The Cuban government announced a significant reduction in the list of activities prohibited for the private sector on Tuesday, presenting this move as a reform aimed at benefiting the population, according to the state-run media outlet Cubadebate.
The newly issued Decree 160, sanctioned by the Council of Ministers on July 22, 2026, and publicized this Tuesday in the Official Gazette, repeals Decree 107 of 2024 and will take effect on August 4, 2026. This policy change was presented in a press conference by Lázara Mercedes López Acea, the head of the National Institute of Non-State Economic Actors (INAENE).
The now-repealed Decree 107 included a list of 125 activities that were off-limits to private micro, small, and medium-sized enterprises (MSMEs), non-agricultural cooperatives, and self-employed workers. Under the new decree, 46 activities are fully authorized without restrictions, while another 35 have more flexible operational conditions.
Expanding Opportunities for the Private Sector
The sectors now opened to non-state actors include pharmaceutical services, senior care facilities, wholesale trade, electric vehicle imports, and renewable energy generation. However, formal education and official certification remain under state control.
The new decree categorizes restrictions into four types: absolute prohibition due to unmanageable risks, state-reserved activities, activities barred only for self-employed individuals but allowed for companies and cooperatives, and activities permitted or conditioned through prior licensing or certification. The Council of Ministers is required to review the regulation at least every two years.
Feedback from the Private Sector
López Acea described the reform as emerging from a consultation process with private sector actors. "We listened to their concerns, some dissatisfactions, recommendations, and suggestions," she noted. She also partly attributed the need for reform to the "tightening of the economic, commercial, financial, and energy embargo imposed by the United States government."
This measure is part of a broader reform package. In June 2026, the National Assembly approved 176 economic measures across 23 areas, including the removal of the 100-worker limit for MSMEs, allowing individuals to own multiple private enterprises, and opening to private banking and currency exchange houses. Decree 160 complements Decree-Law 114, effective since April 2, 2026, which allows partnerships between state and non-state entities through joint ventures, although it explicitly excludes the health, education, and sectors linked to the Armed Forces and the Ministry of the Interior.
A Shift Towards Economic Flexibility
The government insists that these measures do not signify privatization but rather a "flexibilization," though the extent of the changes contrasts with decades of total state control over the economy. Cuba is currently facing a severe crisis characterized by food, fuel, and electricity shortages, rampant inflation, and a massive population exodus, pressures that have driven Miguel Díaz-Canel's regime to implement the most ambitious reform package in decades.
"We are thus defining in this decree a significant reduction in the previously unauthorized activities, thereby authorizing or conditioning a substantial level of activities that allow non-state economic actors to participate in the economy and thus contribute to the population's welfare," concluded López Acea.
Cuban Economic Reforms: Key Questions Answered
What sectors are now opened to private actors in Cuba?
The sectors newly accessible to private actors include pharmaceutical services, senior care facilities, wholesale trade, electric vehicle imports, and renewable energy generation.
What is the significance of Decree 160 in Cuba?
Decree 160 represents a significant shift in Cuba's economic policy, reducing the number of prohibited activities for the private sector and introducing new opportunities for private enterprise.
Are these reforms considered privatization?
The Cuban government asserts that these reforms are not privatization but rather a "flexibilization" of economic policies, despite the significant changes to the state's economic control.