Opportunities for hemp in Cape Town and South Africa’s construction materials value chain

This industry brief by GreenCape explores the potential for industrial hemp in South Africa's construction sector, highlighting hempcrete and hemp insulation as sustainable, carbon-sequestering alternatives to traditional materials. While Cape Town is emerging as a hub—exemplified by the world's tallest hemp-based building—the sector faces barriers including high import costs for hemp hurd, a lack of local standards, and professional risk aversion among engineers and architects.

• The global cannabis sector was valued at $51.28 billion in 2023. In South Africa, President Cyril Ramaphosa stated in his 2022 State of the Nation Address that the cannabis industry could be worth R406 billion by 2026 and create over 130,000 new jobs.
• Hemp construction materials, specifically hempcrete and hemp insulation, offer sustainability benefits by lowering the carbon intensity of building materials and improving energy efficiency. Hempcrete acts as a carbon sink, sequestering an estimated 108 kg of carbon dioxide per cubic metre over the building's lifespan. For a house using 50 m3 of hempcrete, this results in 5.4 tonnes of CO2 sequestered, compared to 48 tonnes of CO2 emissions for a cement-walled house.
• Hemp insulation is noted for its mould- and mildew-resistance, breathability, fire-resistance, and tensile strength. It possesses a higher R-value (thermal resistance) than most conventional materials, except for polymer insulation. Anecdotal evidence from a feasibility study in a major South African metro suggests that using hemp insulation in RDP houses could reduce heating costs by 60%.
• Cape Town is positioned as a potential hub for hemp construction materials in South Africa. The city is home to two companies selling hempcrete, hemp plaster, and hemp insulation, and it hosts the "Hemp Hotel," a 12-storey building with 54 rooms described as the tallest building in the world to incorporate hemp-based materials.
• The adoption of hemp materials in South Africa is hindered by high costs and a lack of awareness. Hemp-based materials are generally 20% more expensive than conventional options, a gap widened by the need to import hemp hurd. Local procurement of hemp hurd could potentially reduce prices by 40%.
• Professional risk aversion and a lack of standards are significant barriers. Architects and civil engineers are hesitant to use hemp materials due to professional liability for structural performance. The document suggests that advocacy from bodies such as the Engineering Council of South Africa (ECSA), the Construction Industry Development Boards (cidb), and the South African Council for Project and Construction Management Professions (SACPMP) is needed to establish norms and standards.

APA

GreenCape (n.d.). Opportunities for hemp in Cape Town and South Africa’s construction materials value chain. https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Agri-3_Hemp-in-construction-materials-value-chain-industry-brief.pdf

Chicago

GreenCape. Opportunities for hemp in Cape Town and South Africa’s construction materials value chain. n.d. https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Agri-3_Hemp-in-construction-materials-value-chain-industry-brief.pdf.

Wikipedia

{{cite report |author=GreenCape |title=Opportunities for hemp in Cape Town and South Africa’s construction materials value chain |url=https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Agri-3_Hemp-in-construction-materials-value-chain-industry-brief.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greencapendopportunities, author = {{GreenCape}}, title = {{Opportunities for hemp in Cape Town and South Africa’s construction materials value chain}}, institution = {GreenCape}, url = {https://greencape.co.za/wp-content/uploads/2023/06/CCT_Smart-Agri-3_Hemp-in-construction-materials-value-chain-industry-brief.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }