Two men are due to appear in the Queenstown Magistrates court on Tuesday after they were pulled over at a roadblock at Lady Frere.
Police Spokesperson Captain Khaya Tonjeni says police received information from a reliable source that dagga was being transported from Lusikisiki to Cape Town, via Queenstown.
Saps erected a vehicle checkpoint on the Lady Frere road and stopped and searched a Quantam bakkie on Monday night.
Tonjeni says the taxi was loaded with 45 bags of dagga weighing 420kg.
Two suspects aged 27 and 29 were arrested on the spot.
On Sunday police in Queenstown arrested four suspects who were travelling in the CBD with tik valued at R60 000.
In both cases, police also confiscated the vehicles.