President Miguel Diaz-Canel outlined Cuba’s historic move to allow emigrants and their progeny to invest in Cuba. Diaz-Canel made the announcement while addressing government efforts to improve infrastructure investment during an energy crisis on the island.
Private Sector Investors from Cuba Allowed to Invest Abroad
Areas of the economy Cuban residents abroad will be able to invest in include:
- Tourism
- Mining
- Energy sector reforms and investment
In an interview with NBC, Oscar Perez-Oliva, Vice Prime Minister and Minister of Foreign Trade and Foreign Investment, described how the move will allow for “an unprecedented opening for private capital abroad to invest in Cuba,” as well as investment from United States-based companies.
“The new policy allows for more than commercial transactions,” Perez-Oliva said. “This includes large-scale investment in infrastructure projects in strategic sectors of our economy.”
Key takeaways from allowing emigrants and their progeny to invest in Cuba:
For the first time, Cuban citizens who live abroad and their descendants will be able to invest money in private Cuban businesses
Foreign companies can now do business with Cuba
Individual investors will now have the right to invest in Cuba to establish their own businesses.
“This is about creating the most dynamic business environment possible despite the challenges our country faces as a result of the U.S. embargo,” Perez-Oliva said. “The embargo limits our access to financing, to technology, and to markets abroad.”
Perez-Oliva also told NBC that the reforms were designed to allow Cuba to modernize its infrastructure and address problems in strategic industries.
NBC notes that Cuba is currently undergoing an energy crisis.
Electricity blackouts are common, and there aren’t enough supplies of fuel to go around. Perez-Oliva blamed the problem on new American restrictions on petroleum imports and other products.
What We Know About the Energy Crisis in Cuba
Since last January, America has maintained a blockade on petroleum exports to Cuba. The U.S. has also placed tariffs on countries selling Cuba crude oil. Perez-Oliva added that Cuba has not received a shipment of fuel in more than three months.
“Not one drop of fuel has entered the country in more than 100 days,” Cuban President Miguel Diaz-Canel confirmed.
Diaz-Canel went on to say that reforms are being fast-tracked to revitalize industries like tourism and mining, and to modernize Cuba’s electric grid.
“This situation affecting the supply of electricity and the subsequent impact on the daily life of our people is not due to the government’s fault or the revolution,” Diaz-Canel said. “The responsibility lies with the fuel blockade established against our country.”
Cuba Confirms First Official Dialogue With United States
In other news, Diaz-Canel confirmed that the first official dialogue between Cuba and the United States has started.
Diaz-Canel said that the governments of Cuba and the U.S. are currently assessing bilateral issues and potential opportunities for cooperation.
“The first steps have been taken to identify the agenda on bilateral issues and explore possibilities for cooperation based on respect and mutual benefit,” Diaz-Canel said.
He added: “These are lengthy processes and they’re discreet. Everything must be built patiently. We are at the starting point.”
United States Set to Maintain Contact With Cuba
President Donald Trump spoke about the historic opening between Cuba and the United States during a news conference on Iran.
Trump said that his administration is in communication with Cuba and claimed that a deal could be reached “very soon.”
“We’ll see what happens. Cuba would like to make a deal, too. In fact, I think very soon we’ll make a deal or whatever we have to do,” Trump said.
He continued: “Right now, we have a conflict with Iran. That’s what’s happening. We’re rebuilding our military like never before.”
Trump noted that the petroleum blockade against Cuba began last January. Trump said the U.S. could place more sanctions on Cuba if the government does not push forward with reforms.
How Does This Affect Investing In Cuba?
If you’re a Cuban resident living abroad, you can invest in Cuba in private businesses on the island.
If you have a company in the U.S., you can now do business with Cuba
Small and large-scale investors will have opportunities to invest in Cuban private businesses.
Cuba’s invitation to the Cuban diaspora and U.S. companies to do business in the country will likely lead to an increase in private investment. Foreign capital can help Cuba modernize its infrastructure and invest in key industries.