Cuba says it will allow foreign investors to enter its wholesale and retail trade for the first time in 60 years. [Cuba bids for foreign investment to tackle goods shortages – BBC]
The government of Cuba has announced that it will allow foreign investors to enter the country's market: it is a historic decision, after sixty years of policies of nationalization of the domestic market, started after the Cuban revolution with Fidel Castro. Potential investors from abroad – who will still have to go through various controls – will therefore be allowed to take over part or all of the shares of companies based in Cuba.
In recent months, Cuba has been facing the worst economic crisis in decades, and the goal of the new policy is to counter the severe shortage of basic necessities, such as food and medicine. The crisis is due, among other things, to the pandemic, lower fuel imports from Venezuela and restrictions imposed by former US President Donald Trump, which last May were partially relaxed by President Joe Biden.
Some shops in the country have introduced rationing to allow more people to access essential goods, including oil. Throughout the country there have been protests but also many arrests, given that in Cuba public gatherings are illegal unless authorized in advance.
It is unclear whether these measures will prove effective: Economy Minister Alejandro Gil Fernández said opening up the Cuban market to foreign investors "will contribute to the recovery of domestic industry." However, many doubts remain about how attractive the Cuban market will really be for foreign investors, given that it still remains strictly controlled by the state.
