Cuba offers great investment opportunities to Americans.
Jorge Cruz Inclan
May 29, 2009
Cuba is a country open to foreign investment. Over twenty years have enabled the government to create the necessary laws and good practice for their organization. With foreign investment in several branches of Cuba's economy has achieved significant progress. It could say this is a new era of investments that cover almost the entire economy. The opportunities are based on the needs pointed by the government of Cuba.
The Cuban economy has adopted capitalist forms of production in various branches of the economy. This transformation is considered irreversible. The widespread entry of foreign investment will bring the entire economy to a modern organization. The Law 77/1995 establishes the legal framework for investment and operation of foreign firms in Cuba. This law is complemented by others who believe as a whole all the legal, financial and investment advice. A foreign company may operate in Cuba in many ways.
The newly introduced reforms have enabled the development of production in the "Trade Zone" with many economic advantages. It is now possible as a foreign company manage tourist facilities or production. If you are interested in monetary and financial products there is also legal to operate in Cuba, including investment funds such as simple product for investors.
The huge network of companies, business associations and ministries of Cuba can takes decisions on investment, but investors consider it normal current. The Ministry of Foreign Investment has specialists in all areas and knows that there is a specific need for each type of product or service in land. As foreign investments in Cuba is not free market, the device speeds up the approval of proposals. Many Centers for Research and Technological Applications support all new investments and is a positive aspect to consider.
Foreign investment opportunities by sectors:
INVESTMENTS IN OIL AND MINING. After the positive experience of operating with Canadian Sherritt nickel, now Cuba is demanding investment in oil exploration and extraction in the island shelf. Oil companies in Spain (Repsol YPF), India (OLV), Malaysia (Petronas), Norway (Norsk-Hydro) and now already have Sherritt concession. There have been reports of several smaller mining projects which have received approvals recently and which are at various stages of development. These include gold, silver and lead projects.
For the oil industry will requires investment in refinery and production of by-products with high added value. The first foreign investment was the construction of the oil refinery of Cienfuegos with Venezuelan PdVSA. Now the Cuban demands the construction of a port for large oil tankers in the Bay of Matanzas. Demand for investments in the natural gas extracted from wells Cubans and foreigners investing in power generation from gas.
INVESTMENTS IN FISHERIES is demand for investments in aquaculture production in freshwater ponds and in the sea in wether protected areas of the south coast. Experiences with the Cuban capital guarantee a high yield. Demand is also processing industry and infrastructure maintenance. Production of animal feed from fish industrial wastes.
INVESTING IN AGRICULTURE is recognized in the latest claims by the government for joint investment with foreign companies. Experience in the use of tobacco plantations has opened new possibilities for other crops. Here, the foreign firm supplies all the inputs for farming, the tobacco treatment process and preparation of pure, cigarettes, etc...
The investments to diversify the sugar industry is considered as preferential treatment. In particular, the government seeks investors for the production MD panels, alcohol, and the production of high value-added derivatives for cosmetic and pharmaceutical industries.
The development of ethanol plants are a major priority for the Cuban authorities. Bilateral discussions have been held with both Brazil and Venezuela which might complicates the entrance of a commercial third party—nonetheless this remains one of the more attractive areas for foreign investment.
Great opportunities in reforestation are in the provinces of Pinar del Río, Villa Clara and Guantanamo. Investments are sought in specific endemic species like the Cuban Caribbean pine, Eucalyptus and Citriodora for the paper industry.
Other investments may include grains, soybeans and processing potatoes, coffee, citrus, honey and their derivatives. Incorporates the production and drying processes in rice.
INVESTMENT BANKING AND FINANCIAL. Since the last decade several European banks have been involved in private business in Cuba. Heath Lambert and Lloyds of London have been involved in reinsurance, insurance risk. The large number of investments in infrastructure and basic industry demand external funding. These business opportunities in monetary, financial and insurance services are a priority to listen to proposals. Experience in business with Cuba for years has ensured a good return on investment. In Cuba there are now business-banking joint venture, 100% foreign capital, as well as representation.
There are several investment funds and other investment products in bond Cuban debt, and capital investment. Existing funds are Leisure Canada, Ceiba Finance and Coral Capital registered in England and the German Investment Cuba. New funds are another investment opportunity for business in Cuba or invest in existing ones.
INVESTMENT IN TOURISM makes it a group of companies from different countries in partnership with Cuban companies. Now add in the needs of facilities, logistics and supply support services. Across the range there are new investment opportunities. New targets are increased number of beds in tourist existing zone and Varadero. Havana is now in consideration of saturated but not refuses future opportunities. Have priority in all tourism services and supports tourism.
Increasing numbers of visitors each year and the potential entry of American tourists are increasing the priority of these projects. New opportunities are opening for Eco-tourism and tourism for seniors.
INVESTMENT IN BIOTECHNOLOGY AND PHARMACY is extremely new to business opportunities and has a great dynamic. GlaxoSmithKline YMB has signed contract with Cuban companies to develop jointly products. Portfolio are linked to Iran, Brazil, China and India through the Biopharmaceutical Biocon India Ltd. Cuba has established a prominent position in the biotechnology industry, which has become one of the most important driving forces of the country's economy. Since the 1980s, Cuba has built up world-class expertise in the sector as part of a centralized tactics to boost international trade and to support domestic social development - particularly in areas such as public health and agriculture.
Once described as "Cuba's billion dollar gamble," this government sponsored program has successfully led to the foundation of more than 100 R&D facilities and pharmaceutical centers, over 150 international patents for new drugs and treatments, and the employment of more than 30,000 workers in scientific development. As a result, Cuba now leads the world in many fields of specialist medical research. It is also one of only four countries to have been accredited by the World Health Organization for the production of Hepatitis B vaccines.
The most important region of Cuban biotechnology is the area known as Havana's Western Scientific Pole, which comprises 52 scientific institutions and where about 4,000 scientists and engineers are working on more than 100 ongoing research projects. This region provides the focus of UNIDO's new investment program, which will provides in depth support for British companies wishing to explore partnership opportunities.
INDUSTRIAL INVESTMENT collects a wide range of industries such as construction materials, manufacturing of ceramics and sanitary ware, exploitation and processing of marble and granite. It requires joint investment in the cement industry and its products with high added value.
There is a huge range of possibilities within the metal mechanical industry. There are sets of industry and expertise in the manufacture of metal structures, mechanical, manufacturing of components and elements for different types of machining. This area includes metallic finishes and surface treatments.
The Chamber of Commerce of Cuba has registered many companies with commercial representation in Cuba is dominated by large groups like Hyundai, Peugeot and Audi.
Construction investment is the real opportunity for high current requirements that accumulate in various civil works and infrastructure, as well as the construction of homes and offices. In this area there are already companies working on the Cuban capital, as well as joint ventures with Spain. The application enables many new opportunities in this sector. They are currently building the new concession to Monte Barreto in the city of Havana.
INVESTING IN TELECOMMUNICATIONS AND TELEPHONE. This sector has been working for years with the Mexican capital, and more recently, he joined Telecom Italy. Are needed for large infrastructure broadband lines, management of coverage.
While it can be assumed that now there are no immediate opportunities, opening the American market probably needs the horizon and will require and allow new operators to increase services to end customers and business. This area is closely tied to politics by the Internet and its use.
NOTES:
UNCTAD, World Investment Report, 1997-2008
MINVEC, Situación de Negociaciones AMI. OCDE. 1998,2000, 2004, 2005.
OMC. Grupo de Trabajo sobre la Relación entre Comercio Inversiones. Comunicación de Cuba.1998
Conas, Cuba; Inversiones y Negocios, 1996/1997
Anuario Estadístico de Cuba, 1990-2006. ONE
Fernández, María Antonia. "Las Zonas francas y la Economía Nacional. Cuba". Boletín de Economía Cubana No 31. CIEM, 1997.
CEPAL, La economía cubana. Reformas estructurales y desempeño en los noventa. Anexo Estadístico.
MINTUR, Proyección de largo plazo para el turismo cubano.
Cuba: An Overview of Foreign Direct Investment. Dr. Omar Everleny Pérez -Villanueva. Economics Department at Carleton University in February 2002.
AGRIBUSINESS INVESTMENT IN CUBA´S POST EMBARGO PERIOD
James E. Ross. 2001.
Informe Técnico Comercial. Oficina Económica Embajada España en Cuba.2008.
Economía cubana: expectativas y peligros. OSCAR ESPINOSA CHEPE. Encuentro. 2009
Anuario Estadístico de América Latina y el Caribe, CEPAL, 2007.
Mesa-Lago, Carmelo; The Cuban Economy in 2006-2007. Fidel´s Legacy and Raul´s Policies; Paper presented at the XVII Annual Meetings of ASCE, 2007.
Espinosa Chepe, Oscar; « ¿Amanecer cubano?»; en El País; abril 16, 2008.
LA APERTURA EXTERNACUBANA Elena Álvarez González. Revista Investigación Económica No. Enero-Marzo 2005
The Cuban economy has adopted capitalist forms of production in various branches of the economy. This transformation is considered irreversible. The widespread entry of foreign investment will bring the entire economy to a modern organization. The Law 77/1995 establishes the legal framework for investment and operation of foreign firms in Cuba. This law is complemented by others who believe as a whole all the legal, financial and investment advice. A foreign company may operate in Cuba in many ways.
The newly introduced reforms have enabled the development of production in the "Trade Zone" with many economic advantages. It is now possible as a foreign company manage tourist facilities or production. If you are interested in monetary and financial products there is also legal to operate in Cuba, including investment funds such as simple product for investors.
The huge network of companies, business associations and ministries of Cuba can takes decisions on investment, but investors consider it normal current. The Ministry of Foreign Investment has specialists in all areas and knows that there is a specific need for each type of product or service in land. As foreign investments in Cuba is not free market, the device speeds up the approval of proposals. Many Centers for Research and Technological Applications support all new investments and is a positive aspect to consider.
Foreign investment opportunities by sectors:
INVESTMENTS IN OIL AND MINING. After the positive experience of operating with Canadian Sherritt nickel, now Cuba is demanding investment in oil exploration and extraction in the island shelf. Oil companies in Spain (Repsol YPF), India (OLV), Malaysia (Petronas), Norway (Norsk-Hydro) and now already have Sherritt concession. There have been reports of several smaller mining projects which have received approvals recently and which are at various stages of development. These include gold, silver and lead projects.
For the oil industry will requires investment in refinery and production of by-products with high added value. The first foreign investment was the construction of the oil refinery of Cienfuegos with Venezuelan PdVSA. Now the Cuban demands the construction of a port for large oil tankers in the Bay of Matanzas. Demand for investments in the natural gas extracted from wells Cubans and foreigners investing in power generation from gas.
INVESTMENTS IN FISHERIES is demand for investments in aquaculture production in freshwater ponds and in the sea in wether protected areas of the south coast. Experiences with the Cuban capital guarantee a high yield. Demand is also processing industry and infrastructure maintenance. Production of animal feed from fish industrial wastes.
INVESTING IN AGRICULTURE is recognized in the latest claims by the government for joint investment with foreign companies. Experience in the use of tobacco plantations has opened new possibilities for other crops. Here, the foreign firm supplies all the inputs for farming, the tobacco treatment process and preparation of pure, cigarettes, etc...
The investments to diversify the sugar industry is considered as preferential treatment. In particular, the government seeks investors for the production MD panels, alcohol, and the production of high value-added derivatives for cosmetic and pharmaceutical industries.
The development of ethanol plants are a major priority for the Cuban authorities. Bilateral discussions have been held with both Brazil and Venezuela which might complicates the entrance of a commercial third party—nonetheless this remains one of the more attractive areas for foreign investment.
Great opportunities in reforestation are in the provinces of Pinar del Río, Villa Clara and Guantanamo. Investments are sought in specific endemic species like the Cuban Caribbean pine, Eucalyptus and Citriodora for the paper industry.
Other investments may include grains, soybeans and processing potatoes, coffee, citrus, honey and their derivatives. Incorporates the production and drying processes in rice.
INVESTMENT BANKING AND FINANCIAL. Since the last decade several European banks have been involved in private business in Cuba. Heath Lambert and Lloyds of London have been involved in reinsurance, insurance risk. The large number of investments in infrastructure and basic industry demand external funding. These business opportunities in monetary, financial and insurance services are a priority to listen to proposals. Experience in business with Cuba for years has ensured a good return on investment. In Cuba there are now business-banking joint venture, 100% foreign capital, as well as representation.
There are several investment funds and other investment products in bond Cuban debt, and capital investment. Existing funds are Leisure Canada, Ceiba Finance and Coral Capital registered in England and the German Investment Cuba. New funds are another investment opportunity for business in Cuba or invest in existing ones.
INVESTMENT IN TOURISM makes it a group of companies from different countries in partnership with Cuban companies. Now add in the needs of facilities, logistics and supply support services. Across the range there are new investment opportunities. New targets are increased number of beds in tourist existing zone and Varadero. Havana is now in consideration of saturated but not refuses future opportunities. Have priority in all tourism services and supports tourism.
Increasing numbers of visitors each year and the potential entry of American tourists are increasing the priority of these projects. New opportunities are opening for Eco-tourism and tourism for seniors.
INVESTMENT IN BIOTECHNOLOGY AND PHARMACY is extremely new to business opportunities and has a great dynamic. GlaxoSmithKline YMB has signed contract with Cuban companies to develop jointly products. Portfolio are linked to Iran, Brazil, China and India through the Biopharmaceutical Biocon India Ltd. Cuba has established a prominent position in the biotechnology industry, which has become one of the most important driving forces of the country's economy. Since the 1980s, Cuba has built up world-class expertise in the sector as part of a centralized tactics to boost international trade and to support domestic social development - particularly in areas such as public health and agriculture.
Once described as "Cuba's billion dollar gamble," this government sponsored program has successfully led to the foundation of more than 100 R&D facilities and pharmaceutical centers, over 150 international patents for new drugs and treatments, and the employment of more than 30,000 workers in scientific development. As a result, Cuba now leads the world in many fields of specialist medical research. It is also one of only four countries to have been accredited by the World Health Organization for the production of Hepatitis B vaccines.
The most important region of Cuban biotechnology is the area known as Havana's Western Scientific Pole, which comprises 52 scientific institutions and where about 4,000 scientists and engineers are working on more than 100 ongoing research projects. This region provides the focus of UNIDO's new investment program, which will provides in depth support for British companies wishing to explore partnership opportunities.
INDUSTRIAL INVESTMENT collects a wide range of industries such as construction materials, manufacturing of ceramics and sanitary ware, exploitation and processing of marble and granite. It requires joint investment in the cement industry and its products with high added value.
There is a huge range of possibilities within the metal mechanical industry. There are sets of industry and expertise in the manufacture of metal structures, mechanical, manufacturing of components and elements for different types of machining. This area includes metallic finishes and surface treatments.
The Chamber of Commerce of Cuba has registered many companies with commercial representation in Cuba is dominated by large groups like Hyundai, Peugeot and Audi.
Construction investment is the real opportunity for high current requirements that accumulate in various civil works and infrastructure, as well as the construction of homes and offices. In this area there are already companies working on the Cuban capital, as well as joint ventures with Spain. The application enables many new opportunities in this sector. They are currently building the new concession to Monte Barreto in the city of Havana.
INVESTING IN TELECOMMUNICATIONS AND TELEPHONE. This sector has been working for years with the Mexican capital, and more recently, he joined Telecom Italy. Are needed for large infrastructure broadband lines, management of coverage.
While it can be assumed that now there are no immediate opportunities, opening the American market probably needs the horizon and will require and allow new operators to increase services to end customers and business. This area is closely tied to politics by the Internet and its use.
NOTES:
UNCTAD, World Investment Report, 1997-2008
MINVEC, Situación de Negociaciones AMI. OCDE. 1998,2000, 2004, 2005.
OMC. Grupo de Trabajo sobre la Relación entre Comercio Inversiones. Comunicación de Cuba.1998
Conas, Cuba; Inversiones y Negocios, 1996/1997
Anuario Estadístico de Cuba, 1990-2006. ONE
Fernández, María Antonia. "Las Zonas francas y la Economía Nacional. Cuba". Boletín de Economía Cubana No 31. CIEM, 1997.
CEPAL, La economía cubana. Reformas estructurales y desempeño en los noventa. Anexo Estadístico.
MINTUR, Proyección de largo plazo para el turismo cubano.
Cuba: An Overview of Foreign Direct Investment. Dr. Omar Everleny Pérez -Villanueva. Economics Department at Carleton University in February 2002.
AGRIBUSINESS INVESTMENT IN CUBA´S POST EMBARGO PERIOD
James E. Ross. 2001.
Informe Técnico Comercial. Oficina Económica Embajada España en Cuba.2008.
Economía cubana: expectativas y peligros. OSCAR ESPINOSA CHEPE. Encuentro. 2009
Anuario Estadístico de América Latina y el Caribe, CEPAL, 2007.
Mesa-Lago, Carmelo; The Cuban Economy in 2006-2007. Fidel´s Legacy and Raul´s Policies; Paper presented at the XVII Annual Meetings of ASCE, 2007.
Espinosa Chepe, Oscar; « ¿Amanecer cubano?»; en El País; abril 16, 2008.
LA APERTURA EXTERNACUBANA Elena Álvarez González. Revista Investigación Económica No. Enero-Marzo 2005
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