Cuban President Miguel Diaz-Canel announced on Friday a series of reforms aimed at expanding the private sector and liberalizing the island’s economy amid ongoing economic challenges exacerbated by a U.S. blockade. Speaking in a nationally televised address, Diaz-Canel outlined measures to broaden the range of activities allowed for non-state businesses and to accelerate the approval process for new ventures.

The government plans to limit the list of prohibited activities for private enterprises, enabling them to operate with greater freedom. Additional reforms include allowing private companies to invest on par with foreign investors, a response to recent departures of some foreign businesses due to concerns over U.S. sanctions. Diaz-Canel also indicated that the government is considering eliminating state intermediaries in import and export processes to streamline trade.

Since 2021, Cuban law has permitted private businesses to employ up to 100 people, a significant shift from the traditionally state-dominated economy. Earlier this year, private enterprises were granted authorization to import fuel, a sector historically controlled solely by the government. These reforms come as Cuba faces intensified economic strain following a U.S. oil blockade introduced in January, further aggravating the country’s long-standing financial and energy crises.

The president emphasized the government's commitment to decentralizing the economy by granting increased autonomy to state-owned enterprises, which constitute approximately 80 percent of Cuba’s economic activity. He also announced plans to reduce the number of government ministries and trim the state workforce, though these bureaucratic reforms await parliamentary approval scheduled for July.

Diaz-Canel characterized the economic difficulties as a result of a U.S. “maximum pressure” policy and expressed confidence that the country would navigate the challenges. “The country is not paralyzed; the country is facing this situation intelligently,” he stated.

While the Cuban government moves to stimulate private sector growth and reduce bureaucratic hurdles, it seeks to balance these initiatives within the framework of its socialist system. The reforms represent a notable adjustment in Cuba’s economic model as the island continues grappling with the impacts of decades-long U.S. sanctions, including the recent tightening of the blockade.