Albania Advances Medical Cannabis Legislation for Export Market
Albania advances medical cannabis production law, targeting export market with strict regulations and licensing criteria
Key Points
- 1Albania drafts medical cannabis law for export market
- 2New agency to oversee cannabis production and compliance
- 3Strict licensing criteria favor international companies
- 4National cultivation capped at 150 hectares
- 5Law aims to boost economy but poses challenges for local firms
Albania is moving forward with plans to legalize the production of medical cannabis for export, following a referendum led by Prime Minister Edi Rama. The government has swiftly drafted legislation to regulate the cultivation, processing, and export of cannabis for medical and industrial purposes. This legislative initiative marks a significant step in Albania's engagement with the global cannabis market
The newly drafted law outlines comprehensive guidelines for the cannabis industry, including the establishment of a National Agency for the Control and Monitoring of Cannabis Cultivation and Processing. This agency, operating under the Ministry of Health, will oversee the entire production process, ensuring compliance with strict regulatory standards. The legislation also sets a national cultivation limit of 150 hectares for medical cannabis, with individual licenses covering areas between 5 and 10 hectares
Licensing criteria are stringent, requiring companies to have prior experience in the cannabis industry and a substantial financial foundation. Specifically, companies must demonstrate a minimum capital of 100 million ALL and hold a GMP certification from the European Medicines Agency or the U.S. FDA. Additionally, the majority shareholder must have a background in the cannabis sector within an OECD member country, presenting a significant barrier for local Albanian firms
The law also mandates that companies submit detailed plans covering cultivation models, security measures, and employment commitments. Each licensed entity must employ at least 15 people and agree to inspections by public safety authorities. After three years of operation, companies are required to pay an annual fee of 1.5% of their revenue, but not less than 10 million ALL, adding a financial obligation to the operational requirements
While the legislation aims to position Albania as a significant player in the medical cannabis export market, it raises concerns about local participation due to the stringent requirements. The focus on international companies with existing cannabis expertise may limit opportunities for domestic businesses. However, the initiative could stimulate economic growth and create jobs, provided that challenges related to licensing and compliance are addressed