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SONA 2025: A World Within One Word Gives Private Sector Cannabis Stakeholders Some Hope

Brett Hilton-Barber, Cannabiz Africa

10 February 2025 at 15:00:00

Private sector cannabis stakeholders have taken an upbeat view of President Cyril Ramaphosa’s brief reference to cannabis and hemp in last week’s SONA. The fact that the word ‘commercial’ passed the President’s lips, has elicited an initial positive response from a fragmented industry awaiting guidelines on the way forward.

 

‘We want South Africa to be leading in the commercial production of hemp and cannabis’ said President Ramaphosa mid-way through his 2025 SONA (State of the Nation Address) on 6 February 2025.


Fifteen official words on a sunrise sector may not sound like much, but that’s 15 words more than there were in SONA 2023 and 2024 combined on the cannabis sector, which has been through hard times in the past two years.


The president went off script slightly at that point, recognizing the partiality of the Eastern Cape and KwaZulu to cannabis in general, but his brief nod to commercialization has heartened the private sector, desperate for a glimpse of hope in a fragmented and unregulated market.


Government says ‘changes are coming soon’


A day after SONA, on 7 February 2025, Government issued the following statement on its official website regarding the development of the SMME sector. Under the heading “Making and Buying Local, the statement read:

“The Cannabis master plan aims to increase the quality and variety of cannabis being produced for local and international markets. We are moving to create the enabling conditions for the sector to grow.


“The Department of Agriculture Land Reform and Rural Development and the Department of Health will address existing conditions for the cultivation of hemp and cannabis to allow outdoor cultivation and collection of harvests from traditional farmers.


Government will also be implementing changes to the policy and regulatory framework drive investment and jobs in this sector" concluded the statement.


Cheeba’s Siboto takes heart from the reference to ‘commercial’


Linda Siboto, director of Cheeba Africa, which is involved at a foundational level in the cannabis industry, told Cannabiz Africa, he was upbeat about the President’s brief pronouncement:


"The inclusion of the word ‘commercial’ is a positive sign” he said, as it signals a shift towards recognizing hemp and cannabis as viable economic industries in South Africa. It suggests a move beyond small-scale or informal cultivation toward large-scale, regulated production that can contribute meaningfully to job creation, economic growth, and global trade"


He said "commercial production also implies the establishment of industry standards, compliance with international markets, and opportunities for investment, all of which are crucial for South Africa to position itself as a leader in the global hemp and cannabis sectors.


Siboto said that while there was still work to be done in terms of policy, infrastructure, and market readiness, the fact that ‘commercial’ was being actively included in discussions "is a step in the right direction."


Afriplex’s Nel has high hopes for GNU but says private sector is on its own


Danie Nel, CEO of Afriplex, the biggest CBD processor in South Africa, said the new GNU offered hope to the cannabis industry and President Ramaphosa was being brave in pursuing cannabis development, but warned that private sector stakeholders should not get their hopes up too high.


“The SONA reflects a major change in the policy and execution direction by the State now that the GNU partners are contributing and opposing destructive practises from the 6th Administration” he said.

 

“The President is brave to take the GNU route and should be supported”.

 

But he cautioned: “We are used to the promises from politicians. The cannabis industry is left on its own and therefore should not wait for the State to support or to intervene”. 

 

Nonetheless, Nel said there were multiple opportunities for business to explore in the South African cannabis landscape, particularly in the export market.

 

“We are making good progress in the international market with our cannabis products and are taking our partners in the supply chain with us” said Nel, who has opened up new markets in Asia for cannabinoids that accelerate the processing of polymers. 

 

Nexus’s Slabber: ‘SONA reflects a necessary shift’

 

Johann Slabber, CEO of Nexus, which has attracted a multi-million rand investment from international funders for cannabis processing facilities in Gauteng and Cape Town this year, welcomed the President’s words as a progressive step.

 

He said the President’s highlighted desire to be a commercial leader in the sector signalled a shift: “It signals the intention to move from informal cultivation to a structured, regulated market.”

 

“This shift towards commercial thinking was the only way South Africa could become a market leader, but he warned that the commercil succes of the industry could only be achieved if there were guiding regulations and industry standards that levelled the playing field.

 

But he warned that successful implementation would require “robust policy frameworks, infrastructure development, and market preparation to fully realize this vision”.


Weisz: We’ve heard it all before, now just change the law!’

 

Darryl Weisz, director of Silverleaf Investments, South Africa’s first dedicated cannabis investment fund, has long been calling for the DTIC to urgently provide a set of guidelines for the cannabis industry which has been in a legal vacuum since the Constitutional Court legalized the private possession and consumption of cannabis.

 

Although the President passed the Cannabis for Private Purposes Act into law last year, it has not yet been gazetted as the Justice Department has not yet provided the regulations required to enable it.

 

Weisz says the delay in providing proper guidelines for the cannabis industry have prejudiced the private sector.  Rogue entrepreneurs have edged out legitimate operators in the establishment of thousands of cannabis retail outlets across the country, all of which are illegal.

 

He says the industry has run out of enthusiasm for Government’s “rallying” calls.  “The cannabis category is a no-brainer for job creation and building the economy, but nothing will translate into any tangible action unless the single biggest barrier to this industry’s success is unlocked. After all this time there is still no significant change to the legislation to enable the industry to grow rapidly and legally”

 

“So I live in hope that the honourable mention of cannabis is sincere and that we will indeed see some rapid action from Government to fast track a supportive legislative framework for the industry. But I  don’t quite understand how he gets to the vision of  SA becoming the biggest and best cannabis and hemp hub in the world in the current environment. I’d love to believe that it isn’t just empty barrel talk from the politicians.”

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