The use of cannabis for various purposes has been happening for centuries

mimicking compounds that are naturally produced in our Endocannabinoids system (ECS) which activate to maintain internal stability, health and wellness (homeostasis).

The ruling by the Constitutional Court enabled commercial opportunities and commence investment initiatives to enable consumers to access the product, that has been produced within given standards as regulated by SAPHRA, and other regulatory authorities in South Africa. Thus, patients could then freely obtain prescriptions from authorized medical practitioners for medicinal use, with fear of arrest and or selfincrimination. To illustrate how government is responding to the changing landscape, Gauteng positioned the use of cannabis for medicinal purposes. The Premier of Gauteng mentioned in his SOPA, State of the Province Address, of the Gauteng Provincial Legislature, in February 2021, that the province has the industrial infrastructure to process cannabis for medicinal purposes.

One such company that has taken advantage of such developments nationally, in the cannabis industry is CANNAFRICA, the company started initiatives within three or so months after the ruling by the constitutional court to be on a growth trajectory wherein it has already sold 42 licenses to franchisees to boost its distribution network, thus far.

CANNAFRICA prides itself as the industry leader in the cannabis industry. The company states that “Produced in stateof-the-art, EU GMP compliant facilities, we have tenaciously crafted ourselves to become the industry’s beacon in a largely unregulated sector. With the pioneering spirit of Labat Healthcare, we stand, boldly, as the African Cannabis Lifestyle brand of Labat Healthcare.” The company has positioned the use of cannabis as a lifestyle product. CANNAFRICA assures its customers that its products are verified and tested, including being in compliance with set SAPHRA standards and regulations.

Elevation Business Magazine took some time to engage and have a conversation with the company’s CEO, Mr Herschel Maasdorp, to intimately understand their business model, history and what is in store for the market.

Elevation Business Magazine (EBM): Briefly share the history of- and growth of

Herschel Maasdorp

CANNAFRICA and what’s in store for the business in the immediate and long term?

Herschel Maasdorp (HM): CANNAFRICA was started immediately after the constitutional court ruling in September 2018. Mere months after the constitutional court ruling, by December 2018 we had a well-crafted value proposition that we could take to market. We understood that there will be commercial opportunities for companies to grow cannabis for export. Whilst we understood that the court ruling was for private adult use, we built a value proposition around CANNAFRICA as a lifestyle brand. By January 2020 we were concluding negotiations with the JSE listed company, Labat Africa. It is a global approach as part of the growth trajectory and platform for companies that play in the cannabis economy. It is proven successful if one is linked to a company on the stock exchange. It gives the business legitimacy, credibility and can give assurance for compliance to corporate governance, giving investors confidence that they are not involved with illicit activities.

What became clear is that Health is the new Wealth. Wellness and self-care have become a significant lifestyle priority. This became apparent during the coronavirus pandemic, wherein we observed positive performance of entities with cannabis induced products in terms of profitability. In 2020, we launched three stores in Sandton, Hartbeespoort Dam, and in Cape Town. The fourth store opened in January 2021, and we will be opening additional 38 stores in the coming months taking our rollout into 2023. As part of our product architecture, we have existing products in market and innovation in the pipeline which is based on consumer needstates.

EBM: What has been the reception on the JSE since Labat Africa’s investment in CANNAFRICA?

HM: It is illegal to trade with cannabis in South Africa and when a company is issued with a license/permit to cultivate cannabis, it is exclusively for the export market. Labat Healthcare, the holding company of CANNAFRICA, successfully concluded an off-take agreement for the supply of cannabis flower to the European market. CANNAFRICA is a data driven company. We observe, analyse data and information which we use in growing our own markets. Our

approach to business has meant that we were swiftly on par with global standards. In so far as this is concerned, we were awarded two global awards in both 2020 and 2021 respectively.

EBM: How has the business been faring during the pandemic?

HM: During the pandemic we collectively decided to make use of the opportunity to craft a fail-proof retail strategy for our CANNAFRICA Lifestyle brand. Rolling out the architecture of a data driven business retail model meant that we could dive deep, analysing the performance of the global cannabis retail market, consumer behaviour, comparative retail trajectories and product performance in the largest legal cannabis markets in the world. We have received both local and global recognition of our commercial offering through international brand awards, positive market response and the rapid onboarding of retail partners.

EBM: What are some of the latest developments in CANNAFRICA?

HM: We have observed month on month and quarter on quarter performance analytics guiding our decisions as we rollout our strategy. With the implementation of our omni channel marketing strategy, including e-commerce, Search Engine Optimisation (SEO) and Paid Per Click (PPC), we have reached over ten million potential customers. The data collected from our activity was a clear indicator that we needed to increase and intensify our production capacity and inventory to meet the anticipated demand. We have made new acquisitions and increased our share of voice in market. Based on research reports from Kantar Millward Brown and other key research houses, it is clear that the pandemic has not only changed consumers value systems but their shopping behaviour as well. In addition, we have analysed our own consumer data to better understand their evolving patterns. This data clearly indicated that health and wellness are moving into the zone of biotech where choices of delivery systems (how medicines are consumed), bio-availability and efficacy are paramount.

EBM: What are some of the legal challenges/ regulatory frameworks you are dealing with and what would you like to see happening in this space to facilitate sustainable growth for the industry?

HM: We believe it is critical to adhere to the current regulatory framework. We want our customers to know that when they buy CANNAFRICA, these products are produced in accordance with the most stringent standards; that our products are safe; that our products are effective.

We believe that SAPHRA is doing well in relation to the regulatory framework. It is an evolving space and over time we will have a regulatory framework that will become more enabling for business and commercial activity. It must also be understood that the regulatory framework is not only about medicines, but we have to consider the enablers and other related legislation such as agriculture, correctional services, safety, security, trade and industry, among other.

The macro legislative requirements for cannabis regulation is still not complete. Government and other stakeholders are currently conducting consultative forums to develop a master plan for the cannabis industry.

Ultimately, our vision is for more South Africans to be able to experience the immune-promoting qualities of CBD, thus realising the full wellness potential of the Cannabis plant. n

Technology in education: Part of an evolution or a stimulus-

response to the pandemic?

The new normal has provided more opportunities than ever before to embrace technology in our quest to achieve successful outcomes. The education sector might have lagged with this but is catching up swiftly. By Kevin Lazarus

Kevin Lazarus is the Sales Director at SPM Publishers International. In 2011, the German government introduced the concept of the 4th Industrial Revolution (4IR) in a strategy that promotes manufacturing computerisation. It’s been a hot topic amongst world leaders since then, especially in the World Economic Forum, where it has been studied, discussed and debated extensively over the last five years.

The crux of 4IR is simple: Just like humans lost their jobs to machines in previous industrial revolutions, technological advancement is once again going to drive

a shift in the world of work – this time, thanks to advances in artificial intelligence (AI). We’ve already seen a change in many sectors, with robots and algorithms outperforming human capability in the workplace. Sadly, we haven’t seen much of this in the education sector. This is because traditional educational institutions and learning methods conveniently stuck to conventional approaches.

Resistance to change

There were many discussions about changing “production line” education to personalise education. And there were some institutions, thought leaders and academics who embraced educational technology (EdTech), driving an evolution in education. However, the teacher’s fear of being replaced by technology was more of a concern than the enhancement of teaching through technology, and many institutions