Currently, according to official data, 376 foreign companies from 40 countries operate on the island.
Oskar Pérez-Oliva Fraga, the Minister of Foreign Investment, stated at a forum near Havana that the authorities aim to make the business environment "simpler, more flexible, and more transparent." This involves allowing investors to operate and pay salaries in dollars, directly hire employees, and acquire real estate, Reuters reports.
According to him, foreign companies will also be given the opportunity to import fuel independently if necessary, and bureaucratic procedures and application review times will be significantly reduced.
If these measures can be enshrined in legislation and effectively implemented, it will mark another step for Cuba away from the previously tightly controlled, almost Soviet model of investment management. Currently, according to official data, 376 foreign companies from 40 countries operate on the island.
The multilayered and overly complicated regulatory system — from mandatory work in pesos to strict restrictions on profit repatriation and the practice of state-appointed workers — has deterred potential investors for years.
The situation is exacerbated by constant hours-long power outages, outbreaks of mosquito-borne diseases, sharp devaluation of the national currency, and a record outflow of working-age residents abroad.
Pérez-Oliva Fraga stated that despite these difficulties, Cuba has approved 32 new projects this year totaling $2.1 billion. However, as he acknowledged, the actual amount of invested funds remains unclear.
"Before starting any cooperation, we must objectively assess how well the proposal aligns with the country's development goals," the minister noted.
Havana had previously attempted to initiate similar reforms in 2014 when relations with the U.S. improved under President Barack Obama, leading to a noticeable influx of investments.
Today, however, the prospects are much more modest: the Trump administration intensified sanctions, reinstated Cuba on the list of state sponsors of terrorism, tightened money transfer rules, and rolled back migration programs introduced under Biden.
However, shifts in state policy are becoming increasingly noticeable. While under Fidel Castro foreign investment was viewed as a necessary measure, it has now become an integral part of the strategy aimed at developing the country.
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