A Historical Perspective on Cannabis

Cannabis (Hemp) has been used for centuries across the world with evidence found in Central Asia, Europe, China, the Middle East Africa and the Americas with its earliest origins in Taiwan 8000 BCE. Hemp is considered one of the first cultivated fiber plants, with archaeological findings in Yuan-Shan revealing pottery imprinted with hemp cord markings. The plant has also been used in the manufacturing of items such as fishing nets, paper, clothes and rope.

Global Legalisation: Pioneers and BRICS+ Policies

In 1976, the Netherlands became the first country to de facto legalise cannabis. While still technically illegal, authorities don't prosecute for small amounts and it can be bought in licensed coffee shops. Possession is limited to 5 grams per day and may still be confiscated by authorities. For the BRICS+ countries, Brazil was the first to decriminalise cannabis in 2006 for personal use and medicinal use accompanied by a prescription. The second on the list of BRICS+ countries to legalise cannabis was South Africa in 2018 permitted personal usage for adults and home cultivation with no possession limit. In India cannabis usage is illegal, however it is widely used and culturally tolerated in some regions. Cannabis remains illegal in most BRICS+ nations, though usage levels vary. While some member countries enforce strict bans, illicit consumption continues among their populations.

The Legalisation of Cannabis in South Africa

In September 2018, the South African Constitutional Court made a historic ruling in response to a constitutional challenge finding the prohibition of the substance a violation of the right to privacy. This ruling makes South Africa one of the few African countries to have a cannabis market. The views on cannabis and its legalisation varies globally with different jurisdictions as described like medical-use or personal use.

Cannabis possesses a range of applications. In the medical domain, it may be prescribed for conditions such as chronic pain, multiple sclerosis, cancer-related symptoms, and anxiety. Recreationally, it is utilised for relaxation, stress reduction, and social engagement. Ongoing scientific research is exploring its potential therapeutic effects for neurodegenerative diseases, inflammation, and substance addiction. While numerous beneficial uses exist, a corresponding set of concerns and risks are associated with cannabis utilisation.

Taking into consideration that South Africa is one of the few BRICS+ countries to legalise hemp, there are multiple lessons to be learned in adjusting public opinion and the economic growth opportunities. South Africa’s model reflects one of including small-scale and indigenous farmers and can be highly beneficial and lucrative for local economies to be more included in the national financial system. Boosting local and emerging economies is incredibly important for developing nations and a similar template could be used in other cannabis-growing regions in the BRICS+ bloc.

The Economic Potential of South Africa’s Cannabis Industry

According to the 2025 National Cannabis Master Plan, South Africa’s cannabis industry could be worth up to R28 billion, offering significant economic benefits. This was regarded as transformative for the South African economy and creating many jobs in a country with considerably high unemployment rates, the projections indicated that the South African cannabis industry could generate up to 25 000 jobs across the cultivation, processing and distribution services. For major growth of the sector, there needs to be clear cannabis regulation frameworks implemented.

Challenges and Regulatory Uncertainty

South Africa is well positioned to play a pivotal role in African and BRICS+ cannabis markets, fostering trade partnerships and advancing agri-tech innovations. It should be noted that the South African cannabis industry remains in its foundation stages. This is evidenced by the recent fluctuation in legal status, namely, the Minister of Health's (Mr. Aaron Motsoaledi) abrupt declaration of the illegality of private use and cultivation last week. Cannabis was reclassified under the Medicines and Related Substances Act, according to prior regulations under the Drug Trafficking Act. The availability of low-dose CBD products without prescriptions fostered industry participation and market expansion. However, Minister Aaron Motsoaledi's recent prohibition on food items containing cannabis components jeopardised numerous businesses by now criminalising their products, thus, highlighting the need for extensive stakeholder consultation in policy-making.

The Future of South Africa’s Cannabis Industry

Following public backlash, President Ramaphosa retracted the gazetted regulation on the 26th March - a cannabis legal reversal. This reversal underscores the need for thorough public engagement before introducing regulatory changes, ensuring a balance between public health priorities and the economic growth of South Africa’s cannabis industry and serve as strong models for the BRICS+ bloc.

Written by:

*Dr Iqbal Survé

Past chairman of the BRICS Business Council and co-chairman of the BRICS Media Forum and the BRNN

*Banthati Sekwala

Associate at BRICS+ Consulting Group

Egyptian & South African Specialist

**The Views expressed do not necessarily reflect the views of Independent Media or IOL.

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BRICS+ Series: Cannabis in South Africa: Policy Reversals and R28 Billion Economic Opportunity