South Africa has been the headline driver of growth in Africa, with President Cyril Ramaphosa again highlighting cannabis and hemp as being priority growth sectors for the South African economy at his State of the Nation address in February 2022, stating his goal of creating over 130,000 sustainable cannabis and industrial hemp jobs in South Africa.

Medical Cannabis

In March 2017, the Medical Controls Council (MCC) released its medical cannabis guidelines for the cultivation, production and use of medical cannabis in South Africa. In February 2018, the South African Health Products Regulatory Authority (SAHPRA) board replaced the MCC. The medical cannabis market is regulated by the SAHPRA Guidelines. In addition to the license application to SAHPRA, applicants wishing to manufacture cannabis for medical use must also apply to the Director-General of Health for a permit in terms of the provisions of Section 22A(9)(a)(i) of the Medicines Act.

Applicants can apply for any or all of the following activities:

• cultivate/grow and produce cannabis and cannabis resin.
• extract and test cannabis, cannabis resin and/or cannabinoids.
• manufacture a cannabis-containing or cannabinoid-containing medicine.
• import a cannabis-containing medicine.
• export a cannabis-containing medicine; or distribute a cannabis-containing medicine.
• distribute a cannabis-containing medicine.

As of February 2025, there were 93 licensed establishments for cannabis cultivation and export.

South Africa is estimated to have around 1,000 registered patients. In the African Cannabis Report – produced by London-based advisory group Prohibition Partners – the value of the South African medicinal cannabis market is projected at R11 billion (nearly US$600 million).

Medical Cannabis Licensing

To receive a medical cannabis license, an application must be submitted to the SAHPRA and, if applying to manufacture cannabis, an application for a permit must be submitted to the Director-General of Health in accordance with Section 22A(9)(a)(i) of the Medicines Act.

When applying for a license, among other things, applicants should prepare:

• Appropriate staff training and hygiene policies.
• Security arrangements to be deployed at the proposed site.
• A business operational plan that ensures security of cannabis and related products.

All manufacturers of medicines must comply with Good Manufacturing Practices the guidelines for which are published by SAHPRA. Licensees are also advised to be familiar with the Good Agricultural and Collection Practices.

Recreational Cannabis

On September 18^th, 2018, South Africa’s Constitutional Court unanimously voted to legalize private cannabis use and cultivation. South Africa’s government was given two years to amend the laws that criminalize cannabis following the Constitutional Court’s ruling. A bill to codify legalization was introduced in 2020, but its passage was delayed, and South African lawmakers only approved the Cannabis for Private Purposes Act (CPPA) on March 28, 2024. The new law removed cannabis from the Drugs and Drug Trafficking Act and allowed adults to grow and use cannabis in their private residence as well as give it to others as long as no money is received for it. Cannabis can be possessed in public, but not used.

According to a National Cannabis Master Plan released in 2021, a fully legalized cannabis industry could create up to 25,000 jobs and be worth around R28 billion.

According to the “South African Cannabis/CBD Industry Landscape Report 2022” by ResearchAndMarkets.com, South Africa’s cannabis/CBD industry is expected to grow at a CAGR of 28.4% between 2022 and 2026.

South Africa Hemp/CBD Industry