State-Regulated Cannabis Aims to Revitalize Rift Region
RABAT – Morocco is strategically pushing to formalize its decades-old, illicit cannabis trade into a state-regulated industry, aiming to capture a share of the booming global market for medical and industrial applications. This shift, initiated by the 2021 passage of Law 13-21, is not merely a policy change but an ambitious economic and social reform designed to integrate marginalized farming communities and generate substantial, legal export revenue.
The North African nation, long cited as the world’s largest producer of illicit cannabis resin (hashish), is attempting an unprecedented transition. The move has been heralded by officials as a key mechanism to lift thousands of small-scale farmers in the mountainous Rif region out of poverty and protect them from the criminal networks that have historically dominated the trade.
The Regulatory Tightrope
Since the law was enacted, the Moroccan Agency for the Regulation of Activities relating to Cannabis (ANRAC) has been established to tightly control every stage of the supply chain, from seed distribution and licensing to processing and eventual export. By 2024, ANRAC had issued over 3,371 licenses to growers across the designated provinces in the Rif, leading to the production of over 4,000 tonnes of legal cannabis—a significant jump from the initial harvest of just 294 tonnes in 2023.
This production is strictly for medical, pharmaceutical, and industrial use; the cultivation and consumption of cannabis for recreational purposes remains prohibited. This cautious, export-oriented approach is critical to maintaining domestic legality while complying with international conventions.
One of the most profound acts supporting this transition came in 2024 when King Mohammed VI granted a royal pardon to over 4,800 farmers convicted or wanted on cannabis charges, allowing long-time growers to participate in the new legal economy without fear of reprisal. This signaled a clear political commitment to economic inclusion over punitive measures.
The Economic Promise and the Reality Gap
The economic projections are optimistic. The legal cannabis industry is anticipated to generate annual revenues of €400 to €600 million for Morocco within a few years, provided it can secure a meaningful slice of the European medical cannabis market. Early successes include limited exports of low-THC cannabis resin to Europe and the approval of 67 different cannabis-derived products—including cosmetics and dietary supplements—by late 2025.
However, the reform faces formidable challenges on the ground.
The legal market, while growing, remains a fraction of the illicit one. Government data indicates that while around 14,300 acres were dedicated to legal cultivation in 2024, over 67,000 acres are still used for illegal growing. The illicit trade, which experts estimate generates billions annually, offers faster returns and fewer bureaucratic hurdles.
Furthermore, farmers who have made the shift into the regulated system are experiencing transition pains. Legal growers must join cooperatives, meet strict traceability standards, and rely on processors to buy their crop. In some cases, local media reported protests after cooperatives failed to pay growers for their legal crops, causing frustration and mistrust.
As farmer Abdelsalam Amraji, who joined the legal industry, stated, the diminished risk is priceless: “Making money in the illegal field brings fear and problems. When everything is legal, none of that happens.” Yet, the state must address the market absorption capacity and ensure the legal framework delivers stable and superior economic benefits to compete effectively with the deeply entrenched black market.
Morocco’s success hinges on whether it can successfully transition a centuries-old survival economy into a modern, compliant, and profitable export powerhouse without leaving behind the very communities it aims to save. The two parallel cannabis economies—one outlawed, one regulated—exist side-by-side, creating a complex, high-stakes test case for North African economic reform.
You can learn more about the challenges of moving from an illicit to a regulated cannabis economy in the Rif region by watching this panel discussion:
