Key Findings

• The African medical cannabis and industrial hemp industries have seen significant growth and development over the course of 2021 and 2022. 
• Countries such as South Africa, Lesotho, Zimbabwe, Uganda and Malawi have seen an increase in licence issuance, exports and investments in the industry
• South Africa has been the headline driver of growth in Africa, with President Cyril Ramaphosa again highlighting cannabis and hemp as being priority growth sectors for the South African economy at his State of the Nation address in February 2022, stating his goal of creating over 130,000 sustainable cannabis and industrial hemp jobs in South Africa.
• Africa benefits from a favourable growing climate, competitive cultivation input costs and a rich history of traditional cannabis growing communities similar to those in South America. 
• Medical cannabis and industrial hemp continue to be key focal industries for revived growth. 
• Due to South Africa having a mature over-the-counter cannabidiol (CBD) market since 2019, South Africa is the largest domestic market in Africa by value.
• Unlike other legal cannabis jurisdictions, Africa has very few registered medical cannabis patients. South Africa is the largest patient market, estimated to have less than 1,000 registered patients.
• Africa currently has 11 countries that have legalised medical cannabis in some form, mainly for export only. These include; Lesotho, Eswatini, Zimbabwe, South Africa, Zambia, Malawi, Uganda, Ghana, Morocco, the Democratic Republic of Congo and Rwanda. 
• Africa’s cannabis industry is driven by exports to international legal markets, with very limited local activity outside of South Africa at present.
• The total estimated size of the legal African cannabis market is appropriately US$41 million, with the bulk of legal sales occurring in the CBD market though it should be noted that these figures have a high degree of uncertainty owing to a lack of available data and a dearth of research on the market.
• The industrial hemp sector in Africa is still in its infancy, with limited traction from Malawi, Zimbabwe and South Africa to date. 
• Over the next five years, it is likely that a market for decriminalised cannabis will grow in South Africa, with a need for supplies such as grow equipment and seeds for cultivation in homes and at social clubs. This could also develop into a more fully commercialised legal system if legislation continues to progress in the country.