Foreign investment in Cuba continues to be essential to the country's economic development. Over the last year, important sectors such as tourism, construction, logistics, mining, energy (especially renewable) and several agro-forestry enterprises leading the way in attracting foreign capital to investment projects.
Dependence of a single market or country has also been overcome, with investments and sources of foreign capital diversified.
It is encouraging that, despite intensified U.S. pressure on the country during 2019, several projects have been concretized in promising areas, including the Mariel Special Development Zone (ZEDM) and key sectors of the economy, like tourism. Similarly, other actors have begun to gain ground in foreign investment on the island.
Within the context of the 27th edition of the Havana International Fair (Fihav-2019), the most important such event in Cuba, and one of the most relevant of its kind in Latin America and the Caribbean, Granma spoke with the Director General for Foreign Investment at the Ministry of Foreign Trade and Investment (Mincex), Déborah Rivas Saavedra, who points out that this year there have been important happenings in Cuba and abroad, which confirm the interest of foreign businesses in our country.
One of the best attended events at the Fair, Déborah Rivas reported, was the Cuba Initiative Forum, with British businesspeople participating, as well as other forums with other countries, during which the subject of the extraterritorial U.S. Helms-Burton Act was raised, along with other moves by the United States to tighten the economic, financial, and commercial blockade.
The main objective factor that today slows growth of foreign investment, in Cuba, is the blockade, with all its perverse regulations, which have a dissuasive effect on potential foreign investors, eager to work with our country.The entire system of sanctions has been reinforced with new measures by the Donald Trump administration this year, preventing fuel deliveries, reducing family remittances, and activating Title III of the Helms-Burton Act, which allows plaintiffs to file suits in U.S. courts against foreign investors allegedly “trafficking” with properties legitimately nationalized by the Cuban government decades ago.
She emphasized that in order to overcome this objective obstacle, business forums have been held with countries such as Russia, Vietnam, France, Portugal, and Turkey, among others, to strengthens economic ties with these nations.On the other hand, the 16th Expocaribe International Fair 2019 was also held in Santiago de Cuba, during which several days of business meetings and presentations of innovative products for the Cuban and Caribbean market were held, in which 80 companies and 300 exhibitors participated from 25 countries.Particularly relevant during this commercial event was the 12th Greater Caribbean Business Forum, held to provide updates on the current reality in terms of South-South Cooperation to support territorial development and the UN Sustainable Development Goals 2030 Agenda, business practices and opportunities, as well as challenges for commerce in the region.Recognized today as one of Cuba’s most promising locations, when it comes to investments, the Mariel Special Development Zone (ZED) continues to grow.
The site has approved 49 businesses, of these 41 with foreign capital, from 21 countries, with total investment exceeding 2.2 billion dollars.
Rivas reported that during 2019, investments predominately occurred in the food processing industry and industry in general. Among those approved and established in the ZED are Pamas S.A. with a facility for the production and assembly of industrial valves, hydraulic and pneumatic systems, dynamic equipment and components, which will also offer diagnostic, repair, maintenance, and training services for technical personnel servicing these products; TecComp Caribe S.A., specialized in the production of bars and mesh composed of glass-reinforced plastic (GRP) for concrete reinforcement in different construction systems; BM Interinvest Technologies Mariel SLU Group, which will build and operate a complex of offices and warehouses for industrial and logistics use, and offer other services associated with these activities; as well as the WYM Group S.A. producing and marketing tissue paper (thin absorbent paper made of cellulose pulp) and cleaning products.
Outstanding among new enterprises with international capital, beyond the Mariel Zone, are Proxcor S.A. devoted to the production of jams; Tropical Contramaestre S.A. focused on production and processing of fruits and vegetables; and Ron Santiago S.A.“The European region continues to predominate among sources of business, with countries involved being diversified.
For the first time, businesses have been established with capital from Slovakia and Russia, as well as Canada, which continues to expand its participation in foreign investment in Cuba,” she added.Likewise, tourism, known as the locomotive of the Cuban economy, has developed a broad investment plan throughout the Cuban archipelago, which will conclude by the end of the year with more than 3,800 new rooms and some 5,000 renovated.
Together with these plans, during the Cuban Tourism Fair (FitCuba 2019), two new management contracts were signed between the Gran Caribe hotel chain and the Canadian Blue Diamond; in addition to the signing of letters of intent, which demonstrate the confidence of Canadians in Cuba as a tourist destination.
Other agreements were established with the Spanish airline Iberia, for the promotion of ‘Destination Cuba’ in the more than 135 points they serve.Similarly, Havanatur signed a multi-destination contract with a Nicaraguan tourism agency, which will allow for connections from other countries and travel of more visitors to both nations.Beyond consolidating investment projects launched this year, the country has proposed to involve new sectors, which based on their experience and potential can move forward and conquer new markets for Cuba.
The intention in this regard is to ensure the entry of capital, technology, and knowledge to Cuba, by working with foreign businesses.In this regard, in a discussion of the subject during a National Assembly of People’s Power session, the Cuban President pointed to the need to expand and diversify exports to support the Revolution’s social programs.
Deborah Rivas explained that a number of projects in the agriculture sector are being negotiated, some of which are expected to be approved before the end of this year, particularly for food production, which will allow imports to be replaced with domestic products.
According to press statements from tMincex Deputy Minister Maury Echevarría Bermúdez, negotiations regarding three joint ventures and one project financed entirely with foreign capital, in this arena, are being prepared.Devoted to the production of chicken in Pinar del Río, Mayabeque, Artemisa, and the Mariel Special Development Zone, these new companies will help replace imports and stabilize the presence of this product in the national market. In addition, four other projects are under negotiation for the production of pork, by joint ventures in the provinces of Cienfuegos, Villa Clara, Mayabeque, and Artemisa“In the case of the health sector, there are already some identified areas, and we are working hard in negotiations with potential partners.
The mining industry is also advancing with significant estimated investment amounts, as well as tourism, which continues to be the most advanced in terms of the number of investments and their distribution throughout national territory,” Rivas reported.
Mincex Minister Rodrigo Malmierca Díaz, stated during a the Council of Ministers meeting that, although the involvement of the National Health System with these issues is a relatively recent development, the attraction of foreign investment and the use of external credits should contribute to its strengthening, with the vision of taking advantage of export potential.
Among this year’s priorities are the consolidation of investment processes with real possibilities of contributing to the economy, the diversification and expansion of businesses which can immediately begin generating income to repay investments, and increasing the participation of health tourism.
The latter with an event planned for October of next year, the first International Tourism and Health Fair on the island.President Miguel Díaz-Canel Bermúdez stated during the National Assembly analysis, "By combining foreign investment, the use of credits, and the export of services, it is possible to achieve significant income for the country."
