JSE-listed venture capital company Labat Africa has signed a memorandum of understanding with the Council for Scientific and Industrial Research (CSIR) to fast-track implementation of various cannabis-related projects.
The CSIR has carried out extensive work in the areas of industrial hemp and medical cannabis, while Labat offers medical cannabis product and process development, processing and development of cannabidiol- (CBD-) infused pharmaceutical products and hemp and cannabis testing services through its investment portfolio.
The parties will explore areas of collaboration in the field of using hemp for construction and packaging, with a particular focus on supporting cannabis and hemp value chains.
The CSIR and Labat previously collaborated on the value chains of cannabis and hemp production for the pharmaceutical, textiles and energy sectors.
Labat aims to be an industry-leading healthcare company with a focus on medicinal cannabis.
Labat CE Brian van Rooyen previously told Engineering News & Mining Weekly that the industrial hemp market is worth about $4.9-billion, or R71-billion, globally, and is projected to grow to $18.6-billion, or R269-billion, by 2027.
South Africa’s hemp industry is projected to be worth R28-billion in five years’ time.