Actualizing an investment project is a complex endeavor for various reasons, one being the limited pool of available projects typically outlined in the government’s Portfolio of Foreign Investment Opportunities. Additionally, every foreign investment entails navigating multiple layers of governmental approval. Accessing financing poses a significant challenge, and while U.S. sanctions may play a role by restricting U.S. banks and financial institutions from engaging in Cuba-related transactions, they don’t impede non-U.S. banks from participating. Several other factors contribute to this challenge, including the creditworthiness of involved parties, the profitability of the venture project, the scarcity of hard currency liquidity on the island, and the associated constraints on profit repatriation. A comprehensive approach to fostering foreign investment involves bolstering Cuba’s emerging private sector. This could be achieved by granting foreign businesses the opportunity to invest in privately-owned micro, small and medium enterprises. Simultaneously, establishing a robust legal framework for such enterprises to engage in foreign exchange transactions and facilitate international payments would be crucial.
