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Afristar Foundation · SA Cannabis Lobby

Cannabis: South Africa's reconstruction crop

Food, fuel, fibre, housing and medicine, from one plant.

R14bngovernment estimate of today's domestic hemp & cannabis market
90,000+jobs claimed by the dtic across the sector
R36bnestimated value of the illicit market
Advocating for reform since 1996
1 · The problem

A country that needs new rural industries

Persistent unemployment, a declining rural economy, climate pressure and poor diets all meet in the same communities. Few crops can answer all four at once.

Jobs

Rural unemployment and few formal opportunities outside a handful of towns.

Land & farming

Farmland and farmers waiting for a viable, high-value crop and a route to market.

Climate

Agriculture is both a source of emissions and a possible carbon sink.

Health & food

Poor diets and costly medicine. Hemp seed is protein- and omega-rich; medical access is limited.

2 · The plant

One plant, five raw materials

Hemp and cannabis are the same species, Cannabis sativa L. The law separates them by THC level and by use.

Flower
  • Medicine
  • Adult use
  • Cannabinoid extracts
Seed
  • Food, protein and oil
  • Biofuel
  • Bioplastics
  • Personal care
Leaf
  • Juicing
  • Mulch and soil building
Bast fibre
  • Textiles and clothing
  • Paper
  • Rope and composites
Hurd (woody core)
  • Building material, such as hempcrete
  • Animal bedding
  • Paper and mulch
3 · The world has moved

Regulated cannabis is now mainstream policy

~50

countries

Nearly 50 countries have legalised cannabis to some degree, and about fifty run formal medical programmes (2026 industry counts).

4

European adult-use or home-grow laws

Malta (2021), Luxembourg (2023), Germany (2024) and Czechia (2026) allow adult possession or home cultivation.

$36.7bn

global hemp market by 2032

The DTIC's cited projection for the global hemp market, roughly triple today's size.

4 · The South African opportunity

A sector government wants to grow 10% a year

The National Cannabis Master Plan now sits with the DTIC. Government's stated aim is for South Africa to lead in commercial hemp and cannabis production. Officials told Parliament in March 2026 they are targeting about 10% annual growth from an estimated R14bn baseline.

“We want South Africa to lead in the commercial production of hemp and cannabis.”President Cyril Ramaphosa, State of the Nation Address, February 2025

The Afristar hub model Modelled scenario

A co-operative hub model that puts emerging and existing smallholder farmers at the centre and keeps processing value in rural areas. Figures below are Afristar modelling, not forecasts.

10agro-processing hubs, nationally
20,000 haper hub · 200,000 ha in total
10,000emerging farmers per hub, about 2 ha each
R3.5bnrevenue per hub · R35bn across ten

Model assumes an average revenue of about R175,000 per hectare, which depends heavily on product mix and price. It should be tested against site-specific business cases.

8–15 t CO₂

absorbed per hectare of industrial hemp, according to Cambridge researcher Darshil Shah. Over 200,000 ha, that is roughly 1.6–3 million tonnes of CO₂ a year. Modelled

5 · The legal pathway

Where the law stands, October 2026

  1. Medicinal cannabis legalised.

  2. Constitutional Court decriminalises private use and cultivation by adults. Buying and selling stay unlawful.

  3. Hemp declared an agricultural product under the Plant Improvement Act.

  4. Cannabis for Private Purposes Act signed. It is not yet in operation.

  5. Responsibility for the Cannabis Master Plan moves to the DTIC.

  6. New Plant Improvement Act in force. The industrial hemp THC limit rises tenfold, from 0.2% to 2%.

  7. Draft private-use regulations published: up to 750 g possession and five plants per adult. Quantities still need parliamentary approval before they take effect. They were still draft in September 2026.

What Afristar proposes

Industrial hemp & cannabis

  • Treat it as an agricultural commodity and cash crop.
  • Use existing genetics, with small farmers as the cornerstone of production.
  • Classify at the processing gate by end use, not by field THC. The 2% limit applies to hemp only.

Medical cannabis

  • Differentiate by use.
  • Pharmaceutical products by prescription, under Good Manufacturing Practice.
  • Non-specific conditions through traditional and complementary health channels.

Responsible adult use

  • Extend the 2018 ruling so adults have a lawful route to access, including designated growers, registered community clubs and sharing between adults.
  • Regulate no more restrictively than alcohol and tobacco.
  • Keep it inclusive of traditional and landrace growers.

Hurdles still to clear

Private use only

The 2024 Act and draft regulations implement the private-use ruling. They do not create a legal commercial industry.

Policy conflict

A 2025 ban on cannabis and hemp in foodstuffs had to be withdrawn, showing how departments can pull in different directions.

Courts

The Act and the Hemp Regulations face a constitutional challenge in the Western Cape High Court, brought in 2026 by Garreth Prince, the RasTafari Nation Council and a collective of small-scale farmers. It seeks relief from continued arrests and the exclusion of traditional growers.

Landrace growers locked out

Mpondoland alone is estimated to have 20,000–60,000 smallholder households growing landrace cannabis, on an extrapolated 18,719–56,157 ha (Grooten, 2023, using Umzimvubu Farmers Support Network estimates). Much of their crop sits above the hemp THC limit, and the 2024 Act gives them no commercial route.

Cannabis can be South Africa's primary recovery agent

Afristar Foundation works on policy, rural enterprise models and bioregional development, and its director has coordinated the SA Cannabis Parliamentary Lobby since 1996.

Sources

  1. Business Day, 8 Mar 2026: officials' R14bn market estimate and 10% growth target; Master Plan moved to the DTIC in September 2024; Commercialisation Policy and Cannabis Bill timelines.
  2. BusinessTech, 9 Mar 2026: R36bn estimated illicit market; DTIC report projecting a $36.7bn global hemp market by 2032.
  3. SAnews, 9 Sep 2025: 90,000+ jobs (a dtic claim); Ramaphosa 2025 SONA quote; hemp declared an agricultural product in October 2021; medicinal cannabis legalised in 2017.
  4. Business Report, 1 Dec 2025: Plant Improvement Act in force, hemp THC limit raised from 0.2% to 2%.
  5. GoLegal, 2026 and Business Day, 4 Feb 2026: draft regulations (750 g, five plants) and the 2024 Act's status.
  6. BusinessTech, 6 Sep 2026: regulations still proposed; the Act does not create a commercial industry.
  7. allAfrica / SA Government, Feb 2026: the Act and draft regulations are confined to implementing the private-use ruling.
  8. Cape Argus, 14 Apr 2026: applicants (including small-scale farmers) and the challenge to the Act and Hemp Regulations.
  9. Dezeen, 2021: Darshil Shah, University of Cambridge, on hemp's 8–15 t CO₂ per hectare.
  10. Cannigma, 2026 and Hanf Magazin, May 2026: global country counts; Malta, Luxembourg, Germany and Czechia.
  11. BusinessTech, 2025: the withdrawn foodstuffs ban.
  12. Grooten (2023), Wageningen University thesis, and the CCS Phase 1 report (November 2023): Mpondoland landrace household estimates, from the Umzimvubu Farmers Support Network, and the area extrapolated from them.

Facts and legal status checked in October 2026. Hub-model and per-hectare figures are Afristar modelling. The R14bn, 90,000 jobs and R36bn figures are government or press estimates, not independently audited. The Commercialisation Policy and final regulations were still pending when last checked. Afristar Foundation · Infographic first published 2020, fully revised 2026.