As of 10 January 2025, SAHPRA had 85 registered cannabis cultivators on its books, down from 130 or so in October 2024. This represents a drop of over 25% in just three months.

There has been no official word from SAHPRA on the reasons for the decline. Many of the five year licenses granted early in 2020 have lapsed but it’s also understood that SAHPRA inspectors have closed down several facilities.

The biggest problem facing licensed cultivators, however, is the restricted regulatory environment, which does not allow them to sell into the local market.  Market talk is that fewer than 10% of SAHPRA-licensees are actually exporting their cannabis which has led to massive problems of ‘dumping’ into the local ‘grey zone’ or ‘black’ markets. This is said to be particularly prevalent in Gauteng, which has the largest number of registered growers. It has also had a knock-on effect on legacy rural growers who, as a result of the dumping, have not managed to move their own inventory.

As Johann Slabber of Nexus has pointed out: SAHPRA approval does not automatically enable a grower to export to Europe, which requires GAMP certification. Because SAHPRA cannabis cultivation licenses are issued for export only, many players have had to increase their investment in facilities in order to be compliant.

Although the authorities have given tacit approval to licensed growers supplying Section 21 medical patient requirements, there has been a build-up of surplus inventory and a great deal of ‘non-productive’ capital.

Assuming a conservative estimate of R25 million capex per SAHPRA-approved facility, this would indicate investment that’s already in the ground of about R2,1 billion. The figure is likely to be considerably higher given the JSE-listed Cilo Cybin Midrand facility has alone been valued at R825 million.

Authorities also appear to have given tacit approval to the JSE-listed Labat Group to route it’s export facility production into the local market.  Cannabiz Africa has received several queries about the legitimacy of Labat’s decision to use its Sweetwaters Eastern Cape facility to supply its rapidly-growing Cannafrica retail brand.

Neither Labat nor SAHPRA have been available for comment on the issue.

However, the JSE group felt comfortable enough to state in its 2024 annual financial report that redirecting its aquaponically grown, organic cannabis to it growing Cannafrica network (currently at over 80 stores nationwide) had been a profitable decision. It said exports were on hold for the time being.

As of early January 2025, the SAHPRA data-base, showed that Gauteng remains the epi-centre of licensed cultivators  with 27 on the books, 18 in the Western Cape and 10 in KwaZulu Natal. There are licensed operators in all nine provinces, with the fewest being in the Free State.

Licensed SAHPRA Facilities by Province (10 January 2024)

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