DTIC Director General Simphiwe Hamilton (pictured here) is guiding cannabis policy development within the department which is the lead institution driving the National Cannabis Master Plan. He says cannabis is part of the Government’s ‘re-imagining’ of industrial policy and provides an executive summary of the draft policy document put out for comment.
5 July 2025 at 13:45:00
Simphiwe Hamilton, Director General, Department of Trade, Industry and Competition
Final Revised Discussion Document: National Policy on the Commercialisation of Hemp and Cannabis in South Africa, 3June 2025
Executive Summary
In 2019, Cabinet endorsed the Re-imagined Industrial Strategy (RIS). The RIS re-emphasizes the role of the state in changing the growth trajectory of the South African economy through supporting improved industrial performance, competitiveness and job creation. Industrialization through Master Plans is one of the five growth engines which underpins the RIS.
The draft NCMP therefore responds to the RIS with the objective of increasing inclusive economic growth, creating jobs and alleviating poverty through the industrialisation and commercialization of hemp and cannabis. It should be acknowledged that one of the major milestones achieved to date coming from the draft NCMP is the declaration of hemp (whose THC content is not more than 0.2%) as an agricultural crop. (Editors note: Agriculture Minister John Steenhuisen says the THC limit will be lifted to 2%)
The draft NCMP prioritizes the following areas which have been identified in order to develop a framework in support of the industrialization and commercialization of hemp and cannabis:
• Sustainable seed supply systems & producer support systems;
• Product Development and Processing (including Research Development and innovation);
• Market and Supplier Development;
• Regulatory Systems;
• Education and Training; and
• Communication and Awareness
Consultations will continue towards finalizing the draft NCMP with private sector, labour and community constituencies. Any material issues that may arise from the NEDLAC process will be dealt with appropriately in the proposed commercialisation policy.
The NCMP is aimed at providing a framework for the establishment, growth and development of the cannabis industry in South Africa in order achieve the following to:
Contribute to economic growth, poverty alleviation and job creation.
Increase the volumes and variety of cannabis products destined for both local and export markets.
Establish and increase the capacity of South African farmers to produce cannabis and hemp
Create opportunities for creation of small and medium size enterprises across the cannabis value chain.
Replace imported cannabis products with locally produced productIncrease investments in research and technology development to support increased production, productivity and competitiveness of the cannabis industry and increase the manufacturing capacity of the South African cannabis industry.
Development and maintenance of an effective regulatory system by strengthening law enforcement measures to deter the production, manufacturing and sale of cannabis outside the legal framework.
The development of legislation to regulate the commercialisation of cannabis in South Africa falls under the Pillar 1 of the draft NCMP dealing with Effective Regulatory Systems.
The pillar focuses on reviewing the current and developing a new regulatory framework for both hemp and cannabis. This might include amendment of existing legislation by removing existing constraints that are hindering commercialisation. The Department of Health leads this pillar, supported by the Department of Justice and Correctional Services.
The key intervention measures regarding this pillar include finalizing the amendments to both the Drugs and Drugs Trafficking Act (DDTA) to remove the remaining restrictions that prohibits commercialisation of all aspects of the cannabis value chain and develop a policy to provide a framework for development of a new regulatory system and related matters of the cannabis industry in South Africa
Beside Pillar 1, the dtic leads the manufacturing and product development pillar supported by Department of Science and Innovation, and the Department of Small Business Development. The pillar will focus on supporting the growth and development of the manufacturing sector for Cannabis products.
The dtic also leads the pillar on market development and supports Pillar 6 on Supplier Development Systems, which pillar focuses on supporting a wide range of suppliers to participate in the cannabis value chains in order to ensure sustainable growth and development of this industry. This pillar is led by the Department of Small Business Development (DSBD).
It is hoped that this draft policy will spark fruitful debates and discussions which will enhance development of a sound hemp and cannabis commercialization policy for South Africa that will ensure a well-regulated cannabis industry that will also contribute towards economic growth, given the potential possibilities of jobs that can be created.
Mr Simphiwe Hamilton
DG – Department of Trade, Industry and Competition (the dtic)
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