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3h ago

Cuba Opens Door to Diaspora Investment as Miami Weighs the Risks

Most potential investors cite legal insecurity, financial dysfunction, sanctions constraints.

Firefighters work to put out a fire at a garbage dumping site in Havana on March 16.
A man carries buckets of water on March 19 as severe fuel shortages have disrupted water pumping and distribution in Havana.
A general view of Havana on March 17 following a nationwide blackout.
A student speaks outside the University of Havana during a protest against class disruptions amid energy and internet shortages on March 9.

Overview

  • Cuban officials said nationals abroad will be allowed to invest in and own stakes in private businesses, including large projects and infrastructure, according to Deputy Prime Minister Oscar Pérez-Oliva Fraga.
  • The U.S. Embassy in Havana warned the national grid is increasingly unstable after months without petroleum shipments, highlighting the urgency of attracting capital for energy and infrastructure.
  • Miami entrepreneurs are largely reluctant to commit funds, with Univista’s Ivan Herrera rejecting investment under the current government and calling the offer a scam.
  • Legal experts describe Cuba as an extremely risky destination due to a dysfunctional banking system, a highly unstable currency, weak private property protections, and dilapidated infrastructure.
  • The U.S. embargo remains a practical barrier because American residents need authorization to do business in Cuba, though a minority of exiles, including Hugo Cancio, say they would invest to help rebuild.