Cuba: There Is Potential to Attract More Foreign Capital

Since the entry into force of Law No. 118 on Foreign Investment in 2014, 245 businesses with foreign capital have been approved, while in the first half of this year nine small businesses have been incorporated, all focused on mining and food production

The updating of the policy for the attraction of foreign investment in Cuba and its flexibilization in favor of more benefits, and the actions being carried out to encourage and improve this mechanism, were also discussed in the Permanent Commission on Economic Affairs.

Rodrigo Malmierca Díaz, Minister of Foreign Trade and Foreign Investment (Mincex), referred to the problems that threaten foreign investment in Cuba, among which he mentioned the negative impact of the economic blockade of the U.S. Government, in addition to the international economic crisis and the problems of our economy.

He also explained that since the entry into force of Law No. 118 on Foreign Investment in 2014, 245 businesses with foreign capital have been approved, 50 of them in the Mariel Special Development Zone (ZEDM), while in the first half of this year nine small businesses have been set up, and one in the ZEDM, all focused on mining and food production, and with capital of approximately 20 million dollars.

“This shows that, despite the fact that there are objective factors that are quite complex, we have the possibility of attracting foreign capital, but it is a task that we cannot think about with pessimism”, he added.

The Minister specified that it is necessary to solve the problems of delay in the negotiations; and in that sense, and derived from last December’s debate, the Mincex, drew up a plan focused on the flexibility of the foreign investment policy in the Island, but taking into account that the socialist character of our government cannot be violated.

The portfolio of opportunities for foreign investment was also updated, which includes, among other options, small projects and 60 others that emerged from the territories, he added.

Regarding the new portfolio to be presented in November at the 38th Havana International Fair (Fihav-2022), he said that projects of an exceptional nature are being dealt with and for which the strategic axes of the National Economic and Social Development Plan until 2030 will be taken into account.

The Minister pointed out that another area of flexibility of the policy is the possibility that the more than 4,000 forms of non-state management may work with foreign investment, as stipulated in the law.

“Other proposals that we have made, and that have not yet been approved, have to do with businesses in domestic trade, so that there may be foreign investment in the retail sector.”

Finally, Malmierca made known that there are currently 57 businesses with foreign capital in the process of negotiations, which commit almost 5 billion dollars of capital in prioritized sectors of the economy, in the space of one year.

(CubaNews) by Maby Martínez Rodríguez / Translated by Walter Lippmann.