Investments

How open is Cuba?

Cuba, a market of the size of Guatemala or Puerto Rico, for both tourists and investors from the USA are always interesting. But How it really is in the economic Opening of the island?

Sol Martinez sits in the shadow of their house in Havana’s Vedado district. Pensive after watching the Spanish tourist couple, whose rolling suitcase rattling on the Asphalt. The Pensioner, who would like to read your real name, neither in the network nor in the newspaper, is satisfied. For a few years, she rents two rooms in the upper floor of your home, but “such a rush as is currently the case, there was never,” she says. “After the Next come – a couple from Germany.”

Also Fran, who brings his Taxi Sols guests to the airport or pick-up, can’t complain about too little work. “Only yesterday I had a Tour in the North of the island, on the Cayos. The day after tomorrow it goes to Viñales,” he says, while he puts the Luggage in the trunk. The car does not belong to him – he “edited” it, as they say in Cuba – but even in this way he earned as much as an academician in a government permanent job.

In the meantime, the US-tourists

Private room rental and taxi driving are among those activities approved since 2011 as a business branches for Cubans. In total, the list includes almost two hundred fields of activity, including more Exotic options such as lighter fuel refill. Good money can be made but especially in those professions that have to do with tourism. After US President Barack Obama and his Cuban counterpart, Raúl Castro announced in December 2014 a new beginning in the relations between the two countries.

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“On to Cuba before the Americans come!” is the Motto of the hour. Visitors from all over the world flock to the Caribbean island and more and more US-Americans make a trip to the “forbidden island”. In just the first two and a half months of the year a record were already recorded more than a Million visitors. Hotels are fully booked in spite of rising overnight rates until well into next year. Even private properties are more difficult to get. Everywhere in Havana’s new Bars and Restaurants shoot up from the ground.

Yet there is a lack of legal certainty

For several years, Cuba draws a cautious process of economic Opening. More private economic Initiative was approved and a new law on foreign investment adopted that allows foreign companies to invest in all sectors of the Cuban economy.

The Cuban government launched investment catalogue comprises a total of 326 possible investment projects with a total volume of 8.2 billion US dollars of chicken breeding, manufacturing of vaccines, to the establishment of wind farms. The interest is huge. Governmental and business delegations from all over the world for months in Havana, the Jack in the Hand.

The Moment for Cuba’s return to the world economic stage seems to be favorable. The Rest of Latin America is struggling with corruption scandals, currency depreciation and declining growth figures. But despite all the euphoria: Investing in Cuba remains difficult. Entrepreneurs complain again and again, bureaucratic obstacles and lack of legal security.

U.S. tractors for Cuban Cooperative

In Mariel, the special economic zone before the gates of Havana, have been put into effect two years after the opening of just twelve projects. There are three companies with Cuban capital, seat of the company: a logistics, a Bank, as well as Mariels container terminal, which was built with Brazilian loans and of PSA International from Singapore will be operated. In addition, a Mexican meat producer, a paint and lacquer specialist from Mexico, a Belgian transport company, a Spanish food manufacturer, a construction company from Brazil and Cuba have settled so far – Brazilian tobacco Joint Venture in Mariel.

On the North coast of Cuba, a few miles West of Havana, is located in the special economic zone of Mariel.

Shortly before the Obama visit, the tractor manufacturer Cleber LLC from Alabama the green light from Washington to build as the first US company for half a century a work on Cuba. From the beginning of 2017 to roll in Mariel, then, every year, around 1000 small tractors for independent small farmers and Cooperatives from the Band.

The biggest brakeman sits in Washington

In addition to agriculture and tourism, especially biotechnology and pharmaceuticals appear to be as interesting areas with Potential. But Cuba may be niche drugs or biotechnology products in the United States introduced. The continuing U.S. economic, trade and financial blockade prevents this.

The US blockade policy is probably the biggest obstacle to Investment. Also Sol trust the Americans not completely out of the way. “To not believe that you can turn the clock 60 years back. Come quick money, do not be running. You must keep to our rules.” As a tourist you are of course welcome. “If the demand continues to rise, we will increase the prices of our rooms soon,” she says, and narrows his eyes.