South Africa’s R30 Billion Cannabis Dream Stalled as Bureaucracy Drags Its Feet

A Green Industry Waiting to Bloom but Stuck in Red Tape

South Africa once had high hopes for its budding cannabis industry, projected to grow into a R30 billion economic powerhouse. But five years after the Constitutional Court’s landmark ruling legalizing private cannabis use, the country’s cannabis master plan is still trapped in a web of government delays and interdepartmental finger-pointing.

The promise of an emerging industry that could boost jobs, empower farmers, and generate significant tax revenue has been overshadowed by bureaucratic standstills. The Department of Trade, Industry, and Competition (DTIC), which took over the project at the end of 2024, has been clear: they want to push the cannabis sector forward but can’t act until the Department of Justice finalizes key regulations.

Waiting on Justice: The Roadblocks to Legal Cannabis Trade

Currently, trading in cannabis remains illegal because cannabis has not yet been officially removed from the Drugs and Drug Trafficking Act. The DTIC’s hands are tied until the Department of Justice and Constitutional Development completes the Cannabis for Private Purposes Act Regulations. Only then can the legal framework evolve to permit large-scale cultivation and commercialization.

The Cannabis Master Plan itself remains in draft form , a blueprint with potential but no final stamp of approval. DTIC officials say they still need to process the draft, engage with a select group of stakeholders, and only then open the door to broader consultations. The department admits the delay is largely due to “complexities associated with policy and legislative development.”

Fragmented Efforts and Mixed Signals from Government

While the DTIC waits for justice to act, other government arms are inching forward. The Department of Agriculture is drafting a zoning framework aimed at protecting traditional cannabis-growing regions and preserving indigenous landrace strains, a vital step for local farmers and conservationists.

Meanwhile, the South African Bureau of Standards (SABS) has published two draft standards for hemp and cannabis, inviting public feedback. And, since August 2023, a moratorium on arrests for private cannabis use has offered growers and consumers some protection.

Yet confusion reigns in other quarters. The Department of Health, for example, recently slapped a blanket ban on cannabis-infused food and hemp products, only to reverse course shortly after, promising new draft regulations for public comment. These mixed signals leave businesses and consumers uncertain about what is and isn’t allowed.

The Public and Industry Reaction

Across social media and industry circles, frustration is palpable. Many see the government’s slow progress as a missed opportunity, a chance to capitalize on a global cannabis boom while empowering local entrepreneurs and farmers. The cannabis industry’s supporters argue that swift regulatory clarity could unlock jobs and economic revival, especially in rural areas where cannabis has cultural roots.

Some fear that continued delays risk driving entrepreneurs underground or pushing them toward illicit markets, defeating the very purpose of legalization.

Hope on the Horizon?

Despite the stalled process, DTIC expects to finalize the commercialisation policy and legislation by the end of the 2026/2027 financial year. This timeline, while far off, signals some movement, however slow, in the right direction.

The key takeaway? South Africa’s cannabis “goldmine” remains untapped, at least for now, but there’s cautious optimism that with the right legislative push, the sector could soon blossom into a significant contributor to the economy.

Why It Matters: A Fresh Perspective

South Africa’s cannabis story is more than a delayed business plan; it reflects the challenges of aligning government departments, overcoming legacy drug policies, and embracing a new economic frontier. The industry holds promise for creating equitable wealth, especially among historically marginalized communities. But to realize that potential, South Africa must cut through the red tape and provide clear, consistent regulations and fast.

If you’re a grower, entrepreneur, or simply curious about South Africa’s cannabis future, keep an eye on the upcoming draft regulations and policy updates, they will shape the industry’s fate in the years ahead.

{Source: BusinessTech}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com