High hopes: Albania’s path towards medical cannabis.

Albania is on a path towards legalizing the cultivation of cannabis for medical purposes, signalled by incremental steps including establishing a national regulatory body, approving a legal framework and joining an international regulatory body. While these developments are encouraging, the government would do well to heed lessons from North Macedonia, where licences allegedly ultimately benefited politically exposed persons and legally grown cannabis has been diverted to the illicit recreational market. A robust framework is crucial, given that Albanian criminal groups have historically had a significant hand in the illegal cannabis trade.

Historically, Albania earned a bad reputation for being a major source of cannabis in the Western Balkans. Indeed, cannabis has been a substantial illicit market in the country, generating a lucrative source of revenue for criminal groups. The authorities began to get a grip on the problem back in 2014, when police and special forces engaged in a lengthy gun battle with local mafia in the village of Lazarat in the south of the country, the epicentre of illegal cultivation.¹

A police operation in Lazarat in 2014 effectively marked the start of Albania’s crackdown on the illicit cannabis trade.

Photo: Albanian Interior Ministry/Anadolu Agency/Getty Images

After that crackdown, cannabis cultivation became smaller scale and more diffused, moving from large fields in the south of the country to smaller plots in the mountainous regions in the north as well as to indoor cultivation. Some Albanian cannabis growers upped sticks and took their illicit skills to the Netherlands, Spain and the United Kingdom.

Given this historical context, it came as something of a surprise when Prime Minister Edi Rama announced in May 2020 that the government was preparing a draft law that would legalize the cultivation of cannabis for medicinal purposes. Subsequently, parliament in July 2023 approved a law setting out an initial framework for legal cannabis cultivation and Albania created a National Agency for Cannabis Control (NACC) in 2023.²

Most recently, in November 2024, the national agency has joined the Cannabis Regulators Association (CANNRA), a non-partisan, non-profit organization that comprises government agencies involved in regulating cannabis, cannabinoids and hemp in more than 45 US states, as well as in Canada, the Netherlands and Malta. The association connects governments working on the implementation of cannabis and hemp policies, and promotes learning, collaboration and coordination.³

This considered, incremental approach is encouraging. It has been informed by Rama making clear from the very beginning that the government would coordinate closely with foreign and local advisers. He also emphasized the importance of learning from other countries’ experiences with medical cannabis.⁴

The legal cultivation of cannabis seeks to attract foreign investment and diversify the economy. However, the country’s historical problems with illegal cannabis cultivation in relation to organized crime raises clear concerns about oversight and implementation.⁵

Lessons from North Macedonia

One major concern is the potential for diversion of legally grown cannabis onto the black market. There are lessons to be learned, not least from the experience of North Macedonia, where the cultivation and export of medical cannabis was approved in 2016.

On several documented occasions legally produced cannabis in North Macedonia ended up being sold in significant quantities on the illicit market.⁶ Authorities have conducted several operations against licensed companies suspected of regulatory breaches and illicit distribution, highlighting the need for stringent oversight to prevent the misuse of legally produced cannabis.⁷

Another major risk is that of corruption in issuing licences. There are allegations that ruling parties in North Macedonia tended to favour associates when granting licences and that the tender process attracted controversial businessmen (i.e. those with significant criminal convictions) from at home and abroad.⁸

There is also criticism that too many licences were issued; nearly 70 cannabis companies were registered by March 2024, despite a limited market for medicinal cannabis in North Macedonia.⁹ There is currently no intention to limit the number of licences issued.

Albania’s initial steps: a good start?

It is clear that Albania’s government has given considerable thought to the danger of illegal diversion. Countering such efforts come under the purview of the above-mentioned National Agency for Cannabis Control, a public, budget-financed legal entity under the authority of the health ministry.

Its mission is to oversee, control and inspect the cultivation and processing of the cannabis plant and the production of its by-products for medical and industrial purposes, as well as to monitor the implementation of the July 2023 law.¹⁰ In April 2024, the government approved the agency’s structure, which consists of a director-general, a coordinator and four directorates.¹¹

Several by-laws and regulations have been approved and published by the Albanian government; others are being finalized. Regulations stipulate that cultivation may be carried out in protected farmland, in greenhouses or plastic tunnels, and in enclosed facilities equipped with artificial lighting.

If cultivation takes place in open areas, it will be mandatory for the exterior to be protected by a stable concrete wall that is at least 4 metres high and 25 centimetres thick (and topped by barbed wire). The premises must be monitored by high-quality cameras and guarded 24/7 by authorized security personnel.¹²

Additionally, the use of high-tech electronic security devices (such as detectors and control gates) will be required, while the alarm signal must be linked to a police station and the command centre.¹³ The licensed entity must also grant the National Agency for Cannabis Control access to cameras in their compounds, to ensure independent monitoring.¹⁴

The transport of the cannabis and by-products must be carried out in sealed vehicles that ensure the product is not tampered with. Every time a licensed entity wants to transport legal cannabis products from one place to another, it must inform the National Register of Licensed and Permitted Cannabis Activities and the State Police at least five days in advance. Meanwhile, storage is entrusted to private security companies or the state-owned Illyrian Guard security company; these companies will be required to maintain a continuous 24-hour security presence.¹⁵

The licensing process has yet to begin,¹⁶ but licences will no doubt be highly sought after.

While North Macedonia’s medical cannabis industry has struggled due to limited domestic demand and export barriers, Albania may be perceived differently by investors thanks to its agricultural climate, lower production costs and pro-business government narrative. If Albania succeeds in ensuring regulatory clarity and securing export markets — especially to EU countries where demand is surging — the industry could become highly lucrative.

Applying for a licence will cost around €1 000. After the third year, licence holders will pay an annual fee of 1.5% of their turnover to the government, but no less than €100 000. A licence to produce medical cannabis will be issued for a 15-year period, with the option of renewal upon request. The total allowable area for the cultivation of cannabis for medical purposes cannot exceed 200 hectares nationwide.¹⁷ According to the legislation and regulations, applicants must not be under investigation or have been convicted of a serious criminal offence, must not be a drug user, and must undergo additional background checks.¹⁸

However, this might not be enough to address concerns about the potential for the process of granting licences to be corrupted. In terms of resilience to organized crime, Albania is ranked 84th globally in the GI-TOC’s Global Organized Crime Index, below North Macedonia in 73rd place, indicating that the integrity of Albania’s licence acquisitions could be even more open to exploitation by politically connected players.¹⁹

Revenue generated from issuing the licences will go into the state budget, while the revenue from the annual fee paid by licensed entities will be distributed 70:30 between the state budget and the NACC.²⁰

Another challenge will be to ensure that increased tax revenues from legal cannabis are not just seen as a cash cow but are used to improve the healthcare system, particularly in terms of patient treatment and social support.²¹ This will require enhanced transparency in revenue management and closer cooperation between the relevant ministries and other stakeholders such as civil society.

In short, the Albanian authorities should take heed from North Macedonia’s experience in establishing a regulatory framework for medical cannabis. While there is clear evidence that significant thought has gone into preventing illegal diversion of legally grown cannabis onto the black market, there is concern about the risk of corruption in issuing licences — and how those risks will be properly addressed.

Notes