The ban on cigarette sales left thousands of South Africans without their nicotine fix during the first five months of lockdown.
On Wednesday, the Fair Trade Independent Tobacco Association (Fita) revealed it reached a settlement with the government.
Under lockdown Alert Level 2, sales once again resumed. During the national lockdown, Fita legally challenged the tobacco ban
The matter was dismissed in the High Court and was currently before the Supreme Court of Appeal where it was granted leave to appeal.
Fita argued that the medical evidence used to justify the ban was inconclusive.
In its statement, the association said the government has agreed to embark on a public participation process should a temporary prohibition on tobacco sales ever be implemented again.
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