South Africa positions itself as a global leader in hemp and cannabis industry

South Africa is emerging as a key player in the global hemp and cannabis market by leveraging its favourable climate, growing private sector involvement, and supportive government policies.

According to the Department of Trade, Industry and Competition (the dtic), the country is transitioning to a regulated, economically driven hemp and cannabis industry. Efforts are focused on harmonising laws, increasing local cultivation, creating export opportunities, and ensuring public health and safety remain priorities.

In his 2025 State of the Nation Address, President Cyril Ramaphosa said he wants South Africa to lead in the commercial production of hemp and cannabis.

This marked a turning point, signalling a shift from informal cultivation to regulated, large-scale production.

The National Cannabis Master Plan has been assigned to the Department of Trade, Industry and Competition (the dtic) to streamline policy, accelerate implementation, and promote an inclusive commercial framework. Provincial Departments of Agriculture, growers, and manufacturers have already begun the planting season, exploring opportunities for cultivation and international markets.

Recent legislation, including the Cannabis for Private Purposes Act signed in 2024, provides the legal foundation for cultivation and private use. While commercial trade faces regulatory hurdles, progress is being made. 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 – covering private use, commercial cultivation, manufacturing, and research – will be presented to Parliament by mid-2027.

In a significant policy shift, the Department of Agriculture declared Cannabis sativa L. with low THC content (hemp) an agricultural product in 2021, allowing regulated cultivation, import, and export under permit. The pending amendment to raise the THC limit from 0.2% to 2% will help farmers grow compliant crops more easily and unlock industrial applications, from textiles to construction materials.

Medical cannabis remains a significant export opportunity, with the South African Health Products Regulatory Authority issuing 120 licences for export and the Department of Agriculture granting 1 408 cultivation permits.

The dtic, under Minister Parks Tau, has pledged to support the industry through trade remedies, export promotion, industry standards, funding opportunities, and measures to combat illicit trade. Grants of up to R20 million through the Agro-Processing Support Scheme (APSS) are available to stimulate investment, job creation, and transformation.

Through initiatives like the African Continental Free Trade Agreement and international trade missions, South African producers are gaining access to markets across Africa, Asia, and the Middle East.

The dtic’s Director-General, Simphiwe Hamilton, emphasised that the export-driven hemp and cannabis industry is vital for the South African economy, particularly as a labour-absorbing sector in rural communities. The industry already employs over 90 000 people and benefits from the country’s climate, rising demand for medicinal products, and government-backed strategies like the National Cannabis Master Plan.

Medicinal cannabis was legalised in 2017, private use was decriminalised in 2018, and the Cannabis for Private Purposes Act was enacted in May 2024. – Source: SAnews.gov.za