Hemp, a plant that, along with bamboo, is the world’s fastest-growing, falls within the botanical class of cannabis sativa cultivars, which are cultivated for industrial and consumable use. According to the World Health Organisation (WHO), “cannabis is a generic term used to denote the several psychoactive preparations of the plant cannabis sativa. The major psychoactive constituent in cannabis is ∆-9 tetrahydrocannabinol”.

In its media release dated September 9 and titled ‘South Africa is positioning itself as a rising leader in global hemp and cannabis industry’, the Department of Trade, Industry and Competition (dtic) notes that “South Africa is establishing itself as an emerging leader in the global hemp and cannabis industry by utilising its natural strengths and the increasing momentum of the private sector”.

The industry currently employs more than 90 000 people in the country.

The media release continues: “The country is transitioning towards a fully regulated, economically driven cannabis and hemp industry, focusing on harmonising laws, boosting local cultivation, and creating export opportunities – all while emphasising public health and safety.”

In his State of the Nation Address, delivered in Parliament on February 6, President Cyril Ramaphosa articulated government’s intention for South Africa “to lead in the commercial production of hemp and cannabis”. The dtic considers this declaration a turning point in the national policy, indicating a shift from informal cultivation to regulated large-scale production.

The National Cannabis Master Plan has been assigned to the dtic to centralise policy, accelerate implementation, streamline licensing, and foster an inclusive commercial framework. The purpose of the plan is to “provide a broad framework for the development and growth of the South African cannabis industry in order to contribute to economic development, job creation, inclusive participation, rural development, and poverty alleviation”.

The plan is anchored in the following key objectives: establishing an inclusive, sustainable and globally competitive cannabis industry in South Africa; increasing the volumes and variety of cannabis products destined for both local and export markets; establishing and increasing the capacity of South African farmers to produce dagga and hemp; creating opportunities for the creation of small- and medium-sized enterprises across the cannabis value chain; increasing investment in research and technology development to support increased production, productivity and competitiveness of the cannabis industry; establishing and increasing the manufacturing capacity of the South African cannabis industry; and assigning cannabis and hemp products a designated local content legislative framework.

As for additional legislation, medicinal cannabis was legalised in 2017, with private use decriminalised in 2018. In October 2021, the Department of Agriculture, Forestry and Fisheries declared cannabis sativa an agricultural product under the Plant Improvement Act, 1976, which permits regulated cultivation, import and export, provided growers obtain the required permits.

The Cannabis for Private Purposes Act, 2024, lays the groundwork for legal cultivation and private use. However, commercial trade still faces regulatory hurdles, although these are gradually being addressed. The dtic is engaging national and provincial departments, as well as industry stakeholders, through preliminary consultations aimed at developing a commercialisation policy. The Hemp and Cannabis Commercialisation Policy is expected to be ready for Cabinet approval and public comment by April 2026. An overarching Cannabis Bill is also being developed to unify existing regulations, including the Cannabis for Private Purposes Act, 2024. This Bill, which will cover private use, commercial cultivation, manufacturing, and research, is set to be presented to Parliament by mid-2027.

The dtic has committed to supporting the industry through trade remedies, export opportunities, industry standards, combating illicit trade, and access to funding for downstream activities. Initiatives such as the dtic’s Agro-Processing Support Scheme offer grants of up to R20-million to stimulate investment in agroprocessing, job creation and transformation. Through international trade missions, such as the Export Marketing and Investment Assistance scheme, and agreements such as the African Continental Free Trade Area Agreement, the dtic is helping domestic producers access new global markets, including those in Africa, Asia, and the Middle East.

According to the dtic director-general, the export-driven hemp and cannabis industry is key to the economy, as it is one of the leading labour-absorbing sectors in many rural communities.

Now put that in your pipe and . . .