Economic Viability and Challenges of Small-scale Cannabis Farming in the Eastern Cape, South Africa

Abstract

Cannabis farming is a vital economic activity in the Eastern Cape, South Africa, where small-scale farmers have cultivated the crop for generations. This study examines the economic viability and challenges they face, considering global trends and local market conditions. While the global cannabis industry is expanding, smallholder farmers in South Africa remain excluded from formal markets due to regulatory barriers, financial constraints, and limited market access. Using a qualitative approach, the study conducted semi-structured interviews with 15 small-scale farmers to explore their experiences and challenges. The findings indicate that small-scale cannabis farmers face multiple obstacles, including lack of access to formal markets, high compliance costs, theft, and climate-related risks. Despite government projections that the cannabis sector could contribute R28 billion to the economy and create thousands of jobs, many farmers struggle to secure licenses, financial assistance, and quality farming inputs. The study highlights the need for inclusive policy reforms, including simplified licensing, cooperative farming structures, and financial support mechanisms, to enable small-scale farmers to compete effectively in the legal cannabis economy.