South Africa is positioning itself as a rising leader in the global hemp and cannabis industry, using its natural advantages and private sector momentum, according to the Department of Trade, Industry and Competition (the dtic).

The country is transitioning towards a fully regulated, economically driven industry. Government policy now focuses on harmonising laws, boosting cultivation, and creating export opportunities, 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.” This signalled a turning point in national policy, shifting from informal cultivation to regulated large-scale production.

The National Cannabis Master Plan, assigned to the dtic, aims to centralise policy, accelerate implementation, and streamline licensing. Planting season has begun, with provincial Departments of Agriculture, growers, and manufacturers working together on cultivation and export prospects.

Recent legislation, including the Cannabis for Private Purposes Act (2024), provides a foundation for legal cultivation and private use. However, commercial trade still faces hurdles, with a commercialisation policy expected before Cabinet by April 2026. An Overarching Cannabis Bill, covering private use, commercial cultivation, manufacturing, and research, is due to reach Parliament by mid-2027.

Regulation has already opened doors. In 2021, hemp was declared an agricultural product, enabling regulated cultivation, import, and export. South Africa’s historically strict THC limit of 0.2% has proved challenging, but proposals to raise the threshold to 2% would make cultivation easier and expand industrial uses such as textiles and construction materials.

Medical cannabis is legal, with the South African Health Products Regulatory Authority (SAHPRA) having issued 120 export licences, alongside 1 408 cultivation permits granted by the Department of Agriculture.

The dtic, under Minister Parks Tau, has committed to support the industry through trade remedies, export opportunities, compliance, and funding for downstream activities. The Agro-Processing Support Scheme offers grants of up to R20 million to stimulate investment, jobs, and transformation.

Through international trade agreements such as the African Continental Free Trade Agreement, South African producers are gaining access to markets in Africa, Asia, and the Middle East.

The hemp and cannabis sector already employs more than 90 000 people in South Africa. Favourable climate conditions, rising demand for medicinal products, and government initiatives all support the sector’s growth. Medicinal cannabis was legalised in 2017, private use was decriminalised in 2018, and President Ramaphosa signed the Cannabis for Private Purposes Act into law in May 2024.