The two-day event at the Southern Sun Elangeni & Maharani hotel brought together policymakers, researchers, financiers, and industry stakeholders to assess progress and identify barriers to scaling hemp production and processing across the region.
Speaking at the conference, Dr Zorodzai Maroveke, founder and CEO of the Zimbabwe Industrial Hemp Trust, said that while several African countries have made progress in legalising hemp, turning policy into economic value remains a major challenge.
She noted that despite successfully lobbying for four pieces of legislation in Zimbabwe between 2016 and 2023, the industry still faces significant constraints, particularly a lack of technical knowledge and market development.
“There is a very wide gap, from understanding the right varieties and agronomy to processing and, ultimately, who is going to buy the crop. Farmers will not grow something if they do not see value [in it],” she said.
Maroveke added that without clear market incentives, hemp could follow the same decline seen in crops such as cotton, where farmers have exited the industry due to poor returns.
According to her, a key requirement for unlocking Southern Africa’s industry’s potential is the development of locally relevant data and proof-of-concept projects.
“We cannot rely on data from other countries. Conditions differ across regions, and we must generate our own data to support decision-making,” she said.
She added that demonstrating viable business cases is essential to attract investment. “Until stakeholders, especially banks, see tangible results, they will remain hesitant to support the industry.”
Funding available, but conditions apply
From a financing perspective, Don Mashele, head of development impact support at the Small Enterprise Development and Finance Agency (SEDFA), said funding is accessible, but businesses must meet certain requirements.
“Once we understand the business case, it becomes easier for us to provide funding. From there, the business can scale and eventually attract larger funders,” he said.
Mashele explained that SEDFA focuses on early-stage support, helping businesses grow to a point where they can access commercial finance. “We are not meant to fund businesses indefinitely. Our role is to support them early, and once they scale, they move to bigger players.”
Support extends beyond finance, with a strong emphasis on business development and partnerships. “We provide a broad suite of non-financial support, and where we cannot assist directly, we bring in partners to ensure businesses receive the support they need,” he said.
He noted that blended finance instruments are particularly relevant for the hemp industry, especially in rural areas. “[Blended finance] offers funding of up to R1 million, with a portion as a grant and the remainder as a low-interest loan,” he explained.
Funding options range from small-scale support of R50 000 to larger investments of up to R15 million, depending on business needs. “We offer asset finance, working capital loans, and bridging finance for businesses with secured contracts,” Mashele added.
Implementation remains the missing link
In his presentation, Dr Siphe Zantsi, agricultural economist at the Agricultural Research Council (ARC), warned that the hemp industry risks stagnation if stakeholders fail to move beyond discussion.
“We have had many conferences and discussions, but the conversation is not moving to the next level. What is missing is implementation,” he said.
Zantsi outlined the ARC’s role in supporting the industry through research, including the development of hemp varieties suited to South African conditions. “We have identified and registered local varieties through trials conducted across the country. The next step is commercialisation,” he said.
He emphasised that hemp production must be market-driven: “Hemp is not a crop you plant without a market. You need a clear buyer and value chain before production.”
Zantsi also noted that the ARC is working on seed systems, plant health, and genetic preservation to ensure the industry’s long-term sustainability.
