Agriculture, Economic Development and Tourism

Answered by: 
Hon Ivan Meyer
Question Number: 
7
Question Body: 

Hon Masipa

In the light of the recent reversal of restrictions on cannabis products:

  1. (a) What specific plans does the Western Cape have to support and regulate the cannabis industry in the province, (b) how does his Department intend to collaborate with the national government to ensure coherent policy implementation and (c) what economic opportunities are being explored for cannabis cultivation and processing in the province;
  2. (a) what current initiatives exist to support the (i) industrial hemp and (ii) medicinal cannabis industries in the province and (b) what amount in the budget for the 2025/26 financial year has been allocated to the development of these sectors?
Answer Body: 
  1. (a) The Western Cape Department of Agriculture commissioned a study on the current and future scenario (production, processing, exports, etc) of medicinal cannabis and hemp in the agricultural sector and the Western Cape Cannabis Framework and Implementation Plan (also known as the CanPlan) was launched during March 2023. The focus of the Department is largely to support the production of hemp as an agricultural crop and foster partnerships with role players along the value chain of the crop. Wesgro is a partner of the Department in securing investors in the cannabis value chain.

Although the Department does not have a direct regulatory mandate over cannabis, it aims through the CanPlan to promote economic development, job creation, and rural development in the province. This includes the coordination of stakeholders, the encouragement of research, and the support of producers.

Recent national policy developments have shifted the Cannabis Master Plan to the Department of Trade, Industry and Competition, with the goal of creating a comprehensive framework for the cannabis and hemp industries. This centralization highlights the national government's role in regulating cannabis, while provincial governments such as the Western Cape play supportive roles by implementing strategic plans like the CanPlan.

The Western Cape Department of Agriculture has collaborated with the Agricultural Research Council (ARC) and the Since April 1st, Department of Agriculture (DoA) to further support capacity building and knowledge transfer. A short course on the cultivation of hemp was presented in 2024 to extension officers, researchers, and economists from the Western Cape Department of Agriculture.

  1. Collaboration with the national government is on a producer support and advisory levels, and influencing policy where necessary through research and comments provided on relevant policies during the consultation process.

Furthermore, a Farmers’ Day was held in March 2025 at the Bien Donné ARC research facility, where all current hemp permit holders were invited to view cultivar trials planted in November 2024. Officials from this Department also attended this event. This also served as a platform to update current permit holders on the change in legislation with regards to hemp and cannabis production.

The Department is also collaborating in the Hemp National Variety Trials on a provincial level at Bien Donné ARC during 2024/25 season and is establishing a trial at the Outeniqua Research Farm in the current 2025 season. This trial will investigate optimal planting time, cultivar selection, and planting density under both irrigation and rain fed conditions.

  1. The Department has limited capacity to support current and potential cannabis producers to the fullest.  Advice is given on enquiries from clients and any enquiries on the permits for hemp and licenses for medicinal cannabis referred to the National Department of Agriculture and SAHPRA (South African Health Products Regulatory Authority), respectively.
  2. (a) (i) and (ii) Refer to 1(a). In addition, the CanPlan including the research conducted by GreenCape highlight the opportunities especially in manufacturing.

(b) No specific budget has been allocated for hemp and cannabis production and processing.  However, the programme RTDS: Directorate Plant Science is contributing the Alternative Crops researcher staff’s time in co-coordinating towards the national variety trials, farmer’s days and presentation of short courses. Furthermore, smallholder farmers would ordinarily be supported under the CASP, however this is yet to be included in the grant framework of DALRRD. Wesgro, through the Agribusiness Investment Desk has been facilitating and securing investment in the cannabis value chain.

Date: 
Friday, April 4, 2025
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