South Africa is positioning itself as a leading player in the global hemp and cannabis industry, leveraging its natural advantages and the growing involvement of the private sector, as highlighted by the Department of Trade, Industry and Competition.
The nation is transitioning towards a fully regulated cannabis and hemp market, focusing on harmonising laws, enhancing local cultivation, and creating export opportunities, all while prioritising public health and safety.
In his 2025 State of the Nation Address, President Cyril Ramaphosa expressed a vision for South Africa to excel in the commercial production of hemp and cannabis, signalling a pivotal shift from informal cultivation to regulated, large-scale production.
The National Cannabis Master Plan has been entrusted to the Department of Trade, Industry and Competition to centralise policy efforts, accelerate implementation, streamline licensing, and promote an inclusive commercial framework. The planting season for hemp and cannabis has commenced, with provincial Departments of Agriculture collaborating with growers and downstream manufacturers to explore cultivation and export opportunities.
Recent legislation, such as the Cannabis for Private Purposes Act, enacted in 2024, provides a legal basis for cultivation and private use, although commercial trade still encounters regulatory challenges. The Department is actively consulting with various stakeholders to develop a comprehensive commercialisation policy, expected for Cabinet approval by April 2026.
An overarching Cannabis Bill is also in progress, aimed at unifying existing regulations, including those pertaining to private use and commercial cultivation. This Bill is slated for presentation to Parliament by mid-2027.
In 2021, the Department of Agriculture designated Cannabis sativa L. with low THC (hemp) as an agricultural product, a significant move that allows for regulated cultivation and trade, provided that the necessary permits are obtained.
Historically, South Africa maintained one of the world’s strictest THC limits of just 0.2%. However, proposals to raise this threshold to 2% are currently under consideration, which would facilitate compliant crop production and expand industrial applications, from textiles to construction materials.
Medical cannabis has been legalised, with the South African Health Products Regulatory Authority issuing numerous licenses for export and cultivation, reflecting robust government backing for the industry.
The Department of Trade, Industry and Competition is committed to supporting the sector through trade remedies, export opportunities, industry standards, and compliance measures, as well as combating illegal trade and facilitating access to funding for downstream activities.
Initiatives like the Agro-Processing Support Scheme offer grants to stimulate investment in agro-processing, job creation, and sector transformation. Through international trade missions and agreements, South African producers are gaining access to new markets in Africa, Asia, and the Middle East.
The hemp and cannabis industry is becoming a key driver of economic growth in South Africa, employing over 90,000 individuals, particularly in rural areas. Favourable climate conditions, rising demand for medicinal products, and strategic initiatives like the National Cannabis Master Plan are propelling this sector forward.