Morocco's share in formal cannabis market to remain minimal despite reforms

Al-Monitor Pro Members

Harry Clynch 

Journalist & Features Editor at Disruption Banking 

June 2, 2023

Morocco, the world’s second largest producer of cannabis, is set to legalize production for medical, cosmetic and industrial purposes. On April 30, the country kickstarted its first ever legal cannabis growing season. In March, it began constructing its first cannabis laboratory. The government in Rabat has claimed that legalization will reduce the power of drug lords by encouraging farmers to move towards the legal industry. The government believes the legal industry could prove to be an economically lucrative opportunity for individual farmers and boost revenues for the government. However, there are questions as to whether local dynamics in the Rif region, where most of Morocco’s cannabis is currently grown, and the prospect of international competition could stunt the government’s attempts to make Morocco a powerhouse for the export of legal cannabis.

Scenario 1: Cannabis farmers continue servicing the illegal market, limiting exports of legal products 

Despite the government's belief that legal exports represent an economically lucrative opportunity for individual farmers, there is a risk that independent farmers in remote areas remain loyal to local drug barons and not the central government. On the ground reporting has indicated that farmers are likely to be skeptical of the authorities and could continue servicing their traditional customers in the black market, rather than integrating into a new legal system overseen by the state.

There appears to be little indication that the government has taken local dynamics into consideration when devising the legislation. For example, the government intends for cannabis farmers to come together as collectives for the production of legal cannabis products. However, this takes no account of embedded local rivalries and competition.

Scenario 2: Morocco’s cannabis farmers do shift towards legal production, but fail to compete in the international market

If the Moroccan government succeeds in its attempts to overcome opposition to its measures, which is highly questionable, there is also the possibility that Moroccan farmers will fail to make an inroad in international cannabis markets.

According to Moroccan drug expert Dr. Khalid Tinasti, the global market is already saturated, with major Western corporations dominating the market. The largest cannabis company in the world is Green Thumb Industries, which posts billion-dollar revenues and is listed on the Canadian Stock Exchange. In 2022, North American producers accounted for almost 70% of the industry’s revenue share globally.

It is unclear how small independent farmers in Morocco could compete with such players, particularly given that the pharmaceutical market imposes high barriers of entry. Pharmaceutical markets require strict guidelines to be followed and the use of expensive infrastructure. 

Damon Booth, founder of cannabis research company Melabis, has said “if I’m a farmer growing cannabis illicitly in Morocco now, I just need a field and to be able to cultivate it […] but if it needs to be pharmaceutical grade – even a specific screw in the greenhouse needs to be Good Manufacturing Practice (GMP) approved. That’s where the problem is going to lie – the farmers won’t have the capital to do that, and the government won’t do it for them. It’s a massive expenditure.” Given this, Booth told Al-Monitor that “I’m not convinced there would be a successful export market.”

Harry Clynch is a British journalist based in London. He is the Features Editor at Disruption Banking and writes about finance, politics and international affairs. On Twitter @clynchharry