Africa Hemp CBD Industry

“Sustainable farming is about meeting the needs of South Africans today and in the future.” – WWF.

Legalization

Hemp cultivation in South Africa first officially began in 1999 when the Eastern Cape Provincial Department of Agriculture collaborated with the National Department of Agriculture and the Department of Trade and Industry to establish a National Hemp Pilot Initiative. Studies carried out by the Council for Scientific and Industrial Research (CSIR) found that conditions in the Eastern Cape, Western Cape and KwaZulu-Natal are especially well-suited for growing hemp.

In October 2021, South Africa amended the Plant Improvement Act and declared hemp to be an agricultural crop, defining hemp to have no more than 0.2% THC and therefore distinguishing it from cannabis. On October 29, 2021, the Department of Agriculture, Land Reform and Rural Development (DALRRD) began accepting applications for hemp permits which allow farmers to grow, store and transport hemp.

In South Africa, the law, valid until the end of May 2019, allowed the sale and use of some CBD products over the counter. On May 23, 2019, CBD was rescheduled to be regulated as a supplement on schedule 0:

• CBD medication marketed for general health, or for “relief of minor symptoms”, that contains no more than 600 mg of CBD per pack and provides a maximum daily dose of 20 mg.
• Ingestible products derived from raw biomass that contain no more than 0.0075% total CBD and only the naturally occurring cannabinoids found in the source material.

In June 2020, industrial hemp was exempted from the provisions of the Medicines Act, effectively removing it from medical control.

The hemp licensing system in South Africa has two levels depending the activity being carried out:

1. DALRRD Hemp Permit: Authorizes cultivation and processing of hemp for industrial purposes (fiber and grain) and the supply as raw biomass material for CBD extraction. It does not allow the permit holder to perform CBD extraction themselves.
2. SAHPRA (South African Health Products Regulatory Authority) License: Mandatory for the extraction of CBD and the manufacturing of finished hemp CBD products.

On December 1, 2025, the Department of Agriculture announced the commencement of the new Plant Improvement Act (Act No. 11 of 2018). The new Act revises the definition of hemp to mean low THC plants or parts of plants of Cannabis sativa L. cultivated for agricultural or industrial purposes, of which the leaves and flowering heads do not contain more than 2% THC. This is significantly higher than the previous limit of 0.2% and is considered to be better aligned with South Africa’s agronomic environment, helping farmers avoid crop losses due to natural variations in THC content.

In 2025, two South African hemp seeds were registered – ARC-CAN 001 and ARC-CAN 003) – which were planned to be multiplied during the financial year 2025/2026.

The Department of Trade, Industry and Competition is currently working on the Hemp and Cannabis Commercialisation Policy which is expected to be ready for presentation to the Cabinet by April 2026. Once fully developed and approved, this commercialisation policy will create a modernized industry framework with greater export opportunities.

Hemp Permit

A Hemp Permit issued by the Registrar of the Plant Improvement Act (PIA) is required in order to cultivate, propagate for breeding or research, clean or condition seed for cultivation, sell, import or export hemp in South Africa.

The application must be submitted on the application form found on the DALRRD website along with proof of payment.

To obtain the license, the applicant must:

• Be at least 18 years old.
• Have suitable qualifications, skills or experience to perform the activities specified on the permit.
• Have knowledge of the PIA requirements and offences as well as legislation relating to cannabis and its components.
• Provide a map/GPS coordinates for each premises.

Hemp Permit application fee: R 714

The Hemp Permit is valid for 3 years.

Import of Hemp Seed

Additional requirements for importing hemp seed include:

• An import authorization under the PIA.
• Permit for import of controlled goods under the Agricultural Pests Act, 1983.

Application for authorization to import hemp seed must include:

• A copy of the valid Hemp Permit of the importer.
• If varieties were bred and developed in another country, proof of variety registration or filing of an application for such registration or a different recognized certification.
• In case of germplasm or material for breeding or research, a copy of the material transfer agreement from the owner of the material.
• An analytical report stating the THC content of the plants from which the plants or propagating material is derived.
• If THC content of the plants or propagating material is higher than 0.2%, a valid permit/license issued under the Medicines Act.

Export of Hemp Seed

Additional requirements for exporting hemp seed include:

• An export certificate from the DALRRD.
• Seed test laboratory report not older than 6 months.
• Analytical report on the THC content of the plants from which the seed was obtained.
• Copy of the valid Hemp Permit of the exporter.
• Proof of payment in accordance with most recent tariffs.

CBD Extraction and Hemp CBD Products Manufacturing

Extracting CBD oil from hemp and manufacturing hemp CBD products requires a license from SAHPRA under Section 22C(1)(b) of the Medicines and Related Substances Act of 1965. This is the same license that permits to perform activities with medical cannabis. Additionally, in case of manufacturing, a permit from the Department of Health is also required.

SAHPRA has published a detailed guideline for cultivation of cannabis and manufacture of cannabis-related pharmaceutical products (which includes CBD products). Here is a brief outline of what needs to be submitted with the application for the license:

• General information on the applicant.
• Site information, including the Site Master File which provides information on the quality assurance, and the production and/or quality control of the operations carried out at the site.
• List of activities to be performed at the site.
• Personnel information. The applicant must have a Responsible Pharmacist (RP) who will be responsible for the manufacture or import of medicinal cannabis substances.
• The facility must comply with Good Manufacturing Practice (GMP), Good Laboratory Practice (GLP) and Good Agricultural and Collection Practices (GACP), as appropriate based on activities performed at the facility by the licensee.

Before a license is issued, the Law Enforcement/Regulatory Compliance will carry out an audit of the applicant’s operations to confirm that they comply with the GMP, GLP, and GACP, as applicable.

Fees payable for an application for a new license (according to the Government Gazette published on February 12, 2025):

• Manufacture: R26,200
• Distribute: R15,600
• Wholesale: R15,600
• Import: R15,600
• Export: R15,600

Annual renewal fee: R4,400

South African Hemp Market

In 2021, South Africa’s cannabis and hemp market was estimated at R87.7 million. It was projected to reach R406.3 million by 2026, growing at a CAGR of over 35%.

The South African cannabis and hemp market is estimated to have the potential value of R28 billion (US$1.7 billion) with the ability to create 10,000 to 25,000 jobs in the value chain. However, the South Africa’s Industrial Hemp Value Chain Development Study published in 2026 estimates that the domestic demand for hemp and hemp-derived products alone could reach up to R40 billion (US$2.5 billion) by 2040. It is noted in the report that this estimate was based on several assumptions and therefore provides a potential upper-bound market value. Some industry experts believe that South Africa can become a major player in the global hemp industry due to its diverse climate conditions, large areas of arable land, counter-seasonal production, and a strong manufacturing base.

The Plant Improvement Act’s amendment, which took effect on December 1, 2025, officially raised South Africa’s legal THC limit for hemp to 2%. This pivotal change is expected to significantly lower the risk of non-compliance for farmers – making cultivation more reliable, economically viable, and attractive to new entrants – ushering in a new phase of growth for the country’s hemp industry.

At the start of 2023, there were 371 hemp permits issued nationally. By October 2023, there were 664 permit holders in the KwaZulu-Natal province specifically. As of September 2024, the DALRRD issued a cumulative total of 1,110 hemp permits. As of September 2025, the number of issued permits rose to 1,408. According to the Industrial Hemp Value Chain Development Study, from 2022 to 2025 the DALRRD has issued 1,725 permits.

The greatest number of hemp permits has been issued in the Kwa-Zulu Natal province which studies have shown has a well-suited climate for hemp cultivation. Gauteng and Eastern Cape provinces are two other large hubs for hemp permit holders. In these three provinces, hemp cultivation clusters can be identified – areas with a high density of hemp farms of varying sizes, from micro (up to 2 hectares) to large (20 to 50 hectares).

According to the Industrial Hemp Value Chain Development Study, hemp industry stakeholders state that food, building and construction materials, general and clothing textiles, bio-composites and bioplastics, pulp and paper, and personal care products are the sectors with highest demand for South African hemp. However, the stakeholders also mentioned two major challenges that must be overcome: unclear regulatory classification of hemp as an agricultural commodity and lack of processing infrastructure such as decortication plants that separate bast and hurd fibers.

South Africa Hemp CBD Industry Infographics

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South Africa Cannabis Market