KwaZulu Natal now has the highest unemployment rate in the country and the provincial authorities are hoping that the development of a regional cannabis economy will begin reversing that.

The Natal Mercury reported on16 May 2025 that Musa Zondi, the MEC for the Department of Economic Development Tourism and Environmental Affairs (Edtea), announced that a new communal cannabis facility is to be constructed at Okhahlamba in the Bergville area of the Drakensberg.

Cannabis becoming central to KZN's rural development plans

He said the construction of the cannabis processing plant was aimed at enhancing the province’s rural development strategy through 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,” said Zondi.

The announcement coincided with the release of grim employment figures by StatsSA, indicating that KZN was shedding more jobs than any other province with employment within KZN's agriculture sector declining by 7.8% and manufacturing by a whopping 12.5%. The unemployment rate in the province has risen by a percentage point from 31.9% in the last quarter of last year to 32.9% this year.

Okhahlamba (Bergville) Municipality hopes to tackle unemployment and boost the municipal budget by using the planned facility to process cannabis into various products. The municipality has been piloting cultivation programmes among traditional growers for the past three years and the construction of a facility will enable the project to be taken up a notch.

Okhahlamba mayor Vikizitha Mlotshwa expressed pride in the cannabis growing operation, stating it is “excellent” and unique compared to other parts of the country.

All good, but the budget is still shy of R5 mil

He said a facility in the area had been identified as a potential processing site and that the required R10 million could be raised in the coming months to complete the project.

“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.”

Mlotshwa said the aim was “ 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.”

He said one machine needed to process cannabis into other products had been received and they were “waiting for an expert to service and assemble the machine while they worked on acquiring a larger machine to process bigger volumes.”

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