Vice Ministers of the Ministry of Foreign Trade and Foreign Investment, Carlos Jorge Mendes and Debora Rivas Saavedra, presented detailed information and new initiatives regarding measures during a state television program, emphasizing the presence of 'very deep and real transformations' in the planned economy.
Nature of Economic Changes
Carlos Jorge Mendes, First Vice Minister of the Ministry of Foreign Trade (Mincex), explained that the changes being implemented are not a return to capitalism. He stated that the goal is not to sell the country, but to mobilize all available assets to obtain the necessary currency.
New Provisions for Business
The state official explained that some reforms require changes to legal norms. Among the new rules, private and foreign capital participation in private companies and cooperatives is permitted. Private entrepreneurs can now engage in international trade, and investors have the opportunity to hire staff directly, bypassing state employers.
Mendes also announced the opening of the possibility for Cuban companies linked to foreign capital to open bank accounts abroad. This will allow foreign investors to manage their earned income in currency and gain access to the foreign exchange market.
Streamlining Procedures and Investments
Regarding the approval process for foreign direct investment, it was stated that it is being simplified by reducing documentation volume and increasing the speed of new project approvals. The head of foreign trade noted that the measures include attracting foreign capital to preserve properties in cultural heritage zones, such as Old Havana. Furthermore, the terms for granting surface rights to foreign investors have been extended up to 99 years, and usage rights for more than 50 years.
According to Mendes, deals for fuel imports, as well as participation in the sugar and banking and financial sectors, were approved in recent days, provided such deals are of interest to Cuba. He emphasized the readiness to open doors to business, calling the reforms a 'chance for everyone: Cuban state companies, cooperatives, territories, national private sector enterprises operating in the country, and Cubans living abroad' who wish to participate in the island's development.
Focus on Exports and Development
Vice Minister Rivas additionally noted that these measures will promote the export of goods and professional services, which she considers 'a necessity for the Cuban economic model to generate income.' She reported that participants with the necessary competencies will be able to export their products directly, and local suppliers will be granted permission to participate in external trade.
Rivas also stated that guidelines are being developed to create an 'efficient and organic process focused on these transformations, aimed at forming the necessary atmosphere for doing business in the country.'
Context of Crisis and Reforms
In June of last year, Havana approved 176 measures aimed at flexibly changing Cuba's economic model, expanding the role of the private sector, and opening new avenues for foreign investment, which occurred against the backdrop of a deep crisis and tension with the United States. These reforms emerged amid the decline of the Cuban economy, which shrank by 15% between 2020 and 2025. Reasons for this decline include the pandemic, tightened sanctions from the US, and unsuccessful domestic monetary and economic measures.
The situation is exacerbated by the policy of maximum pressure from the US Administration, which has demanded deep political and economic changes since January, including an oil embargo and a number of secondary sanctions affecting foreign organizations.
