Monday, September 7, 2026
SUBSCRIBE
22 GLOBAL MEDIA AWARDS
Food For Mzansi
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought
No Result
View All Result
Food For Mzansi
No Result
View All Result
in Farmer's Inside Track

Cannabis exports: Dot the i’s and cross the t’s for success

With South Africa poised to be one of the global leaders in cannabis cultivation for export, an expert jumps in to offer some must-know essentials for farmers wanting to make the most of this window of opportunity

by Octavia Avesca Spandiel
10th October 2023
Cannabis exports: Dot the i's and cross the t's for success

With a large and growing population, Africa is the ideal market for the cannabis industry. Here's how you can get export-ready. Photo: Sourced/OnlyFarms

Share on FacebookShare on TwitterShare on WhatsApp

With Africa being one of the largest producers of cannabis globally, there is a window of opportunity for African countries to export cannabis to the rest of the world. However, exporting cannabis is a complex and highly regulated process, and farmers need to be well-informed and compliant with the laws and regulations in both their home country and the destination country.

Shaad Vayej, CEO of Onlyfarms and Attorney at Cullinan & Associates, shares some key considerations for farmers about exporting cannabis. Several African nations have already legalised the cultivation and export of cannabis, positioning the continent to play a significant role in this quickly expanding sector.

Cannabis exportation landscape

There are several ways that African nations might benefit from the international cannabis trade, including earning much-needed foreign currency revenues, starting new enterprises and jobs, and fostering economic growth. Africa is a perfect market for the cannabis sector, with a huge and youthful population. Additionally, cannabis has been used traditionally on the continent for generations.

Shaad Vayej, CEO of Onlyfarms and Attorney at Cullinan & Associates. Photo: Supplied/Food For Mzansi

“South Africa is poised to be one of the global leaders in cannabis cultivation for export. When we are talking about cannabis, there are different sides to it: industrial, medical and of course recreational. However, there’s a more uncertain value proposition internationally,” says Vayej.

When you look at just medical exports to Europe, currently South Africa only supply 3.8% of the total European demand for medical cannabis. However, the capacity, the quality of cannabis coming out of South Africa, the invocation that is currently taking place, and the low costs of labour, including sunshine, makes the country the ideal destination to export around the world.

Legalities: import and export

Cannabis as a whole plant and any portion thereof remains listed as an undesirable dependence-producing substance under part 3 of Schedule 2 of the Drugs Trafficking Act.

This means it is still illegal to buy and sell, but subject to certain sections. There are three broad classes that factor exceptions to this, such as the Medicine Act that permits the cultivation of cannabis under Section 22c.

Medicine Act permits are issued for:

  • Cultivation import
  • Export
  • Testing
  • Packaging
  • Distribution of medical cannabis

On the other hand, there is hemp that is regulated under the Plant Improvement Act and the frameworks there under. The department of agriculture, and land reform and rural development began issuing hemp permits for the cultivation, processing, and transport of low-THC cannabis for industrial purposes.

“Bear in mind that the plant improvement framework isn’t mentioned as an exception to the Drugs Act but can be seen as an exception to the Medicine Act,” Vayej says.

Cannabis exports: Dot the i's and cross the t's for success
By 2027, the worldwide cannabis market is projected to be worth $57 billion, according to a recent United Nations research. Photo: Sourced/OnlyFarms

Key requirements

Entering the medical cannabis market can be a complex process because the industry is highly regulated and can be competitive.

“The main requirement being that the cultivar you are growing must not exceed point 2% THC (Tetrahydrocannabinol), which is particularly difficult to do under the South African climate, purely because of the incredible UV that we have out here,” says Vayej.

Other requirements include:

  • You need to have a cannabis cultivation facility set out.
  • Needs to be audited by SAHPRA.
  • The off-take destination needs to be in place.
  • A hemp permit license is not expensive to obtain, there are license criteria.
  • Fencing has been relaxed.
  • Audit requirements.
  • Reporting requirements and testing requirements on cannabis.

Licensing costs

Cannabis exports: Dot the i's and cross the t's for success
Understanding the differences in hemp license costs can help you decide what will work for your pocket. Photo: Sourced/OnlyFarms

Another factor to consider is the cost of a hemp license. Additionally, keep in mind that hemp license costs can change over time, so staying up-to-date with current regulations is essential when budgeting for your hemp cultivation or processing venture.

“With the hemp license, you are limited with what you can grow and what you can do with what you can grow. That is not for human consumption, that is for industrial purpose, that is for biomass and low THC flower is also being looked at closely,” Vayej says.

Differences in license costs:

  • Hemp R700 
  • High THC license between R20 000-R25 000

Market research, finance support

Knowing what your end destination requires, is important, so you need to look at the cultivars that are most in demand and which cultivars can be moved.

“I recommend consulting with guys in the market who are working with buyers, who do know what the demand is and where to go from there,” says Vayej.

Cannabis is still contained in the Drugs Act of South Africa; therefore development finance and finance houses are uncertain whether they can and want to start funding these large-scale operations. 

“In June 2023, there was a meeting of various role players in government as to how the cannabis industry will be taken forward. And there is a significant increase in support behind farmers, from a rural standpoint who are cultivating outdoor cannabis and existing business,” he says.

ALSO READ: Milk dumping leaves a sour taste as dairy industry hits the rocks

Sign up for Farmer’s Inside Track: Join our exclusive platform for new entrants into farming and agri-business, with newsletters and podcasts.  

Octavia Avesca Spandiel

Raised by a close-knitted family who loves her deeply, Octavia believes in the philosophy of ‘I am because you are'. This former news and content editor for radio is now living her best life in the agricultural sector as a commercial journalist at Food For Mzansi. Her soft spot for poetry and passion for life, writing and traveling inspires her to write compelling stories. Apart from being an excellent writer, Octavia has an educational background in youth work and loves working with people. 

Tags: CannabisCommercialising farmerExportHelp me understandhempTeach me
Farmers rethink water use as shortages threaten food production
News

Farmers rethink water use as shortages threaten food production

by Vateka Halile
5th September 2026

What happens when the taps run dry? Farmers know the answer all too well. Experts and farmers at the Water...

Read moreDetails
Honoured roots: A father’s legacy, a daughter’s farming dream

Honoured roots: A father’s legacy, a daughter’s farming dream

4th September 2026
Gauteng farmers urged to harness massive urban market

Gauteng farmers urged to harness massive urban market

4th September 2026
ONCE-OFF USE; DO NOT REPUBLISH

Foot-and-mouth crisis hits SA dairy industry with R1-billion loss

4th September 2026
Tough times, hardy cattle: Why Mzansi farmers are choosing Nguni

Tough times, hardy cattle: Why Mzansi farmers are choosing Nguni

3rd September 2026

Tiger Brands CEO calls for stronger food value chain

Strategic support sparks record-breaking growth at WC grape farm

Government hikes sugar import price, but industry warns of gap

Foot-and-mouth crisis hits SA dairy industry with R1-billion loss

Rising costs, climate risk push Swartland wheat farmers to the brink

Join Food For Mzansi's WhatsApp channel for the latest updates!

JOIN NOW!
Next Post
ICYMI: Vets and vet nurses reinstated to SA's critical skills list

ICYMI: Vets and vet nurses reinstated to SA's critical skills list

THE NEW FACE OF SOUTH AFRICAN AGRICULTURE

With 21 global awards in the first six years of its existence, Food For Mzansi is much more than an agriculture publication. It is a movement, unashamedly saluting the unsung heroes of South African agriculture. We believe in the power of agriculture to promote nation building and social cohesion by telling stories that are often overlooked by broader society.

Young farmers need structured opportunities, not just open doors

BenicaTheFarmer: The nurse who built an agricultural empire

Rural safety under fire as stock theft and farm violence persist

This week’s agri events: 07–11 September

Tiger Brands CEO calls for stronger food value chain

Plant, pick, protect: The rising potential of urban foraging in SA

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

Contact us
Office: +27 21 879 1824
News: info@foodformzansi.co.za
Advertising: sales@foodformzansi.co.za

  • Awards & Global Impact
  • Our Story
  • Contact Us
  • Cookie Policy
  • Privacy Policy
  • Copyright

Chat Options

I'm Lerato, your AI assistant!
No Result
View All Result
  • News
  • Changemakers
  • Lifestyle
  • Farmer’s Inside Track
  • Food for Thought

Copyright © 2024 Food for Mzansi

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.