Business

Cuba authorises private activity in majority of sectors

Until now, it was limited to a list of sectors set by the state

Updated 5 years ago · Published on 07 Feb 2021 8:50AM

Cuba authorises private activity in majority of sectors
Currently, more than 600,000 Cubans work in the private sector, or 13% of the workforce on the island of 11.2 million. – Pixabay pic, February 7, 2021

HAVANA – Cuba announced yesterday that private activity will be authorised in most sectors, a major reform in the communist country where the state and its companies dominate economic activity.

The measure, which was unveiled last August by Labour Minister Marta Elena Feito, was approved Friday during a meeting of the Council of Ministers, according to the daily Granma, the official newspaper of the ruling Communist Party.

Until now, private activity – which has been authorised in Cuba since 2010 but whose real boom dates back to the historic warming of ties between Cuba and the US, initiated at the end of 2014 under Barack Obama – was limited to a list of sectors set by the state.

“The previous list of 127 (authorised) activities has been eliminated,” the labour minister said.

From now on, a list will determine the sectors reserved for the state, which will be a minority: “Of the more than 2,000 activities in which private work is allowed... only 124 will be limited, partially or totally,” Feito said, without giving further details, though they are expected to include industries considered strategic to the state, include media, health and defence.

“That private work continues to develop, is the objective of this reform,” she said, stressing that this “will help free the productive forces” of the private sector.

Currently, more than 600,000 Cubans work in the private sector, or 13% of the workforce on the island of 11.2 million.

They are employed mainly in gastronomy, transportation and renting rooms to tourists.

But these sectors were hard-hit by stepped-up US sanctions under Donald Trump's administration, as well as by the coronavirus pandemic, leading to many business owners suspending their licences.

The reform is “an important step to increase employment”, Economy Minister Alejandro Gil said on Twitter.

This is “good news” and “a step in the right direction”, even if, “unfortunately, it took too long to be approved”, tweeted Ricardo Torres, an economist from the University of Havana. – AFP, February 7, 2021

Related News

Malaysia / 4w

RM2.48m lost daily to investment fraud syndicates since 2023

Malaysia / 7mth

Private sector worker loses over RM600k after being duped into non-existent investment

Malaysia / 1y

Sarawak maintains civil service salary at RM1,500 per month

Malaysia / 2y

Anwar calls on private sector, civil society to step up role in dealing with universal concerns

Malaysia / 3y

Govt calls for private sector support in wage increases

World / 3y

China spied on US using Cuba military base since 2019: US official

Spotlight

Malaysia

Immigration busts international scam syndicate operating from unused Kuantan resort

Malaysia

Malaysia prevents RM1.9b in scam transactions as BNM targets real-time fraud alerts

Malaysia

Parental involvement crucial in tackling school bullying, says PM as cases hit nearly 5,700

Malaysia

19-year-old female student strangled to death in Kuantan following quarrel; boyfriend arrested

Malaysia

Loke slams 10 Negeri Exco members for ‘backstabbing’ Tuanku Muhriz

Malaysia

Vandalism at mosque: Blaming the MADANI govt ‘unfounded and ridiculous’ (video)

By Alfian Z.M. Tahir

Malaysia

MOHE: 1.16 million PTPTN borrowers owe RM10.7b in outstanding repayments

Malaysia

Police: Statements recorded after 13-year-old student sustains severe injuries in three-storey fall

You may be interested

Business

Tabung Haji posts record RM4.64b profit on stronger investment performance

Business

Oil prices ease as Middle East exports recover towards pre-war levels

Business

Oil supply risks mount as Brent tops US$102 on threat of Middle East shipping routes disruption

Business

Middle East conflict puts Malaysian SMEs under growing financial pressure - BNM