Cannabis industry overhaul under way to unlock multibillion-rand sector

South Africa is moving to unlock what the government describes as a multi-billion-rand cannabis and hemp industry through sweeping regulatory reforms, new commercialisation policies and expanded cultivation programmes, as officials push to position the sector as a driver of economic growth, job creation and rural development. The department of trade, industry & competition (DTIC), the department of agriculture, the department of health and the department of justice & constitutional development told parliament’s portfolio committee on trade, industry & competition on Friday a range of regulatory reforms, new legislation and agricultural programmes are under way to implement the National Cannabis Master Plan and establish a formal cannabis andhemp industry. The departments briefed MPs on the regulatory framework being developed to support commercialisation of cannabis and hemp, as well as policy and legislative reforms still required to fully implement the plan.

The National CannabisMaster Planis intended to develop a formal cannabis and hemp industry that can support economic growth, create jobs and expand rural development opportunities. Responsibility for co-ordinating the plan was transferred from the agriculture department to the DTIC in September 2024 as the government moved to consolidate policy and regulatory oversight. Officials said the cannabis and hemp sector already represents an estimated R14bn domestic market, with government targeting annual growth of about 10% as regulatory barriers are gradually removed and the industry expands into new commercial activities.

A part of the reform programme involves aligning multiple laws that regulate cannabis across agriculture, medicines control and criminal justice legislation. The department of justice told MPs that draft regulations under the Cannabis for Private Purposes Act were published for public comment in February. The regulations will define limits for personal possession and cultivation of cannabis and set out procedures to expunge certain cannabis-related criminal records.

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Officials said the quantities permitted for possession, transportation and private cultivation will still require parliamentary approval before the regulations can take effect. The department of health said its ministerial advisory committee is reviewing acceptable levels of THC and CBD incannabis-infused edible productsas part of the regulatory framework governing the medical and consumer use of cannabis products. Meanwhile, the DTIC said it is finalising a hemp and cannabis commercialisation policy that will outline how the sector should develop commercially while balancing public health, safety and regulatory compliance.

The policy is expected to be submitted to cabinet for approval and public consultation by April. The government is also developing a broader cannabis bill intended to consolidate existing laws governing cultivation, manufacturing, research and private use of cannabis.

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