On Wednesday, the Cuban regime unveiled a substantial shift in the management model of state-owned enterprises, granting them the authority to independently set wages and prices, as well as to autonomously establish subsidiaries and small to medium-sized state enterprises.
These changes are part of a sweeping package of 176 economic and social reforms approved by the government on June 18 and 19, 2026, heralded by officials as the most significant structural transformation since the Special Period.
The specifics were outlined during the Round Table broadcast on the state television channel, featuring Giovanna Vega Amato, director of the Business System at the Ministry of Economy and Planning; Roberto Ricardo Marrero, president of the newly formed National Institute of State-Owned Enterprise Assets; and Mercedes López Acea, head of the National Institute of Non-State Economic Actors.
"From now on, each company will have the autonomy to determine its own prices and the wages it pays its workers," Marrero declared during the program.
Independent Decision-Making for Enterprises
Beyond setting salaries and prices, state enterprises will now have the power to approve their annual economic plans, allocate their profits, devise long-term strategies, and authorize major investments without reliance on central authorities.
A notable change is the removal of the requirement for prior authorization from the Ministry of Economy and Planning to form new businesses.
"There will be no need for prior approval from the Ministry of Economy and Planning to establish enterprises, which grants significant flexibility to the diverse and dynamic fabric of Cuban business," stated Vega Amato.
New Institutional Framework
On June 29, 2026, the Official Gazette published Decree 144, establishing the National Institute of State-Owned Enterprise Assets, set to become operational around July 29. Officials clarified that this institute is not another bureaucratic layer: "This institute does not interfere with the autonomy of businesses, nor does it manage or direct them. It is not a super-ministry, as some have suggested," Marrero explained.
The institute's stated role is to represent the state as the owner of production means and oversee three key indicators: the return on state investment, growth in profits, and revenue from exports and foreign exchange.
Potential for Private Investment
The reform package also includes the transformation of state enterprises into joint-stock companies, with potential for participation by national and foreign private capital and individuals.
Out of approximately 2,800 enterprises within Cuba's business framework, only 300 currently operate as joint-stock companies. These entities will be categorized into four types—strategic, competitive, socially-oriented, and high-tech—with competitive and high-tech firms being the first candidates for conversion to joint-stock companies.
Marrero emphasized that the bidding process for fundamental production assets must be public: "The bidding for the fundamental means of production to be offered must be public. We must not make mistakes here. This is crucial."
Implications for the Private Sector
For the private sector, the 176 measures lift the cap of 100 workers for small and medium-sized enterprises, authorize the establishment of private banks under the supervision of the Central Bank, and plan for the gradual elimination of the ration book, replacing universal subsidies with targeted assistance for vulnerable individuals.
This announcement comes amid a severe economic crisis characterized by prolonged blackouts, widespread shortages, rampant inflation, and a massive population exodus, all direct results of over six decades of a centralized model that these reforms aim to at least partially dismantle.
Key Questions About Cuba's Economic Reforms
What are the main changes in Cuba's state enterprise management?
Cuban state enterprises now have the power to independently set salaries and prices, establish subsidiaries, and create small to medium-sized enterprises without requiring central authority approval.
How will the new National Institute of State-Owned Enterprise Assets function?
The institute will represent the state as the owner of production means, overseeing key indicators like the return on state investment, profit growth, and export revenue, without managing or directing businesses.
What opportunities do these reforms offer to the private sector?
The reforms lift the restriction on the number of workers for small and medium-sized businesses, allow for the creation of private banks, and plan to phase out the ration book in favor of targeted subsidies.