Cuba allows foreign investment in trade

Cuba allows investment foreign trade

By authorizing foreign investment in commerce, Havana is trying to solve the chronic shortages that the country is experiencing.

The Cuban government has announced that it will allow foreign investment in wholesale and retail, in an attempt to solve the chronic shortages the country is experiencing.

In the face of the strong restrictions we face, foreign investment in the wholesale and retail trade, with state regulation, will make it possible to expand and diversify the offer to the population. and will help restore national industry, says Cuban Economy Minister Alejandro Gil.

The Cuban government will, however, retain its monopoly on foreign trade.< /p>

Until now, foreign investment in Cuba was only allowed in the production of goods, services, as well as in a few business sectors such as hospitality.

< p class="e-p">Under the new measures, wholesale companies can be 100% owned by private investors, but retail businesses will remain subject to the mixed economy regime in force in the country ;island, in which the State compulsorily retains a stake.

Controlled by the state, the commerce sector in Cuba has great difficulty in capturing foreign currency and obtaining supplies. Cubans are forced to stand in long lines to buy food and other basic necessities in Cuban pesos in state-owned stores where supply is very limited.

Stores where it is possible to pay in dollars started operating in 2019. The offer was generally wider there, but their shelves have also started to empty in recent months due to shortages.

This situation favors the black market and feeds the inflationary spiral. In 2021, consumer prices had thus increased by 70% year on year, according to official figures.

In August 2021, the Cuban government had already authorized small and medium-sized enterprises companies, ending 52 years of state monopoly.

Cuba is currently going through its worst economic crisis in 30 years, aggravated by the pandemic and the embargo imposed to the island by the United States for sixty years.

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