Cannabis stores have become a familiar sight across South Africa, appearing in shopping malls, business districts and suburban retail centres. However, despite their growing visibility, legal experts warn that most cannabis retail operations remain unlawful under current legislation.
The warning comes amid increasing public confusion over the country’s cannabis laws, with many consumers assuming that the widespread presence of dispensaries means cannabis sales have been fully legalised.
According to specialist cannabis and environmental attorney Paul-Michael Keichel of Cullinan & Associates, that assumption is incorrect.
While South Africa has relaxed certain restrictions on private cannabis use, he argues that commercial cannabis sales remain prohibited unless they fall within narrowly defined medical and pharmaceutical regulations.
Public confusion fuelled by legal changes
Much of the misunderstanding can be traced back to the landmark 2018 Constitutional Court ruling that decriminalised the private cultivation, possession and consumption of cannabis by adults.
The judgment was widely viewed as a turning point in South Africa’s cannabis policy and generated expectations that a broader commercial market would soon follow.
Parliament later passed the Cannabis for Private Purposes Act in 2024, but the legislation has yet to be fully implemented through operational regulations and supporting frameworks.
As a result, Keichel said the primary law governing cannabis trade remains the Drugs and Drug Trafficking Act, which prohibits commercial dealing in cannabis.
The only significant exception applies to licensed medicinal cannabis products regulated through the Medicines Act and the Pharmacy Act. These products are distributed through approved healthcare and pharmaceutical channels rather than ordinary retail stores.
According to Keichel, the Cannabis for Private Purposes Act does not legalise retail sales. Instead, it lays the groundwork for a possible future regulatory system that could eventually allow commercial cannabis activities.
Industry expansion outpaces regulation
Despite the legal uncertainty, the cannabis retail sector has expanded rapidly in recent years. Hundreds of dispensaries, cannabis boutiques and related businesses now operate throughout the country.
Keichel believes the growth reflects frustration with slow government action rather than confidence in legal clarity.
He noted that lawmakers took significantly longer than expected to finalise legislation following the Constitutional Court ruling. At the same time, repeated government commitments to develop the cannabis economy have yet to produce a comprehensive commercial framework.
Many entrepreneurs, he argued, have decided to move ahead regardless of the legal risks, anticipating that future reforms will eventually legitimise the industry.
Another factor contributing to the situation is inconsistent enforcement. While some cannabis businesses have faced scrutiny, others have continued operating openly for years.
However, Keichel warned that the apparent lack of enforcement should not be interpreted as legal approval. Under current legislation, authorities would still have the power to prosecute businesses involved in unauthorised cannabis sales.
He suggested that successful prosecutions could be relatively straightforward if law enforcement agencies decided to undertake coordinated action.
Beyond legal concerns, the absence of a formal licensing system raises questions about consumer protection. Without standardised quality controls, testing requirements and regulatory oversight, customers often have limited information about the products they purchase.
Keichel said the lack of regulation creates uncertainty regarding product safety, quality and consistency. Reports of consumers experiencing negative reactions to cannabis products continue to emerge, highlighting the risks associated with an unregulated market.
As South Africa continues debating the future of its cannabis industry, legal experts say the gap between public perception and existing legislation remains one of the sector’s biggest challenges.
Source: 702 Drive interview with Paul-Michael Keichel, Cullinan & Associates.