What Fundamental Structures Does South Africa Need to Put in Place to Build an Inclusive and Thriving Hemp Industry?
DOI:
https://doi.org/10.17159/2413-3221/2025/v53n5a21379Keywords:
Cannabis, Hemp, South Africa, Cannabis Master Plan, Smallholder FarmersAbstract
This discussion paper examines the potential and challenges of developing an inclusive hemp industry in South Africa, with a focus on the necessary regulatory, socioeconomic, market, and policy frameworks. The study reviews current legislative frameworks, relevant literature, and policy documents to discuss how meaningful participation of smallholder farmers in the cannabis value chain can be achieved. It emphasises the importance of a supportive policy environment, access to finance, and capacity-building initiatives to foster sustainable and equitable growth in the hemp sector. The discussion underscores the importance of coordinated efforts and learning from other industries to promote the participation of small-scale farmers and entrepreneurs, thereby driving economic development and job creation in rural communities. Numerous knowledge gaps have been identified that could aid in the implementation of the Cannabis Master Plan.
Downloads
References
ADESINA, I., BHOWMIK, A., SHARMA, H. & SHAHBAZI, A., 2020. A review on the current state of knowledge of growing conditions, agronomic soil health practices, and utilities of hemp in the United States. Agric., 10(4): 129.
AGRICULTURAL RESEARCH COUNCIL., 2024. Farmer and agricultural advisor training in nine provinces. Hatfield, Pretoria.
ÁLVAREZ-MINGOTE, C. & MCNAMARA, P., 2018. Evaluating agricultural extension and advisory services through a governance lens. J. Int. Agric. Ext. Educ., 25: 71–86.
BEGHIN, J.C. & FAFCHAMPS, M., 1995. Constitutions, institutions and the political economy of farm policies: What empirical content? In G.H. Peters & D.D. Hedley (eds.), Agricultural competitiveness: Market forces and policy choice. UK: Dartmouth Publishing Company, pp. 287-295.
DAS, R., 2024. Establishing Robust Tools for Cannabis propagation and variety improvement. Doctoral dissertation, Southern Cross University.
FRANSMAN, T. & YU, D., 2019. Multidimensional poverty in South Africa in 2001–16. Dev. South. Afr., 36(1): 50-79.
GEDIK, G. & AVINC, O., 2020. Hemp fiber as a sustainable raw material source for textile industry: can we use its potential for more eco-friendly production? In S.S. Muthu & M.A. Gardetti (eds.), Sustainability in the textile and apparel industries. Springer, pp. 87–109.
GERMAN, L.A., BONANNO, A.M., FOSTER, L.C. & COTULA, L., 2020. “Inclusive business” in agriculture: Evidence from the evolution of agricultural value chains. World Dev., 134: 105018.
GERSHON, O., MATTHEW, O., OSUAGWU, E., OSABOHIEN, R., EKHATOR-MOBAYODE, U.E. & OSABUOHIEN, E., 2020. Household access to agricultural credit and agricultural production in Nigeria: A propensity score matching model. S. Afr. J. Econ. Manag. Sci., 23(1):1-11.
GOVERNMENT OF CANADA., 2025. Hemp and hemp industry frequently asked questions. Available from https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/producing-selling-hemp/about-hemp-canada-hemp industry/frequently-asked-questions.html
IAFRICA., 2023. South Africa’s Cannabis industry could emerge as a powerhouse, generating myriad jobs and income opportunities. Available from https://www.farmingportal.co.za/index.php/agri-index/68-crops/9001-south-africa-s-cannabis-industry-could-emerge-as-a-powerhouse-generating-myriad-jobs-and-income-opportunities
JENKINS, E., DEARDEN, T., FIGUERAS, A., MCGUINNESS, L., EWERT, A. & HAINES-SAAH, R., 2023. Cannabis education resources for parents: An environmental scan and critical content analysis in the context of legalization. Drugs Educ. Prev. Policy., 30(2): 124-140.
KABWE, S., MUTAMBARA, J., MUJEYI, K., BLACKMORE, E., VORLEY, B. & WENG, X., 2018. Contract farming and informality: drivers and governance responses in Zambia and Zimbabwe. London, UK: International Institute for Environment and Development (IIED).
KWENDA, P., NTULI, M. & MUDIRIZA, G., 2023. Exploring unemployment differentials between former and non-former homeland areas in South Africa: A decomposition approach. Dev. South. Afr., 40(1): 166-190.
LOUWAARS, N.P. & MANICAD, G., 2022. Seed systems resilience—an overview. Seeds., 1(4): 340-356.
LOWIT, S., 2020. Industrial development projects: Industrial hemp. Available from https://www.tips.org.za/images/Industrial_hemp_post_covid_industrial_development_projects.pdf
LUKHALO, T., 2017. An expenditure review of agricultural extension system in South Africa. Master’s thesis, University of Pretoria, Pretoria.
MAAKE, M.M.S. & ANTWI, M.A., 2022. Farmer’s perceptions of effectiveness of public agricultural extension services in South Africa: An exploratory analysis of associated factors. Agric. Food Secur., 11(1): 34.
MAGESA, M.M., MICHAEL, K. & KO, J., 2020. Access and use of agricultural market information by smallholder farmers: Measuring informational capabilities. Electron. J. Inf. Syst. Dev. Ctries., 86(6): 12134.
MAILULA, L.P., NHUNDU, K., MUSHUNJE, A., GEORGE, M., SEDI, M., OBUNYALI, C., OIKEH, S. & MADUBANYA, L.A., 2024. Welfare impact of genetically modified TELA® Bt maize varieties and their adoption among smallholder farmers in South Africa. J. Dev. Agric. Econ., 16(3): 111-121.
MOAHID, M. &. MAHARJAN, K.L., 2020. Factors affecting farmers’ access to formal and informal credit: Evidence from rural Afghanistan. Sustain., 12(3): 1268.
NORDJO, R.E. & ADJASI, C.K., 2020. The impact of credit on productivity of smallholder farmers in Ghana. Agric. Finance Rev., 80(1): 91-109.
OBRADOVIC, I., 2021. From prohibition to regulation: A comparative analysis of the emergence and related outcomes of new legal cannabis policy models (Colorado, Washington State and Uruguay). Int. J. Drug Policy., 91: 102590.
ORTMANN, G.F., 2005. Promoting the competitiveness of South African agriculture in a dynamic economic and political environment. Agrekon., 44(3): 286–320.
PETTI, T.A. & CHATLOS, J.C., 2021. Implications of cannabis legalization: A national and international perspective. Adolesc Psychiatry.,11(2): 80-94.
ROB, V.O.S. & CATTANEO, A., 2021. Poverty reduction through the development of inclusive food value chains. J. Integr. Agric., 20(4): 964-978.
SABATIER, P.A. & WEIBLE, C., 2014. Theories of the policy process. Westview Press.
SAVIĆ, B., PETROVIĆ, M. & VASILJEVIĆ, Z., 2020. The impact of transportation costs on economic performances in crop production. Ekon. Poljopr., 67(3): 683-697.
SHABANGU, A., 2024. National Department of Agriculture. Personal communications.
SHACKLETON, C.M., MOGRABI, P.J., DRIMIE, S., FAY, D., HEBINCK, P., HOFFMAN, M.T., MACIEJEWSKI, K. & TWINE, W., 2019. Deactivation of field cultivation in communal areas of South Africa: Patterns, drivers and socioeconomic and ecological consequences. Land Use Policy., 82: 686–699.
SHEKINAH, D.E. & STUTE, J.K., 2018. Sunn hemp: A legume cover crop with potential for the Midwest? Sustain. Agric. Res., 7(4): 63-69.
SHEPHERD, A.W. & CADILHON, J.J., 2008. Commodity associations and their potential role in supply chain development. BANWA., 8(2): 90–114.
SIHLOBO, W.A., 2023. Country of two agricultures: The disparities, the challenges, and the solutions. Johannesburg: Tracey McDonald Publishers.
STATISTICS SOUTH AFRICA., 2016. Community Survey 2016: Agricultural households. Available from https://www.statssa.gov.za/publications/03-01-05/Presentation_CS2016_Agricultural_Households.pdf
STATISTICS SOUTH AFRICA., 2022. General Household Survey, 2022. Available from https://www.statssa.gov.za/publications/P0318/P03182022.
VON MALTITZ, L., DAVIS, K., SUVEDI, M., CHANZA, C., AGWU, A.E., SASIDHAR, P.V.K., DIMELU, M.U., LIVERPOOL-TASIE, L.S.O., ANUGWA, I.Q. & TCHUWA, F., 2023. Strengthening agricultural extension training: Process skills and competency gaps in undergraduate agricultural extension curriculum in South Africa. Partnerships for Innovative Research in Africa (PIRA) Research Report. East Lansing, Michigan, USA: Alliance for African Partnership, Michigan State University.
ZANTSI, S., CLOETE, K. & MÖHRING, A., 2021. Productivity gap between commercial farmers and potential emerging farmers in South Africa: Implications for land redistribution policy. Appl. Anim. Husb. Rural Dev., 14(1): 22-30.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 L.P. Mailula, S. Zantsi, M. Mamabolo, A. Mushunje, S. Zantsi

This work is licensed under a Creative Commons Attribution 4.0 International License.


.png)