Cuban Government Seeks Fresh Capital from Overseas Cubans Amid Economic Turmoil

Amidst a crippling economic downturn and frequent power outages, the Cuban government launched the Havana International Fair (FIHAV 2025) on Monday, aiming to entice foreign investors with a message of renewed optimism.

At the VIII Investment Forum, a key event of FIHAV 2025, Vice Prime Minister and Minister of Foreign Trade and Foreign Investment, Óscar Pérez-Oliva Fraga, proclaimed that Cuba now presents a "more modern, agile, and transparent" environment. He went on to state that Cubans living abroad would have the same investment opportunities as international investors.

However, this announcement comes on the heels of the regime's recent imposition of financial restrictions on foreign business and diplomatic accounts, restricting the withdrawal and repatriation of funds. This contradiction highlights the regime's urgent need for foreign currency and the deep-rooted distrust among those already operating in Cuba.

Pérez-Oliva, a relative of Fidel and Raúl Castro, acknowledged during the FIHAV inauguration that Cuba is grappling with "financial difficulties" but insisted that the nation is making "steady progress" toward economic modernization. He highlighted the existence of 376 active business deals with 40 countries, 56 projects in the Mariel Special Development Zone, and the approval of 32 new projects worth over $2.1 billion in 2025 alone.

New Policies Aimed at Attracting Investment

Meanwhile, official journalist Lázaro Manuel Alonso shared details of the new policy on social media, highlighting:

• Increased flexibility for investors to choose their workforce.
• Salary bonuses paid in foreign currency.
• Unrestricted wholesale trading.
• Access to hard currency fuel and even direct imports.
• Opportunities to manage underutilized state facilities.
• A new portfolio featuring over 400 projects.

The message is unmistakable: the government is actively seeking fresh capital, and for the first time, it openly declares the Cuban diaspora as a target for economic engagement.

Optimism Meets a Stark Reality

The government's promise of "transparency and guarantees" starkly contrasts with last week's actions, when it ordered the freezing of foreign business funds in Cuban banks, as reported by EFE. Companies were informed they could not extract, transfer, or repatriate their deposited funds.

This is the most extensive financial restriction seen in years and also affects embassies. The Ministry of Foreign Affairs notified diplomatic missions that their deposits are not assured for transfers or withdrawals.

As a temporary measure, the government proposed "real accounts" funded exclusively from abroad, supposedly allowing for transfers and withdrawals. Yet, multiple businesses have reported being unable to access or repatriate funds from these accounts, exacerbating the financial uncertainty.

Adding to the turmoil, the United States issued a public warning in July, describing the Cuban economic system as a "rigged environment" designed to benefit the regime and its affiliates, with a history of defaults and contractual manipulation.

The result is a convoluted situation where the government calls for trust while altering the rules on the fly, leaving existing businesses unable to retrieve their funds.

Challenges Amidst Aspirations

Pérez-Oliva also acknowledged the "difficult weeks" Cuba is enduring following Hurricane Melissa and in the midst of an energy crisis causing blackouts exceeding 10 hours daily in several provinces. Nevertheless, he asserted that the FIHAV's celebration is a "show of commitment," with renewable energy and tourism sectors identified as key drivers for recovery.

However, the Cuban populace faces a starkly different reality, grappling with inflation, empty store shelves, inadequate wages for basic needs, and a power grid teetering on the edge of collapse.