🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Help Wanted: Cuba's government turns to growing diaspora for investment

Published 11/14/2023, 12:30 PM
Updated 11/15/2023, 04:40 PM
© Reuters. FILE PHOTO: A Cuban flag waves in a boat docked at Bayfront Park is seen before sailing in a flotilla towards Cuba in support of Cuban protesters against its deteriorating economy, in Miami, Florida, U.S. July 23, 2021. REUTERS/Marco Bello/File Photo

(This Nov. 14 story has been refiled to remove a superfluous word from paragraph 1)

HAVANA (Reuters) - Cuba wants to tap its fast-growing overseas population for fresh investment to lift its economy, a top foreign ministry official told Reuters this week, as the communist-run nation looks to overcome its worst downturn in decades.

Food, fuel and medicine shortages have pushed a record number of Cubans to leave their Caribbean island home in the past two years, sapping the nation of resources necessary to jump-start an economy already shackled by the pandemic and stiffened U.S. sanctions.

This migration wave includes many young people and "is having the greatest impact in history in terms of demographics, because of its composition," said Ernesto Soberon, director of Consular Affairs for the Cuban Foreign Ministry.

Soberon told Reuters in a wide-ranging interview in Havana on Monday that the exodus represents a loss but also an opportunity as the government seeks to revive the ailing economy.

Cuban expats have already invested in bed-and-breakfasts, eateries and other activities on the island, but Cuba would like to see more capital flow, he said.

"Today Cubans abroad have no limits on how they can participate in the economic life of their country," he said, referring to restrictions once placed upon them by the government.

Over 400 Cuban citizens living in more than 40 countries arrive on the island this week to discuss Cuba's evolving economy and other issues with the government - the first such conversations between Cuba and its ballooning diaspora in nearly two decades.

The conference is expected to attract Cubans living off island but with favorable views of their home country, including businesspeople, economists, and members of foreign resident associations.

The landscape has changed dramatically since the last time the two groups formally met in 2004, under former leader Fidel Castro. Around 2.5 million Cubans and their descendents now live off the island, Soberon said.

Cuba in 2021 lifted a ban on private enterprise, considered a scourge under Castro. And the island's government, which once limited the travel of its citizens, now allows most to come and go freely, though it still restricts dissidents, athletes and some others.

Some things, however, have not changed, said Soberon, who said the Cold War-era U.S. embargo has only stiffened over the years, with sanctions complicating the financial transfers needed to start and run a business.

"You can't just go back and forth with a bag full of cash," he said.

The administration of U.S President Joe Biden has shown tepid support for small business on the island but says Cuba must improve its human rights record before it grants concessions. It stopped short recently of announcing expected new measures to ease the flow of capital. In addition, some Cuban Americans have little appetite for working with Cuba's government.

© Reuters. FILE PHOTO: A Cuban flag waves in a boat docked at Bayfront Park is seen before sailing in a flotilla towards Cuba in support of Cuban protesters against its deteriorating economy, in Miami, Florida, U.S. July 23, 2021. REUTERS/Marco Bello/File Photo

Soberon said the conference on Nov. 18 and 19 would review mechanisms already in place, like remittances, that have already begun to serve as seed capital for small businesses for Cubans on the island.

"That will ultimately raise their standard of living so that they want to spend their lives here in Cuba and not abroad," he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.