South Africa has made significant strides in its journey to establish a robust cannabis and hemp industry. Following the approval of the Cannabis for Private Purposes Bill, the country has issued 1,110 permits for hemp cultivation, marking a key step in the government’s ambitious “master plan.” This comprehensive plan aims to promote economic growth, reduce poverty, and create jobs through the development of this burgeoning sector.
The government’s approach is structured around nine key pillars, including regulatory services, sustainable seed systems, research and development, producer support, market development, business growth, and education and awareness initiatives. These pillars demonstrate a commitment to building a sustainable and responsible industry that benefits all stakeholders.
The Department of Health has taken steps to streamline regulations by concluding consultations on changes to the Schedules of the Medicines and Related Substances Act, 1965. The Agricultural Research Council (ARC) has also played a crucial role by developing two hemp varieties and focusing on seed multiplication in preparation for the 2025 planting season. A certification system has been established to ensure the quality and integrity of these hemp varieties, further strengthening the industry’s foundation.
While the government’s efforts have paved the way for progress, the impact on small farmers remains uneven. While initiatives like the support provided to 10 micro-enterprises in Gauteng province, in collaboration with the Council for Scientific and Industrial Research (CSIR), are encouraging, concerns remain regarding the inclusion of all communities in the industry’s growth.
In regions like Mpondoland, traditional cannabis cultivation has played a vital role in livelihoods and local economies. However, current policies have made it difficult for these communities to compete with more established and sophisticated operations in urban areas. The shift away from traditional practices has significantly impacted the income of small-scale farmers, with earnings plummeting from ZAR 2,000 ($113) per 20-liter bucket to just ZAR 500.
To compensate for falling prices, many farmers have increased production, resulting in a surplus they struggle to sell. In some cases, farmers have resorted to burning their crops to manage the excess. The situation has been further exacerbated by droughts, making it even harder to sustain their livelihoods. The introduction of stronger, foreign cannabis strains has also reduced demand for indigenous varieties, adding to the challenges faced by these farmers.
Large companies operating in legal gray areas have capitalized on this situation, selling more potent, cheaper cannabis in unregulated dispensaries, further impacting the market share of small-scale producers. While the government pledged to support local farmers, the only legal avenue for them to participate in the industry remains costly and complex. Despite the government’s good intentions, these projects have yet to deliver tangible benefits to regions like Mpondoland.
The journey towards a thriving cannabis and hemp industry in South Africa is marked by both progress and challenges. While the government’s efforts are commendable, more needs to be done to ensure that small-scale farmers, who have long been a vital part of the agricultural landscape, are not left behind. As the industry continues to evolve, ensuring fair access and equitable opportunities for all stakeholders will be crucial for its sustainable growth and success.
