South Africa’s Hemp Sector Could Generate $2.5 Billion by 2040 — Study
By Erewunmi Peace
South Africa’s industrial hemp industry has the potential to grow into a $2.5 billion (R40 billion) sector by 2040, according to a recent study commissioned by the Localisation Support Fund (LSF).
The research, conducted in partnership with government agencies including the Industrial Development Corporation and the Department of Trade, Industry and Competition, projects that the sector could expand from R7.3 billion in 2024 to R17.7 billion by 2030, eventually reaching R40 billion by 2040, if fully developed.
Hemp, which is distinct from recreational cannabis, can be used in a variety of industries such as food products, textiles, cosmetics, paper, and construction materials.
Experts say that supporting infrastructure, clear regulations, and investment will be critical for unlocking this potential.
The study emphasizes that South Africa could miss out on this economic opportunity without a coherent national strategy for the hemp industry.
“This is a transformative opportunity for South Africa’s green industrialisation,” the report stated. “With the right policies and investment, hemp can become a major contributor to the economy over the next two decades.”
