The government of Cuba plans to allow Cuban nationals living abroad to invest in and own private businesses in their homeland, in a move aimed at attracting fresh capital as the island struggles with a deep economic crisis. The announcement was outlined by Deputy Prime Minister Oscar Pérez‑Oliva Fraga in an interview in Havana, where he said the policy would enable members of the Cuban diaspora — including those living in the United States — to participate directly in the country’s private sector. Opening investment to the diasporaFraga said the government wants to encourage stronger economic ties with Cubans living abroad as well as foreign companies. “Cuba is open to having a fluid commercial relationship with U.S. companies and also with Cubans residing in the United States and their descendants,” he said. The initiative would allow overseas Cubans to make investments in businesses on the island, ranging from small ventures to larger projects, including infrastructure development. Officials say the reform is part of a broader effort to modernise the country’s economic framework and attract foreign capital, as the state attempts to revive growth and address mounting shortages. The government has been exploring several measures designed to make investment more flexible and encourage new funding for the struggling economy. Economic crisis and energy shortagesThe policy shift comes as Cuba faces severe economic pressures, including an energy crisis that has led to widespread power outages and disruptions to daily life. According to Cuban officials, the country has not received petroleum shipments for several months, worsening electricity shortages and forcing hospitals and other public services to scale back operations. President Miguel Díaz‑Canel has said the fuel shortage has created a nationwide emergency, contributing to blackouts across the island. The difficulties have also sparked rare public unrest. Reports in state media described a protest in the city of Morón that turned violent after demonstrators threw stones at a local Communist Party building and set fires in the street. US tensions remain a major obstacleFraga said the country’s economic reforms are being complicated by longstanding tensions with the United States. Cuban officials frequently refer to US sanctions as a “blockade” that limits the country’s access to international financing, technology and markets. Relations have been strained under the administration of Donald Trump, who has warned that the communist government could face consequences if it fails to reach an agreement with Washington. Trump has suggested the United States could pursue stronger action against Havana and has indicated he may shift greater attention toward Cuba once the current conflict with Iran subsides. Meanwhile, the collapse of Venezuela’s government under Nicolás Maduro — long a key ally of Cuba — has further disrupted energy supplies to the island, worsening its fuel shortages. Attempt to attract new capitalCuban officials say the new policy could help draw investment from millions of Cubans living overseas, many of whom maintain financial and family ties to the island. Authorities hope that allowing diaspora investment will provide a fresh source of capital and support efforts to stabilise the economy amid ongoing shortages, migration and international sanctions. Join the discussion? Already a member? Adapted by ASEAN Now · Source · 16.March 2026
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