Cannabis

Hemp, a cousin albeit with no psychoactive properties, is covered on the “Fibre crops” page.

Introduction

When we began this project in 2003 we made a joke about including dagga in the table of contents with a note like “banned” or “removed” on the referenced page; we laughed and continued research on the other chapters. Sixteen years later we began work on the chapter with a quiet sense of irony, the (frequently updated) page that you are looking at now.

The judgement confirmed by the Constitutional Court that cannabis was no longer illegal for private use unleashed a flood of interest and many business plans by companies and government departments (see “National strategy and government contact” heading). The Department of Agriculture’s Cannabis Master Plan (2021) would estimate the local sector to be worth R28-billion with a potential 25 000 employment opportunities.

Writing in 2026, Agbiz’s Wandile Sihlobo laments how long it has taken for South Africa to create a clear regulatory path for the plant. He also tones down some of the enthusiasm that initially abounded, but although the plant won’t “solve all our problems” it will bring value (Sihlobo, 2026).

International business environment

The global hemp market is projected to grow from about $10-billion in 2025 to $37-billion by 2032 (Localisation Support Fund (LSF), 2026 – cited by Bulbulia, 2026).

Countries where production is legal currently supply the South African market for medicinal cannabis.

Find information here:

Local business environment

According to Sihlobo, a potential cannabis value chain would/should focus on international trade (export) and domestic medicinal use, which would see accompanying economic activity and job creation particularly in the rural areas of KwaZulu-Natal, Eastern Cape and Limpopo. Indeed, incentives should be considered to encourage cannabis investment in these areas rather it moving to established, other agricultural zones (Sihlobo, 2026).

The Cannabis Development Council of SA (CDCSA) identified several other economic sectors which could be involved in a successful cannabis economy (includes hemp):

  • Animal feed
  • Food enrichment
  • Cosmetics
  • Foods
  • Supplements
  • Biodiesel
  • Beverages
  • Textiles
  • Bio-composites
  • Automotives
  • Packaging Nonwovens
  • Paper
  • Food fibre
  • Insulation
  • Construction
  • Biofuels
  • Animal bedding
  • Hydroponics
  • Nutraceuticals
  • Health teas
  • Pharmaceuticals

Although it was written back in 2019 (Qobo & Sihlobo, 2019) , the steps necessary to maximise the potential of the crop remain:

  • The license fee should not be prohibitive.
  • A single authority should oversee the various licenses, be they for medical, industrial etc purposes.
  • A value chain approach should be taken where focus is not only primary production but goes from seed breeding to high value hemp industrial products. Indeed opportunities exist not only for smallholder farmers but also for agronomists, scientists, research and development. There can also be job creation in branding (see Werksmans, 2019), packaging, logistics and transport.

Apart from new employment opportunities and economic growth, a tax on this cannabis value chain would also be another income for government.

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For the newcomer

  • For guides on processing cannabis, contact role players (see later heading).
  • GS1 South Africa. 2023. Launching Cannabis Products in South Africa: How to Get the Basics Right for Retail. Available at https://gs1za.org/industries/
  • Read the blog “The Complexity of Growing Cannabis: Tapping into a new market” (2022, September).
  • Pereira R. & Van Der Walt L. 2022, June 14. “Budding breeders – Cannabis and intellectual property rights”. Go Legal. Available at www.golegal.co.za/cannabis-intellectual-property
  • Atkinson R. 2022, April 1. “Legally speaking – Where can we grow cannabis? An update for Agripreneurs”. GoLegal. Available at www.golegal.co.za/cannabis-goods-agripreneurs/
  • A webinar held by Cliffe Dekker Hofmeyr (CDH) (2021) saw industry experts take the viewers through the new hemp licensing framework, its opportunities and potential pitfalls, and provided insight into cannabis as a viable agricultural commodity. The YouTube video is an excellent introduction to cannabis and its potential.
  • McQue K. 2020. At Home with Cannabis. Cape Town: Penguin Random House SA.

National strategy and government contact

President Cyril Ramaphosa signed the Cannabis for Private Purposes Act into law in May 2024, legalising the private use of cannabis in South Africa. The country is still waiting for the regulations required by the Act.

The Presidency and National Treasury’s Operation Vulindlela (OV) included unlocking the cannabis industry in the country. The mantle of the lead department tasked with with making the cannabis sector grow moved from the Department of Agriculture  to the Department of Trade, Industry and Competition.

A National Cannabis Master Plan (NCMP) will provide a framework for the establishment, growth and development of the cannabis and hemp industry in South Africa (Botha, 2024).

The South African Health Products Regulatory Authority (SAHPRA) regulates the issuing of Cannabis licences. Since 2022, 1 725 permits have been issued, granting legal cultivation rights across 29 000 ha of land (Localisation Support Fund (LSF), 2026 – cited by Bulbulia, 2026).

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The Department of Justice and Constitutional Development indicated that it requires feedback from concerned departments – the Department of Health; Agriculture; Trade, Industry and Competition; Social Development; Small Business and Development; the Presidency; and the South African Police Services (Puchert, 2025).

The Hemp and Cannabis Commercialisation Policy is expected to be ready for Cabinet approval and public comment by April 2026, while an “overarching” Cannabis Bill to unify existing regulations, including the Cannabis for Private Purposes Act, 2024, “is set to be presented to parliament by mid-2027.” This latter Bill will cover private use, commercial cultivation, manufacturing and research (SA News, 2025).

In the meantime, the law is:

  • Only legal for private use at home
  • Cannot be bought or sold
  • Cannabis can be shared amongst friends but no money must exchange hands
  • Private and social cannabis clubs are not legal
  • Cannot use cannabis in public or around non-consenting adults

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Further reference:

Role players

Business Listings

The following business listings are provided for informational purposes only. Agribook does not endorse or guarantee any of the listed businesses, their products, or services.

Further reference:

Websites and publications

  • Visit the websites of role players and previous links on this page.

Videos

Some articles

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