On Friday, Miguel Díaz-Canel unveiled a set of economic proposals and measures that the Cuban government plans to implement. These include granting more autonomy to municipalities and state-owned enterprises, approving pending small and medium-sized enterprises (SMEs), providing more opportunities for private actors, and incentivizing foreign investment amidst Cuba's deep economic crisis.
During a meeting with journalists from state-run media, Díaz-Canel presented these initiatives as the regime's response to the worsening national economic situation. He stated that the measures aim to cut bureaucratic red tape, boost production, and decentralize certain economic decisions.
Increased Powers for Local Authorities
One of the most notable announcements was the expansion of powers for municipalities. According to Díaz-Canel, local authorities will have greater control over the structure and interaction of economic actors within their territories, deciding which productive projects to pursue based on local characteristics.
He explained that municipalities will have the ability to import and export without higher-level oversight, manage foreign currency revenue, and promote investments from both foreign entities and Cuban expatriates. The goal, he stated, is to give local governments "all the possibilities to decide their enterprises, their economic actors" and leverage each area's productive potential.
Empowering State Enterprises
The president also advocated for increased autonomy for state-owned companies, which would be allowed to export and import directly, retain some of the foreign currency earned, form partnerships with other economic actors, and freely choose their clients and suppliers.
"The aim is for them to operate without intermediaries," Díaz-Canel remarked, emphasizing that these entities should function "without intermediaries, with no external interference," and possess greater decision-making power regarding investments, production, and commercial relations.
Revamping the Agricultural Sector
In the agricultural sector, Díaz-Canel promised new measures to boost food production. These include direct access for producers to input markets and the foreign exchange market, the ability to open foreign currency accounts in banks, and enhanced opportunities to attract foreign investment.
He also mentioned changes aimed at reducing idle land and facilitating land grants to those who can use it productively. Additionally, he discussed easing collaborations among state, cooperative, private, and foreign investors.
Support for Non-State Sector
Regarding the non-state sector, Díaz-Canel announced plans to reduce the list of prohibited activities to expand business opportunities for self-employed individuals and SMEs. He also assured that SMEs with pending applications will be approved, with some of these responsibilities delegated to municipalities as part of the announced decentralization process.
The number of authorized SMEs in Cuba has stagnated at around 11,300 over the past year, following the regime's first reported decline in this metric in early 2025.
Encouraging Foreign Investment
In terms of foreign investment, Díaz-Canel pledged to expedite approvals "without obstacles, with a legal framework that provides confidence for both Cubans and foreigners." He also hinted at tariff benefits for those importing raw materials and inputs for domestic production processes.
The measures also include new opportunities for economic participation by Cuban expatriates and expanded possibilities for partnerships between state-owned enterprises and private actors, a process that recently began with new regulations on business alliances.
Government Restructuring
Another announced initiative is a restructuring of the state apparatus, which would involve reducing ministries, agencies, and administrative positions. The aim, he said, is to cut budgetary expenses and reduce bureaucracy.
Díaz-Canel indicated that some resources freed up through this reorganization could be allocated to social programs and future salary reforms, particularly in the budgeted sector, although he did not provide specific timelines for their implementation.
He also reiterated the intention to gradually shift from product subsidies to subsidies targeting vulnerable individuals and families.
Other measures mentioned include simplifying administrative procedures, increasing the digitalization of economic processes, and loosening restrictions on vehicle imports, especially electric ones.
"Together, we can productively drive the country forward, create wealth, and distribute that wealth with social justice," Díaz-Canel said, summarizing the objectives of the announced measures.
The announcement comes weeks after the regime enacted a law to associate state and non-state enterprises and shortly after the National Assembly reported that several legislative projects are undergoing public consultation.
While Díaz-Canel presented these measures as a response to the country's economic crisis, many of the announcements mirror previous proposals from the authorities that have yet to yield substantial improvements for national production or provide noticeable relief for the population, which continues to face power outages, fuel and food shortages, inflation, and a severe decline in purchasing power.
Understanding Cuba's Economic Changes
What are the new powers granted to Cuban municipalities?
Cuban municipalities will now have the authority to import and export independently, manage their foreign currency revenues, and promote investments both from abroad and from Cuban expatriates, allowing them greater control over local economic activities.
How will state-owned companies benefit from these new measures?
State-owned companies will gain more autonomy, enabling them to export and import directly, keep a portion of the foreign currency they earn, form partnerships with other economic actors, and choose their clients and suppliers freely, reducing dependence on intermediaries.
What changes are expected in Cuba's agricultural sector?
New measures in the agricultural sector include direct market access for producers, the ability to open foreign currency accounts, and incentives for foreign investment. There will also be efforts to reduce idle lands and increase productive land grants.
How is the Cuban government planning to attract foreign investment?
The Cuban government plans to expedite the foreign investment approval process by eliminating obstacles and implementing a legal framework that builds confidence for both domestic and international investors. Tariff benefits for importing raw materials will also be introduced.