by AKANI CHAUKE
JOHANNESBURG, (CAJ News) – SOUTH Africa is accelerating efforts to position itself as a leading player in the global hemp and cannabis industry, leveraging favourable climate conditions, regulatory reforms and strong private-sector momentum.
The government is transitioning the sector from informal cultivation to a regulated, export-driven industry, with the Department of Trade, Industry and Competition (the dtic) spearheading implementation of the National Cannabis Master Plan.
The strategy seeks to harmonise laws, expand cultivation, stimulate agro-processing, and open new export markets while safeguarding public health.
In his 2025 State of the Nation Address, President Cyril Ramaphosa declared: “We want South Africa to lead in the commercial production of hemp and cannabis.”
The announcement marked a decisive policy shift, underpinned by the Cannabis for Private Purposes Act (2024) and the forthcoming Hemp and Cannabis Commercialisation Policy, expected before Cabinet in April 2026.
A comprehensive Cannabis Bill is also planned for 2027 to unify fragmented regulations.
Progress is already visible. The Department of Agriculture has issued over 1 400 cultivation permits, while the South African Health Products Regulatory Authority (SAHPRA) has approved 120 export licences for medicinal cannabis.
Proposed reforms to increase the THC threshold for hemp crops from 0.2% to 2% are seen as a “game changer” for farmers, enabling compliance with international standards and expanding industrial applications from textiles to construction materials.
The industry currently employs more than 90 000 South Africans, with significant potential in rural communities.
Through initiatives such as the Agro-Processing Support Scheme, which offers grants of up to R20 million, and trade opportunities under the African Continental Free Trade Agreement, the dtic is working to unlock global market access.
Officials argue the hemp and cannabis sector could become one of South Africa’s most labour-absorbing industries, driving investment, exports, and rural development.
– CAJ News