Germany Turns to South Africa for Cannabis Supply: Enua Partners with Nexus Pharma

In a significant development for South Africa’s cannabis industry, German cannabis company Enua has partnered with Nexus Pharma (Pty) Ltd to secure a long-term cannabis supply. This collaboration comes just weeks after South Africa imposed a controversial ban on the production and sale of cannabis and hemp-derived food products, sparking criticism from industry stakeholders and opposition parties.

A Groundbreaking Partnership

The partnership between Enua and Nexus Pharma marks a major step forward for South Africa’s cannabis export market. As part of the agreement, Enua has placed a 10-ton order for cannabis biomass through Nexus, which is currently working to bring two cannabis processing facilities online—one in Gauteng and the other in the Western Cape. These facilities will be EU GMP certified, ensuring compliance with stringent European standards.

Enua, a key player in Germany’s rapidly growing medical cannabis market, specializes in connecting cannabis cultivators with its network of pharmacies. Until now, the company has primarily imported cannabis from Canada. However, the partnership with Nexus Pharma signals a shift toward sourcing high-quality cannabis from South Africa.

Germany’s Booming Cannabis Market

Germany is the largest medical cannabis market in the European Union, with an estimated value of €420 million (R8.3 billion) in 2024, according to Prohibition Partners. The market is projected to grow to €1 billion (R20 billion) by 2028, driven by the removal of cannabis from Germany’s schedule of narcotic drugs a year ago. This regulatory change has made it easier to handle, distribute, dispense, and prescribe medical cannabis, leading to a surge in patient access.

Lars Möhring, Enua’s managing director and founder, highlighted the potential for South African exporters in the German market. “Although Germany is encouraging domestic production to meet its needs, there is still significant room for imports from South Africa,” he said. Möhring also noted that South Africa’s competitive pricing and improving quality make it an attractive source for cannabis biomass.

A Boost for South Africa’s Cannabis Industry

Johann Slabber, founder and CEO of Nexus Pharma, described the partnership as a significant milestone for South Africa’s cannabis sector. “The interest by Enua may signal the start of renewed interest in South Africa by the international cannabis investment community,” he said. Slabber emphasized that while South Africa still needs to develop its hemp sector and establish a legal framework for the adult-use market, the medical cannabis export framework is robust and ready for international trade.

Nexus Pharma’s focus on processing rather than cultivation ensures that it does not compete with local growers. Instead, the company provides a valuable route to market for South African farmers, helping them meet the high compliance requirements for exporting to Europe. The initial 10-ton order from Enua will be fulfilled over the next 12 months, helping to reduce the surplus of medical cannabis that has accumulated in South Africa over the past three years.

Challenges and Opportunities

Despite the progress, challenges remain. Less than a quarter of South Africa’s SAHPRA-licensed cultivators are currently exporting, leaving a significant amount of capital tied up in unsold biomass. However, partnerships like the one between Enua and Nexus Pharma offer a promising pathway for South African growers to access lucrative international markets.

The partnership between Enua and Nexus Pharma underscores the growing international interest in South Africa’s medical cannabis industry. As Germany’s cannabis market continues to expand, South Africa is well-positioned to become a key supplier, thanks to its competitive pricing, improving quality, and robust export framework. This collaboration not only benefits South African growers but also signals a new era of opportunity for the country’s cannabis sector on the global stage.

{Source IOL}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com