In a significant stride towards legitimizing its cannabis industry, Morocco has marked its first legal cannabis export since the country legalized cannabis for medical, pharmaceutical, and industrial uses in 2021. This landmark development reflects Morocco’s ongoing efforts to transition its thriving illicit cannabis cultivation industry into a legitimate export market, capitalizing on its dominant position in exporting to Europe.
Expanding Legal Cultivation
Since the legalization, there has been a surge in applications from farmers who were initially skeptical about the opportunities presented by the legal market. The legally licensed cultivation area in Morocco has increased tenfold year on year. The National Agency for the Regulation of Cannabis-Related Activities (ANRAC) has been at the forefront, actively seeking export opportunities. They recently attended Cannabis Europa and visited countries like the Netherlands, Portugal, and the Czech Republic.
First Exports to Europe
In the second quarter of 2024, Morocco exported 100kg of cannabis resin with a THC content of less than 1% to Switzerland, selling for between $1526 and $1965 per kilogram. This follows an earlier announcement from ANRAC in April, where an individual operator and a cooperative exported 65.5kg of cannabis products to Switzerland, including CBD resin and cannabis flowers with low THC content.
Economic Impact and Challenges
While this development is promising, it represents only a fraction of the cannabis produced in Morocco. ANRAC reported a staggering 294 metric tonnes of medical cannabis harvested in 2023. The vast majority of this produce remains within the country, with only a small portion being legally exported. The fate of the remaining cannabis is unclear, raising concerns about whether it is utilized by local businesses or diverted back into the illicit market.
Despite these challenges, the legal market presents significant economic benefits. ANRAC has issued 2900 authorizations as of April 2024, a substantial increase from the previous year. This includes authorizations for thousands of farmers, cooperatives, companies, and individuals, promoting the use of local ‘beldiya’ seeds over imported ones.
Market Potential and Future Prospects
The Moroccan Federation of Pharmaceutical Industry and Innovation (FMIIP) projects that the legal cannabis market could be worth between $436 million and $654 million within the next four years. Nearly 200 operators have entered the market since legalization, and the government is under pressure to consider launching a domestic adult-use market to balance supply and demand.
The Moroccan Coalition for Medical and Industrial Use of Cannabis is advocating for this expansion, planning a series of debates and seminars with parliamentarians. As Morocco continues to navigate this transition, the potential for growth and development within the legal cannabis market is substantial.
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