OPPORTUNITIES FOR CANNABIS IN CAPE TOWN’S TEXTILES VALUE CHAIN

This industry brief by GreenCape explores investment opportunities for industrial hemp within the textiles value chain in Cape Town and South Africa. It highlights hemp's potential as a sustainable alternative to cotton, the regulatory shifts enabling its commercial cultivation, and the specific strategic advantages of Cape Town as a potential processing hub.

• The global cannabis sector was valued at $51.28 billion in 2023. In South Africa, President Cyril Ramaphosa has indicated that the sector could be worth R406 billion by 2026 and could create more than 130,000 new jobs.
• Regulatory changes in 2021 by the Department of Agriculture, Land Reform and Rural Development (DALRRD) declared hemp an agricultural product under the Plant Improvement Act 53 of 1976. As of 7 March 2023, 397 hemp permits have been issued nationally, with 20 of those located in the Western Cape.
• Hemp is presented as a sustainable alternative to cotton and polyester, requiring less fertiliser and water with an average growth cycle of 120 days. It acts as a carbon sink, absorbing an estimated 22 tonnes of CO2 per hectare, which is more than any forest or commercial crop.
• Cape Town is identified as a prime location to become a hemp textile processing hub because it hosts several hemp apparel businesses and the head offices of most major national clothing retailers, which supports a vertically-integrated value chain.
• Hemp fibres are physically strong and breathable but have a coarse hand-feel, making them ideal for technical textiles like rope, nets, and canvas. To produce softer fabrics for apparel, the fibres must undergo a process called 'cottonisation' to create finer fibres that can be used in conventional spinning and weaving machines.
• Despite its potential, the South African hemp industry faces barriers including a lack of clear local markets and off-takers, which makes primary producers hesitant to plant. Additionally, manufacturers are reluctant to invest in processing without consistent supply volumes to achieve economies of scale.
• Hemp textiles are currently more expensive to produce than cotton due to higher processing requirements and a lack of economies of scale. Consequently, they are expected to target high-end, environmentally conscious markets in the short term.
• South Africa is currently a net importer of hemp yarn, despite a global market for hemp yarn that saw import growth above 25% between 2017 and 2021. Local businesses report that they currently import hemp as fabric or finished products but prefer local procurement.

APA

GreenCape (n.d.). OPPORTUNITIES FOR CANNABIS IN CAPE TOWN’S TEXTILES VALUE CHAIN. https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Agri-2_Hemp-in-textiles-value-chain-industry-brief.pdf

Chicago

GreenCape. OPPORTUNITIES FOR CANNABIS IN CAPE TOWN’S TEXTILES VALUE CHAIN. n.d. https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Agri-2_Hemp-in-textiles-value-chain-industry-brief.pdf.

Wikipedia

{{cite report |author=GreenCape |title=OPPORTUNITIES FOR CANNABIS IN CAPE TOWN’S TEXTILES VALUE CHAIN |url=https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Agri-2_Hemp-in-textiles-value-chain-industry-brief.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencapendopportunities, author = {{GreenCape}}, title = {{OPPORTUNITIES FOR CANNABIS IN CAPE TOWN’S TEXTILES VALUE CHAIN}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Agri-2_Hemp-in-textiles-value-chain-industry-brief.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }