South Africa’s New R30 Billion Goldmine Gathering Dust

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South Africa's New R30 Billion Goldmine Gathering Dust
South Africa's New R30 Billion Goldmine Gathering Dust

Africa-Press – South-Africa. The process to get South Africa’s R30 billion cannabis master plan off the ground has slowed to a crawl as various departments wait on each other to get their affairs in order.

The Cannabis Masterplan, which has been waiting in the wings since the Constitutional Court made the private use of cannabis legal in 2018, showed some signs of life at the end of 2024 when it was transferred to the Department of Trade, Industry, and Competition (DTIC).

However, since then, little has been done to make the potential R30 billion industry come to life.

Democratic Alliance MP Tobias Chance recently asked the DTIC for an update on the plans, including how far along they were, what was being done to adapt the legislative framework, and when the country will actually see the budding industry start to bloom.

The department’s response was that it was waiting on other departments to catch up, while the master plan itself is still sitting in drafts.

According to the DTIC, its intention is still to facilitate the cannabis industry, but it can only do so once the plants have been removed from the Drugs and Drug Trafficking Act.

Unfortunately, this is still awaiting the finalisation of the Cannabis for Private Purposes Act Regulations by the Department of Justice.

“As it stands, the trade in cannabis is still outlawed,” it said.

Adding further stumbling blocks to kicking off the industry is the fact that the National Cannabis Master Plan is still in draft form.

While it serves as a basis for the development of policy and legislation, the DTIC said it still needs to process it and engage in preliminary consultations with select stakeholders.

Only then will broader consulations take place, it said. Again it pointed to the fact it is waiting on the Department of Justice to catch up.

The finalisation of the Cannabis for Private Purposes Act Regulations by the Department of Justice and Constitutional Development remains critical, it said.

This will “pave the way for review of legislations administered by other departments, such as the Department of Agriculture and the Department of Health, to allow full-scale cultivation and commercialisation of cannabis,” it said.

Based on the current regulatory environment, the DTIC provides, where applicable, support for the manufacturing of products containing Cannabis/Hemp within its existing suite of incentives.

High hopes for progress

The DTIC said it cannot predict when exactly the framework will be established due to “complexities associated with policy and legislative development”.

However, it assured that work is being done and making progress, adding that it expects to finalise the commercialisation policy and legislation by the end of the 2026/2027 financial year.

The Department of Agriculture is working on a framework on zoning to support the traditional cannabis growing areas, which will safeguard and preserve the local landrace cannabis strains, it noted.

The SABS has already published two standards on Hemp and Cannabis for public comments.

In the interim, it said that temporary measures or moratoriums are in place to protect cannabis growers and traders against arrest and prosecution.

The private use, possession and cultivation of cannabis by adults has been decriminalised, and a moratorium on arrests for cannabis-related matters has been in effect since August 2023, it said.

The Department of Agriculture also issues exemptions guided by the Plant Improvement Act, which regulates only hemp.

However, many grey areas remain, as was evidenced by the Department of Health’s recent blanket ban on all foodstuffs containing cannabis and hemp, which was later withdrawn.

The department said in May that it would soon draft new regulations regarding the import and sale of foodstuffs containing cannabis and derivatives for public comment.

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