The Department of Trade, Industry and Competition proposes setting up a Cannabis Licensing Authority and wants to accelerate’ the establishment of such a body.  One of its priorities will be to issue licenses for retail as well as growers and manufacturers.

This authority “will be responsible for administrative implementation of the policy and will largely deal with matters such as development of national register of licensees, registrants, processing and issuing of licences, processing of applications for exemptions”.

That’s according to a document released this month by the DTIC entitled “National Policy on the Commercialisation of Hemp and Cannabis in South Africa:Towards a Comprehensive and Inclusive Hemp and Cannabis Commercialisation in South Africa; Revised Draft Discussion Document, June 2025).

The document, which has been seen by Cannabiz Africa, will be put out for public comment shortly.

It’s objective is to provide a regulatory framework for the commercialisation of cannabis in South Africa as part of the National Cannabis Master Plan in line with the country’s the Re-Imagined Industrial Strategy (RIS).

Among the proposals contained in the 50 page document are that commercialisation should take place through a defined regulatory framework as opposed to self-regulation by the industry.  It says the proposed Cannabis Licensing Authority will license “entities within manufacturing, distribution and retailing.”

The DTIC envisages a “Compulsory Certification Scheme of Hemp and Cannabis” to deal with “the registration of all companies and organisations involved in breeding, multiplication and sale, seed producers, packers” to provide “ variety control and the listing of an import and export control system.” .

The Department recognizes that the illicit trade in cannabis has contributed to economic development in rural areas and wants the new framework to incorporate legacy farmers and the rural communities they operate within.

It estimates the amounts generated by rural growers “amounts to millions of rands, which support the notion that this sector need to be formalised and be allowed to be integrated in the formal economy. Government must also explore the possibility of financial support of this sector to grow and develop it so that it may actively and effectively participate in the market’s value chain. “

The document  emphasizes that one of the primary focuses in commercializing cannabis is to build a regulated cannabis SMME sector through funding and other support mechanisms.

“SMME ‘s must be empowered to make sure that they compete with all the big role-players in the industry, inclusive of manufacturing for both local and export market. This policy will also seek to encourage inclusivity of SMMEs from previously disadvantaged backgrounds and rural communities, especially those communities that have long been engaged in the cannabis industry from the Eastern Cape as well as KwaZulu-Natal provinces” says the document.

The DTIC supports the “Establishment of Viable Seed Supply Systems” to identify the most suitable cultivars for local industry to promote and secure it.  It also wants Indigenous Knowledge Systems (IKS) to be recognized within the framework .

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