By Zurayda Mayet
Private use has been decriminalised and commercial hemp is finally open for cultivation, yet the gap between what the law now permits and what it still punishes is wide, and easy to fall into. Here is where the rules actually stand, and what farmers, investors and businesses should be doing about it.
Few areas of South African law have shifted as quickly, or as confusingly, as cannabis. A plant that was criminalised for the better part of a century is now the subject of a deliberate policy push to build a formal, taxable industry. The Department of Trade, Industry and Competition puts the existing domestic cannabis and hemp market at roughly R14 billion, with the formal sector already generating in the region of R5.5 billion a year and government aiming for double-digit annual growth.
But opportunity and legality are not the same thing. The single most expensive mistake we see is the assumption that because cannabis is “legal now”, commerce around it is open. It is not. The law has moved on private use and on industrial hemp, while leaving most commercial cannabis activity exactly where it was, prohibited. Understanding precisely which door is open, and which is still locked, is the whole game.
The position at a glance
- Private adult use, possession and home cultivation of cannabis is not a crime but selling it, or using it in public, still is.
- Commercial hemp (≤2% THC) can now be grown, imported and exported under permit following the Plant Improvement Act coming into force on 1 December 2025.
- Commercial cannabis trade remains closed except through a SAHPRA medicinal licence.
- Grow clubs and social clubs sit in a high-risk grey zone.
- A broader commercial framework is coming, but the consolidating Cannabis Bill is only expected in Parliament by mid-2027.
Cannabis or hemp? The distinction that decides everything
Cannabis and hemp come from the same plant, Cannabis sativa L., but South African law now treats them as two different commodities governed by two different statutory regimes. The dividing line is the concentration of tetrahydrocannabinol (THC), the compound responsible for the plant’s psychoactive effect.
For years, anything above 0.2% THC fell outside the definition of hemp, an unforgiving ceiling that disqualified most varieties suited to local conditions. That changed at the end of 2025. The threshold is now 2% THC in the leaves and flowering heads, a tenfold increase that pulls a far wider range of strains into the lawful “hemp” category. Anything above that line is treated as cannabis, and the permissive hemp rules fall away.
Why does a single percentage matter so much? Because it determines which legal track your operation runs on and the two tracks could hardly be more different.
| Hemp (≤ 2% THC) | Cannabis (> 2% THC) | |
| Governing regime | Plant Improvement Act, 2018 (in force 1 Dec 2025) | Medicines Act (medicinal) & Cannabis for Private Purposes Act, 2024 (private use) |
| Commercial cultivation | Permitted under a hemp permit | Only with a SAHPRA s22C medicinal licence |
| Typical use | Industrial i.e. textiles, building materials, bioplastics, seed foods | Recreational and medicinal (psychoactive) |
| Import / export | Permitted under permit | Tightly controlled; medicinal export via SAHPRA framework |
Cannabis for private use: what the Act does …. and …. does not allow
The decriminalisation of private use traces back to the Constitutional Court’s 2018 judgment in Minister of Justice v Prince, which held that punishing adults for using or possessing cannabis privately was an unjustifiable invasion of the right to privacy. Parliament was directed to fix the law, and after several extensions the Cannabis for Private Purposes Act 7 of 2024 was signed into law on 28 May 2024.
Crucially, the Act is not yet fully in force. It depends on supporting regulations that set out the practical limits, and those have only recently appeared in draft. On 2 February 2026 the Department of Justice and Constitutional Development published the first set of draft regulations and invited public comment, which closed on 5 March 2026.
What the draft regulations propose
The draft figures are more generous than many expected, but they remain proposals, not final law:
- Possession of up to 750 grams of cannabis by an adult in a private or public place during a single day.
- Cultivation of up to five plants in a private place, irrespective of size or strain.
- Detailed transport conditions: cannabis must be concealed from public view, with obligations on both drivers and passengers.
- A formal route for the expungement of past cannabis-related criminal records, an application-based process, not an automatic wipe.
What the Act decriminalises is private use. What it leaves untouched is commerce. Selling cannabis, or consuming it in public, remains a criminal offence.
Medicinal cannabis: the licensed route that already works
The one well-established commercial channel for high-THC cannabis is medicinal. Cultivation, manufacture and export are lawful for holders of the appropriate licence issued by the South African Health Products Regulatory Authority (SAHPRA) under section 22C(1)(b) of the Medicines Act.
This is not a light-touch regime. Licence holders must meet stringent compliance standards, appoint a registered nurse, manufacture under Good Manufacturing Practice conditions and submit to regular audits. The reward is access to a regulated export market, including Europe, where demand for compliant medicinal product is strong. For operators willing to build proper compliance infrastructure, this remains the clearest lawful path into commercial cannabis today.
Commercial hemp: the door that just opened
The most immediately actionable opportunity sits on the hemp side. The Plant Improvement Act, 2018 and its regulations came into operation on 1 December 2025 (gazetted on 21 November 2025), replacing legislation that dated back to 1976. Alongside the new 2% THC definition, the framework legalises the commercial cultivation, import and export of hemp under a dedicated hemp permit regime.
The scale is already meaningful. Since hemp was recognised as an agricultural crop in 2022, the Department of Agriculture has issued in the order of 2,031 cultivation permits across the country, allowing farmers to grow and store hemp material, trade in seed and run seed-related businesses under regulated conditions. With a favourable climate and existing agricultural infrastructure, South Africa is well placed to become a serious exporter, provided growers operate inside the permit system rather than around it.
The grey zone: grow clubs and social clubs
This is where good intentions most often meet legal trouble. Cannabis “grow clubs” and “social clubs” are membership associations that cultivate and share cannabis among members, who pay a fee. The structure is designed to fit within the private-use exemption, members pay for membership, the argument goes, not for the cannabis itself.
The courts have not accepted this. In The Haze Club (Pty) Ltd v Minister of Police the Western Cape High Court declined to declare that grow and social clubs are lawful. The matter was taken on appeal to the Supreme Court of Appeal, but the appeal was withdrawn before judgment, leaving the High Court’s position as the leading authority. The practical effect: while the refusal does not automatically make every club illegal, the legal risk for operators and investors is real and should not be underestimated. Banks have also grown wary, with some closing accounts linked to cannabis activity outside the medicinal framework.
What is coming next
The commercial layer of the industry is the missing piece, and government has signalled its intention to fill it. A Cannabis and Hemp Commercialisation Policy has been earmarked for Cabinet, and a consolidating overarching Cannabis Bill, intended to harmonise the currently fragmented framework, is anticipated in Parliament by mid-2027. President Ramaphosa has publicly backed the ambition of making South Africa a leader in commercial hemp and cannabis production.
For now, though, the gap between policy ambition and enforceable law remains. Until that legislation is enacted, businesses must work within the existing rules, not the ones expected to arrive.
What businesses, farmers and investors should do now
- Classify your activity correctly. Establish at the outset whether you are dealing in hemp (≤ 2% THC) or cannabis, because that single fact dictates the entire compliance regime that applies to you.
- Secure the right permit or licence first. A hemp permit under the Plant Improvement Act and a SAHPRA medicinal licence are different instruments for different purposes. Operating without the correct one is a criminal risk, not a paperwork delay.
- Treat grow clubs with caution. Before launching or investing in a club model, obtain a clear legal opinion on your specific structure in light of the Haze Club judgment.
- Plan for banking and tax friction. Build account, payment and record-keeping arrangements that can withstand financial-institution scrutiny.
- Engage with the policy process. With the Commercialisation Policy and Cannabis Bill still being shaped, well-advised participants can position early and make their voices heard during consultation.
| Speak to a cannabis and hemp law specialist Mayet & Associates advises farmers, processors, investors and businesses across the cannabis and hemp value chain, on permit and licence applications, structuring, regulatory compliance, criminal-record expungement and commercial agreements. We help you act on the opportunity without stepping over the line that still carries criminal consequences. Bloemfontein · 14 Louw Wepener Street, Dan Pienaar · www.mayet.law |
Frequently asked questions
Is cannabis legal in South Africa in 2026?
Private adult use, possession and cultivation is no longer a criminal offence, following the 2018 Prince judgment and the Cannabis for Private Purposes Act. But selling cannabis, or using it in public, remains illegal, and commercial trade is restricted to the licensed medicinal and industrial hemp channels.
How much cannabis can an adult possess?
The draft regulations published on 2 February 2026 propose up to 750 grams of cannabis and up to five plants per adult in a private place. These are draft proposals, not yet final law, so the position may change once the regulations are finalised.
What is the difference between cannabis and hemp legally?
THC content. Since 1 December 2025, hemp is defined as Cannabis sativa L. with no more than 2% THC in the leaves and flowering heads. Plants above that threshold are cannabis. Hemp can be grown commercially under permit; commercial cannabis trade is restricted to the SAHPRA medicinal route.
Can I legally run a cannabis grow club?
The position is unsettled and risky. The courts declined in the Haze Club matter to confirm that grow and social clubs are lawful, and the appeal was withdrawn. Operating one carries genuine exposure to prosecution and asset seizure, so obtain tailored legal advice before proceeding.
When will commercial cannabis be fully legalised?
A Commercialisation Policy has been earmarked for Cabinet, and a consolidating Cannabis Bill is expected in Parliament by mid-2027. Until then, the commercial layer remains largely closed outside hemp and licensed medicinal cannabis.
This article provides general information on South African law as at June 2026 and does not constitute legal advice. Cannabis and hemp regulation is changing rapidly; the position should be confirmed before you act. For advice on your specific circumstances, consult a qualified attorney.
