african cannabis markets advance
african cannabis markets advance

A Threat to the Legal European Cannabis Market? - Morocco and Zimbabwe Accelerate Marijuana Export Plans

The African nations of Morocco and Zimbabwe are going full speed into cannabis growing and shipping!

Posted by:
Joseph Billions on Friday Aug 9, 2024

african cannabis markets take off

International Cannabis Update: Cannabis in Africa

Africa's legal cannabis manufacturing landscape has changed significantly in recent years, with countries like Zimbabwe and Morocco becoming major players. Morocco has undertaken attempts to legalize cannabis for medical and industrial purposes, changing the lives of thousands of farmers and gradually decreasing the criminal trade. Morocco is known as the world's largest producer of cannabis resin. Concurrently, Zimbabwe has emerged as a significant participant in the international cannabis industry, depending on its temperate environment and progressive legislation to cultivate premium cannabis for export. This article examines the expanding legal cannabis markets in Zimbabwe and Morocco, highlighting their impact on regional economies and the global market.

 

Why is this big news, especially if you are interested in the European cannabis market.  While Europe may turn out to be one of the largest and most lucrative legal markets on the earth, it will also create one of the largest black or illicit markets in the world due to the fact so many nations bordering Europe are so poor and there are so many avenues to enter Europe and smuggle cannabis. The Eastern Block countries are all very poor and will be incentivized to grow black market cannabis, and the countries of North Africa will be in the right climate zone and proximity to Europe to grow a ton of illegal weed and get it into Europe. 

 

Morocco's Legal Cannabis Industry Expands, Reducing Illicit Sales

 

Just two years ago, Abdesselam Ichou began legally cultivating cannabis, following Morocco's legalization of the plant for medicinal and industrial purposes in a poverty-stricken region of the country. Today, he is among thousands of legal farmers whose cultivation has expanded significantly, cutting into Morocco's still-dominant illegal cannabis trade. According to the United Nations, Morocco is the world's largest producer of cannabis resin.

 

Morocco enacted a law in 2021 that allows cannabis to be grown for medical and industrial purposes in the Rif, a mountainous region infamous for illicit hashish manufacturing, much of which is trafficked into Europe. "I never imagined that one day I would be able to grow cannabis without fear of being arrested, robbed, or unable to sell my harvest," said Ichou, 48, proudly displaying his lush crops in Mansoura, a commune in the Chefchaouen district southeast of Tangiers.

 

Morocco's partial legalization of cannabis seeks to curb drug trafficking and improve farmers' lives, benefiting up to 120,000 households in the area where cannabis has been grown for generations. Morocco's cannabis regulatory body, ANRAC, said that the nation produced 296 tons of low-potency cannabis in its first legal crop last year.

 

For Ichou, it was "a record harvest of almost eight tonnes on one hectare (2.5 acres)" that provided him with a more stable income than illegal cultivation. He sold his crop at 80 dirhams ($8) per kilogram, earning $64,000. The Moroccan company that purchased it has since invested in two more hectares for the next harvest.

 

In Chefchaouen, Hoceima, and Taounate—the Rif provinces where non-recreational cannabis cultivation is legal—the number of farmers increased from 430 to 3,000 in just one year, according to ANRAC. The area dedicated to legal cannabis crops grew nearly tenfold, from 286 hectares in 2023 to 2,700 hectares in 2024. However, this still pales in comparison to the 55,000 hectares reportedly grown illegally in 2019.

 

Said El Gueddar, 47, another legal cannabis grower, initially had reservations but now sees legalization as the right path. He belongs to a cooperative and has "a lot of hope because it can only be better than living in the precariousness of illegality."

 

After relying on imported seeds for legal cultivation, beldia, a local drought-resistant variety of the plant, will be harvested for the first time in August. With Morocco enduring a six-year drought, "Beldia is a major asset for us," said Ichou, who has formed a cooperative with dozens of other farmers to grow the local variety on more than 200 hectares.

 

For industrial cannabis use, ANRAC has issued over 200 permits, including about 60 for cannabis processing, 20 for seed importation, and around 30 for cannabis export. Aziz Makhlouf seized the opportunity by establishing Biocannat, a cannabis processing factory employing 24 people in Bab Berred, southeast of Chefchaouen. Since the start of the year, his factory has processed around 30 tonnes of cannabis into various products, including CBD resin, oil, flour, creams, candies, and food supplements.

 

While cannabis regulation is helping to "slowly build a reliable and resilient economy," it remains challenging to "absorb the illegal sector" because it still has its market, said Mohamed El Guerroudj, the head of ANRAC. However, official studies suggest that legal growers could eventually achieve a 12-per cent turnover compared to just four percent on the illegal market.

 

For now, the kingdom's priority is to improve the lives of those who rely on cannabis cultivation for their livelihoods. Treating "cannabis production as a normal agricultural sector," Guerroudj said, will help bring these farmers "out of the shadows... and into the light."

 

Zimbabwe Targets Global Cannabis Market Growth

 

Zimbabwe is already a major participant in the global cannabis business thanks to its advantageous environment, sensible laws, and strong marketing initiatives. Due to the perfect growing environment in the nation, premium cannabis can be grown for medical and recreational purposes that are up to par with international standards. This creates significant export prospects and draws in investment. By utilizing these benefits, Zimbabwe may gain from more income, the development of jobs, and general economic expansion.

 

Zimbabwe became one of the first African countries to authorize the cultivation of medical cannabis. With the worldwide cannabis sector expected to be worth $272 billion by 2028, Zimbabwe hopes to grab at least $1 billion of that market. By 2022, over 60 businesses had been permitted to produce medicinal cannabis, and the country was generating cannabidiol (CBD) supplementary medications. The Zimbabwe Medications Control Authority (MCAZ) has approved the production of these medications and urged drug manufacturers to apply for licenses, while the Zimbabwe Investment and Development Agency (Zida) is confidence in local farmers' capacity to support the business.

 

A delegation including Foreign Affairs and International Trade Deputy Minister Sheillah Chikomo, Information, Publicity, and Broadcasting Services Permanent Secretary Nick Mangwana, and ZimTrade CEO Allan Majuru recently toured Thathokuhle Farm in Douglasdale, near Bulawayo. The 44-hectare farm grows cannabis and other crops for export, employing around 85 people, mostly women, with the workforce increasing to 150 during harvest season. The farm's "organically grown" cannabis is cultivated in greenhouses using a mechanized drip irrigation and lighting system, showcasing the entrepreneurial talent in Zimbabwe and the potential for cannabis to become a major foreign currency earner.

 

Farm owner Mike Querl highlighted that Zimbabwe has the potential to reap significant benefits from cannabis production by leveraging its favorable climate to lead the industry. Export markets for their products include the United States, Portugal, and South Africa. Querl believes Zimbabwe can produce superior cannabis compared to many other countries and can cultivate the crop year-round due to its ideal weather conditions. ZimTrade CEO Allan Majuru expressed satisfaction with Thathokuhle Farm's production scale and market diversification, emphasizing that exploring non-traditional markets such as Australia, the USA, the United Arab Emirates, and Oman is beneficial for the country. Plans include more value addition and aggressive participation in the global medicinal cannabis space.

 

Bottom Line

 

Morocco and Zimbabwe's legal cannabis industry are making significant gains toward altering their economies and diminishing the dominance of illegal sales. Morocco's partial legalization has provided farmers with steady earnings and better living, whilst Zimbabwe's good growing circumstances and forward-thinking laws have established the country as a major participant in the worldwide market. Despite hurdles, both nations are paving the path for a more regulated and profitable African cannabis market, with promised economic rewards and a brighter future for cultivators.

 

AFRICA GOES GREEN, READ ON...

EUROPEAN BLACK MARKET BET IS BIG

WITH A GUN TO MY HEAD, I WOULD SHORT EURO CANNABIS!


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