South Africa has missed the R30 billion bus
South Africa’s lofty dreams of cultivating a R30 billion cannabis industry are sitting idle as the global mood on the commodity takes a downturn.
This is according to Agribiz Chief Economist, Wandile Sihlobo, who admitted that South Africa as a whole has been slow to move forward with its cannabis and hemp plans.
Crawling policy reform and a lack of legislative and legal clarity mean the country may have missed the bus—at least for now.
“A few years ago, this was a hot issue. Now, globally, the mood is somewhat downbeat on cannabis,” Sihlobo said.
Nevertheless, he believes that South Africa should maintain its focus and keep pursuing the market, as “there are cycles in these things”.
The Cannabis Masterplan, endorsed by President Cyril Ramaphosa and his ministers, has been waiting in the wings since the Constitutional Court made the private use of cannabis legal in 2018.
It has been touted as an industry creator that could pump R30 billion in value into the South African economy, creating thousands of jobs in the process.
However, Sihlobo noted that South Africa still has a long way to go to make a productive cannabis industry a reality.
From legislation to regulation to law enforcement, there are many areas of overlap that need to work in tandem across government to make the industry work—and little has been done.
On the legislative side, the country has established paths and permits for cultivators, particularly in the medical field, and has decriminalised the private use of cannabis.
However, the laws remain unclear in many respects, and obtaining permits is costly and prohibitive. Much more work still needs to be done.
While President Cyril Ramaphosa signed the Cannabis for Private Purposes Bill into law in May 2024, decriminalising private cannabis use, the law is not yet in effect.
The laws allow for the cultivation of a specified quantity of cannabis plants, possession of a prescribed amount of cannabis and the use of cannabis for private individuals.
But they are still waiting for an appropriate regulatory framework in which to operate. Regulations were promised at the end of March 2026, yet none came.
Not the saving grace for South Africa
On the production and retail side, things are even less clear, which has led to a massive grey area in which stalls and shops operate, selling products that contain cannabis, to be used by private individuals.
This prompted the Health Department to ban foodstuffs containing cannabis in 2025, which it was quickly forced to withdraw after it impacted over 1,800 legitimate businesses.
The ban applied to the import, manufacture, and sale of any foods containing cannabis and cannabis products, including Sativa, Indica, Ruderalis, hemp seed oil, or powder derivatives.
However, it did not distinguish between hemp and cannabis, unilaterally criminalising previously lawful foodstuffs.
Many entrepreneurs are left in a grey area, as there is no clear legal framework to guide cultivation, trade, or taxation.
These issues show the complexity, but also the half-hearted approach to getting the industry going.
According to Sihlobo, he is in support of exploring the cannabis industry, but the hazy legal issues need to be cleared.
He added that the industry also shouldn’t be treated as if it’s a major game changer for the country.
“There is still room for advancing the cannabis and hemp industries in South Africa. But we can’t position these as major game-changers in our agricultural sector’s growth trajectory,” he said.
“They are mainly an addition, like other commodities.”
Sihlobo said the government needs to move and ease the environment for the commercial production of the plant, but should stop propping it up as a key announcement.
“The announcements often seek to position the plant as if it will solve all our problems, but that is not the case,” he said.
“When we finally progress with cannabis and hemp research, regulations and a clear policy framework, the plant could create opportunities.”
“Life won’t change drastically…but it will add some value,” he said.
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