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 and hemp 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 Cannabis Master Plan is 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.
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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.
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 in cannabis-infused edible products as 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. The bill is expected to be introduced in parliament by mid-2027.
The department of agriculture told MPs that regulatory progress has so far been concentrated on hemp cultivation, which was declared an agricultural crop under the Plant Improvement Act.
The revised legislation, which came into effect in December 2025, increased the permissible THC threshold for hemp plants from 0.2% to 2%. Officials said the change is intended to make hemp farming more commercially viable and reduce compliance challenges for growers.
Since hemp was recognised as an agricultural crop in 2022, the department has issued 2,031 cultivation permits across the country. The permits allow farmers to cultivate and store hemp plant material, import and export seed and operate seed-related businesses under regulated conditions.
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Permits are valid for five years and require growers to use approved seed varieties while allowing departmental inspectors to conduct compliance inspections.
Agriculture officials also reported progress in developing local hemp seed varieties, with two locally developed strains now registered and seed multiplication sites established in the Western Cape.
Demonstration trials are being conducted across all nine provinces to evaluate how different hemp varieties perform under varying climatic and soil conditions.
Government departments also highlighted several provincial development initiatives linked to the cannabis value chain, including hemp production trials in the Western Cape and Northern Cape and commercial cultivation projects in the Eastern Cape and KwaZulu-Natal.
Training programmes have also been introduced to support the emerging sector, with about 480 agricultural advisers and 556 hemp permit holders receiving technical training on cultivation, regulatory compliance and post-harvest processing.
Officials told the committee that further progress in building the industry will depend on finalising regulatory reforms, improving access to financing for producers and strengthening co-ordination between departments responsible for licensing, health regulation and agricultural oversight.
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