Dagga equals jobs
While a new study has found massive economic benefits to legalising dagga, Tanzania has just clamped down on the drug.
The legal cannabis sector is expected to generate US$40 billion and more than 400 000 jobs by 2021 in the United States, according to a study.
The estimate by consulting firm Arcview includes direct purchases by consumers of US$20.8 billion and indirect revenue for growers and various subcontractors as well as money spent with businesses not affiliated with the sector, such as supermarkets.
The projection would represent a rise of 150% on the US$16 billion revenue recorded in 2017, according to the study, released the day after recreational use of marijuana became legal in California.
Arcview and its partner in the research, BDS Analytics, expect US$4 billion in taxes to be generated within three years.
The new regime will lead to the creation of nearly 100 000 cannabis industry jobs in California by 2021, about a third of the nationwide figure and 146 000 jobs overall when indirect effects are considered.
Customers and operators in California have complained however about the punitive sales taxes to be applied to cannabis and its derivative products, which can hit 35% when state, county and municipal levies are taken into account.
'Legal market for marijuana'
California, the most populous US state, became the largest legal market for marijuana in the world on Monday, and public reaction to the law change has been enthusiastic, with long lines and stock shortages reported at clinics already licenced and open.
Berkeley mayor Jesse Arreguin hailed the reforms at a ceremony on Monday at Berkeley Patients Group, one of the oldest dispensaries in the United States.
“I'm stoked about this historic moment, not just for Berkeley, but for the state of California,” Arreguin said, praising the state for “embracing this new economy”.
Cannabis possession remains illegal under federal law, and Arcview's Tom Adams said fewer than 100 out of the 3 000 outlets and delivery services operating in California were ready to go with the required local and state permits.
“Those that were generally report doing multiples of their typical day's business with a far more diverse and less experienced customer base that need a lot of hand-holding and educating from their bud-tenders,” he added.
“We were very cautious in projecting revenue growth from US$3 billion to US$3.7 billion in this first year of adult-use legality in California, but we'll have to revise that upwards if, as now appears likely, San Francisco and Los Angeles are going to get permits issued more quickly than we expected.”
Meanwhile, in Africa, Tanzanian authorities have stepped up an escalating war on cannabis by destroying 14 hectares of the crop in the northern province of Arusha in recent days.
Saturday alone saw eight hectares laid waste at the Meru forest reserve following another 2.4 hecatres earlier in the week in operation overseen by Interior Minister Mwigulu Nchemba.
Tanzania is one of the world's largest cannabis producers.
“We have decided to put a stop to the cannabis culture,” Arumeru administrative secretary Timotheo Mzava said during Saturday's operation.
“Some local officials are themselves complicit (in the trade) and we cannot accept that,” Mzava said, noting that three such officials were on the run.
“The government will carry out this operation in all corners of the country. We are going to arrest all persons implicated and nationalise all vehicles found to be carrying even the smallest quantity of cannabis,” the minister vowed this week.
Tanzania sits on a clutch of major east African drugs routes with Arusha a key cannabis-producing area.
Much of its crop is well hidden in the country's vast swathes of natural forest.
Although the drug is illegal, a combination of corruption and limited resources mean the authorities have struggled to stamp out the trade.
In contrast, neighbouring states including Kenya, Malawi, Mozambique and Uganda have seen eradication campaigns enjoy some success.
In 2010, total seizures of the plant totalled 279.5 tons, behind only Mexico and the United States.
NAMPA/AFP
The estimate by consulting firm Arcview includes direct purchases by consumers of US$20.8 billion and indirect revenue for growers and various subcontractors as well as money spent with businesses not affiliated with the sector, such as supermarkets.
The projection would represent a rise of 150% on the US$16 billion revenue recorded in 2017, according to the study, released the day after recreational use of marijuana became legal in California.
Arcview and its partner in the research, BDS Analytics, expect US$4 billion in taxes to be generated within three years.
The new regime will lead to the creation of nearly 100 000 cannabis industry jobs in California by 2021, about a third of the nationwide figure and 146 000 jobs overall when indirect effects are considered.
Customers and operators in California have complained however about the punitive sales taxes to be applied to cannabis and its derivative products, which can hit 35% when state, county and municipal levies are taken into account.
'Legal market for marijuana'
California, the most populous US state, became the largest legal market for marijuana in the world on Monday, and public reaction to the law change has been enthusiastic, with long lines and stock shortages reported at clinics already licenced and open.
Berkeley mayor Jesse Arreguin hailed the reforms at a ceremony on Monday at Berkeley Patients Group, one of the oldest dispensaries in the United States.
“I'm stoked about this historic moment, not just for Berkeley, but for the state of California,” Arreguin said, praising the state for “embracing this new economy”.
Cannabis possession remains illegal under federal law, and Arcview's Tom Adams said fewer than 100 out of the 3 000 outlets and delivery services operating in California were ready to go with the required local and state permits.
“Those that were generally report doing multiples of their typical day's business with a far more diverse and less experienced customer base that need a lot of hand-holding and educating from their bud-tenders,” he added.
“We were very cautious in projecting revenue growth from US$3 billion to US$3.7 billion in this first year of adult-use legality in California, but we'll have to revise that upwards if, as now appears likely, San Francisco and Los Angeles are going to get permits issued more quickly than we expected.”
Meanwhile, in Africa, Tanzanian authorities have stepped up an escalating war on cannabis by destroying 14 hectares of the crop in the northern province of Arusha in recent days.
Saturday alone saw eight hectares laid waste at the Meru forest reserve following another 2.4 hecatres earlier in the week in operation overseen by Interior Minister Mwigulu Nchemba.
Tanzania is one of the world's largest cannabis producers.
“We have decided to put a stop to the cannabis culture,” Arumeru administrative secretary Timotheo Mzava said during Saturday's operation.
“Some local officials are themselves complicit (in the trade) and we cannot accept that,” Mzava said, noting that three such officials were on the run.
“The government will carry out this operation in all corners of the country. We are going to arrest all persons implicated and nationalise all vehicles found to be carrying even the smallest quantity of cannabis,” the minister vowed this week.
Tanzania sits on a clutch of major east African drugs routes with Arusha a key cannabis-producing area.
Much of its crop is well hidden in the country's vast swathes of natural forest.
Although the drug is illegal, a combination of corruption and limited resources mean the authorities have struggled to stamp out the trade.
In contrast, neighbouring states including Kenya, Malawi, Mozambique and Uganda have seen eradication campaigns enjoy some success.
In 2010, total seizures of the plant totalled 279.5 tons, behind only Mexico and the United States.
NAMPA/AFP
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