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Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain

Thesis (MScAgric)--Stellenbosch University, 2026.

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Main Author: Zantsi, Sive Andrea
Other Authors: Jooste, Andre
Format: Thesis
Language:English
Published: Stellenbosch : Stellenbosch University 2026
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access_status_str Open Access
author Zantsi, Sive Andrea
author2 Jooste, Andre
author_browse Jooste, Andre
Zantsi, Sive Andrea
author_facet Jooste, Andre
Zantsi, Sive Andrea
author_sort Zantsi, Sive Andrea
collection Thesis
dc_rights_str_mv Stellenbosch University
description Thesis (MScAgric)--Stellenbosch University, 2026.
format Thesis
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institution Stellenbosch University (South Africa)
language English
last_indexed 2026-06-10T12:47:19.123Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository
publishDate 2026
publishDateRange 2026
publishDateSort 2026
publisher Stellenbosch : Stellenbosch University
publisherStr Stellenbosch : Stellenbosch University
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spelling oai:scholar.sun.ac.za:10019.1/135544 Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain Zantsi, Sive Andrea Jooste, Andre Zantsi, Siphe Stellenbosch University. Faculty of AgriSciences. Dept. of Agricultural Economics. Thesis (MScAgric)--Stellenbosch University, 2026. Zantsi, S. A. 2026. Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain. Unpublished masters thesis. Stellenbosch: Stellenbosch University [online]. Available: https://scholar.sun.ac.za/items/ffb62f39-1c64-4add-8829-111b6b78e7ab The cannabis industry in South Africa has been identified by the government as a sector with potential to drive economic development, employment creation and inclusive participation, and to alleviate poverty. This mirrors global trends, as many countries have decriminalised industrial hemp cultivation because of its multiple benefits, including its use as a carbon-friendly raw material for diverse industries and its environmentally sustainable cultivation practices. South Africa officially decriminalised industrial hemp in 2021; however, the value chain remains underdeveloped and faces numerous challenges across the micro, meso, and macro environments. Against this backdrop, the primary objective of the study was to investigate the structure, conduct, and performance of the South African industrial hemp value chain. The study’s primary objective was complemented by six secondary objectives: (1) map out the South African industrial hemp value chain, (2) identify key constraints affecting stakeholders across the micro, meso, and macro environments; (3) investigate the existing regulatory framework and its impact; (4) examine the institutional environment, (5) identify opportunities for innovation, investment, and research and development within the South African industrial hemp value chain, and (6) propose recommendations to strengthen the development of a sustainable hemp industry. A mixed-methods approach was adopted, combining qualitative interviews and quantitative surveys. Data was collected from 20 participants, including farmers, processors, and government representatives, using semi-structured interviews and structured questionnaires. Relevant policy documents and industry reports were also reviewed. Data was analysed thematically for qualitative insights and descriptively for quantitative trends to identify the main challenges, opportunities, and patterns across the value chain. Findings revealed that the industrial hemp value chain is constrained by regulatory misalignment, limited processing capacity, inadequate technology, restricted access to certified seed, and insufficient financial and technical support for farmers. Despite these challenges, opportunities exist for community and large-scale farmers to expand cultivation, for processors to diversify industrial applications, and for manufacturers to innovate with low- and high-technology products. Stakeholders emphasised that proper support could enable the industry to contribute meaningfully to rural development, job creation, and green economic growth. These findings indicate that deregulation alone is insufficient to establish a viable industry. Coordinated efforts are required to address systemic constraints while leveraging emerging opportunities. The study contributes to understanding the South African industrial hemp sector and aligns with international experiences showing that successful industrial hemp industries depend on enabling policies, investment in processing, and stakeholder integration across the value chain. The study concludes that, while industrial hemp holds substantial potential in South Africa, structural, regulatory, and technical challenges limit its development. It is recommended that the government provide regulatory clarity, improve institutional coordination, and establish a formal seed system. Industry stakeholders should invest in processing infrastructure and provide training and support programmes for emerging farmers. Future research should explore the market demand and competitiveness of industrial hemp products in domestic and international markets. Masters 2026-04-01T09:23:18Z 2026-04-01T09:23:18Z 2026-03 Thesis https://scholar.sun.ac.za/handle/10019.1/135544 en Stellenbosch University 163 pages application/pdf Stellenbosch : Stellenbosch University
spellingShingle Zantsi, Sive Andrea
Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain
title Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain
title_full Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain
title_fullStr Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain
title_full_unstemmed Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain
title_short Assessing the Challenges and Opportunities in the South African Industrial Hemp Value Chain
title_sort assessing the challenges and opportunities in the south african industrial hemp value chain
url https://scholar.sun.ac.za/handle/10019.1/135544
work_keys_str_mv AT zantsisiveandrea assessingthechallengesandopportunitiesinthesouthafricanindustrialhempvaluechain