Cuban lawmakers have approved a comprehensive package of nearly 200 economic reforms intended to address a severe financial crisis and counter the impact of a longstanding U.S. fuel embargo that has significantly constrained the island’s energy resources. The 176 approved measures represent the most extensive restructuring of Cuba’s economic framework since the country’s transition to communism six decades ago.
Prime Minister Manuel Marrero presented the reforms, which notably expand the role of private enterprise beyond previous limits. Since 2021, Cuba has authorized small and medium-sized private businesses known as Mipymes, capped at 100 employees. These enterprises have increasingly filled gaps left by state-run sectors, especially in food retail and transportation services such as taxis, rickshaws, and motorbikes, as public transit systems and government stores have struggled with shortages.
The new regulations allow companies of any size to operate privately and enable individuals to own multiple businesses simultaneously. Foreign investors will no longer be required to form joint ventures with the state and will benefit from streamlined procedures for launching new ventures. Additionally, private investors, both domestic and international, will be permitted to acquire shares in state-run enterprises, which are set to be restructured into commercial entities. The government also plans to replace the fixed public sector salary scale with wage agreements negotiated at the company level.
Energy policy forms a central component of the reforms. Cuba’s fuel shortages, exacerbated by U.S. restrictions introduced under former President Donald Trump, have been a persistent challenge. The newly enacted measures open avenues for private and foreign investment in fuel distribution and include tax incentives to promote renewable energy projects, such as solar panel installations, which have gained traction amid the energy crisis.
Regarding property rights, Cubans have held the right to own private homes since 2011, though the state still retains ownership of much of the housing stock. Under the reforms, both residents and Cuban expatriates will be allowed to purchase state-owned properties on a case-by-case basis, particularly in regions with tourism potential.
The financial sector will also see changes with policies encouraging private investment in banking. For the first time, Cubans will be authorized to hold foreign currency accounts, and remittance flows from abroad, traditionally managed solely by the state, will now be accessible through private money exchange services.
While land will remain under state ownership, new provisions will grant long-term use agreements for agricultural activities including farming, fishing, forestry, and tobacco production. The reforms aim to stimulate economic growth and reduce the structural hurdles that have hindered Cuba’s economy amid ongoing external pressures and internal challenges.