990’s saw renewed global interest in cannabis as ecological regulatory policies and tax incentives increasingly favoured natural and environmentally friendly produce. Most EU governments are researching and cultivating cannabis for medical and industrial/commercial purposes. More than 30 countries have adopted industrial hemp as an established agricultural commodity. More than 20 countries have decriminalized the medical uses of cannabis.

The commenced DST research program is focused only on the medicinal uses of cannabis. The IDC’s call for expression of interest for research grant - agro-processing competitiveness fund (APCF) gives

8 our team an opportunity to complement the DST study towards a holistic research program that can yield the maximum possibilities for commercial medicinal plants.

The availability of quality-consistent supply of cannabis plant material is an integral requirement not only for rigorous scientific studies geared toward gathering scientific evidence for or against the use of medical cannabis, but also for a sustainable agro-processing and product development. Since yield and quality (including chemical profile) of plant materials can be significantly influenced by a plethora of factors employed during plant production, it becomes imperative that different agronomic factors be optimised to ensure consistently profitable yield and delivery of quality plant materials. In the absence of a steady supply of cannabis plant materials for scientific studies, potential new and exciting discoveries related to the medicinal value and other value-chain development of this plant species will remain elusive or a mere dream.

Notwithstanding, the positive aspect on the use of cannabis for medical purposes in indigenous knowledge systems is well-established in many cultures. Such existing indigenous knowledge on the production, harvesting and post-harvest handling of plant materials must be gainfully harnessed and developed through experimental research, leading to value-adding innovation and entrepreneurship development. The involvement of the community from the beginning engenders the development, protection and beneficiation of their IKS while promoting a high sense of dedication and ownership for sustainable project delivery. A community-based research and technology development model is also in alignment with national priorities in relation to human capacity development, job creation and income generation.

MEDICAL CANNABIS WORLD CLAIMS

There have been many claims internationally as to what diseases medical cannabis can be used as cure. In putting together the DST medical cannabis research program, the research team conducted a limited pre-study literature search to get a glimpse of the existing research and potential new research related to cannabis for medicinal uses.

This limited literature search indicated that there is a vast amount of credible scientific journals that published papers, conference proceedings, books and references which document clinical research that reveals numerous pre-clinical and clinical studies demonstrating ’s ability to be effectively used in the management of many diseases listed below.

9 First, a brief discussion on the 10 South African priority diseases cited in the literature as being positively affected by cannabis:

Priority disease as identified SA government Notes on the disease and research interest Cancer (breast; colorectal; brain; leukemia; lung; Literature demonstrates a combination of cannabinoids have the melanoma; oral; pancreatic; prostate; Skin; Testicular). ability to act as anti-neoplastic agents on gliomas cells. Gastrointestinal system disorders (inflammatory/irritable Many experts believe cannabis suppresses gastrointestinal motility, bowel disease, Crohn’s disease, ulcerative colitis, metabolic inhibits intestinal secretion, reduces acid reflux, and protects from syndrome). inflammation, and promotes epithelial wound healing in human tissue. Hepatitis and other diseases of the liver (fibrosis, Patients diagnosed with Hepatitis C frequently report using steatosis, ischemia-reperfusion injury and encephalopathy. cannabis to treat both the symptoms and nausea associated with the antiviral therapy. HIV / AIDS related Literature reveals that cannabis is said to decrease HIV replication and aid in treating symptomatic treatment. Hypertension Literature reveals increased blood pressure following abrupt cessation. Nausea and vomiting (resulting from chemotherapy, Medical cannabis is said to be effective in chemotherapy-induced radiotherapy, HIV combination therapy and Hepatitis C) nausea. Neuropathic pain, neuro-degeneration and movement Cannabis has proved effective in treatment of symptoms and disorders (Dystonia, Huntington’s, Parkinson's, Tourette's progression neurological problems. syndrome, multiple sclerosis, epilepsy, Alzheimer’s). Obesity and Diseases of pancreas (Metabolic syndrome, Studies have found a correlation between cannabis use and body obesity, diabetes, pancreatitis) weight, appetite suppressants, lowered cholesterol and decreased fat build up. Pain - (Acute Pain, Chronic Pain; Neuropathic pain or Cannabis appears to be somewhat effective for the treatment of chronic non-cancer pain; Headache and migraine, etc) chronic pain. Psychiatric disorders (Anxiety, depression, post-traumatic Some writers have claims that taking cannabis leads to acute stress disorder, psychosis; schizophrenia, dementia). adverse mental effects.

Literature review also listed the following diseases to be positively affected by Cannabis:  ADD/ ADHD  Fertility  Addiction risk- Physical  Fever  Alcoholism and opioid withdrawal symptoms  Fibromyalgia  ALS  Glaucoma  Alzheimer’s  Heart Disease/ Cardiovascular   Herpes  Appetite Stimulant  Hiccups  Arthritis AND Musculoskeletal Disorders  Huntington’s Disease (Osteoarthritis, Rheumatoid Arthritis, Osteoporosis, osteogenesis).  Asthma  Hysterectomy  Atherosclerosis  Idiopathic Intracranial  Atrophie Blanche  Inflammation; Inflammation, inflammatory skin diseases (dermatitis, psoriasis, pruritus)  Autism  Insomnia Sleep disorders, sleep disturbance.

10  Bowel disease  Lupus, an autoimmune disorder.  Cerebral and myocardial ischemia and diseases of the  Meige’s Syndrome liver (hepatitis, fibrosis, steatosis, ischemia- reperfusion injury and hepatic encephalopathy).  Chronic Cystitis  Migraine/ Headache  Congestion  MS Multiple sclerosis  Convulsion  Osteoporosis  Cough  Parkinson’s Disease  Dementia  Post Traumatic Stress Disorder  Dermatitis  Pruritis  Dystonia  Sickle Cell Disease  Eating disorders or anorexia.  Spasticity Spasticity disorders (multiple sclerosis, spinal cord injuries, or spinal cord disease  Epilepsy  Spinal Cord injury  Familial Mediterranean Fever  Stroke.

CANNABIS HISTORY

Cannabis has been identified as a wild growing weed that was freely rooted in the pre-colonial period in many places in Africa including Egypt, Ethiopia, Zambia, Zimbabwe, Lesotho, Malawi, Mozambique, Swaziland Cameroon, Morocco and South Africa. Cannabis has been recorded to be use in many African countries for traditional worship and healing rituals. There are many anecdotal recordings of Cannabis used to heal the following: anthrax, asthma, antidote for blood poisoning, cancer, dysentery, fever, malaria, pain of haemorrhoids, relieving inflammation, to facilitate childbirth and treating snake bites.

In South Africa, cannabis is said to be an integral part of many indigenous communities e.g. the Pondos of Lusikisiki in the Eastern Cape, Vhenda, people in Waterberg, the Ndwandwe and Amathonga in KwaZulu-Natal. In all provinces some traditional healing practitioners indicate use of cannabis in treatment protocols. The use of Cannabis for worship purposes has been recorded with the Khoi San who use cannabis for psychoactive relieve during their nocturnal healing dances and the who use Cannabis as their Holy Sacrament. In 1958 Prof. Frances Ames, completed her research and published her work in the British Journal of Psychiatry motivating for the therapeutic benefits of cannabis particularly for people with multiple sclerosis.

Currently, the following 20 countries have legalized the use of Cannabis for medical applications: Argentina, Australia, Belgium, Canada, India, Iran, Jamaica, Brazil, Mexico, North Korea, Colombia, Costa Rica; Pakistan; Spain , Czech Republic, Switzerland, Ecuador, France, 23 states of United States of America, and Uruguay.

Cannabinoids that are currently on the market in the USA and Europe include:  HU-211 (Dexanabinol) which is used to treat endotoxic shock, ischaemia and head trauma. 11  Nabilone (Cesamet®) is a schedule 7 substance in South Africa and a synthetic copy of THC used to treat pain and nausea. It was also sold in Canada, Australia, United Kingdom and Ireland.  Dronabinol (Marinol®) is a cannabinoid prescribed as an appetite enhancer primarily for people living with HIV. It is marketed in the United States, Canada, South Africa, Australia and New Zealand.  Sativex is a nasal spray that is used to alleviate neuropathic pain and spasticity in multiple sclerosis.  Rimonabant which is an appetite suppressant used to decrease the appetite in Cannabis smokers

While Nabilone and Dronabinol are registered with South African MCC and are distributed in South Africa; the country is not producing these compounds and there are no initiatives towards product development and innovation; yet cannabis crops exist in South Africa in abundance and many tribes consider Cannabis as indigenous.

In South Africa; Cannabis is currently listed as a schedule 7 product in the Schedules of the Medicines and Related Substance Act, Act 101 of 1965 as such unless specified in Schedule 6:

“Cannabis (dagga), the whole plant or any portion or product thereof, except: a. when separately specified in the Schedules; (S6) or b. processed hemp fibre containing 0,1 percent or less of tetrahydrocannabinol and products manufactured from such fibre, provided that the product does not contain whole cannabis seeds and is in a form not suitable for ingestion, smoking or inhaling purposes; or c. Processed product made from cannabis seeds containing not more than 10 milligram per kilogram (0,001 percent) of tetrahydrocannabinol and does not contain whole cannabis seeds. ["Processed" means treated by mechanical, chemical or other artificial means but does not include - (a) harvesting; or (b) the natural process of decay"].

Synthetic cannabinoids (synthetic substances with cannabis-like effects), including but not limited to cannabicyclohexanol, tetrahydrocannabinol and their alkyl homologues, except:  when separately specified in the Schedules;  dronabinol ((-)-transdelta-9-tetrahydrocannabinol), when intended for therapeutic purposes; (S6)  in hemp seed oil, containing 10 milligram per kilogram or less of , when labeled "Not to be taken" or "Not for internal human use"; or  In products for purposes other than internal human use containing 10 milligrams per kilogram or less of tetrahydrocannabinols.

[“Hemp seed oil” means the oil obtained by cold expression from the ripened fruits (seeds) of Cannabis sativa.]

The DST research study outcomes will be linked to the existing National Hemp Foundation (NHF) Research Program that is investigating the amendment of the 3 laws that restrict the cultivation, possession and use of Cannabis for industrial/commercial purposes including: 1. Amendment of Medicine & Related Substances Act, 1965 (Act No. 101 of 1965) enforced by the Department of Health; and

12 2. The Drugs and Drug Trafficking Act, 1992 (Act No. 140 of 1992) enforced by the SAPS; 3. The Environmental Conservation Act, 1989 (Act No. 73 of 1989) enforced by the Department of Environmental Affairs.

On the 18th February 2014 the late Dr. Mario Oriani Ambroisini (IFP Member of Parliament) introduced the Medical Innovation Bill (Government Gazette, notice 100 of 2014; number 37349 – see appendix C) to “... make provision for innovation in medical treatment and to legalize the use of Cannabinoids for medical purpose and beneficial commercial industrial uses…”. Key features of the Medical Innovation Bill include the following: • Allow medical doctors and pharmaceuticals to grow and distribute Cannabinoids. • Code best practices in line with international standards. • Clinical trials for selected illnesses with volunteers. • Afford medical practitioners discretion on prescriptions. • Allow pharmaceuticals to develop innovative products • Include existing commercial and industrial uses. • Cater for Medical Tourism.

The bill has received wide support from the ruling party, with President Zuma asking the Minister of Health to investigate how to ensure that the sick have access to quality safe cannabis. The Minister of Health tasked the Parliament Portfolio committee on Science and Technology with research towards decriminalizing medical cannabis to ensure the access of Medical Cannabis to those sick people who need it at the same time ensure there are controls to ensure safety and efficacy. The media reported that this move has been welcomed by many including; doctors, patients, cancer associations, HIV treatment campaign, traditional healers, tribal leaders, the RasTafari community, political parties and individuals.

As it is, the Ambrosini submission proposes that the Medical Innovation Bill DOES NOT have to be referred to the National House of Traditional Leaders since it does not contain provisions pertaining to customary law, customs or traditional communities!!!

This poses a socio-political threat that could see the previously disadvantaged traditional cannabis growing communities being excluded in the emerging medical cannabis industry while the historically advantaged businesses (who have been traditionally snubbing Cannabis) get to benefit from another government stimulated niche industry. This is clearly undesirable as it will undermine and set back government’s efforts to position the rural African farmers into the 1st economy.

However, if disadvantaged rural communities are given an opportunity to participate as the primary drivers and beneficiaries of the cannabis industry; they can use their existing indigenous knowledge and skills to explore the commercial opportunities embedded in the emerging cannabis industry thereby transforming their illicit livelihoods into 1st economy participants.

13 The greatest barrier to a rural area based cannabis industry is the drug trafficking illicit industry. According to Interpol, South Africa is in the top four countries that are a source of cannabis. South Africa’s cannabis herb seizures accounted for almost 68% of all cannabis herb seizures in Africa. At the global level, South Africa’s cannabis herb seizures were almost 16% of the world total. In the year 2000, South Africa (718 metric tons) ranked second behind Mexico (2,050 tons) in terms of cannabis tonnage seized. In Africa, only Malawi (312 tons) and Nigeria (212 tons) came close. These figures, if turned into an economic opportunity through the legalization of cannabis and the relaxation of production limits (to at least 20 ha commercially grown scientific minimum) mean that South Africa has the potential to lead and dominate global cannabis markets.

To this end this proposal is an urgent appeal for intervention by the Government to come up with ways to ensure that the indigenous communities also benefit from the emerging cannabis industry. This further proposes that a case study be implemented in Lusikisiki in Pondoland. The implementing of such a case study in Lusikisiki will lead to skill and human capacity development, job creation, and wealth generation, among other socio-economic benefits accruable to the community. Such intervention emulates many governments globally who are Innovating, beneficiating and commercializing cannabis industry to their countries benefits.

As is, the current restrictive legislative environment in South Africa prevents new idea generation, research development, innovation, product development, technology transfer, beneficiation, manufacturing and commercialization of cannabis based products. South Africa is therefore unable to realize the economic, health and social benefits that could arise from the research and commercialization of SA cannabis.

Nonetheless, the SA legislation does allow for controlled scientific research around cannabis. HoH and ARC have valid permits to handle cannabis. Both organizations, have been issued with site specific permits to conduct the National Hemp Foundation research; The ARC since 1994 (permits for breeding) and the HoH since 2009 (permits for community pre-commercial trials).

This DST medical cannabis research focuses on specific research to influence policy direction on Medical Cannabis. Such polices would aid government develop policies and regulations that are favourable for the use of Cannabis, for medical purposes.

Since it seems with the Medical Innovation Bill, potential exists for the beneficiation of the SA natural resource (Cannabis) to produce marketable high-value niche medicinal products; unlock the down- and-upstream value added enterprises plus create the associated employment and income generating opportunities in the communities that have been growing Cannabis as part of their rituals, customs, traditions and culture.

14 The proposed Lusikisiki medical cannabis agro-processing pilot will supply real data towards the research results that make recommendations towards policy change to empower indigenous knowledge holders and indigenous communities of practice to commercialize their existing IKS based cannabis knowledge to innovate, benefit and thus improve quality of life and sustainable development; especially in South African rural areas.

OBJECTIVES OF THE DSTMEDICAL CANNABIS RESEARCH

The DST has approved the following 7 objectives for their 5 year Medical Cannabis research study:

The objectives as illustrated above are briefly discussed below:  Objective 1: Indigenous knowledge based concept or Idea generation to identify local claims and innovative use of medical cannabis which will be compared to the global claims and global market opportunities.  Objective 2: Holistic research for discovery of existing local cannabis strains and chemical components; simple cost effective extraction methods; pre-clinical safety and efficacy studies and related full clinical trials.  Objective 3: Applied / Inclusive Innovation using scientific and traditional systems to develop new health technologies, product prototypes as directed by industry based market indications towards commercialization of Cannabis products. Includes identifying opportunities of shared research with local and global research institutions.  Objective 4: Grass-Roots-Based Technology Transfer that secures international partners to assist with developing relevant and appropriate technologies for transferring to local industry applications for the whole value chain.  Objective 5: Marketing pilot to creating awareness on economic opportunities, market research, observe market receipt and map the socio-economic impact embedded in the cannabis industry. 15  Objective 6: Ubuntu-based models of commercialization to ensure community based and owned enterprises explore embed commercial opportunities of Cannabis and its by-products. This will set up medical cannabis Agro-Processing pilot run by a Private Public and Community Partnership (PPCP) in select organized communities in identified provinces and multiplied to other areas.  Objective 7: Benefit Sharing models for establishing a national cannabis empowerment trust for participating indigenous communities. Empowerment will include access to factors of production and Human Capacity Building, training and skills development of IKS communities throughout this project and along the medical cannabis value chain. And multiplication to other areas.

For year 1 the DST has contracted the UFS to implement the following activities:  Objective 1: Indigenous knowledge based concept or Idea generation to identify local claims and innovative use of medical cannabis which will be compared to the global claims and global market opportunities. Only 2 activities in objective 1 are included in the first year contract: o Desk research towards background and international benchmarking. o R&D to investigate the local traditional medical applications of Cannabis by traditional healers.  Objective 2: Holistic research for discovery of existing local cannabis strains and chemical components; simple cost effective extraction methods; pre-clinical safety and efficacy studies and related full clinical trials. Only 2 activities in objective 2 are included in the first year contract: o R&D to analyse and determine the quality of Cannabis currently grown in Lusikisiki and compare with international profiles. Objective 2 o R&D to develop best Extraction methods of THC and CBD from Cannabis harvested from Lusikisiki. Objective 2

For year 1 House of Hemp has been contracted by the UFS to give expert consulting for the following: 1. Securing permits; 2. Desk research to identify world claims on medical cannabis; 3. Field research to collect samples and identify national traditional claims on medical cannabis; 4. Investigate marketing opportunities for South African Medical Cannabis; and 5. Raise funds to cover shortfall to conduct clinical trials and set up commercial pilots at Lusikisiki.

HoH teamed up ARC and CSIR to raise funds to address the existing research gaps and implement other key activities needed towards holistic research to cover community cultivation trials for securing raw materials to be used in the research and related product development.

Ultimately, the expectation of this project is to impact positively for improved livelihood of the beneficiating community. To ensure that this outcome is achievable and for skill transfer, the community will be involved at almost every stage of the project. This approach is advantageous for community empowerment and instilling a high level of project ownership right from inception, all the more as the community already hold indigenous knowledge on this plant species. This model would

16 also prepare the community for a sustainable commercialisation of their IKS even after the exit of initiating project partners at the completion of the project.

Thus HoH supported by UFS, CSIR and ARC are presenting this proposal to IDC to use the competitive grant funding to cover the following proposed Commercial Medical Cannabis case study specific based objectives: 1. Complement DST desk research to cover existing gaps. 2. Secure cannabis materials through cultivar evaluation, breeding, propagation and setting community nursery, research cultivation value chain. Research result in direct income generation and Job creation. 3. Complement DST study gaps to ensure scientific evidence on pharmacology and phytochemical properties. 4. Develop Innovative Products and Ingredients towards commercialization by identified community farmers and entrepreneurs. 5. Training to ensure human capacity development of community farmers, healers, entrepreneurs and students. Special focus on women and youth. Outcome of research result in 5 masters students. During research human capacity development. 6. Fundraise further and prepare for evidence based clinical trials and commercial incubation. 7. Sustainable Business case for research end exit strategy, commercial trials implementation plan and scaling up.

THE PROPOSAL TO I.D.C.

This proposal is aimed at raising seed funding (estimated to just over 4 million rands) towards the setting up of the Lusikisiki medical cannabis agro-processing pilot; to illuminate the business case; develop a bankable business plan and raise the rest of the finance that will be required to run this proposed 2 year case study. House of Hemp is proposing that the IDC invest 2 million rands in grant funding to implement the medical cannabis research commercial case study.

The envisaged medical cannabis agro-processing case study will achieve four main outcomes as follows:

1. Substantial involvement of IKS holders in the research study with related skills transfer. 2. Supply quality medical cannabis for research clinical trials and product development. 3. Better understanding of the agronomics and extraction effective extraction methods of cannabis 4. Established regulated Ubuntu based cultivation and manufacturing industries to support an ongoing and reliable supply of medicinal cannabis to patients; locally and globally. 5. Identified opportunities for the use of cannabis bi-products after medicine has been harvested. 6. Direct job creation.

PROPOSED PILOT ACTIVITIES

17

The plan is made up of 3 category activities namely cultivating and harvesting Cannabis; extracting raw chemicals and conversion of raw materials into application specific medicines and foods:

1. Farming 2. Extraction 3. Conversion  Breeding  Extraction methods  Product development  Propagation  Extraction technology  Medicines  Nursery  Chemical analysis  Cosmeceuticals  Outdoor community  Commercial extraction  Netraceuticals  Hoop houses  Scientific Evidence  Waste Beneficiation 

The 7 objectives and linked activities of the 2 year case study are described below:

Objective 1 is concerned with complementing the UFS led DST desk research as described in page 16 above objective 1 and 2 as well as identify any other research gaps and international visits. This objective will include activities that assist the program implementing team to gain a strong understanding of key indigenous role-players in SA cannabis industry. This includes:  Agreement on methodology, approach, key deliverables, time frames and logistics of project plan.  Establishment of local steering committee and project team with related roles and responsibilities.  Accessing all relevant data, databases and documentation available about the medical cannabis project.  Site identification and preparation including fencing.  Permit application.  Contractual agreement and exchange of official documentation including:  NDA and Prior information exchange agreements.  Materials transfer agreements.  Mutual benefits sharing agreements.  Collective equity splits and ownership models.

Objective 2 is concerned with securing cannabis materials through collection, cultivar evaluation, breeding, propagation and setting community nursery and research into cultivation value chain. Research work planned to result in direct income generation and Job creation.

Collection of medical cannabis strains from local and international sources will be made. The collected material will be characterized and evaluated at IIC research station trials to select the best material to plant in community pilot project and for further breeding work to develop local varieties. The development of local varieties is key to ensure sustainable seed availability for future commercialization and variety development.

18 Crop production research work will be carried alongside variety development to ensure that best production practices are adopted to achieve optimum yields under environmentally friendly and profitable farming systems. Propagation nursery will also be set up in the project with community involvement to ensure appropriate technology transfer. All community-based activities will be planned in such a way that it enables training and hands-on practice to take place. The work on site will be done by the community and all labour provided will be remunerated through the project funding. There will also be direct income generation through the sale of the produce remaining after sampling of the trials.

Objective 2 also includes the development of optimized propagation protocol and cultivation technology for a sustainable supply of quality plant raw materials. The activities would involve collection and evaluation of different available cannabis cultivars, setting up of nursery infrastructure, establishing propagation protocol for sustainable production of planting materials in the nursery to be set up at the site, setting up hoop houses infrastructure with irrigation, land preparation, determining the optimum planting density both indoor and outdoor for increased yield and photochemical content, evaluating the effect of different spacing and pruning methods on yield and chemical profile, as well as determining the post-harvest management for good quality maintenance.

Objective 3 is concerned with gathering scientific evidence on the medical usefulness of . Based on the IKS and exploratory study on the use of cannabis in traditional medicine, different in vitro biological assays will be accrued out to evaluate the efficacy and safety of the plant materials. Using mechanism-based assays, the mode of action of the determined active ingredients in the different crude extracts and fractions will be further evaluated. This will be closely followed up with in vivo-based assays in the case of promising extracts and/or fractions. Emphasis will be placed on the priority diseases as identified by the South African national government.

Objective 4 is concerned with effective extraction or cannabis based raw materials and the innovative product development towards commercialization by identified community farmers and entrepreneurs. This project will explore opportunities for developing natural products and ingredients to improving health and wellness and preventing illness through the use of nutraceutical, health beverages, cosmeceuticals and herbal products for industry and SSME. These will be novel products and ingredients with a competitive advantage in the targeted market. The community will be trained to supply pre-processed material under specified GMP compliant conditions and supply the CSIR for further development and packaging. CSIR Biotech will develop various formulations such as: nutraceutical, beverages and cosmeceutical.

Objective 4 will also incorporate activities towards waste beneficiation and related product development. CSIR M&M tech will lead these activities which include Fibre Extraction, mechanical modification, testing physical properties, delivery of mechanically modified decorticated fibres suited for nonwoven product development experimental trial and the development of needle-punched

19 hemp fibre based nonwoven fabric with technical parameters suited for automotive and insulation applications.

Objective 5 is concerned with the training to ensure human capacity development of community farmers, healers, entrepreneurs and students. The project is strategically located in the community to ensure community participation, training and technology transfer. The major aspects of the agricultural, agro-processing and business items will be done onsite to ensure that training on production and crop management practices which will also be workshopped are practically exercised on the pilot production project. This will ensure that the community has hands-on experience throughout the crop production and marketing value chain. Important participants in the project will include women and youth. The project also targets training of 5 master students in the areas of agronomy, breeding, propagation, entrepreneurship and pharmacology. This formal training will ensure development of research capabilities, that form part of the drivers of research in the project, and development of expertise for sustainability of long-term project goals into the future.

Objective 6 is concerned with fundraising to meet shortfall and to prepare for evidence based clinical trials and UBUNTU commercialisation program.

Objective 7 is concerned with building and presenting a sustainable Business case for research end exit strategy, commercial trials implementation plan and scaling up. The activity will develop a sustainable model to support a multiplication strategy across other rural communities. The business case will include various activities which are not limited to market research and testing, a penetration strategy, both local and international distribution and end product feedback. The economic measurements of the sustainability of the commercial trial will ensure the breeding program outperform world current standards while increasing equitable access to factors of production for the rural communities ,increasing the yield per hectare and establishing a sustainable value chain.

20 ESTIMATED BUDGET

Below the table summary outlines objectives, related activities, deliverables, task duration, task leader and estimated budget: Task Objective Activities Deliverables/OVI duration LEAD Budget

Community consultation Community buy in and contracts 1 month HOH R25,000.00

Desk research Report on medical cannabis status 2 months HOH R25,000.00

International field visit MOU with international growing and extraction partners 1 month HOH R50,000.00

SA field visit Report on SA cannabis GIS 3 months HOH R50,000.00

Exploratory study Buying from market Cannabis samples 3 months HOH R100,000.00

Seed breeding and field adaptability trials Selected strains for use in pilot project and commercial trials, (Screening of the collected germplasm to select selected strains for use as parents in breeding, populations for the best to increase seed to plant in pilot trials further breeding research work, adaptability trials and breeding and use for breeding of new varieties) report. 24 months IIC R450,000.00

Green House Propagation Improved propagation method and protocol developed 10 months VOPI R75,000.00

Setting up of a nursery Nursery in the community with seedlings established 10 months VOPI R100,000.00

Controlled community outdoor pilot Controlled Hoop house infrastructure established with growing beds and community outdoor pilot (planting of the strip irrigation while planting trials are in place Selected strains to use in 6 months trial blocks and providing expertise in the community pilot trial blocks, planted and well managed blocks, following nursery managing them) harvested produce sampled for further analysis, pilot project report establishment IIC R150,000.00

Controlled community hoop house pilot Controlled community hoop house pilot Selected strains to use in the community pilot hoop houses, planted 6 months (Planting of the trials in hoop houses and and well managed hoop house trials, harvested produce sampled for following nursery providing expertise to manage them) further analysis, pilot project report. establishment IIC R250,000.00

Controlled commercial indoor pilot Ideal business case 6 months HOH R150,000.00 Chemical profiles of the different plant materials obtained from the 3 months after categorising and photochemical profile market and trials established harvest VOPI R200,000.00

safety and efficacy in-vivo and in-vitro In-vivo and in-vitro report and recommendations for clinical trials 6 months UFS R200,000.00

blends with other herbs Correct plant materials and blending proportion determined 6 months VOPI R50,000.00 Variation in chemical quality of harvested trials at different crop development stage and based on different post-harvest handling 6 months after variations of quality established blend VOPI R50,000.00 6 months after effects of other drugs variation analysis UFS R50,000.00 Gathering Scientific evidence publication and policy brief Completed publication, workshop for the stakeholders last 3 months all R50,000.00

21 6 months after photochemical Commercial extracts THC and CBD oils profile CSIR R200,000.00 1 month after Analysis of known compounds THC and CBD levels quantitatively determined harvest UFS/VOPI/CSIR R50,000.00 1 month after Quantitative analysis of other constituent bioactive chemicals known compound Analysis of unknown compounds established analysis UFS/VOPI/CSIR R50,000.00

Medicines (capsules, teas, syrup, vapouriser) Formulated products 6 months UFS/CSIR R200,000.00 Nutraceuticals (tables, satches, beverages, snacks) Formulated products 6 months VOPI/CSIR R200,000.00

Cosmeceuticals (hair, body, ointments) Formulated products 6 months CSIR/VOPI R200,000.00

Waste beneficiation Formulated products 6 months CSIR R200,000.00 Product development testing and analyses Certificate of analysis last 3 months UFS/CSIR R50,000.00 Clinical Trials Preparation and Fundraising

raw material clinical trials Funds raised and clinical trials protocol 3 months UFS R50,000.00

end product clinical trials Funds raised and clinical trials protocol 3 months UFS R50,000.00

commercialisation plan Funds raised and commercial trial plan 6 months HoH R50,000.00

Human Capacity Development Communities Planning, propagation, farming, business skills; Farmers health and safety certification of training completed 12 months HoH R125,000.00 5 students in 5 fields (propagation; breeding, agronomics, business modelling, Students profiling/extraction 5 students complete Masters studies 24 months UFS R780,000.00

Officials 4 workshops R25000 each 4 community consultation workshops 12 days HoH R100,000.00 Production manual and post-harvest handling method compiled and Documentation Manual produced 3 months ARC R50,000.00

Market research report and identified target markets 1 month HoH R50,000.00 HoH Bankable business plan business plan 1 month R50,000.00 Community shared benefits community development trust 1 month HoH R50,000.00 HoH Business Case Expansion and Scaling scaling up plan 1 month R50,000.00 Total needed R4,580,000.00

Requested from the IDC (50% of the total) as grant to set up pilot and establish business case and raise the rest of resources required to implement business plan. Balance 50% to be converted from declarations to House of Hemp within 3 months of IDC letter of commitment. 22 PROJECT BENEFICIARIES AND BENEFITS

The main project beneficiaries will be the farmers and SMEs in the Lusikisiki community and these who will remain key stakeholders of the Cannabis Commercialisation and Industrialisation project going forward.

Lusikisiki has been identified as the ideal area for the first commercial trails for the following reasons:  Lusikisiki has the right climatic condition for medical Cannabis and has natural trees and pristine environment as abundant resources.  The Lusikisiki community has been growing Cannabis for centuries as source of income.  Cannabis has been part of the Lusikisiki community which has protected it and treated it with respect.  Lusikisiki is has embedded indigenous knowledge of successfully cultivation and harvesting cannabis under extremely hostile conditions and threat of incarceration.  The Lusikisiki Cannabis, specifically, has made a footprint in the international Cannabis black market.  The Lusikisiki social construct has been adversely affected by the perpetual incarceration.

Lusikisiki has the following socio-economic reality:  Economically disadvantaged rural areas with lack of opportunities and stimulation.  Education levels low with many that haven’t completed Grade 12.  Unskilled people with minimal life skills and work exposure.  Unemployment high and many are dependent on welfare grants.  Economically disadvantaged area with little or no infrastructure except ruins of the homeland man made economic hubs.

Project beneficiaries and the rural Lusikisiki community will benefit from the legal cultivation and processing of Cannabis from activities aimed at poverty alleviation and socio-economic growth in the following ways:  Additional income from waste (bi-product after the medicine has been harvested.  Cannabis waste will result in a number of spin-off enterprises including textiles, oil, paper, construction.  Capital investment in the green house, extraction plant and the analytical laboratory.  Commercialisation of indigenous knowledge.  Competitive increase  Create a platform for comprehensive rural development through the setting up and sustaining of the agro processing industrial hub utilizing state owned land, assets and irrigation schemes and community land.  Creation of a novel export industry will increase the competitiveness of South Africa as a nation.  Develop local capacity to beneficiate Cannabis to meet local dependence on foreign imports.  Development of scarce skills through scientific and industrial research, innovation and applications.  Economic growth  Farmer training and skills transfer towards farming expertise, methods and techniques as well as entrepreneurial and business skills towards cannabis mastery, Good Agricultural Practices (GAP) and other international quality standards.  Farming contracts both in the pilot stage and in the commercial stages, the farmers will be in the position to supply crops to the downstream processing activities. 23  Giving a South African company an opportunity to establish itself as a key global producer of Cannabis medicines as well as an active participant in the vibrant green economy.  Identification and exploring of market related business opportunities.  Increase in income and economic activity towards wealth creation.  Job creation - Cultivating Cannabis is labour intensive and has a high potential to yield substantial jobs.  Rural development  Supports the agro-processing industry that is one of the drivers for job creation opportunities.  Technology development and transfer.  The Agro-Hub will assist resource-poor cannabis farmers get ready for permit application and will assist them access start-up finance for cultivation (e.g. seed, ploughing, fencing, fertiliser, irrigation equipment).

The successful case study will lead to the implementation of a Medical Cannabis Agro-processing Pilot which fits with government priorities and can assist deliver on governments articulated policies that are aimed at job/wealth creation and are linked with sustainable economic development including:  Cooperatives development, SME/ enterprise support, Black Economic Empowerment.  Rural development, seed banks; food security; agrarian reform and agro-processing.  Local content, beneficiation; advanced manufacturing and materials based on natural resources.  Green economy; clean technology, energy/water efficiency, low carbon, waste management.  Rehabilitation of state land, water reservoirs, windmills and irrigation schemes.  Aligning development finance institutions to the job creation agenda.  Skills transfer, capacity building and human resource development.  Industrial policy; Industrial clustering and integrated government intervention.  Focusing on women, youths and in priority province of Eastern Cape.

This pilot agro-hub supports the following national strategies:  IPAP, IPAP II, “New Economic Growth Path Strategy” and NPA which identify agriculture as an employment multiplier.  Addresses 4 Economic Cluster Outcomes (Outcome 4: Decent Employment through inclusive growth; Outcome 5: Skills to support inclusive growth; Outcome 7: Vibrant equitable and sustainable rural communities and food security for all; and Outcome 10: Enhance and protect our natural resources).  DST’s 2002 National Research and Development Strategy (NRDS) which lists manufacturing, bio-technology and natural resource beneficiation as central to accelerating economic growth.  DTI’s 2007 National Industrial Policy Framework (NIPF) and the Industrial Policy Action Plan (IPAP) provided strategic direction for industrial development and identified manufacturing and textile and clothing sectors for scale up and broaden interventions in existing Cluster 2 IPAP sectors.  DST’s 2008 Ten-Year Innovation Plan (TYIP) aimed to ensure that government investment in scientific/applied research yields tangible socio-economic benefits for ordinary South Africans.  DTI’s 2010/11 Industrial Policy Action Plan (IPAP2) identified agro-processing and advanced materials based on natural resources as labour-absorbing sectors.  Economic Development Department (EDD)’s 2010 New Growth Path targeted new economies, agricultural value chains, manufacturing and green economy to create 500,000 jobs per annum. 24 PROJECT MONITORING AND EVALUATION

The results of the medical cannabis agro-processing pilot will inform the next phase of the commercialisation process. All the activities around this trial will be recorded and records kept by all team institutes to monitor inventory levels and movements for audit purposes. This data will be kept safe to be available for inspection at all times for up to five years. A system will be put in place for tracking work progress including:  Daily reports prepared by the site supervisors detailing the work done for the day and registry of daily workers timesheets.  Process sheets with recording of certain parameters such as: Irrigation volumes, Size of crop, Fertiliser and irrigation regimens, Pesticides, Weed control, Mechanical intervention, harvesting data (if relevant for that day), Transportation and Visit of officials or awareness raising interested parties.  Weekly reports providing a narrative summary of the week passed and plan of the week ahead.  Monthly reports detailing work done for the month; graphs detailing growth patterns and any samples taken (if relevant); Challenges experienced and how they were handled; Costs incurred and Plan and targets for the month ahead.  Final project report as a summary of reports from the site managers, extension officers and project implementing team. The final report will be handed in to Department of Health, Department of Trade and Industry and Department of Science and Technology and all key stakeholders.

IMPLEMENTING AND MONITORING TEAM

The research team (HoH/UFS/ARC/CSIR) have assembled a team of experts in agriculture (local and international) who will work together with various institutions that have the necessary expertise in the cultivation and processing of the Cannabis crop.

The research team (HoH/UFS/ARC/CSIR) will also collaborate with NHF and DST research consortium partners including the Department of Agriculture Forestry and Fisheries (DAFF); the Durban University of Technology (DUT); the Medical Research Council (MRC); the National Agricultural Marketing Council (NAMC); the National Unitary Professional Association for African Traditional Health Practitioners of South Africa (NUPAATHPSA); the Promotion of Traditional Medicine Association of South Africa (PROMETRA); the Traditional Healers Organisation (THO); the University of Fort Hare (UFH); the University of KwaZulu-Natal(UKZN); the University of Pretoria (UP); the University of South Africa (UNISA); the University of the Witwatersrand (Wits); the University of Venda (UNIVEN) and the University of Walter Sisulu (UWS).

The team of experts have all necessary professional know-how to ensure that the HoH/UFS/ARC/CSIR research activities are aligned with global trends, the DST Bio-economy strategy and the NHF initiative to recommend legislation amendments to allow for the commercialization of industrial and medical cannabis in South Africa.

25 The project implementing team will be made up of experts with existing cannabis or medicines programs to leverage on existing capacity towards maximum efficiency and impact; as listed below: Stakeholder Contact person 1 Contact person 2 / 3 University of Free State (U.F.S) Motlalepula Matsabisa Miransa Javu House of Hemp Thandeka Kunene Leanne Blumenthal and Barbara Strydom Agriculture Research Council (ARC) - IIC Ntjapa Lebaka Kwena Mokgohloa Agricultural Research Council (ARC) - VOPI Stephen Amoo Meshack Mofokeng Council for Scientific and Industrial Sunshine Blouw Thandiwe Bosi Research (CSIR) - MSM Council for Scientific and Industrial Tshidi Moroka Gugu Mnguni Research (CSIR) - BioTech Dohne Research Institute Mfundo Maqubela Bertie Ras

Brief CVs of implementing team: Team Member Qualification and expertise Motlalepula Matsabisa PhD (Pharmacology) Miranda Javu MA Thandeka R. Kunene PhD (Entrepreneurship), MSc Applied Math Leanne Blumenthal BPharma Ntjapa Lebaka PhD (Plant Breeding and Plant Genetics) Stephen Amoo PhD (Botany) Meshack Mofokeng MSc Tshidi Moroka Msc (Nutrition), P&DM, Gugu Mnguni PhD (Bioscience) Sunshine Blouw PhD (Textile Science)

The HoH/UFS/CSIR/ARC team is confident of a win-win for all partners involved and in particular the empowerment of Community stakeholders to ensure ownership and participation in the whole value towards transformation for a better live for all.

CONCLUSION

The world is realizing ad exploring the value of Cannabis as a natural, sustainable and renewable source of medicine. South African has Cannabis as a God-given natural resource with indigenous communities like Lusikisiki having valuable indigenous knowledge and skills to grow Cannabis. What is lacking is a product development and processing research that can give farmers and relevant entrepreneurs strategic competitive advantage. However to be able to explore this empowerment opportunity fully, government intervention is needed to afford the resource poor SMEs/farmers the opportunity to participate substantially and benefit as shareholders of the beneficiation facilities. In the long term such an initiative can be a sustainable model for rural areas to best use their land and other natural assets to raise the standard of living for many people. 26 REFERENCES 1. 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