Cubans residing abroad without legal residency in the country will, for the first time, be able to invest in private companies in Cuba and partner with Cuban private economic actors under the Foreign Investment Law. This is part of a package of measures aligned with the guidelines for updating the economic model and as part of the transformations aimed at strengthening the economy.
In statements by Deputy Prime Minister and Minister of Foreign Trade and Foreign Investment, Oscar Pérez-Oliva Fraga, the scope of these provisions reflects the ongoing exchanges with the Cuban community abroad and the interest in strengthening ties with those who, from other parts of the world, wish to contribute to the nation's development.
These decisions "are fundamentally aimed at achieving greater decentralization of the economy, fostering greater participation of foreign capital in our economic and social development, and also diversifying the private sector’s involvement in different areas of the economy," stated the Deputy Prime Minister.
He explained that the provision eliminates the restriction that until now limited this possibility solely to permanent residents of the country, and constitutes the most significant change within the new regulations, which also encompass the opening of the banking sector and the creation of cooperation and investment funds.
NEW INVESTMENT OPTIONS
It was also approved that Cubans residing abroad, through companies established in other countries, may partner with Cuban private companies under Law 118 on Foreign Investment. Until now, this arrangement was only possible with state-owned entities.
"This opens a different avenue for the participation of this community in the country's economic and social development. We are talking about alliances that could be established, for example, between the Cuban private sector and foreign capital linked to our diaspora," he explained.
In the financial sector, the provisions also authorize the participation of Cubans residing abroad in the creation and establishment in Cuba, subject to prior authorization from the Central Bank of Cuba, of non-bank financial institutions, investment banks, and other entities covered by Decree-Law 362.
In this regard, the participation of the Cuban community residing abroad in the national banking and financial sector is being opened up, emphasized Pérez-Oliva Fraga, who also mentioned the possibility of participating as providers of virtual asset services.
To facilitate the operations of these new economic actors, it is established that these residents abroad who own businesses in Cuba will be able to open and operate foreign currency bank accounts under the same conditions as any person or institution residing in the country.
COOPERATION AND INVESTMENT FUNDS
In the area of cooperation, Pérez-Oliva Fraga highlighted the growing participation of the Cuban community abroad in solidarity actions with Cuba, particularly in the context of the tightening of the blockade imposed by the United States.
"Based on this, the decision was made to create funds to consolidate cooperation, always respecting the donor's wishes, which will allow for better organization and a greater impact in the destinations that need it most," he explained.
Likewise, the possibility is being opened for the Cuban community residing abroad to participate in investment funds for the development of projects in Cuba, financing the implementation of initiatives of interest for the country's economic and social development.
PRIORITY FOR FOOD PRODUCTION
The Deputy Prime Minister stated that one of the decisions adopted is to promote the participation of Cubans residing abroad in agricultural production, especially at the local level, in accordance with the country's policy of strengthening the role of municipalities.
"There are examples of business ventures with foreign companies from other countries, such as the Vietnamese companies that are currently producing rice with high yields. Similar models could be developed with the Cuban community residing abroad, in which they are granted usufruct rights to land for food production," he explained.
THE BLOCKADE: THE MAIN OBSTACLE
Referring to the context in which these measures are being implemented, Pérez-Oliva Fraga pointed out that "the blockade is the main obstacle to the development of all the transformations that our country is implementing in the economic sphere."
"This prevents us from accessing capital, markets, and financing," he emphasized, adding that the humanitarian impact of this policy includes: surgeries suspended due to the energy situation, disruptions to cancer patient treatments, limitations in food production and preservation, and millions of people without direct access to drinking water due to energy problems stemming from the financial persecution.
However, he reaffirmed that "Cuba's doors are open to free trade with U.S. companies," although—he acknowledged—U.S. legislation currently prevents this from being realized.
POLITICAL WILL AND ADMINISTRATIVE EFFICIENCY
The Deputy Prime Minister announced that, in parallel with these openings, internal mechanisms for addressing these interests are being improved, including a more targeted approach to the portfolio of business opportunities and better control and processing of applications to avoid unnecessary delays.
"We have reiterated on several occasions that Cuba’s doors are open to investment from the Cuban community residing abroad, and when we say that, we are not only referring to small businesses, but also to the possibility of participating in sectors key to our development," concluded Pérez-Oliva Fraga.
With these decisions, Cuba reaffirms its commitment to strengthening ties with "its children residing in other parts of the world, recognizing their role in building an increasingly prosperous and sustainable homeland, in accordance with the principles of social justice that have guided the revolutionary process since its inception."
