Cuba lifts ban on emigrants owning businesses amid sweeping economic reforms
Cuba has amended Decree Law 133 to allow citizens living abroad and foreign residents to become partners in micro, small and medium enterprises, marking a major shift in its socialist economy.
In a bid to address its deepest economic crisis, Cuba announced that emigrants and foreign permanent residents can now partner in micro, small and medium-size enterprises, removing the previous 100-employee cap. The amendment to Article 54 of Decree Law 133 was published in the Official Gazette and is one of 176 measures aimed at granting state firms greater autonomy, permitting private sector foreign investment without state mediation, and establishing private banks.
Applicants must be at least 18, free of state or bank debts, and not hold any government office or be serving a criminal sentence. Economist Ricardo Torres highlighted that the reform codifies diaspora participation but stressed that Cuba’s judiciary remains under Communist Party control, creating uncertainty for investors. The reforms come as the island faces severe shortages, high inflation and U.S. sanctions, raising questions about the practicality of attracting capital and sustaining growth.
Why it matters
The policy could reshape Cuba's economy by tapping diaspora capital, but legal and sanctions risks may limit its impact.
How the sides frame it
MODERATE AGREEMENTBoth camps note that Cuba is launching sweeping reforms to confront a deep economic crisis, but left-leaning coverage stresses the political risk of a judiciary still under Communist Party control, while centrist coverage highlights foreign investment opportunities and U.S. pressure as key drivers.
LEFT
Reforms are presented as a crisis-driven attempt to involve the diaspora, but the continued Communist Party control of the judiciary creates uncertainty for investors.
CENTER
Reforms are framed as a response to severe shortages and U.S. pressure, opening real estate and other sectors to foreign capital to attract private investment.
The left emphasises
- deepest economic crisis
- diaspora participation in micro, small and medium-size enterprises
- judiciary remains under Communist Party control, creating uncertainty
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