From Stock Markets to Solar Power: Miami Entrepreneurs Plan for a Post-Communist Cuba

In anticipation of a political shift in Cuba, Cuban-American entrepreneurs in Miami are strategizing to invest in key sectors of the Cuban economy. Their plans include establishing a stock exchange, revitalizing old sugar mills, and developing ventures in energy, agriculture, and water supply.

According to a report by BBC Mundo on October 5th, some of the wealthiest Cuban-American families and business leaders in Florida have been convening to explore economic opportunities in a potential post-communist Cuba. This initiative is spearheaded by the Cuban American National Chamber of Commerce (Cancc), under the leadership of Juan Omar Sixto.

Preparing for Investment in a New Cuba

The organization has held numerous meetings with prominent figures from the exiled community who are influential in the U.S. business landscape. "Our aim is to be there as soon as the regime falls," stated Sixto. He mentioned that the Cancc has been in contact with individuals close to U.S. Secretary of State Marco Rubio, though there are no official agreements linking the U.S. Government to these private initiatives.

Sixto emphasized his reluctance to invest while the current Cuban government remains in power. "Alongside delivering humanitarian aid and medical supplies, we would immediately engage in business in Cuba," he asserted.

Strategic Economic Proposals

The Cancc is organizing specialized committees and drafting proposals for essential sectors in Cuba's potential economic recovery. However, they acknowledge that any investments will heavily depend on the political and legal environment on the island.

The plans cover diverse economic activities. Some are preliminary proposals, while others are prioritized investment opportunities for a potential transition.

Cuban Stock Exchange: The Cancc has proposed establishing a stock market to channel investments, facilitate corporate financing, and attract private capital.

Revamping the Electric Grid: A specialized committee has been formed to focus on energy infrastructure. Modernizing power plants, distribution networks, and generation systems could create opportunities for engineering, construction, and maintenance companies.

Agriculture and Food Production: Entrepreneurs see the need to inject capital, machinery, and technology to restore productive lands, boost harvests, and lessen reliance on imports.

Sugar Mill Revitalization: Former owners seek to reactivate facilities and reclaim lands nationalized post-1959, though not solely for sugar production.

Ethanol Production: An alternative is to convert sugar facilities to produce biofuels, leveraging existing industrial infrastructure.

Cogeneration of Electricity: Former industrial complexes in Cuba could be repurposed to produce both electricity and thermal energy, diversifying their operations.

Solar Power: Investment in renewables is another focus, with plans to install solar panels on lands of former sugar mills and develop cutting-edge generation projects.

Water Purification: Utilizing existing industrial facilities for water treatment and supply systems is also being considered.

Tourism: Although specific projects were not identified in the report, tourism recovery is seen as a potential investment opportunity.

Property rights remain a critical issue, with some entrepreneurs seeking compensation for properties seized after 1959, while acknowledging the need for legal systems to protect current occupants.

Marco Rubio's Vision for Rebuilding Cuba's Economy

Marco Rubio, U.S. Secretary of State, highlighted during the 81st UN General Assembly that Cuba's current political and economic model is a barrier to foreign investment. "No one is going to invest in Cuba under its current government model. They're just not," he stated, as reported by the State Department.

Rubio criticized the lack of safeguards for the private sector, illustrating with a hypothetical investor willing to invest $10 million but vulnerable to government changes and potential expropriation.

These concerns align with those of Cuban-American entrepreneurs and experts developing proposals in Miami for Cuba's reconstruction. In July, CiberCuba covered a forum of experts in infrastructure, economy, engineering, and law, focused on designing a roadmap for a democratic transition in Cuba.

The scope of these plans extends beyond business investments, envisioning a comprehensive rebuilding of Cuba, including:

• Electrical System: A timeline of three to five years.
• Water and Sewage: Initial recovery within two years and up to a decade for stable service.
• Infrastructure: Rehabilitation of roads, ports, railways, and cities.
• Housing: Programs to address an estimated deficit of one million homes.
• Legal Security: Guarantees for private property and investments.
• Economic Revitalization: Initial boosts to tourism and ports to generate income.
• Energy Sector: Modernization of refineries and fuel supply.

Researcher Jorge Piñón estimated that restoring the electrical system would require between $5 billion and $8 billion. Engineer Josenrique Cueto projected about $8 billion for rehabilitating water and sewage systems.

Experts estimated the total cost for a comprehensive reconstruction of Cuba between $275 billion and $375 billion over a span of 10 to 15 years.

Currently, these business initiatives remain proposals and potential opportunities rather than approved investments. Their realization hinges on a possible political transition in Cuba, the establishment of private property guarantees, and the ability to attract capital to revive Cuba's struggling economy.