New opportunities are opening up for investment by Cubans living abroad as the island continues to update its legislation to grow the economy. These new laws will impact the participation of expats in the Island’s socioeconomic development process.
The path of investment opportunities for Cubans overseas is not without its obstacles. A heavily regulated licensing process by the United States and its trade embargo against the Island make the road less smooth.
New laws are still needed to implement the process.
According to Ernesto Soberón Guzmán, Director General of Consular Affairs and Attention to Cuban Residents Abroad, new opportunities for greater participation by Cuban expats in socioeconomic development projects will open the door to links between the island and those who have left.
Cubans living abroad can find foreign investment opportunities in the private sector, local development and cooperation initiative projects.
Shipping, Money and Technology Transfers
The fundamental problems that still stand in the way for any investor, whether they be expats or other foreigners, include shipping, money transfers (remittances) and technology transfer.
Soberón said that investors and not just Cubans’ efforts to bring money, market, or technology face major obstacles because of the U.S. Embargo/ blockade.
The same thing is happening with remittances and their potential use in enterprises, he said.
Soberón said that people use remittances not only for purchasing goods and services, but some also want to invest in a small income-generating family businesses.
“In all this they are working, beyond the manipulation on the subject there will always be by certain media and sectors,” he said.
“If the U.S. government obstructs shipments, if it prevents the money from arriving, that is another problem for the Cuban community that does not depend on what Cuba can do. That is the responsibility of the United States”, he said.
Soberón called the accusations that the Cuban government keeps all or part of remittances is absurd.
The First Cuban American Investor
Fuego Enterprises, Inc. is the first American company headed by Cuban-American Hugo Cancio, the President and Chief Executive Officer, to be registered on the Island. Fuego may do business with Cuba in any capacity that supports the benefit of the Cuban people. The Company will focus on media, eCommerce, infrastructure, travel/tourism, real estate, import/export, and agriculture.
About four months ago, a review of foreign investment took place in Havana, attended by Minister Rodrigo Malmierca with the participation of other officials from the Ministry of Foreign Trade and Foreign Investment (MINCEX), Deputy Prime Minister Ricardo Cabrisas Ruiz and Prime Minister Manuel Marrero Cruz. At that meeting, they stated that 47 Cuban Americans had indicated their interest in doing business on the Island, and 13 of those were likely to move forward.
