Cuba Opens Crisis Sectors to Private Companies

Edited by: Svitlana Velhush

From gas stations to pharmacies: Cuba opens broad sectors to private investment | AFP

Cuba on Wednesday announced the opening of several key sectors of its economy to private companies. The government aims to alleviate a severe shortage of goods and services caused by the energy crisis.

CUBA ABRE AL SECTOR PRIVADO A ESTACIONES DE SERVICIO, PUERTOS, GERIÁTRICOS Y FARMACIAS El Parlamento de Cuba aprobó un paquete de reformas que habilita la participación del sector privado en actividades hasta ahora reservadas al Estado, entre ellas estaciones de servicio,

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A decree signed on July 22 and published by state media on Wednesday lifts restrictions on gasoline distribution, electricity generation, garbage collection, and the production and sale of medicines.

The reforms affect precisely those areas that most impact the daily lives of Cubans. The country has been experiencing regular power outages, water shortages, and deficits in food and medicine for several months.

Private firms will now be allowed to engage in waste collection and processing – a problem that is particularly acute in Old Havana, where mountains of garbage accumulate on the streets.

Due to the gasoline shortage, which has led to almost no transport on the roads, private entities will be able to import and produce electric vehicles. The oil and mining industries will also undergo liberalization.

Against the backdrop of these steps, familiar anti-imperialist slogans and calls for "socialism or death" were heard in the National Assembly. Nevertheless, the decree signifies a noticeable weakening of the long-standing communist doctrine.

Cuba is experiencing its most severe crisis since the death of Fidel Castro and the collapse of the Soviet Union. Residents are increasingly openly criticizing the authorities and organizing night protests by banging pots and pans.

State media emphasized that the new rules "significantly expand opportunities for entrepreneurs and private companies." However, control over education, telecommunications, media, defense, and tobacco sales remains exclusively with the state.

The cause of the fuel crisis has been an effective de facto US ban on oil imports for almost six months. Washington took control of Venezuelan energy assets at the end of January and threatened sanctions against other suppliers.

This year has already seen at least five nationwide blackouts. On Wednesday, the state energy company was only able to meet 27 percent of peak demand, with a deficit of 2380 megawatts.

Will the expansion of private initiative in these sectors truly alleviate the lives of Cubans?

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  • Crisis-hit Cuba says to open pharmacies, gas stations to private firms

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