By Lerato Mpembe
South Africa is taking bold strides toward establishing a sustainable cannabis and hemp industry following the approval of the Cannabis for Private Purposes Bill by President Cyril Ramaphosa in May 2024. Since the declaration of hemp as an agricultural crop, a total of 1,110 permits have been issued for its cultivation, signalling a new era of economic opportunities and growth for the country. The initiative forms part of the government’s broader Cannabis Master Plan aimed at stimulating the cannabis and hemp sectors to contribute to poverty alleviation and job creation.
The Cannabis Master Plan: A Blueprint for Growth
Speaking at a media briefing following a Cabinet meeting, Acting Minister in the Presidency, Maropene Ramokgopa, outlined the progress made in developing the Cannabis Master Plan. The plan, which is anchored on nine strategic pillars, is designed to foster a regulated and thriving cannabis and hemp industry in South Africa. These pillars include:
• Effective Regulatory Services,
• Sustainable Seed Supply Systems,
• Research and Technology Development,
• Producer Support Systems,
• Market Development,
• Enterprise and Supplier Development,
• Manufacturing and Product Development,
• Education and Training, and
• Communication and Awareness .The Master Plan underscores the government’s commitment to harnessing the potential of cannabis and hemp to drive economic growth, especially for rural and impoverished communities. “This framework provides a robust foundation for the cannabis and hemp industry, supporting innovation, inclusivity, and sustainability,” Ramokgopa said.
Legal and Regulatory Advancements
In alignment with the Cannabis Master Plan, the Department of Justice and Constitutional Development has initiated the process of drafting regulations to support the Cannabis for Private Purposes Act. This legislation allows for the cultivation, possession, and use of cannabis for private purposes by adults, as well as the creation of regulatory structures to ensure compliance with national laws .
Ramokgopa also highlighted that the Department of Health, through the South African Health Products Regulatory Authority (SAHPRA), had concluded consultations on amending the schedules of the Medicines and Related Substances Act, 1965. These changes are crucial for integrating medicinal cannabis into the healthcare sector, ensuring safe and controlled access.
Additionally, the Department of Trade, Industry, and Competition (dtic) has conducted a situational and value chain analysis of the hemp and cannabis industry in South Africa. This analysis sets the stage for the upcoming consultations on the Cannabis Commercialisation Policy, which will outline strategies for commercialisation and industry growth.
Agricultural Innovation and Research
The Agricultural Research Council (ARC) has played a pivotal role in advancing the hemp sector. In collaboration with the Department of Agriculture, Land Reform and Rural Development (DALRRD), the ARC has developed two hemp varieties, currently undergoing a second season of seed multiplication to prepare for the 2025 planting season. This effort is part of the broader Hemp Certification Scheme, which was approved by the Minister of Agriculture in May 2024. The scheme aims to regulate the integrity and quality of hemp seeds to ensure a sustainable supply for the future .
To further bolster the sector, the DALRRD has commissioned research projects valued at R124 million, focusing on breeding cannabis for medicinal and industrial purposes. These projects include efforts in plant disease surveillance, indigenous germplasm collection, and the development of a comprehensive cannabis seed system. “The government is keen on promoting innovation and research that will drive the hemp and cannabis sectors towards international competitiveness,” Ramokgopa remarked during the briefing .
Supporting Small Enterprises and Job Creation
As part of its efforts to stimulate the growth of the cannabis industry, the government is actively supporting small, medium, and micro enterprises (SMMEs). In Gauteng, 10 SMMEs have received support for product development in collaboration with the Council for Scientific and Industrial Research (CSIR). These enterprises are expected to play a crucial role in driving local innovation and contributing to economic diversification.
Furthermore, the DALRRD is consulting with various provinces on their contributions to the cannabis sector, ensuring that the benefits of this burgeoning industry are felt across the country. The department has also launched a training programme through the ARC to improve the capacity of its inspection services, ensuring that hemp cultivation by permit holders is closely monitored to maintain compliance with national standards.
Future Prospects and Challenges
The hemp and cannabis industries in South Africa hold significant potential for economic transformation, but challenges remain. The implementation of clear and effective regulations will be critical to ensuring that the industry is both sustainable and inclusive. Additionally, addressing concerns related to illicit activities, particularly in the broader cannabis sector, will require robust oversight and enforcement mechanisms.
Despite these challenges, the future looks promising. The government’s commitment to fostering a regulated cannabis industry aligns with global trends, where countries such as Canada and Uruguay have successfully integrated cannabis into their economies. With 1,110 permits already issued and more expected as the industry matures, South Africa is positioning itself as a key player in the global cannabis market.
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