Cuba approves economic reforms to expand private investment

Cuba’s National Assembly on Thursday approved a package of 176 economic reforms aimed at expanding the participation of the private sector and attracting investment in various sectors of the economy.

The measures were presented by the prime minister, Manuel Marrero, during a parliamentary session at which a reduction in the role of the state in a range of economic activities was announced. Among the changes is the scrapping of the requirement for foreign investors to partner with state-owned companies, the authorisation of large private firms and the possibility for domestic and foreign investors to acquire stakes in state-owned enterprises.

The reforms were approved unanimously in Parliament. At the end of the session, President Miguel Díaz-Canel reiterated his government’s commitment to the socialist system.

Marrero did not set out a timetable for implementing the measures. However, Díaz-Canel had the previous day defended the need to introduce urgent changes to address the economic situation the country is facing.

Cuban authorities attribute the economic difficulties to the United States trade embargo and restrictions on the supply of oil. Nonetheless, Díaz-Canel also pointed to internal factors, such as bureaucracy, administrative sluggishness and certain regulations which, he said, limit productive activity.

The Cuban economy is facing shortages of food, fuel, drinking water and medicines, as well as frequent power cuts. Since the beginning of the year, only one oil tanker from Russia has docked on the island.

The reforms have raised expectations in some business sectors. Mario Gonzales, manager of a restaurant in Havana, said the new measures could support a recovery in tourism and economic activity.

For his part, the US vice-president, JD Vance, said that Washington is holding talks with the Cuban government about possible economic and political changes on the island.