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 (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) on how to capitalise on the development. Prohibition Partners estimates that global cannabis sales could be worth more than $101 billion (R1.8 trillion) by 2026 (Prohibition Partners, 2023), something on which South Africa could capitalise. The Department of Agriculture’s Cannabis Master Plan (2021) estimates the local sector to be worth R28-billion with a potential 25 000 employment opportunities. According to Agbiz’s Wandile 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.

International business environment

The cannabis market size was valued at USD 10.99 billion in 2021 and is poised to grow from USD 13.43 billion in 2022 to USD 66.35 billion by 2030, growing at a CAGR of 22.1% in the forecast period (2023-2030) (SKYQUEST, 2024).

Find information here:

Some articles:

Local business environment

The policy framework for the legal production of cannabis may still take a long time to be clarified with the danger that benefits for farmers will not be realised (Mathibe, 2023Erasmus, 2019). Countries where production is legal currently supply the South African market for medicinal cannabis.

The steps necessary to maximise the potential of the crop (Qobo & Sihlobo, 2019) 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.

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

The provinces best suited climatically for possible cannabis cultivation are KwaZulu-Natal, Eastern Cape and Limpopo. High profit margins and ease of production are included as benefits of the crop (Mpofu, 2019). Apart from new employment opportunities and economic growth, a tax on the cannabis value chain would also be another income for government.

Controlled, international trade in cannabis and its products, and medicinal use locally is where the focus should be. Increased research will assist policy makers in evaluating the benefits and possible unintended consequences (Sihlobo, 2019).

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For the newcomer

For guides on processing cannabis, contact role players (see later heading).

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 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). It expects the regulations to be out by March 2026.

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

                                 ***

The Presidency and National Treasury’s Operation Vulindlela (OV) was aimed at unlocking the cannabis industry in the country. The then Department of Agriculture, Land Reform and Rural Development (DALRRD) was the lead department, tasked with making the cannabis sector grow. According to its initial research, the industry was worth R28 billion and could create 25 000 work opportunities (DALRRD, 2021).

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. In 2024 SAHPRA had issued 1 100 cannabis licences across the country (Petersen, 2024).

Further reference:

Role players

View the Premium Listings below (scroll down or click on “Premium Listings” on the Table of Contents to the right).

 

Further reference:

Find role players at the Cannabis Expo www.thecannabisexpo.co.za and at https://cannabiscontacts.co.za.

Websites and publications

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

Videos

Some articles