South Africa’s recent ban on cannabis and hemp products has been criticised by industry experts and other members of the government and could force 1,800 businesses to close their doors.
The National Department of Health gazetted a notice on Friday, 7 March 2025, banning the import, manufacture and sale of any foods containing cannabis and cannabis products.
The ban applies to any part of the plant or component of cannabis, including Sativa, Indica, Ruderalis, hemp seed oil, or powder derivatives from the various species or sub-species.
The department said any person who sells, imports, or manufactures foods containing these prohibited substances will be guilty of an offence and may be liable to a fine or imprisonment upon conviction.
However, this move has received pushback from stakeholders who believe the government is overreaching and confusing the industry.
Canna Trade Africa CEO Myron Krost told 702 that the gazetting of new regulations doesn’t make sense and is confusing for the whole industry.
Krost explained that the problem is a lack of clarity, which is holding back investment in South Africa’s cannabis industry.
“The banking sector isn’t yet ready to talk to cannabis companies, the tax sector isn’t ready for it yet, and investors are waiting to see what happens,” he said.
“We get good steps forward like in the last six months, with investors slowly starting to say ‘maybe we’re ready’… and then you get something like this.”
Co-founder and COO of medical cannabis pharmacy group AKOS BIO Connor Davis noted similar concerns.
He said that while the need for safety regulation in the industry is understandable, the government’s ban has gone too far.
He added that by making no distinction between hemp and cannabis, the government is focusing on prohibition instead of regulation, which works against global trends and South Africa’s cannabis ambitions.
“By failing to separate these categories, the regulation unnecessarily criminalises an established and legitimate industry,” he said.
Davis added that industrial hemp is crucial in sustainable development, with applications spanning textiles, biofuels, construction materials, and bioplastics.
He said that restricting hemp-based food products without justification severely undermines efforts toward economic growth, job creation, and environmentally friendly industrial innovation.
Businesses at risk
While industry stakeholders struggle with the reasons behind the gazetted regulation, opposition parties are more concerned with the process of its passing while also highlighting the jobs and businesses at risk.
The DA said it strongly opposes Minister Aaron Motsoaledi’s ban on cannabis-based foodstuffs.
The party, which forms part of the Government of National Unity (GNU), cited both the negative public policy implications and the significant economic harm this decision could inflict on South Africa’s growing hemp and cannabis industries.
The DA argued that many countries, including the United States, Canada, and China, have integrated hemp into their food industries, and South Africa should do the same.
The party further warned that the regulations threaten South Africa’s hemp industry, which includes 1,400 licensed cultivation businesses and 400 SMMEs, all of which create jobs and contribute to the local economy.
DA spokesperson on health Michele Clarke added that the DA is concerned about the process that led to this ban.
“Minister Motsoaledi has bypassed the required public consultation process, relying on a dubious claim that the regulations were needed “without delay,” she said.
“The Minister’s actions also reflect a disturbing trend of ignoring alternative perspectives and solutions.”
“Despite the voices of businesses, farmers, and health experts calling for a rational approach to cannabis regulation, the Minister stubbornly insists on pursuing policies disregarding both evidence and the public good.”
The party also said the ban shows “reckless disregard” for sound policy, stifling an industry that could significantly contribute to the country’s economic security.
It urged President Cyril Ramaphosa to reverse the regulation.
“Instead of imposing restrictions, the government should support the hemp industry, which has the potential to boost jobs, improve public health, and drive sustainable economic development.”
Clarke added that the government should be fostering growth and providing regulatory clarity for the cannabis and hemp industries.