This Thursday, Prime Minister Manuel Marrero Cruz unveiled a series of 176 economic and social transformation measures to the National Assembly of People's Power, aimed at removing longstanding restrictions on Cuba's private sector. The announcement took place during a special session at the Convention Palace in Havana.
The Third Extraordinary Session of the 10th Legislature was marked by a video address from Army General Raúl Castro and the physical presence of President Miguel Díaz-Canel, as reported by the state-run Canal Caribe.
Significant Changes for Non-State Sector
One of the most impactful proposals involves abolishing the 100-worker limit previously imposed on private businesses, enabling them to expand without workforce constraints. Additionally, individuals will now be allowed to own multiple microbusinesses or non-agricultural cooperatives at the same time, rather than being restricted to just one.
The government is also suggesting granting real rights—such as usufruct or surface rights—to non-state enterprises, which would greatly enhance their access to real estate.
Expanded Rights and Opportunities
Another noteworthy change is the authorization for the private sector to import and sell fuels, including retail sales, in a nation grappling with severe fuel shortages and frequent power outages.
Non-state entities will have the freedom to engage in as many lawful activities as desired, provided they maintain their primary business focus. The government plans to streamline the bureaucratic procedures for establishing or converting businesses and reduce the list of prohibited activities.
Commitment to Approving Pending Enterprises
The regime has pledged to approve all pending microbusinesses and non-agricultural cooperatives by the end of June. This process had been stalled for months, with the current number of businesses around 11,300.
In parallel, the reform package introduces parity for the state sector: state-owned enterprises will have the liberty to conduct any activities they choose, distribute post-tax profits at their discretion, and set employee wages independently.
The guiding principle was articulated during the session: "Henceforth, any measure approved for the private sector will also apply to state enterprises."
Accelerated Approval Process
The fast-tracked approval of these reforms began when Díaz-Canel announced the agenda on June 12. The Extraordinary Plenary of the Communist Party of Cuba's Central Committee endorsed it on Wednesday with Raúl Castro's support via videoconference, and the Assembly was summoned on Thursday by State Council Agreement 599-X to formalize the changes.
The 176 measures are categorized into five areas: macroeconomic stabilization, economic model transformation, agricultural recovery, cost management, and social cost mitigation, amid a deep crisis characterized by shortages, inflation, and a declining GDP.
Cuba legalized microbusinesses in September 2021 through Decree-Law 46, following over five decades without a formal private sector. However, these businesses have operated under constraints that the new proposals aim to dismantle.
Key Reforms Impacting Cuban Private Sector
What changes have been made to the worker limit for private enterprises in Cuba?
The Cuban government has removed the 100-worker cap on private enterprises, allowing these businesses to expand their workforce without restrictions.
Can individuals now own multiple businesses in Cuba?
Yes, individuals in Cuba can now own more than one microbusiness or non-agricultural cooperative simultaneously.
Will the private sector be able to import and sell fuel?
The private sector has been granted the ability to import and retail fuel, addressing the country's severe fuel shortages.