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Investing in Cuba today is less complicated than five years ago; but the process is still surrounded by bureaucratic complications.
For investing in Cuba today, it is necessary to be accompanied by an expert to be successful. The current Cuban scenario offers many opportunities for investors, although, at the same time, risks persist, especially with legal security.
Business opportunities in Cuba
Cuba’s economic context is very complicated. After the Covid-19 pandemic and without significant progress in relations with the United States, the country’s economic situation has deteriorated. The authorities expect to end 2022 with GDP growth close to 4%. However, inflation and product shortages have led to increased discontent among the population. More than 300,000 Cubans have left the country in the last twelve months, most of them to the United States.
In this difficult scenario, the government has relaxed regulations on foreign investment. Since 2021, it has allowed the formation of small and medium-sized enterprises, with private capital. So far, almost 5500 private MSMEs and 60 non-agricultural cooperatives are already in operation. These MSMEs can import and export goods and services. The process of formation of these MSMEs has been streamlined, making it easier to create a new business with legal personality.
The approved MSMEs are mainly focused on manufacturing industries (almost 40% of them), construction (almost 25%), and accommodation and gastronomy services. Other MSMEs are engaged in information technology, commerce, transportation, and motorcycle and motor vehicle repair.
The Government also allowed, for the first time in 60 years, the participation of foreign investors in the country’s retail and wholesale trade. Until 2021, foreign investment in Cuba was dedicated mainly to goods and services. However, now proposals related to the sale of raw materials, equipment and other inputs are also accepted.
Challenges for foreign investment and the accompaniment of an expert
Despite the relaxations in foreign investment, the process is still fraught with many complications. There is still not total clarity about the great opportunities that exist. In addition, bureaucratic hurdles continue to hinder the creation and approval of each proposal. In the face of all this, the accompaniment of a lawyer specialized in these matters, such as Giovanni Caporaso Gottlieb, who has a stable presence in Cuba, is essential to make the investment.
With more than 30 years of experience in Cuba, Caporaso has managed to understand very well the functioning of the economic and legal system in the Caribbean country for investing in Cuba. This has allowed him to establish important contacts at all levels and he also has the knowledge to find loopholes within the legislation that make it possible to expedite investment, obtain a residence or buy an apartment or house in Havana.
Foreign Investment Opportunities Portfolio for 2023, identified by the Ministry of Foreign Trade and Investment
- 197 from the food production sector
- 130 from tourism
- 112 from petroleum
- 97 from industry
- 49 from mining
- 21 construction
- 19 transportation and logistics
- 18 from sugar agro-industry
- 16 from renewable energy sources
- 9 wholesale and retail trade
- 8 from the pharmaceutical and biotechnology industry
- 8 telecommunications and information technology
- 7 culture
- 7 professional services
- 4 in water and sanitary networks
- 4 in the banking and finance sector
- 2 in the real estate sector
