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Economy

Morocco's Entry into the Global Cannabis Market: A Bold New Chapter

Saturday 13 July 2024 - 11:20

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In a landmark development, Morocco has made its debut as a significant player in the global medical cannabis arena. The North African nation recently marked a historic milestone with its first legal export shipment of cannabis to Switzerland, positioning itself as a pivotal force in the rapidly expanding European cannabis market.

Morocco's foray into the legal cannabis sector began in earnest in 2021 with the introduction of a comprehensive legislative framework aimed at regulating the cultivation, production, and export of cannabis. This forward-thinking move was a beacon of hope for countless farmers who had previously operated within the shadows of the illegal market. The Moroccan government further cemented its commitment by establishing the Narcotics Agency (ANRAC) to oversee and regulate this new industry.

Blessed with an optimal climate and geographic conditions, Morocco has long been recognized for its ability to produce high-quality cannabis. With the new legal structures in place, Moroccan producers are now well-positioned to leverage their expertise and long-standing reputation to secure a substantial share of the lucrative European market. In 2023 alone, ANRAC issued a notable 609 permits for cannabis cultivation, and the initial harvest exceeded expectations, yielding an impressive 294 tonnes.

The timing of Morocco’s entry into the European cannabis market is fortuitous. The market, valued at $6.20 billion in 2024, is projected to grow to $7.25 billion by 2029, reflecting a steady annual growth rate of 3.18%. Medical cannabis has been legalized in 21 of the 27 EU member states, with expectations that this number will continue to increase. Analysts predict that Morocco could capture up to 15% of this expanding market, potentially generating annual revenues between MAD 4.2 billion and 6.3 billion ($420 million to $630 million) by 2028.

As Moroccan producers gear up to broaden their operations and enhance their global presence, the nation’s venture into the international cannabis market represents a substantial economic opportunity. This initiative not only promises to uplift local farmers and increase state revenues through taxes but also positions Morocco as a formidable contender in the evolving landscape of medical cannabis.