Learn the latest updates on Morocco’s cannabis legalization and step-by-step process on obtaining a permit.
Do you ever want to join a growing industry but need clarification on many rules and are unsure what will happen? Morocco’s Cannabis market is getting bigger, but getting a smoking club opening license can be difficult. GrowerIQ’s cannabis production software can help you understand the process and get started in this market.
What Is The Composition Of The Cannabis Plant?
Cannabis is a type of hemp, part of a plant family used extensively in the yarn industry. The most critical part of the cannabis plant is its flower, which produces resin containing two key molecules:
- THC
- CBD
THC is the component responsible for altering one’s state of consciousness to make one feel “high” and is also used for anesthesia purposes, such as in cancer patients undergoing chemotherapy. On the other hand, CBD does not produce the same effects. Apart from its sedative properties, CBD counteracts THC to mitigate its effects, particularly by calming the nervous system.
Wide Range of Potential Benefits
The therapeutic virtues of CBD are substantial, as determined by the U.S. National Centre for Biotechnology Information (NCBI). CBD has:
- Anti-inflammatory properties
- Alleviates anxiety and depression
- Calms epilepsy symptoms
- Ease certain psychotic disorders like schizophrenia
NCBI studies have even suggested that at high concentrations, CBD inhibits the proliferation of tumor cells in certain cancers and could reduce the risk of artery necrosis following a heart attack. This has reignited the debate about cannabis’s pros and cons, with some countries recognizing the benefits of this plant for both healthcare and the economy.
Regulations On The Legalization Of Morocco Cannabis
Morocco has long been recognized as one of the world’s most prolific producers of cannabis. However, cannabis only became legal in the North African nation in June 2021. The Moroccan Parliament adopted Bill 13-21 to regulate the plant for medical and industrial purposes. Cannabis production and consumption for recreational purposes in Morocco remains illegal.
Bill 13-21 outlines regulations for diverse aspects of medical, industrial, and cosmetic cannabis in Morocco, including the following:
- Cultivation of cannabis
- Seed importation
- Product exportation
Al Hoceima, Chefchaouen, and Taounate
The law identifies three provinces, Al Hoceima, Chefchaouen, and Taounate, allowed to cultivate and produce cannabis. It opens the door to include other regions based on domestic and international investors’ demand for cannabis supply chain activities. These areas have traditionally been used to cultivate cannabis and have climates uniquely suited to growing marijuana.
Farmers in the three traditional growing areas (the ones legalized now) have been growing cannabis as a primary source of income, whether it is illegal or not.
Boosting Farmer Profits
The reason for the change in legislation, according to the government, is to improve the economic standing of these farmers. In the illegal black market, farmers earn 4% of the final turnover of the crop. The government claims that this will rise to 12% under its control.
Cooperatives, Negotiation Support, and Sustainable Practices
The law also recommends that farmers set up cooperatives to support the negotiation efforts between farmers and manufacturers. These cooperatives will be responsible for signing contracts with manufacturers and ensuring the preservation of farmers’ rights. In addition, the law will allow the farmers to acquire the best methods for sustainable agriculture, be open to global experiences in this field, and acquire quality seeds.
Morocco Regulates Cannabis Industry with Regional Focus and Centralized Control
Morocco, like South Africa, wants to focus the industry in a specific part of the country for strategic, economic, and sustainable development and crime prevention reasons.
Morocco, similar to South Africa, plans to concentrate cannabis production in a specific region for strategic and economic reasons, including crime prevention and sustainable development.
- A central regulatory body, the National Agency for the Regulation of Cannabis-related Activities, will oversee all aspects of the industry, from licensing to cultivation, import/export, transportation, and commercialization.
- Only licensed individuals or groups can participate in the legal cannabis market.
- A THC limit is set for farmers (below 1%), with exceptions for medical/pharmaceutical products.
Related Reading
Is Recreational Cannabis Legal In Morocco?
Although Morocco is a major cannabis producer, officially, cannabis use for recreational purposes is illegal. In practice, it is tolerated. Nearly a million people live in areas of northern Morocco where cannabis is the main economic activity. It has been publicly grown and smoked there for generations, mixed with tobacco in traditional long-stemmed pipes with clay bowls.
Uncomplicate Your Hemp Production
Cannabis growers face challenges in managing reporting, documentation, and compliance requirements due to the complexity of regulatory frameworks, evolving legal standards, and the need for accurate record-keeping in a highly regulated industry.
At GrowerIQ, our software aims to provide cannabis growers with a comprehensive solution for:
- Managing their cultivation operations
- Ensuring compliance
- Optimizing quality
- Enhancing efficiency throughout the seed-to-sale process
- Overall uncomplicating the production process
We do this with our software, which offers a range of functionalities to assist cannabis growers, including:
- Seed-to-Sale Tracking
- Quality Management
- Cultivation Planning
GrowerIQ provides cannabis growers with a comprehensive solution for managing their cultivation operations, ensuring compliance, optimizing quality, and enhancing efficiency throughout the seed-to-sale process.
Production Landscape Of Cannabis In Morocco
Together with Afghanistan, Morocco is one of the top growers of illegal cannabis in the world, although the government has turned a blind eye to its growth for decades. It is estimated that 400 000 people, or some 60 000 households, live on the cultivation of cannabis in the three demarcated areas:
- Al Hoceima
- Chefchaouen
- Taounate
The cannabis subsistence farmers in these areas claim that cannabis is the only crop that will grow there.
- Cultivated for centuries, cannabis production shifted to the Rif region in the 18th century, where it remains prominent today.
- Traditional methods involve drying stalks and beating them to collect trichomes (THC-laden crystals). The first beating yields the highest quality product.
- Trichomes can be packaged loose or pressed into hashish slabs marked with producer identifiers.
What Is The Potential Of The Moroccan Cannabis Market?
Morocco’s cannabis market is thriving, with projected revenues set to reach US$241.20 million by 2024. The market volume is expected to grow at an annual rate of 2.95% from 2024 to 2029, peaking at US$278.90 million. What makes Morocco stand out in the Cannabis market is its rich cultural heritage intertwined with diverse landscapes, making it a significant player in Cannabis consumption and production.
Customer Preferences in Morocco
The Moroccan market reflects deep-seated cultural practices when it comes to Cannabis consumption. The local population favors traditional methods like hashish, owing to their cultural familiarity and accessibility. This preference for traditional consumption methods is a testament to the historical significance of Cannabis in Morocco, with a long history of cultivation for both medicinal and recreational uses.
Market Trends in Morocco
One striking trend in Morocco’s Cannabis market is the increasing demand for high-quality products in international markets. As attitudes toward Cannabis evolve globally and legalization becomes more widespread, Moroccan producers are adapting to meet the standards and preferences of global consumers. This trend has led to a surge in innovation and quality improvement in the local industry.
Local Special Circumstances in Morocco
Morocco’s geographical location and climate offer ideal conditions for Cannabis cultivation, resulting in top-quality products sought after globally. The country’s extensive history of cultivating Cannabis has helped establish a strong foundation of knowledge and expertise in the industry. However, the informal nature of the market and regulatory challenges pose barriers to fully capitalizing on the sector’s potential in Morocco.
Internalization Of Moroccan Cannabis
Moroccan cannabis is making waves in the industry with the internalization of its cultivation and production. With the legalization of cannabis exports to Europe in 2024, Morocco has:
- Legalized cannabis exports to Europe in 2024.
- Attracted investment with over 200 operators entering the market.
- Increased legal cultivation to 3,000 hectares in the Rif region.
The shift towards legal production is anticipated to bring annual revenues of 400 to 600 million euros within the next four years. To secure a 10% to 15% market share in Europe, Moroccan companies like Bio Cannat are processing cannabis for both export and local markets. The first legal exports included 100 kilograms of resin containing less than 1% THC, solidifying Morocco’s position in the European market. The resin was sold for 1,400 to 1,800 euros per kilogram, catering to the growing demand for legal cannabis.
Challenges and Opportunities
Despite the promising prospects, challenges remain in the industry. Climate impacts can affect cultivation, while cost competitiveness versus European producers remains a key consideration. The internalization of Moroccan cannabis is not just about business; it’s about transforming the industry and creating new opportunities in a vibrant and evolving landscape.
Related Reading
How Do I Get A Production Permit?
To obtain a permit to grow or produce cannabis in Morocco, individuals or entities must go through The National Agency for the Legalization of Activities Related to Cannabis. This agency has set specific regulations and procedures to ensure that all cannabis-related activities are conducted legally and in compliance with established guidelines.
Strict Licensing and Production Controls
The agency has determined that no cannabis-related activity is legal unless the involved party has received a permit from the Agency. The production quota for cannabis will be decided annually based on demand, with a stringent THC limit of less than 1% for most cannabis farming activities.
Transparent Permit Application Process
Approval or rejection of a cannabis license in Morocco follows a strict timeline.
- The National Agency has a 10-day deadline to issue an administrative application follow-up
- 60-day deadline from the date of the application’s submission to respond to each permit application, providing either an approval or rejection.
In the case of a denial, the agency must justify the decision, whether for farming, production, commercialization, or export purposes. It is also crucial to note that a delay in or lack of response from the agency should not be considered a rejection.
Permit Revocation and Renewal
Permits to grow or produce cannabis in Morocco can be retracted under specific circumstances. These include:
- A request for permit retraction by the owner
- A change in ownership
- Violation of any rules or criteria
- Two-year halt in activity
- Infringement of existing drug regulations
- If the permit-holder is related to a member of the national agency’s executive board
The agency cannot retract permits without providing written notice to the concerned party, followed by a 15-day legal or administrative rebuttal deadline. All permits are valid for 10 years and are renewable upon demand, following the same process.
Uncomplicate Your Cannabis Production Today With GrowerIQ!
GrowerIQ is a leading software solution designed specifically for cannabis growers to help them manage their cultivation operations efficiently. Cannabis growers face numerous challenges in the industry, and accurate record-keeping and compliance are vital. GrowerIQ aims to simplify the production process by providing functionalities such as:
- Seed-to-sale tracking
- Quality management
- Cultivation planning
By utilizing GrowerIQ, cannabis growers can:
- Streamline their operations
- Ensure compliance with regulatory frameworks
- Optimize the quality of their products
- Enhance efficiency throughout the entire seed-to-sale process
This software provides a holistic approach to managing cultivation operations, considering the industry’s complexity and the need for accurate documentation and reporting.
Related Reading
Streamline Cannabis CultivationAbout GrowerIQ
GrowerIQ is changing the way producers use software - transforming a regulatory requirement into a robust platform to learn, analyze, and improve performance.
To find out more about GrowerIQ and how we can help, fill out the form to the right, start a chat, or contact us.