HAVANA: Cuba has announced a major expansion of privatesector participation in its staterun economy as the communist government seeks to ease severe shortages caused by a prolonged US fuel embargo and a deepening economic crisis.
Under a decree unveiled on Wednesday, private firms will be allowed to operate in sectors previously reserved for the state, including electricity generation, gas distribution, waste collection, fuel sales, vehicle imports and manufacturing, as well as the production and sale of medicines.
The reforms also open the door for private investment in cargo terminals, retirement homes and golf courses.
The measures aim to address worsening daily hardships, with fuel shortages triggering frequent power outages, water disruptions and shortages of food and medicine.
Waste collection services have also deteriorated, leaving rubbish piling up in parts of Havana.
Prime Minister Manuel Marrero described the reforms as gradual, saying “change is possible”, and revealed that the government had approved its first foreign investment project involving the importation, distribution and marketing of fuel.
However, economist Daniel Torralbas said local small and medium-sized enterprises lack the financial resources needed to invest in many of the newly liberalised sectors, making foreign capital essential.
Despite the reforms, the government stressed it would retain control over strategic industries, including education, telecommunications, the media, defence and cigar sales.
Oil and mining activities will be opened only under state licensing.
Cuba is grappling with one of its worst economic crises since the collapse of the Soviet Union.
The situation has worsened after the United States effectively cut off the island’s main oil supply from Venezuela and threatened sanctions against other fuel exporters.
The country’s electricity system remains under severe strain.
State utility officials said power generation on Wednesday would meet only about 27 per cent of peak demand, leaving a shortfall of 2,380 megawatts amid recurring nationwide blackouts. – AFP
