South Africa’s cannabis regulatory landscape remains in a state of significant transition as of January 2026, presenting both opportunities and substantial legal risks for those seeking to resell cannabis products. The signing of the Cannabis for Private Purposes Act in May 2024 formally decriminalized private adult use, yet commercial trade in cannabis remains strictly prohibited outside of tightly regulated medical and industrial hemp channels until comprehensive commercial regulations are finalized, with a target completion date of March 2026. For entrepreneurs and businesses considering entry into the cannabis resale market, understanding the current legal framework is essential, as attempting to navigate the grey zones or operate without proper licensing exposes participants to significant criminal liability, regulatory penalties, and enforcement action from South African health, agricultural, and law enforcement authorities.

Understanding the Current Regulatory Bifurcation: Private Use versus Commercial Activity

The fundamental distinction shaping all cannabis-related compliance obligations in South Africa is the separation between private, decriminalized use and any form of commercial activity. The Cannabis for Private Purposes Act permits adults to possess, cultivate, and consume cannabis in private settings, with possession limits of up to 600 grams for individuals living alone or 1.2 kilograms for households with two or more adults. However, this private use protection extends exclusively to personal consumption and does not authorize any commercial transactions whatsoever. The Act specifically criminalizes smoking cannabis in public or selling it, creating a clear legal boundary that resellers must understand before undertaking any business activities.

The constitutional underpinnings for private use derive from the Constitutional Court’s 2018 judgment in Minister of Justice v Prince, which declared certain provisions of the Medicines and Related Substances Act unconstitutional insofar as they criminalized possession and cultivation of cannabis by adults in private for personal consumption. However, this landmark judgment did not legalize or authorize any commercial cannabis activities. Instead, it created a narrow carve-out for personal use that remains entirely distinct from any regulated commercial channel. This distinction has proven to be the source of considerable confusion in the market, as many retailers currently operating cannabis dispensaries and selling cannabis-infused products are technically operating illegally, with both the suppliers and retailers exposed to prosecution under the Drugs and Drug Trafficking Act, 1992.

Medicinal Cannabis Licensing: The Primary Legal Route for Resellers

For businesses seeking to engage in legal cannabis product resale, the medicinal cannabis pathway represents the only currently viable regulated channel, though it remains highly restrictive and subject to stringent requirements. The South African Health Products Regulatory Authority (SAHPRA) oversees the licensing of all entities engaged in the cultivation, manufacture, import, export, distribution, and wholesaling of cannabis-containing products intended for medicinal use.

Resellers seeking to distribute medicinal cannabis products must first understand the licensing requirements applicable to their specific role in the supply chain. SAHPRA distinguishes between cultivators, manufacturers, importers, exporters, wholesalers, and distributors, with each category subject to distinct licensing prerequisites and ongoing compliance obligations. A reseller intending to purchase finished medicinal cannabis products from a licensed manufacturer and distribute them to retail outlets or other end-users would typically require either a wholesale license or a distribution license issued in terms of section 22C of the Medicines and Related Substances Act.

The application process for a wholesale or distribution license is rigorous and demands comprehensive documentation. Applicants must submit detailed site information identifying all premises where activities will occur, including separate applications for each location. The Site Master File (SMF), a critical compliance document prepared by the applicant, must accompany the license application and provides information on the applicant’s operations and procedures for SAHPRA’s planning and inspection purposes. This SMF must conform to SAHPRA’s guidelines and must not be older than two years when submitted with a license application.

In addition to the SAHPRA license requirement, resellers must also obtain a permit from the Director-General of the National Department of Health in terms of section 22A(9)(a)(i) of the Medicines and Related Substances Act. This dual licensing requirement, one from SAHPRA and one from the Department of Health, applies to all entities engaged in the acquisition, possession, manufacture, or supply of Schedule 6 or Schedule 7 substances for medicinal purposes. Failure to obtain both authorizations renders all commercial activity illegal and subjects violators to criminal prosecution.

Navigating the Medicines and Related Substances Act Scheduling Framework

A critical prerequisite to understanding resale compliance obligations is comprehension of how cannabis and cannabinoid products are scheduled under the Medicines and Related Substances Act, as the scheduling status determines regulatory treatment, access pathways, and permitting requirements. The Act employs a scheduling system ranging from Schedule 0 (lowest restriction, no prescription required) to Schedule 8 (highest restriction), with cannabis and THC products formerly classified as Schedule 7 substances (deemed to have no legitimate medical use) prior to recent scheduling amendments.

Tetrahydrocannabinol (THC), the psychoactive component of cannabis, is currently listed as a Schedule 6 substance when used for therapeutic purposes as a synthetic variant (dronabinol) or for personal and industrial purposes meeting specific criteria. Schedule 6 substances are available only on the prescription of an authorized prescriber (a medical practitioner) and can only be obtained from a pharmacy or a dispensing license holder. This means that any reseller wishing to distribute THC-containing products for medicinal purposes must maintain pharmacy operations or hold a specific dispensing license, and all sales must be preceded by valid medical prescriptions.

Cannabidiol (CBD), the non-psychoactive cannabinoid, occupies a more complex regulatory position. CBD is listed as a Schedule 4 substance in general, meaning it requires a prescription from an authorized prescriber for dispensation. However, specific CBD products meeting narrow criteria are classified as Schedule 0 substances and can be purchased off-the-shelf without a prescription from pharmacies, supermarkets, health shops, or convenience stores. These Schedule 0 CBD products, termed Unscheduled CBD Products, must comply with strict cannabinoid thresholds: they may contain no more than 0.001% THC and no more than 0.0075% CBD (approximately 75 parts per million), and only naturally occurring cannabinoid quantities found in the source material are permitted.

The March 2025 prohibition on foods containing cannabis derivatives created an additional compliance layer that resellers must navigate. The Minister of Health, pursuant to section 15 of the Foodstuffs, Cosmetics and Disinfectants Act, 1972, banned the sale, importation, and manufacture of foodstuffs containing any part of the cannabis plant or component derived from it, including hemp seed oil or hemp seed flour. This regulation directly impacts CBD and hemp-infused food products, which may no longer be legally sold as foodstuffs, regardless of THC or CBD concentration. Resellers currently distributing cannabis-infused edibles face immediate compliance obligations to cease such activities or face enforcement action.

Hemp and Industrial Cannabis Resale Requirements

Hemp products represent a more accessible entry point for cannabis-related resale activities, provided resellers strictly adhere to permitting requirements and THC concentration thresholds. Industrial hemp is defined as cannabis cultivated for fiber, seed, and low-THC applications, with a maximum permissible THC concentration of 0.2%. The Department of Agriculture, Land Reform and Rural Development (DALRRD) administers a permit scheme for hemp cultivation and industrial processing unveiled in 2021.

Resellers seeking to distribute processed hemp fiber products (such as textiles, bricks, and ceiling boards) or cannabis seed products (such as hemp seed oil and cosmetics containing hemp seed oil) must ensure that such products meet rigorous specifications to qualify as exempt from Schedule 7 classification. Processed hemp fiber products may be legally distributed only if the THC concentration is not greater than 0.01%, the product is in a form not suitable for ingestion, inhalation, or smoking, and the product does not contain whole cannabis seeds. Processed cannabis seed products may be legally distributed if the THC concentration does not exceed 0.001% and the product does not contain whole cannabis seeds.

Resellers must obtain analytical reports from accredited laboratories confirming THC and CBD content before distributing any hemp-derived products. The Department of Trade, Industry and Competition (the dtic) has emphasized that all applications for manufacturing and resale of cannabis or hemp products must be accompanied by certificates from South African laboratories accredited to analyze cannabis products, confirming THC and/or CBD levels. Failure to provide such verification exposes resellers to claims of misrepresentation and potential regulatory action by SAHPRA or the dtic.

Hemp seed products also face significant restrictions following the March 2025 prohibition on hemp-containing foods. Resellers must ensure that hemp seed oil products are not marketed as foodstuffs or food ingredients, as the regulatory ban extends to any processed or unprocessed foodstuff containing hemp seed oil. This restriction has effectively eliminated a substantial segment of the previously thriving hemp seed oil market, with many retailers forced to discontinue product lines or face enforcement action.

Good Manufacturing Practice and Manufacturing License Requirements

Any entity engaged in the manufacture, extraction, or processing of cannabis or cannabis-derived products for resale must comply with Good Manufacturing Practice (GMP) standards established by SAHPRA and maintain a valid manufacturing license issued in terms of section 22C of the Medicines and Related Substances Act. This requirement applies whether the reseller manufactures products in-house or sources manufactured products from suppliers; resellers are required to verify that all suppliers hold valid manufacturing licenses and comply with GMP standards.

SAHPRA’s GMP guidelines establish comprehensive requirements for facility design, equipment qualification, process validation, personnel qualifications, documentation systems, quality assurance procedures, and data integrity controls. Recent GMP non-compliance reports issued by Malta’s Medicines Authority in April 2025 to South African cannabis manufacturing sites document critical deficiencies in facility and equipment qualification, process validation, QA expertise, risk assessments, documentation, data integrity, line clearance, deviation management, and sampling practices. These deficiencies resulted in the denial of GMP certification to the inspected sites, illustrating the stringent standards applied to cannabis manufacturing operations.

Resellers must therefore conduct rigorous due diligence on suppliers before purchasing products for distribution. This due diligence should include verification of current SAHPRA manufacturing licenses, examination of GMP certification status, review of quality assurance procedures, and assessment of compliance records. Resellers who distribute products manufactured by non-compliant or unlicensed manufacturers face joint and several liability for regulatory violations and may face criminal prosecution for distribution of unregistered or non-compliant products.

Testing, Quality Assurance, and Product Certification Requirements

All cannabis and cannabinoid products distributed for resale must undergo rigorous testing and quality assurance procedures to verify product identity, potency, purity, and safety. SAHPRA requires that every batch and lot of cannabis products be analyzed for cannabinoid content, including CBD, CBDA, THC, THCA, certain terpenes, CBG, and CBN, with results documented and products labeled accordingly. Additionally, all products must be tested for microbiological contaminants, including total aerobic microbial count (TAMC), total yeast mold count (TYMC), Pseudomonas aeruginosa, Aspergillus species, and Staphylococcus aureus, as well as aflatoxins and ochratoxin A.

Heavy metals testing is mandatory, with analysis required for mercury, lead, arsenic, and cadmium content. Pesticide residue analysis must be conducted using appropriate analytical techniques such as gas chromatography with flame ionization detection (GC-FID) or mass spectrometry. Solvent residues in extracted products must be analyzed to ensure compliance with pharmaceutical standards, and stability testing must be conducted to establish product shelf life and storage requirements.

Resellers must maintain documentation of all testing results for every batch of products distributed and must retain samples sufficient for follow-up testing, as required by regulatory authorities. The Certificate of Analysis provided by the testing laboratory must accompany products throughout the distribution chain, and resellers must be able to produce these certificates upon request by regulatory inspectors or law enforcement. Failure to maintain testing documentation or distribution of products lacking valid Certificates of Analysis exposes resellers to regulatory enforcement action, product seizures, and potential criminal prosecution.

Mandatory Record-Keeping, Documentation, and Seed-to-Sale Compliance

Resellers must maintain comprehensive records documenting all cannabis or cannabis-derived products in their possession, including the source, quantity, date of acquisition, recipient information, and purpose of distribution. These records must conform to standards established by SAHPRA and, in many jurisdictions, must be entered into a seed-to-sale tracking system that maintains real-time documentation of product movement through the supply chain. Although South Africa has not yet mandated a specific seed-to-sale system, SAHPRA guidelines and international best practices strongly support implementation of such systems to ensure compliance and facilitate regulatory audits.

Resellers must retain invoices, purchase orders, distribution records, and laboratory test results for a minimum of three years. These records must be organized, readily available for inspection by regulatory authorities, and maintained in a manner that permits auditors to trace specific product batches from manufacturer through reseller to end customer. Non-compliance with record-keeping requirements represents a serious violation that can result in license revocation, administrative penalties, and criminal prosecution.

All records must accurately reflect the CBD and THC content of products, as verified by laboratory testing, and must disclose any product handling, storage, or stability issues that might affect product quality or safety. Records should also document any customer complaints, adverse events, or product recalls, with resellers maintaining systems to notify customers and regulatory authorities of any safety concerns identified post-distribution.

Labeling, Marketing Claims, and Consumer Protection Obligations

All cannabis and cannabinoid products distributed by resellers must bear clear, accurate labeling that complies with SAHPRA’s requirements and South African Consumer Protection Act standards. Products must be labeled with the correct cannabinoid content (CBD and THC concentrations in milligrams per serving), with labeling reflecting actual laboratory-verified content rather than manufacturer claims or estimates. Labeling must be accurate, clear, and not misleading, with any health claims supported by scientific evidence and pre-approved by SAHPRA.

Schedule 0 CBD products may make only low-risk health claims related to general health enhancement, health maintenance, or relief of minor symptoms. Products may not make disease claims (such as claims to treat cancer, epilepsy, or other serious medical conditions) without pre-market registration and SAHPRA approval. Resellers distributing products bearing unsubstantiated or prohibited health claims face enforcement action including product seizures, warning letters, civil penalties, and potential criminal prosecution under the Consumer Protection Act.

Labels must include warnings regarding appropriate use, contraindications, and potential side effects, and must include contact information for reporting adverse events to the reseller or SAHPRA. The Consumer Protection Act requires that consumers be provided with sufficient information to make informed decisions about product purchase and use, and resellers bear responsibility for ensuring that all marketing materials and product representations comply with this requirement.

The March 2025 health minister ban on edible cannabis products complicated labeling and marketing compliance significantly. While the ban was subsequently reversed, creating uncertainty about the current status of edible products, resellers should exercise extreme caution regarding edible cannabis product distribution pending clarification of regulatory intent. Resellers should monitor government communications and SAHPRA guidance to ensure compliance with any future regulatory developments.

Criminal Penalties and Enforcement Framework

Non-compliance with cannabis resale regulations exposes individuals and businesses to substantial criminal liability. Violation of the Medicines and Related Substances Act due to unlawful medicinal use or unauthorized distribution of cannabis carries sentences of up to ten years imprisonment, with or without fines. Violations of the Drugs and Drug Trafficking Act, 1992, which applies to recreational cannabis activities and unauthorized possession or distribution, carry sentences ranging between twelve months and twenty-five years imprisonment, with or without fines, depending on the severity of the offense.

Beyond criminal penalties, SAHPRA may revoke or suspend licenses held by resellers for breach of license conditions or failure to comply with regulatory requirements. Regulatory authorities may also conduct unannounced inspections at resale premises, seize products believed to be non-compliant or unlicensed, and refer matters to law enforcement for criminal investigation and prosecution. The regulatory compliance unit of SAHPRA has documented numerous instances of non-compliant cannabis resale operations, and enforcement actions appear to be increasing as regulatory capacity develops.

Additionally, South Africa’s banking sector has become increasingly vigilant regarding cannabis-related transactions, with many financial institutions terminating accounts associated with cannabis businesses operating outside the medicinal licensing framework. This creates practical difficulties for resellers seeking to process payments, access credit, and conduct routine business operations.

Interim Status and Future Commercial Regulations

As of January 2026, South Africa remains in a transitional period with respect to commercial cannabis regulations. The government has targeted completion of detailed commercial regulations for cannabis commercialization by March 2026, the end of the 2025/2026 financial year. These anticipated regulations are expected to address commercial cultivation, manufacturing, and retail activities for both medicinal and recreational cannabis, as well as licensing frameworks for these activities.

The Department of Trade, Industry and Competition (the dtic) has announced that a Hemp and Cannabis Commercialisation Policy is expected to be ready for cabinet approval and public comment by April 2026, with an Overarching Cannabis Bill intended to unify existing regulations (including the Cannabis for Private Purposes Act) scheduled for presentation to Parliament by mid-2027[44]. This legislative timeline suggests that regulatory clarity regarding commercial cannabis resale will remain limited throughout 2026.

However, even prior to finalization of comprehensive commercial regulations, resellers should not assume that any regulatory “grey zone” exists with respect to commercial activities outside the medicinal channel. SAHPRA and law enforcement have made clear that commercial cannabis resale outside of the licensed medicinal framework remains illegal, and enforcement actions against unauthorized retailers have continued despite the transitional period.

Practical Compliance Steps for Prospective Cannabis Resellers

Based on current South African law, prospective resellers must undertake the following compliance steps to establish lawful cannabis product resale operations:

• Determine Target Product Category and Regulatory Pathway. The first step is to identify whether the prospective reseller intends to resell medicinal cannabis products (requiring SAHPRA and Department of Health licensing), hemp-derived industrial products (requiring verification of THC thresholds and laboratory testing), or Schedule 0 CBD products (requiring verification of cannabinoid concentrations and compliance with labeling requirements). Each pathway entails distinct licensing and compliance obligations.

• Identify Compliant Suppliers. Prospective resellers must conduct thorough due diligence on potential suppliers to verify that all suppliers hold valid SAHPRA manufacturing licenses, comply with GMP standards, maintain current GMP certification status, and can provide Certificates of Analysis for all products. Resellers should request and independently verify license numbers with SAHPRA before entering into supply relationships. Sourcing products from unlicensed or non-compliant manufacturers is illegal and exposes resellers to liability.

• Obtain SAHPRA Licensing. If intending to engage in wholesale or distribution of medicinal cannabis products, prospective resellers must apply for the appropriate SAHPRA license in terms of section 22C of the Medicines and Related Substances Act. This requires submission of detailed applications, site plans, Site Master Files, and supporting documentation. Applications should be directed to gmplicensing@sahpra.org.za and must include proof of payment of applicable fees published in the Government Gazette.

• Obtain Department of Health Permitting. In addition to SAHPRA licensing, resellers must obtain a permit from the Director-General of the National Department of Health in terms of section 22A(9)(a)(i) of the Medicines and Related Substances Act. Applications should be directed to ndohpermits@health.gov.za and must include supporting documentation demonstrating the applicant’s qualifications and compliance capacity.

• Establish Record-Keeping Systems. Resellers must implement systems to maintain comprehensive records of all products received, stored, and distributed, including batch numbers, dates, quantities, supplier information, recipient information, and laboratory testing results. These records must be retained for a minimum of three years and must be readily available for inspection by regulatory authorities.

• Implement Testing and Quality Assurance. Resellers must verify that all products distributed have undergone appropriate laboratory testing and analysis, with Certificates of Analysis retained and available for regulatory review. Products should not be distributed until testing results have been received and verified.

• Develop Compliant Labeling and Marketing. All products must be labeled with accurate cannabinoid content, appropriate warnings and instructions, and only permitted health claims. Marketing materials and promotional communications must comply with Consumer Protection Act requirements and must not contain unsubstantiated or prohibited claims.

• Establish Regulatory Compliance Procedures. Resellers should establish formal policies and procedures addressing regulatory compliance, employee training, security measures, adverse event reporting, and product recall procedures. These procedures should be documented and regularly reviewed to ensure continued compliance with evolving regulatory requirements.

Conclusion

The legal framework governing cannabis product resale in South Africa as of January 2026 remains highly restrictive, with commercial cannabis resale outside of the licensed medicinal channel constituting criminal conduct subject to substantial penalties. Prospective resellers must carefully navigate a complex regulatory landscape involving multiple regulatory authorities (SAHPRA, the Department of Health, DALRRD, and the dtic), multiple applicable statutory schemes (the Medicines and Related Substances Act, the Cannabis for Private Purposes Act, the Drugs and Drug Trafficking Act, and the Foodstuffs, Cosmetics and Disinfectants Act), and numerous subsidiary guidelines and requirements.

The viable compliance pathway for most resellers currently involves obtaining SAHPRA licensing for wholesale or distribution of medicinal cannabis products, combined with Department of Health permitting, rigorous verification of supplier compliance, comprehensive record-keeping, product testing and quality assurance, and strict adherence to labeling and marketing requirements. Resellers must understand that the distinction between the decriminalized private use permitted by the Cannabis for Private Purposes Act and any form of commercial activity remains absolute, and that attempting to exploit regulatory ambiguities or operate without proper licensing exposes participants to criminal prosecution, regulatory penalties, and license revocation.

As South Africa’s cannabis regulatory framework continues to evolve toward anticipated commercial regulations in 2026 and beyond, resellers should remain vigilant for regulatory developments and maintain flexibility to adapt compliance procedures as new regulations are finalized. Until comprehensive commercial regulations are in place, the medicinal cannabis pathway, while demanding, represents the only legally defensible route to legitimate cannabis product resale in South Africa.