Last Friday, 12 July 2024, in Cape Town, Minister of Small Business Development Stella Ndabeni-Abrahams pledged her support for the fledgling industrial cannabis sector.

Presenting her Department’s budget vote for the 2024/25 financial year, she said its Cannabis Support Programme will be implemented. Although she was shy on specifics, Minister Ndabeni-Abrahams said her Department would “address both the industrial hemp value chain and the main-streaming of small indigenous cannabis growers into lucrative markets.”

Small Business Development has been allocated a total of R2.437 billion, with the majority of this budget directed towards transfers and subsidies, accounting for 83.5% or R2.034 billion.

No figure was released for a budget for the Cannabis Support Programme but he Minister’s commitment to the industrial cannabis industry is likely to include funding.

Addressing the challenge facing small-scale businesses in general, the Minister said:

“Access to finance is a key constraint, particularly for previously disadvantaged individuals and start-ups.

“To address this, we have developed an SMME and Co-operatives Funding Policy to expand access to finance and early-stage investment.

“This policy, which we will table to cabinet this quarter, will be a game changer. It proposes a Fund of Funds to de-risk and leverage private sector investment for start-ups.

“We will also prioritise developing a Startup Policy and legislation in collaboration with relevant departments.,” Ndabeni-Abrahams said.

READ: IOL's report on the Minister of Small Business Development Stella Ndabeni-Abrahams ' budget speech.