How To Become A CBD Oil Distributor In South Africa?

As the cannabis industry continues to grow, the demand for CBD and cannabis products have increased immensely. This has urged many people to contemplate starting their own businesses for distributing cannabis related products. CBD oil is one of the most popular choices for business endeavours due to its more mainstream popularity. If you are interested in starting your own CBD oil distribution business, we are covering legal processes, licences, and general information on cannabis oil to assist you in becoming a successful entrepreneur.

The Legalisation Of Cannabidiol Distribution

South Africa’s health department legalised the wholesale distribution of cannabidiol in 2019, Ever since then, CBD products can be found on the shelves in pharmacies and general stores. Most people are curious about new products and treatments that might improve their mental and physical health, and upon experiencing the benefits of CBD oil, its popularity has skyrocketed. 

This paves the way for various new opportunities in the cannabis market – you can start your own CBD business and sell your products from home, in stores, or online. CBD is definitely a market gap that you should look into for entrepreneurial opportunities.

Cannabis Licensing In South Africa

In order to sell cannabis products under legal compliance, you will need to get a licence. This is an essential step in starting any type of cannabis related business. You can apply for a cannabis licence at the Department of Health, under the medicine control act, or at the South African Health Products Regulatory Authority (SAPHRA). If your application gets approved, a significant amount of capital and administrative processes are required to finally obtain your licence.

There are a few different types of cannabis licences, mainly:

• Cannabis licences for personal use
• Cannabis club licences
• Cannabis cultivation licences
• Cannabis licences for medicinal use

If you are looking to start a cannabis business from scratch, you will most likely have to apply for a cannabis cultivation licence.

Cannabis Licences For Personal Use

Growing cannabis on private property for personal use is completely legal, provided that you are over the age of 18. However, the trade of this cannabis is illegal as per the new cannabis bill. This licence is strictly valid for personal use. 

Cannabis Club Licences

Cannabis clubs are rising businesses in South Africa. Users can attend these clubs to consume cannabis for both medicinal and recreational purposes. Obtaining a licence to operate a cannabis club also includes paying applicable taxes on your business income.

Cannabis Cultivation Licences

If you are planning to grow cannabis for any kind of distribution, you will need a cannabis cultivation licence. These licences are also required for conducting research on cannabis. These are quite expensive and can be rather difficult to acquire. This is largely due to the volume of documentation you will need to complete.

Cannabis Licences For Medicinal Use

This licence type is difficult to acquire, but there are rare cases of pharmaceutical industries that work with isolates and cannabis synthetics that have been permitted the proper documentation. Although the government is working towards full legalisation of medicinal cannabis, the cost of these licences is currently extremely high.

How To Get Your Cannabis Licence

Both the South African Health Products Regulatory Authority (SAPHRA) and health officials may issue licences for the production and sale activities of medical marijuana, such as:

• The cultivation and production of cannabis and cannabis resin
• The extraction of cannabis
• The manufacturing of cannabis and cannabinoid-containing medicine
• The importation, exportation, and distribution of cannabis-containing medicine

Applications for these licences can be made on the basis of both a site plan and site master file. This should be submitted prior to the construction of such a facility. Upon completion of facility construction, the site will be inspected to ensure compliance with site requirements. 

In addition to the SAHPRA licence application, you will also be required to apply to the Director-General of Health to obtain your permit and ensure compliance with the terms of the provisions stipulated in Section 22A(9)(a)(1) of the Medicines Act. This act permits the acquisition, processing, manufacturing, usage, or distribution of cannabis for medicinal use.

SAHPRA’s prescribed licence fees are as follows:

• R 900 + per Hemp Application
• R 23 980 + for a Medicinal Cannabis Application
• R 714 + inspection fee (per hour)
• R 3 180 + hardcopy licence collection fee

You can contact SAHPRA for more information and financial inquiries.

Seed-To-Sale Tracking

Applicants for Cannabis Cultivation licences are required to develop and implement a management system wherein all processes and procedures that may affect the quality of your product to be documented for each batch. The most important factors that are compulsory to track include:

• The location of the cultivation and soil analysis
• The name of the head cultivator (the person in charge of the process)
• Details of crops that have been grown previously in that location
• The nature, quantity, and origin of your starting materials
• Additional chemicals used during the cultivation process (such as pesticides, fertilisers, herbicides, etc.)
• Water analysis of irrigation systems
• Particular circumstances that occur during cultivation
• Processes during production which may have an effect on the chemical composition of the final product
• Any deviation from standard cultivation conditions (especially during the harvesting period)
• Nature, quality, and quantity of the yield
• Date on which harvesting occurred
• Measurements enacted for pest control

All batches that originate from a single location must be labelled clearly – it is easiest to give a batch number to your products early on. Batches that originate from different geographic areas can only be combined if they will result in a fully homogeneous mixture. This must be documented along with the cultivation, harvest, and primary processing procedures used during each separate batch.

Becoming a CBD oil distributor can be a lengthy and expensive process, but once you become established in the industry, you will be able to reap all the benefits. The demand for CBD oil keeps increasing, and if you go about the process in the correct and legal manner, you will be able to profit greatly from your business endeavours. Be sure to check out Cannarite for more information on cannabis, such as when to harvest cannabis, cannabis cultivation, and what hemp can do for the economy.