In a statement yesterday, the Department of Trade, Industry and Competition said that South Africa is moving fast to convert its informal hemp and cannabis trade into a regulated export industry that officials believe could boost rural employment and earn new foreign revenue.

The department has developed a National Cannabis Master Plan, unifying policy across several agencies and signalling that industrialisation of hemp and cannabis is an economic priority. A related Hemp and Cannabis Commercialisation Policy is set to be presented to the Cabinet by April 2026 and is expected to clarify testing protocols, product labelling, and cross-border shipment rules that producers say are vital for investor confidence.

Citing the February State of the Nation Address, in which President Ramaphosa had told lawmakers that “We want South Africa to lead in the commercial production of hemp and cannabis”, the department said it had developed an accelerated legislative pipeline to achieve that objective.

Relevant legislation includes the Cannabis for Private Purposes Act of 2024 and an overarching Cannabis Bill that the department said was scheduled to reach Parliament by 2027. The latter bill would combine all rules on private use, cultivation, manufacturing, and research into cannabis and related products.

Regulators have also proposed easing one of the toughest tetrahydrocannabinol (THC) thresholds in the world. THC levels determine the strength of the psychoactive compound in cannabis. Under the proposed changes, the legal limit for hemp could rise from 0.2% to 2%. Farmers say the higher limit will let them plant better-yielding fibre and grain varieties without the constant risk of falling outside the law.

According to the department, licensing figures point to the potential of the industry. The South African Health Products Regulatory Authority has reportedly issued 120 export permits for medical-grade cannabis, and the Department of Agriculture has approved 1 408 cultivation licences. The department estimates the wider value chain already employs more than 90 000 people, from smallholder growers in the Eastern Cape to laboratory technicians in Gauteng processing hubs.

Trade officials want to scale those numbers through targeted incentives. Grants of up to R20 million are reportedly available under the Agro Processing Support Scheme to fund new greenhouses and extraction plants, and the department is using African Continental Free Trade Agreement missions to court buyers in North Africa, Asia, and the Middle East.