News - Afrikan Heroes

Mozambique’s LNG is the Economic Game Changer

October 15, 2019

As Mozambicans await the results of the general elections, the incoming government is sure to benefit from the country’s second Final Investment Decision (FID) in the gas sector. In just two years Mozambique has officially positioned itself as a key player in the global gas and LNG market for years to come. The latest FID on the US$20 billion Mozambique LNG project makes it the largest ever in sub-Saharan Africa oil and gas. According to President Nyusi as this project is one of the most important and transformational projects in the country’s history and is set to be a game-changer for the nation of 31 million people.

According to Wood Mac, from the early 2030s state revenue from Mozambique LNG alone will reach US$3 billion per annum, single-handedly doubling today’s revenue as calculated by the IMF and World Bank. And this is not the only mega-LNG project on the drawing board. ExxonMobil’s Rovuma LNG project, which envisages a 15 million tpa two-train facility taking gas from its offshore area 4 block, is also lined up to take FID. Meanwhile, Italy’s ENI is already moving ahead with its 3.4 million tpa floating LNG facility, which will draw on 5 TCF of gas in waters more than 2,000 metres deep with first gas due in mid-2022. “With strong LNG demand growth out of Asia, now is Mozambique’s time,” said Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, as news broke of the Anadarko FID.

With FIDs signed, the projects are now moving from the planning into the implementation phase. Hundreds of contracts are expected to be tendered for the construction, infrastructure and services needed to build and develop the megaprojects.

More recently, Mozambique Rovuma Venture (MRV) Area 4 operator decided to move ahead with the midstream and upstream project activities of over US $500 million as initial investments. These investments include activities such as the construction of the pioneer camp, the development of resettlement activities, the construction of the airstrip and access roads, as well as the start of detailed LNG facility engineering project.

It makes this the ideal time to participate at the 6th Mozambique Gas Summit & Exhibition, in partnership with ENH, taking place on 13-14 November in Maputo. The event is the official platform to hear from key decision-makers in this fast-emerging LNG hotspot, including key Government figures, policy-makers and all the major project stakeholders who will be in attendance. This edition is taking place at a time of exciting change including; the construction of FLNG, the progress in drilling activities in Cabo Delgado and Angoche, and the infrastructure development in Pemba Logistics Base. The event is organised in partnership with ENH, with support from MIREME, INP and industry stakeholders ExxonMobil, Total Mozambique LNG, TechnipFMC, FNB, Sasol, Baker Hughes, Standard Bank and G4S.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Somalia is Open for Business, says Petroleum Minister

Inspite of the perception many have about Somalia as a stability challenged nation, the country is opening its doors to investors to explore the country’s rich hydrocarbons and favorable geological structure which offers huge opportunities for investors in the oil and gas industry. The Somalian Minister of Petroleum and Mineral Resources, Hon. Abdirashid Mohammed Ahmed is calling on investors wishing to explore the huge opportunities in the East African market to come to his country. Speaking at the just concluded Africa Oil & Power conference, he noted that “nowhere is the contribution that the energy industry can make to civil society and economic development greater than in Somalia,” he said, noting that the sector has the potential to greatly enhance stability and economic development.

Somalian Minister of Petroleum and Mineral Resources, Hon. Abdirashid Mohammed Ahmed

On its path to transforming its petroleum industry and attract the attention of new investors, Somalia has made significant progress in recent years. This year, the country passed a new petroleum law which enabled it to make progress in exploration and development, and attract interest from oil and gas majors ExxonMobil and Shell.

“My ministry worked successfully with the six federal member states to develop an equitable and transparent framework for development, focused on the greater good of Somalia and its entire people, whilst ensuring that we are highly competitive internationally to attract investment by delivering returns that are consistent with the risks and rewards of developing our off-shore industry,” said the minister.

Eager to demonstrate to the world that Somalia is open for business, the minister said the country is currently on an international roadshow which will showcase the exploration opportunities available in its hydrocarbons sector. “This includes seismic data recently shot by Spectrum covering 20,185 km. The current licensing round is in respect of up to 15 blocks, covering a total area of approximately 7,500 square miles. The bid round will follow shortly after to ensure that the world knows: Somalia is open for business.”

Minister Ahmed also spoke on the attractiveness of the country’s production sharing agreement (PSA) model for offshore oil exploration and development – regarding it as being amongst the most attractive to investors in the frontier basins. The PSA provides a highly attractive regulatory fiscal framework that is both competitive and equitable for both the people of Somalia and international oil companies (IOC).

“By equitably linking of royalties and share of revenue closely to the price of oil, the Somalia PSA ensures that IOCs can recover their up-front development costs and earn a fair share profit even if oil prices fall, whilst maximizing the profit going to the Somalian people,” the minister explained.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Founder of Electric Vehicle Startup Faraday Files Bankruptcy

Jia Yueting, an entrepreneur who ran up billions of dollars in personal debts trying to build a business empire in China, has filed for bankruptcy in the U.S. with plans to turn over his latest venture, an electric vehicle startup, Faraday to creditors.

In a proposed debt-restructuring plan filed in US federal court in Wilmington, Delaware, Jia will use his ownership stake in Los Angeles-based Faraday & Future Inc. to set up a creditor trust to repay his debts.

Jia faces $2.3 billion in claims, according to the plan. In a statement on Faraday’s website, the company said Jia’s debts were owed to creditors in China.

The plan is also designed to help Faraday put together “equity financing efforts and prepare for an IPO,” according to the statement. Depending on the value of that proposed initial public offering, creditors may recover from 49% to 100% of what they are owed, according to reorganization plan documents filed in court.

Faraday is trying to develop an electric vehicle for sale in the U.S. and China. The company recently hired Carsten Breitfeld, BMW AG veteran, to take over the chief executive officer role from Jia.

Faraday won a much-needed cash infusion when it formed a joint venture earlier this year with The9 Ltd., the Chinese online-gaming company. And a unit of China Evergrande Group, the property developer owned by Hui Ka Yan, China’s third-richest man, agreed to invest $2 billion, but cut back on the investment after giving Faraday $800 million for a 32% stake, according to court documents.

Jia has a history of making dramatic statements about his various ventures, including a claim that one of his biggest China-based businesses would “far surpass” China’s three biggest internet companies: Baidu Inc., Alibaba Group Holding Ltd. and Tencent. That claim was related to $2.2 billion Jia raised for LeEco, a sprawling conglomerate with interests ranging from electric cars and TVs to entertainment.

In his first international television appearance in 2016, he called Apple Inc.“outdated” and said he expected his electric vehicle company to “lead the industry leapfrogging to a new age.”

In his bankruptcy filing, Jia warned that his IPO plans for Faraday may not raise as much as projected. That was due in part to “negative press related to his debts and an investigation by the China Securities Regulatory Commission into the delisting from the Shenzhen Stock Exchange” of a company where Jia served as chief executive officer.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Violence Mars Mozambique Elections

October 13, 2019

The violence that led to the death of the head of a local elections observer team in Maputo, Mozambique has been described as unacceptable by the Commonwealth.

Musa Mwenye, former attorney General of Zambia ltd

The Team lead of the Commonwealth Observer group to the elections team observing elections, Musa Mwenye, who is a former attorney General of Zambia has called for a thorough investigation into the death of Anastácio Matavele in Xai-Xai, capital of Gaza province in Mozambique.

He condemned all incident of violence and encouraged all stakeholders to demonstrate unwavering commitment to peaceful and credible elections.

Mr Mwenya was speaking on arrival in Mozambique’s capital, Maputo. He said: “We convey sincere condolences to Mr Matavele’s family and friends and urge a thorough investigation into this and any other incidents of violence.

“Our mandate is to observe and evaluate the pre-election environment, polling day as well as the post-election period. We will consider the various factors impinging on the credibility of the electoral process as a whole, and report on whether it has been conducted to the national, regional, Commonwealth and international standards to which Mozambique has committed itself.”

The five-member Commonwealth Group (COG) arrived in Maputo on 10 October. It will receive briefings from election management officials, representatives of political parties, civil society groups, the police, members of the international community as well as citizens and internal observers, then deploy to selected provinces to observe the pre-election environment and the vote itself.

Shortly after the election, the Commonwealth Group will present its preliminary findings in Maputo. Its final report will be submitted to the Commonwealth Secretary-General and made available to relevant stakeholders and the public.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Ethiopia Set To Sell Majority Stake In Its Telecom Monopoly

Ethiopia may give up majority control over its telecommunications monopoly in a second phase of privatization once it’s sold 49% of the company next year.

The government could also issue more mobile-phone network licenses over the long term beyond the two already planned for March 2020, Balcha Reba, director-general at the Ethiopian Communications Authority, said in an interview in Addis Ababa.

Balcha Reba, director-general at the Ethiopian Communications Authority — Balcha Reba, director-general, Ethiopian Communications Authority

“We have a monopoly. That’s our problem,” he said. Privatizing Ethio Telecom will improve service quality, increase choice for customers and spur investment as the country’s population of 100 million grows, according to Balcha.

“In the future, the government may even release some of its shares from the 51%,” he said, while adding that the market would first need to become competitive and more mature.

International carriers including Orange SA, MTN Group Ltd. and Vodafone Group Plc’s African unit are among companies that are interested in expanding in Ethiopia, seen as the last major market on the continent closed to independent operators. They are keen to tap a nation with a relatively low level of data penetration and internet access, as well as the second-highest population in Africa — though one that’s been prone to government-imposed internet blackouts.

Next year’s sale will also boost the government’s scarce foreign-exchange reserves, Balcha told Bloomberg in his office in the center of the Ethiopian capital. That’s needed to pay for imports and for foreign companies to operate successfully in the country.

Mobile Banking

Ethiopia is also considering whether to issue mobile-banking licenses, Balcha said. He cited work underway at the country’s central bank to lift current restrictions. Wireless carriers have found a lucrative sideline offering financial services in many parts of Africa where formal banking infrastructure is scarce.

Yinager Dessie, governor of the National Bank of Ethiopia, did not immediately respond to calls seeking comment.

The sale of a minority stake in Ethio Telecom may lead to a review of the company’s equipment suppliers, which include Huawei Technologies Co. and Ericsson AB, Balcha said. “Whenever a company’s privatized, the 49% also have their say,” he added.

Ethiopia will add 5G technology in October, though it must first decide on the frequency band, he said.

Ethio Telecom has annual sales of about 45.4 billion birr ($1.5 billion) and more than 50 million subscribers, the company said last month.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Ghana ‘s Government Bars Telcom Companies From Charging Subscribers 9% Communication Service Tax

October 12, 2019

Ghana ’s Communications Ministry has ordered Mobile Network Operators (MNOs) to stop passing on the 9% Communication Service Tax (CST) to subscribers.

In a letter addressed to the National Communications Authority (NCA), and published in full below, the Communications Ministry stated that the CST should be treated the same way VAT, NHIL, GETFUND levy and all other taxes and levies imposed on entities doing business in Ghana are treated.

“At a series of meetings held between the Ministry of Communications, Mobile Network Organisations (MNOs) and the NCA on 7th and 8th October, 2019, we were informed that prior to 4th September 2019, MNOs had not been passing on CST to subscribers but had decided to take advantage of the 3% increase to pass on the entire tax to subscribers. This has effectively increased their profit margin at the expense of subscribers,” the letter explained.

Image result for Ghana Mobile penetration — Source: The ‘Digital in 2018’ report

Click here to download the directive

Here Is All You Need To Know

MTN, AirtelTigo, Vodafone and Glo have been charging their customers the full amount of the revised Communication Service Tax (CST) since October 1, 2019.
The CST, which has been increased from 6% to 9%, has been applied to any recharge purchase by subscribers.
For every GH¢1 of recharge purchased, a 9% CST fee is charged the subscriber leaving ¢0.93 for the purchase of products and services.
According to the Ministry of Communications statement, which has been copied to all the telcos, this is wrong.
Finance Minister Ken Ofori-Atta in the Supplementary Budget announced an increase in the CST from 6% to 9%.
Source: National Communications Authority (NCA), 2016
According to the Finance Minister, the increase was to help develop the foundation for a viable technology ecosystem in the county.
This will comprise putting in systems to identify and combat cybercrime, protect users of information technology and combat money laundering and other financial crimes.
Mr Ofori-Atta maintains that sharing ratio would be done in a way that the National Youth Employment programs would continue to receive the same portions as the current cycle. In 2018 the tax was first introduced at an Ad Valorem Rate of 6 per cent.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Kenya Leads Other East African Countries By Number Of International Investment Deals— Report

October 11, 2019

Kenya attracted more than half of East Africa’s financial deals in the first eight months of this year, cementing its position as the region’s investment hub.

According to the latest research by corporate finance advisory firm I&M Burbidge Capital (IMBC), Kenya took up 57 out of the 87 deal that the region attracted over the period.

Kenya’s closest rival Tanzania, the report said, clinched a measly 11 business agreements.

Uganda, Rwanda and Ethiopia, on the other hand, posted eight, six and five deals respectively. According to IMBC, Kenya’s position was boosted by recent big-ticket transactions, including Actis LLC’s joint venture (JV) with South Africa’s Improvon Group.

“The two companies have created a JV called ImpAct to build a 40-hectare industrial business park development at an estimated cost of $111 million (Sh11.5 billion),” said the firm’s analysts Edward Burbidge and Linda Obwora.

“The new development will be called Nairobi Gate Industrial Park and will be Kenya’s biggest industrial real estate investment to date.”

According to IMBC, in the month of August alone, East African countries witnessed a total of 12 disclosed deals valued at more than $173.5 million (Sh18 billion).

“This brings the total deal value and volume for the year to date to more than $1.3 billion (Sh130 billion) and 75 respectively,” said the firm.

IMBC found that the highest volume of deals to date in the region was recorded in the financial services sector, which boasts 18 out of the 75 disclosed deals.

“Other sectors that have seen significant deal activity are the energy, oil and gas sector, healthcare sector and the agribusiness sector,” said the company in its report. The real estate sector despite attracting the least number of deals had one of the highest value sizes in the ranking at more than $159.4 million (Sh15 billion).

The research also showed that the region and Kenya in particular, attracted the highest number of deals in private equity at 36 while mergers and acquisitions followed with 19 deals.

Meanwhile, joint ventures and private equity (PE) exits in East Africa performed poorly, with each recording six deals. Bonds and commercial paper ranked bottom with one deal each.

However, the region’s mergers and acquisitions led the deal size at $562.6 million (Sh56.2 billion) followed by PE at $292.5 million (Sh29.2 billion ) while PE exits follow at $224 million (Sh22.4 billion).

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Zimbabwe Increases Electricity Tariffs By 320% As Daily Power Cuts Worsen

Zimbabwe has increased the average electricity tariff by 320% to let the state power utility ramp up production and improve supplies at a time of daily rolling power cuts, the national energy regulator said on Wednesday.

Power cuts lasting up to 18 hours have hit mines, industry and homes and, together with a devastating drought, have been cited by the Zimbabwean treasury as among the main reasons why the economy is set to contract by up to 6% in 2019.

However, the jump in power costs will further anger Zimbabwean citizens who have, in the past week, seen sharp rises in fuel and basic goods prices. Salaries have not kept pace, prompting citizens to blame President Emmerson Mnangagwa’s policies for the worst economic crisis in a decade.

The Zimbabwe Energy Regulatory Authority (Zera) said it had approved an application by Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to raise the tariff to 162.16c (10.61 US cents) from 38.61c.

This is the second increase in three months, following one in August.

Zera said the tariff hike was necessary after inflation soared — the International Monetary Fund (IMF) says it was about 300% in August — and due to a plummeting Zimbabwe dollar currency, which was re-introduced in June.

The new tariff will allow ZETDC to raise money to repair its generators, as well as pay for imports from SA’s Eskom and Mozambique, which cost US$19.5m every month, the regulator said.

Hopes that Zimbabwe’s economy would quickly rebound under Mnangagwa, who took over after the late Robert Mugabe was deposed in a coup in November 2017, have faded fast as ordinary people grapple with soaring inflation which has eroded earnings and savings.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Ethiopia’s Prime Minister Abiy Ahmed, wins 2019 Nobel peace prize

For taking the route less traveled, for being humble enough to recognize that leadership is service, for cutting a figure that is quite in contrast to what obtains mostly in Africa where leaders want to be seen as demigods, for seeking peace, even at the expense of his office and life, the prime minister of Ethiopia, Abiy Ahmed was roundly acknowledged as desirous of winning this year’s Nobel peace prize. And the Norwegian Parliament did just that, by awarding the Prize to him.

New Zealand prime minister, Jacinda Ardern

He won the coveted prize beating other potential winners considered in the running for this year’s prize which includes the 16-year-old Swedish climate activist Greta Thunberg, Angela Merkel, the German chancellor, and Hong Kong activists. Another figure who was considered was the New Zealand prime minister, Jacinda Ardern principally because of her response to the Christchurch shooting in her country and also Alexis Tsipras and Zoran Zaev, the prime ministers of Greece and North Macedonia, who ended 30 years of acrimony between their countries. Ninety nine Nobel peace prizes have been awarded since 1901, to individuals and 24 organisations. While the other Nobel prize laureates are announced in Stockholm, the peace prize is awarded in the Norwegian capital, Oslo.

Since his election as the Prime Minister after the surprising resignation of the former Prime Minister last year, Abiy has pushed through reforms at home, dramatically changing the atmosphere in what was known as one of the more repressive states in Africa.His public renunciation of past abuses by previous rulers drew a line between his administration and those of his predecessors, as did the appointment of former dissidents to senior roles, as well as large numbers of women. Abiy according to observers brought something different to power, intelligent, suave, young, cyber-nerd and humane. And he has generously deployed all these attributes to drive change in his country working through government institutions. Being the first Prime Minister from Ethiopia’s most populous ethnicity, Oromo who for decades have complained over economic,cultural and political marginalization, he came into office breaking stereotypes and myths by appointing more women into high-profile jobs than any other Prime Minister in the history of Ethiopia.

As part of his bridge building efforts, he lifted bans on political parties,releasing imprisoned journalists and firing series of hitherto untouchable officials, some accused of torture. Moreso, we campaigned for the planting of millions of tress which further won him international support and recognition.The Norwegian Nobel committee said the award recognised Abiy’s “efforts to achieve peace and international cooperation, and in particular his decisive initiative to resolve the border conflict with neighbouring Eritrea” which has lingered for over two decades years leading to a bloody war. Moreso, Abiy has pushed for political and economic reforms on all fronts, seeking for peace within Ethiopia by granting generous concessions to many of the ethnic groups agitating for autonomy and independence.

According to the Nobel peace prize website, 301 candidates had been put forward for this year’s award. However, the committee does not announce the names of nominees until 50 years have passed.

Abiy, 43, has forged a reputation as a daring leader prepared to take risks to tackle decades-old problems. A former military officer specialising in cyber intelligence, the peace deal with Eritrea surprised and delighted tens of millions of people across East Africa. The conflict had cost both countries dearly in lives and scarce resources, and was a brake on development across much of the volatile region.

Born in western Ethiopia, Abiy joined the resistance against the regime of Mengistu Haile Mariam as a teenager before enlisting in the armed forces,reaching the rank of lieutenant-colonel. He has a doctorate in peace and security studies. After a stint running Ethiopia’s cyber-intelligence service,he entered politics eight years ago and rose rapidly up the ranks of the Oromo faction of the EPRDF, which has historically been at odds with the Tigrayans.

Analysts say Abiy’s mixed Christian and Muslim background, and fluency in three of the country’s main languages allow the new leader to bridge communal and sectarian divides. One personal acquaintance described the new Nobel Laureate as “always looking ahead for the future”shortly after Abiy survived an apparent assassination attempt in 2018. Former colleagues said shelves of books on religion, philosophy and science filled Abiy’s office. “He is physically active and very well organised … He did not have a secretary because he wanted his office to be accessible.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Morocccan Farmers Explore Hybrid Marijuana for Better Yields

Morocco is exploring the possibility of adopting hybrid Marijuana in its efforts to attract investment and attention to its burgeoning Marijuana market. The country’s Rif Mountains which have long been renowned for its cannabis is experiencing an upheaval as traditional varieties are being smoked out by foreign hybrids which offer higher yields for farmers and greater potency for consumers. The local strain of marijuana known as Beldiya in the local language is quite coveted by consumers but they are gradually disappearing from the fields Morocco due to influx of foreign hybrids of the plant.

Morocco has long been a leading producer and exporter of hashish — refined cannabis resin — even though the production, sale and consumption of drugs is illegal in the country. A quarter of hashish seizures worldwide originated from Morocco between 2013 and 2017, according to the United Nations Office on Drugs and Crime. While Morocco’s cannabis cultivation is falling, the adoption of hybrids means hashish production has remained stable.

With this development, farmers have shifted to another strain called Critical by the locals which they say is more coveted by both consumers and buyers. Critical is a product of the Netherlands but has easily adapted to Morocco. It is the lastest hybrid created in the laboratories in Europe to be introduced to Morocco. This according to farmers have led many especially those in the region of Ketama, located in the heart of the Rif Mountains range to shift to Critical because the seeds give a much higher yield. Local officials say that major cannabis producers decide what to plant and hybrid plants have become a market all on their own. This is coming at a time government have started paying more attention to cannabis production. Other hybrids that are making waves in the country are “Pakistana”, “Amnesia” and “Gorilla”, because of their potency and affordability. Market sources say that Critical sells for 2,500 dirhams per kilo ($252, 230 euros), while Beldiya goes for up to 10,000 dirhams per kilo.

The high yields of imported hybrid cannabis plants come at a cost however. The strains require heavy fertilization, which can damage the soil. And their insatiable thirst threatens the region’s water supplies, according to the OFDT. Critical grows in the dry summer, requiring heavy irrigation, while Beldiya is planted in winter, depending only on rainfall. Some locals complain that major producers enforce the planting of hybrids even in arid areas.

In 2003, 134,000 hectares (330,000 acres) were under cannabis cultivation, falling to 47,500 hectares by 2011 under a large official reconversion programme, according to a 2015 study by the French Monitoring Centre for Drugs and Drug Addiction (OFDT). But modern hybrid strains produce five to 10 kilos (11 to 22 pounds) of hashish per quintal, a traditional unit of weight equivalent to 100 kilos, compared to a single kilo for kif, as local cannabis is known. “The substitution of hybrids for kif might explain why the production of Moroccan hashish has barely decreased,” the study said. Locals say that in Ketama, kif is part of the culture.

Hybrids like Critical are notable also for high levels of THC, marijuana’s main psychoactive chemical. The adoption of hybrids explains the “rapid and significant increase in the average THC content” of seized Moroccan hashish, according to the OFDT. Analysts say that European consumers no longer want hybrid cannabis on account of its high THC levels. Traditional Moroccan cannabis remains highly coveted, particularly by advocates of legalisation. Cannabis decriminalization they say remains controversial in the conservative country as proposals to legalise it have so far met fierce political opposition.

That explains why producing it and smoking it are tolerated by the authorities and its cultivation provides a livelihood for 90,000 to 140,000 people in an otherwise deprived region known for its poor soil. People in the area say that it was mostly traffickers or intermediaries who bought the cannabis harvest for smuggling to Europe or other Moroccan towns.

One of the reasons the production of cannabis is in the upswing in some parts of Morocco is because job prospects are rare and there is high rate of youth unemployment so young people do whatever that pay for their keeps, says a community leader in the area.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.