How much is the cannabis industry in SA really worth?

Small business owners clear about their vote and expectations ahead of elections – survey

Icasa wants to introduce biometric verification to fight SIM card fraud

National Intelligence Coordinating Committee head agrees to open testimony

Cannabis shops have sprung up all over South Africa, with aficionados able to peruse different varieties and their specific effects, or just opt for edibles such as gummies and cookies.

However, the legislation around the cannabis industry is still murky, leading Stephen Grootes to wonder if these businesses are even operating legally.

Well, News24 reports that Gauteng police have been ordered to raid and possibly shut down shops selling marijuana illegally, according to a leaked memo.

At the same time, government has expressed a desire to grow the cannabis industry and the jobs it can provide.

RELATED: How to make the South African cannabis market more inclusive

“It is likely that when we finally progress with cannabis and hemp research, regulations and a clear policy framework, the plant could create opportunities for cannatourism, particularly in rural areas of the Eastern Cape, KwaZulu-Natal, and Limpopo”, writes Wandile Sihlobo from the Agricultural Business Chamber of South Africa (Agbiz).

Grootes talks to agricultural economist Thabile Nkunjana, and asks him how big the local industry actually is.

Nkunjana cites research from the Department of Trade, Industry and Competition (Dtic), which puts the estimated value of the hemp and cannabis industry at R16 billion.

There is other data pointing to a figure of above R25 billion a year, he says.

“The fact that these estimates vary widely, shows you how difficult it is to assess the sector. And I’d suggest it’s an informal sector – previously it was an illegal sector, and what we should be doing is helping and encouraging it to become formalised.”

“I realise it will never be completely formal, but if we were able to harness this, you’re looking at possibly a R25-billion-a-year contribution to our economy.”

As things stand, the numbers generated through the sales of cannabis in the formal market are around just R5 billion to R6 billion, which compared to the R25 billion estimate, shows how much is happening illegally, he says.

Scroll up to the audio player to listen to the full conversation

Take a look at the topic timeline for all related articles.

6 hours ago7 hours ago8 hours ago9 hours ago10 hours ago11 hours ago12 hours ago12 hours ago12 hours ago12 hours ago12 hours agoMore in The Money Show29 October 2026 19:44

Small business owners clear about their vote and expectations ahead of elections – survey

Icasa wants to introduce biometric verification to fight SIM card fraud

SA economy bigger than estimated after rebasing – Stats SA