South Africa’s cannabis industry sits in limbo. While the global tide has turned in favour of regulation and growth, our government continues to stall on finalising legislation that could unlock a multibillion-rand sector. The benefits—new revenue streams, job creation, export potential—are clear, yet meaningful progress remains elusive.

For years, industry bodies have lobbied hard for reform. The President himself has praised the cannabis sector’s economic potential during multiple State of the Nation addresses. And yet, the reality is always two steps forward, one step back.

Frustrating Delays, Billions Sunk

This persistent delay is especially frustrating for investors who, following the 2018 legal shift toward private use and medical cultivation, committed tens of millions to what appeared to be a promising new frontier. They did so with the expectation that government would follow through by establishing a complete legal framework. Seven years on, many of those early believers have watched their capital wither.

Billions of rands have gone into medical cannabis facilities designed to meet the export standards of the time. But the arrival of COVID-19 dealt a harsh blow—closing international borders just as facilities came online. At the same time, overseas markets raised the bar for product quality, creating even more hurdles for South African producers.

These cultivators found themselves in a squeeze. They couldn’t export under the new quality standards. Domestically, there were almost no licensed dispensaries to sell into, and the local medical distribution system was woefully underdeveloped. They also couldn’t legally sell into the recreational market. As a result, several of these ventures have gone into business rescue, been put up for sale, or simply shut down. It’s been a devastating loss—both for individual investors and the industry as a whole.

Meanwhile, Back at the Ranch

Meanwhile, on the retail side, entrepreneurs took a different path. Following global trends seen from Barcelona to Prague, South African cannabis clubs, lounges, and wellness stores began popping up in major cities. With no formal supply chain available, many turned to private craft growers or excess stock from licensed medical cultivators. Across the world, cannabis stakeholders created their own workarounds in the face of bureaucratic inertia—and South Africa has been no different. The amazing thing is that Property Managers are touting cannabis outlets as one of the fastest growing retail formats in South Africa. I’ve heard people talk of more than 3 000 outlets operating across SA - in malls, strip-malls and neighbourhood shopping districts!

Over the past four years, this grey market has grown into one of the fastest-expanding retail categories in the country. From Johannesburg to Durban to Cape Town, new stores and lounges are opening, offering a variety of cannabis-related and wellness products. Most are legally registered businesses, paying VAT and contributing to the economy.

Despite government inaction, a dynamic sector is thriving. Nowhere is this more apparent than in Cape Town, which is fast becoming a hub for canna-tourism. Some of the country’s most stylish cannabis stores and lounge clubs are emerging here, attracting both locals and international visitors. It's the beginning of what could be a significant new income stream for South Africa.

There Comes a time When Enough is Enough

But there’s a limit to how long this growth can continue without proper legislative support. Nature abhors a vacuum—and that vacuum has been filled by enterprising South Africans willing to take risks. What the sector needs now is clear, practical, and forward-thinking legislation.

Government must act. The longer the delay, the more investors will suffer, the more jobs will be lost, and the more potential revenue will go untapped. South Africa doesn’t just need to legalise cannabis—it needs to regulate it in a way that makes economic, social, and health sense.

There’s still a window of opportunity to get it right. The groundwork has been laid by passionate pioneers. It’s time for the state to step up, provide the regulatory certainty this industry needs, and allow South Africa’s cannabis economy to truly flourish.

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