BUSINESS OPPORTUNITIES FOR SWEDISH COMPANIES IN CUBA

BUSINESS OPPORTUNITIES
FOR SWEDISH COMPANIES
IN CUBA
March 2016
Business Sweden - Mexico City
CUBA IS FACING A TIME OF MANY CHANGES WITH
OPPORTUNITIES & RISKS FOR FOREIGN COMPANIES
INTRODUCTION
 The removal of Cuba from the “State Sponsors of Terrorism”
list in May 2015 and the subsequent easing of the economic
restrictions imposed by the US are undoubtedly the most
critical game changers for the Cuban economy. The
projections are that it will boost international trade and
improve the access to foreign financing.
 In 2014, the government presented a vast list of projects
offered to foreign investors. The ‘Cuba Portfolio of
Opportunities for Foreign Investment’ includes 246 projects
seeking over 15 BUSD of capital. It covers critical sectors
such as energy, food, construction, pharmaceuticals and
biotechnology, and others.
 The objective with this report is to inform Swedish
companies about the current development in Cuba and the
identified business opportunities. Cuba is still a very
complex market where local knowledge is key. Access to
public statistics is restricted and sometimes unreliable;
therefore the sources for most conclusions in this report are
based on direct interviews in Cuba with foreign companies
and governmental representatives, as well as external
market intelligence reports.
BUSINESS SWEDEN
BUSINESS SWEDEN IN CUBA
Business Sweden’s office in Mexico City, that covers Mexico,
Central America and the Caribbean, has eight business
consultants with extensive market knowledge and long
experience of promoting Swedish business in the region.
Over the last years we have supported business entries and
growth in various sectors, such as Healthcare & Life Sciences,
Energy and Environmental Technologies, Telecom and IT,
Automotive and Transport Systems.
Welcome to contact us!
Olof Hällerman
Trade Commissioner Mexico,
Central America and the
Caribbean
1 APRIL, 2016
2
SUMMARY OF FINDINGS (1/2)
AGRICULTURE, FOOD & BEVERAGES
LIGHT MANUFACTURE
TOURISM
•
•
•
The Cuban sugar industry requires
heavy capital investment to be
rehabilitated as 8 sugar mills were
built between 1970-1980 and 51
before 1959
Cuba’s sectoral policy aims to
reduce food imports and to increase
and diversify exports
•
•
ENERGY
•
•
Cuba has discovered several dozen
extra-heavy oil fields, although there
is also fields with light, medium and
very light oil
Cuba has the goal of reaching 25%
of renewable energy use by 2030,
several projects are planned to reach
this goal
Cuba’s manufacture sector includes
basic products aimed to cover the
local demand and, in a second
stage, generate exports
This industry is mainly interested in
foreign investments to modernize
existing technology
•
ICT
•
•
Governmental control and the stateowned monopoly provider (ETECSA)
of mobile, internet and fixed line
services have led to lower
penetration rates in these sectors
than other markets in the region
ETECSA plans to launch several
new mobile services, including
internet access and email in Havana
Foreign investments in this sector
are aimed to promote new hotels
through new building projects, or
reconstructions, of accommodation
facilities as well as complementary
infrastructure
Another objective is to diversify the
management and commercialization
of tourist facilities by renowned
foreign chains
HEALTHCARE
•
The government has taken a
proactive approach to developing the
pharmaceutical industry
•
Cuba assigns almost 9% of its
GDP in public health services for
its population
•
The majority of material parts for
medical equipment are imported
SOURCE: BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
3
SUMMARY OF FINDINGS (2/2)
 Easing of economic restrictions imposed by the US
• The removal of Cuba from the “State Sponsors of Terrorism”
list in May 2015 and the subsequent easing of the economic
restrictions imposed by the US are undoubtedly the most
critical game changers for the Cuban economy
• It will boost trade with the US and improve the access to
foreign financing. Although the complete lifting of the embargo
requires a vote in Congress, it is expected that the restrictions
will continue throughout the remainder of Obama’s mandate
 New law for foreign investment
• Though some clauses remain highly constraining, and control
by the State is to remain prominent, the new law adopted in
March 2014 provides a much more favorable and pragmatic
framework than the previous 1995 regulations for foreign
investment, especially in the Mariel Free Trade Zone
 New investment opportunities
• In 2014, the government presented a vast list of projects
offered to foreign investors. The ‘Cuba Portfolio of
Opportunities for Foreign Investment’ includes 246 projects
seeking over 15 BUSD of capital
• It covers critical sectors such as energy, food, construction,
pharmaceuticals and biotechnology, and others, while giving a
particular emphasis on developing the Special Zone of Mariel
 Currency and financing risks will increase
• The Cuban exchange rate system is complex, featuring two
coexisting official currencies (the CUP and the CUC) with
different (fixed) exchange rates
• The government has already expressed its will of unifying the
exchange rate system. However, no concrete steps have been
taken, as unification might lead to drastic economic
adjustments, with high economic and social costs
 Political and business climate risks to remain high
• The desired ‘upgrade to the Cuban economic model’ by
President Castro will require strong support from the Party
• Foreign investments will remain tightly controlled by the State,
with most foreign ventures requiring majority Cuban ownership
• Despite the positive developments, the Cuban economy will
remain rationed and mostly State-driven, as labor, wages and
price controls will remain in place
 Credit risk to be watched intensely
• In the short-run, non-payment risks by Cuban companies will
remain high. EKN rates Cuba’s country risk class as 7/7 (high
risk) – normally off cover
CUBA IS FACING A TIME OF MANY CHANGES WITH OPPORTUNITIES & RISKS FOR FOREIGN COMPANIES
SOURCE: EULER HERMES; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
4
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
5
CUBA GENERAL INFORMATION
 Area: 110,860 km2
 Inhabitants: 11.03 million
 Government type: Communist state
 Head of State: Raul Castro Ruz
La Habana
 Languages: Spanish (official)
 Inhabitants per km2: 99.49 /km2
 Currency: Cuban pesos (CUP)
 GDP 2014: 77.15 Billion USD
 GDP per capita 2010: 10,200 USD
 Inflation rate 2014: 5.3%
 Main exports: Petroleum, nickel, medical products, sugar,
tobacco, fish, citrus, coffee
Santiago de Cuba
Mexico City
 Main imports: Petroleum, food, machinery and equipment,
chemicals
 2014 Swedish exports to Cuba: 190 130 TSEK
 2014 Swedish imports from Cuba: 19 924 TSEK
SOURCE: CIA WORLD FACTBOOK, SCB
BUSINESS SWEDEN
1 APRIL, 2016
6
CUBA HAS THE 62ND LARGEST GDP IN THE WORLD WITH
77 BUSD
CUBA GDP, 2010 – 2014
BUSD
GDP COMPARISON, 2014
BUSD
1 400
90
1 200
75
1 000
60
800
45
600
30
400
15
200
0
2010
2011
2012
2013
2014
Mexico
#15
Turkey Sweden Ecuador
#18
#20
#59
Cuba
#62
Uruguay
#72
CUBA HAS SHOWN A STEADY GROWTH IN ITS ECONOMY IN RECENT YEARS
SOURCE: WORLD BANK
BUSINESS SWEDEN
1 APRIL 2016
7
SWEDISH EXPORTS TO CUBA CONSIST MAINLY OF
ELECTRIC APPLIANCES FOR FIXED LINE TELEPHONY
TOP-15 SWEDISH EXPORTS (K USD) TO CUBA, 2014
SWEDISH IMPORTS (K USD) 2014 FROM CUBA, 2014
Electric apps for line telephony, incl curr line system
4,084
Electric app for line telephony,incl curr line system
Polymers of ethylene, in primary forms
3,013
Cigars, cheroots, cigarillos & cigarettes
Centrifuges, incl centrifugal dryers; filtering/purifying machinery
2,904
Television camera, transmissn app for radio-telephony
8
Antiknock preparations, oxidation & gum inhibitors, viscosity
improver
Commodities not elsewhere specified
4
2,432
Tubes & pipe nes, ext diam >406.4mm,of iron & steel
1,503
Pumps for liquids; liquid elevators
1,472
Parts & access of motor vehicles
1,222
Mechano-therapy appliance (artif resp, massage app,
ozon/oxygen)
879
Iron & steel screws,bolts,nuts,coach-screws, etc
866
Printed books, brochures, leaflets & similar printed matter
756
Diesel or semi-diesel engines
684
Electro-medical apparatus (electro-cardiographs, infra-red ray
app, sy
650
Chemical wood pulp, soda or sulphate, other than dissolving
grades
457
Electric transformer,static converter (for example rectifiers)
415
Sulphuric acid; oleum
400
1,020
660
TOP-5 EXPORT MARKETS TO CUBA, 2014, SHARE OF 5.96 BUSD
China
18%
Others
45%
Spain
15%
Brazil
9%
MexicoCanada
7%
6%
SOURCE: INTERNATIONAL TRADE CENTRE (ITC); BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
8
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
9
NEW FORMS OF FOREIGN INVESTMENT HAVE BEEN
APPROVED IN CUBA IN THE LAST FEW YEARS
JOINT VENTURES THE MOST COMMON INVESTMENT MODEL
Joint Ventures
• Cuban commercial company
which adopts the form of a
nominal share corporation in
which shareholders participate
with one or more national
investors and one or more foreign
investors (51% Cuban
government and 49% the foreign
company)
*NEW*
International Economic
Association Contracts - IEA
Management Production
Contracts
• Agreement between one or more
national investors and foreign
investors to perform acts proper to
an international economic
association without constituting a
new legal entity distinct from both
parties
• A Cuban legal person grants to a
foreign legal person the
management of a facility during a
given period of time, in return for a
remuneration that is conditioned to
the economic efficiency and
results of the entity
*NEW*
Enterprises with 100%
Foreign Capital
• Foreign investors can set up on
national territory as:
- Natural persons acting on their
own behalf
- Juridical persons constituting a
Cuban affiliate of the foreign entity
- Juridical person setting up a
branch of a foreign entity
Cooperated Production
Contracts
• Partnerships between one or more
local parties with one or more
foreign parties to carry out joint
production and/or service
rendering activities
Hotel Management Contracts
• The hotel management contract is
similar to the Management
Production Contracts, but needs
to be approved by the Ministry of
Tourism
SOURCE: FOREIGN INVESTMENT LAW; SOURCE: MINISTRY OF FOREIGN COMMERCE AND INVESTMENT; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
10
BUSINESS SWEDEN
1 APRIL, 2016
11
MOST ATTRACTIVE SECTOR FOR FOREIGN INVESTMENT
IS TOURISM FOLLOWED BY MINING AND ENERGY
FOREIGN INVESTMENT BUSINESS BY TYPE – 2013
BUSINESS WITH FI BY SECTOR – 2013
Management
Production Contracts
Sugar industry
and derivatives
100% Foreign
Capital
Others
12%
4%
2%
2%
Agriculture
2%
Cooperated
Production Contracts
4% 1%
Communications
12%
Transportation 4%
Tourism
42%
IEA* contracts
Construction
6%
Joint
Ventures
Foods
7%
28%
Industrial
10%
51%
Hotel Management
Contracts
Energy and
Mining
13%
AT THE END OF 2013, JOINT ENTERPRISES WERE THE MOST PREVALENT TYPE OF FOREIGN INVESTMENT IN CUBA
SOURCE: MINISTRY OF FOREIGN COMMERCE AND INVESTMENT; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
* INTERNATIONAL ECONOMIC ASSOCIATION
1 APRIL, 2016
12
PROMOTION OF FOREIGN INVESTMENT IS KEY FOR THE
PROCESS OF UPDATING THE CUBAN ECONOMIC MODEL
FDI OVERVIEW
SPECIAL DEVELOPMENT ZONE MARIEL (ZEDM)
 Foreign Investment strategy is focused on export and
import substitution industries, and eliminating bottlenecks in
production lines, favoring modernization, infrastructure
development and technological change pattern
 The ZEDM has favorable location and logistical conditions,
especially since the investment in its port and container
terminal
 It has been estimated that to achieve the targeted growth
rates of GDP it is required to attract foreign investment
flows of between 2 BUSD and 2.5 BUSD annually
 In line with recognizing the importance of foreign
investment for economic development in the country, Cuba
has taken actions to enhance the strategy, such as:
 New Foreign Investment Policy
 New Law 118, Law on Foreign Investment, and the
issuing of its supplementary regulations
 Creation of the Special Development Zone Mariel
 Publication of the Portfolio of Opportunities for Foreign
Investment
 It provides an attractive special treatment for foreign
investors, more favorable than the one applied in the rest of
the country
 Its operation is regulated by Decree Law No. 313, Decree
No. 316 and other regulations issued in September 2013
 The Mariel Special Development Zone is placed 45 km west
of Havana and has an area of ​465.4 km²
 It is located in the center of trade in the Caribbean and the
Americas
 Its port is designed with an integrated approach which
includes the application of best practices of port marine
development and environmental protection
THE SPECIAL DEVELOPMENT ZONE MARIEL (ZEDM) PROMOTES THE ATTRACTION OF FOREIGN INVESTMENT
SOURCE: MINISTRY OF FOREIGN COMMERCE AND INVESTMENT; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
13
A SPECIAL TAXATION REGIME HAS BEEN ESTABLISHED
FOR FOREIGN INVESTMENT REGULATORY FRAMEWORK
Type Of
Company
Profit Tax
Sales and
Service Tax
Land Tax
Natural
Resources
Import
Estimated
Tax Burden
(assuming
30% of profits)
Joint Ventures
& IEA
(0%) 8 years
(15%) 8+ years
(0%) 1 year
(1%) 1+ years
0% during
payback period
50% bonus during
payback period
Exempted
(Investment assets)
20%
Management
Contracts.
35%
Exempted
1% of sales
According to Law
113
According legislation
37%
100% Foreign
Capital
35%
2% wholesaler
10% retail
1% of sales
According to Law
113
According legislation
40%
Commercial
representation
0% / 35%
0% / 2%
0 % / 1%
N/A
According legislation
N/A
ZED- Mariel
(0%) 10 years
(12%)10+ years
(0%) 1 year
(1%) 1+ years
Exempted
50% bonus during
payback period
Exempted
(Investment assets)
15%
State Enterprise
35%
2% wholesaler
10% retail
1% of sales
According to Law
113
According legislation
40%
SOURCE: CEEC; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
14
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
15
MAIN OFFICIAL INVESTMENT OPPORTUNITIES IN CUBA
ACCOUNT FOR 221 PROJECTS VALUED AT 13.58 BUSD
Number of projects
Estimated investment (MUSD)
221
13,586
32
711
4
160
10
3,118
Construction
6
916
Transportation
3
49
56
1,029
1
8
Renewable energy
13
7,595
Oil
86
N/A
Mining
10
N/A
25
1,612
13
860
Industry (Light manufacture)
6
378
Agriculture, food & beverages
5
374
Energy
1
N/A
246
15,198
Outside the Mariel Zone
Agriculture, food & beverages
Sugar Industry
Industry (Light manufacture)
Tourism
SECTORS
INCLUDED IN
THIS STUDY*
Retail
In the Mariel Zone
Biotech + Pharma
Total
SOURCES: CUBAN GOVERNMENT; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
*ADDITIONALLY THE ICT SECTOR
1 APRIL, 2016
16
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Agriculture, food & beverages
 Light manufacture
 Tourism
 Energy
 ICT
 Healthcare
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
17
THE CUBAN SUGAR INDUSTRY IS CONTROLLED BY
AZCUBA AND ITS SUBSIDIARIES
AZCUBA
 AZCUBA is the sugar industry group in charge of
managing the entities that make up the sugar agroindustry for developing:
 Sugar productions (16.10 million tons of sugar cane
2013)
 59 sugar mills (8 built between 1970-1980,
51 before 1959)
 7 refineries
 12 distilleries
 35 animal food plants
 Electrical energy
 Sugar cane by-products (20,31 million liters ethanol
2012)
 Agricultural and industrialized food
Available area:
800 000 HA
SECTOR INFRASTRUCTURE
Area under exploitation:
600 000 HA
 2 board factories
 10 rum companies
 3 CO2 plants
Mechanized harvesting
90%
70 000 workers
THE CUBAN SUGAR INDUSTRY REQUIRES HEAVY CAPITAL INVESTMENT TO BE REHABILITATED
SOURCE: AZCUBA
BUSINESS SWEDEN
1 APRIL, 2016
18
CUBA IS LOOKING TO RECOVER PREVIOUS SUGAR
PRODUCTION FIGURES WITH A FOREIGN PARTNERSHIP
Project
Sugar Mill Production Management (4 sub-projects)
In the 1980s, the sugarcane production reached 90,000 tons per year, with a 150-days harvest season,
and with a yield of 65 tons sugarcane per hectare (T/ha).
The objective of this project is to invest in the installed sugar mills to recover the figures from 1980s, to
identify an “administrative” foreign partner to who would be responsible to finding the necessary
financing and contribute with modern business administration tools and all necessary resources.
Description
The aim is to:
•
•
•
•
•
Recover capacities of original sugar mill designs
Gradually increase sugarcane and sugar production
Introduce new production and managerial technologies
Improve sugar production efficiency, its quality and reducing costs
Self-finance the recovery
Investment Type
International Economic Association Contract for Production Management
Cuban Party
Sugar industry companies owning each sugar mill
Estimated
Investment Amount
40 MUSD for each project (160 MUSD in total)
Market Potential
Exportation and the local market
SOURCE: AZCUBA; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
19
SIX PRODUCTS COMPRISE THE CUBAN AGRICULTURE
SECTOR, DOMINATED BY TOBACCO PRODUCTION
TOBACCO
CITRUS FRUITS
HONEY PRODUCTION
 Cuban Premium tobacco is internationally
recognized for its quality and
advantageous position among the
competition
 The product has a great demand among
smokers in the upper economic range
market
 Associated with the prestige of its portfolio
of brands and Cuban tobacco leaves,
Cuba is developing other export products
 Fresh citrus fruits (oranges and
grapefruits), concentrated and simple
juices and essential oils are products
with experience and consolidated markets
 There are possibilities for assortments of
specific types of honeys (organic honey)
and to diversify the formats in addition to
exporting soft extract & dry pollen and
diversified products such as beauty
creams based on honey
COFFEE
CACAO
FRUIT
 Exports basically include Superior
Arabica (Crystal Mountain, Extraturquino,
Turquino and Altura)
 The main export market is Japan, but also
France, UK, New Zealand, Australia,
Germany and other European countries
 Product with great foreign market
potential due to its many benefits
 Product with a great export potential;
currently it is being exported to European
countries such as Switzerland and
Belgium
 Main types are fruit pulp, especially
mango and pineapple juice
CUBA’S SECTORAL POLICY AIMS TO REDUCE FOOD IMPORTS AND TO INCREASE AND DIVERSIFY EXPORTS
SOURCE: MINISTRY OF AGRICULTURE; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
20
SEVERAL AGRO-INDUSTRIAL PROJECTS ARE PLANNED
TO ATTRACT FOREIGN INVESTMENTS (1/2)
Project
Production of beef, its industrial
processing and commercializing
special cuts (2 projects)
Pork Production for channeled
commercialization and finished
pork products (5 projects)
Buffalo cattle production for
industrialization and the
commercialization of milk and
Its byproducts
Investment type
Joint Enterprise
Joint Enterprise
Joint Enterprise
Cuban Party
Livestock Genetics Enterprise
Empresa Porcina & Coralso
Empresa Pecuaria Genetica Bufalina
Estimated
Investment
10 MUSD
120 MUSD
55.20 MUSD
Estimated
anticipated results
5,000 metric tons of beef for special cuts
108,000 metric tons of finished
products and byproducts
70.5 million liters of buffalo milk
Project
Poultry Meat Production and its
channeled commercialization (9
projects)
Rice Production in the southern
part of Artemisa and Mayabeque
Provinces
Peanut Production
Investment type
Joint Enterprise
Joint Enterprise
Joint Enterprise
Cuban Party
Empresas Avicolas
Empresa Agroindustrial de Granos
José Martí
Empresa Agroindustrial de Granos
Jovellanos
Estimated
Investment
35.50 MUSD
37.06 MUSD
70.50 MUSD
Estimated
anticipated results
150,000 metric tons of channeled
chicken
10.0 MTM yearly average
7,400 metric tons per year
SOURCE: MINISTRY OF AGRICULTURE; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
21
SEVERAL AGRO-INDUSTRIAL PROJECTS ARE PLANNED
TO ATTRACT FOREIGN INVESTMENTS (2/2)
Project
Processing and commercialization
of Elite quality conventional coffee
Increased Production Potential for
Shrimp Farming
Production of carbonated drinks
and bottled water
Investment type
International Economic Association
Contract
Joint Enterprise
Joint Enterprise
Cuban Party
Empresa Procesadora de Café Asdrubal
Lopez Vazquez of Guantanamo
CORALSA
CORALSA
Estimated
Investment
10.30 MUSD
19.90 MUSD
12.30 MUSD
Estimated
anticipated results
Coffee production will be destined for
exportation, for the Elite Quality market
Export market, principally Asia
500, 000hl per year of carbonated
drinks and bottled water
Project
Industrial processing of cacao and
increased production of
chocolate-based products
Production of Confectionary and
Cereals
Soy processing plant to produce
refined oil
Investment type
Joint Enterprise
Joint Enterprise
Joint Enterprise
Cuban Party
CORALSA
CORALSA
CORALSA
Estimated
Investment
16.80 MUSD
15.30 MUSD
149 MUSD
Estimated
anticipated results
Processing 1,000 tons per year of cacao
(liquor, butter and cocoa)
Current demands, with a view to
replace imports, reaches an annual
total of approximately 18 to 20 MUSD
85,000 tons of refined oil and
375,000 tons of soy flour for animal
consumption
SOURCE: MINISTRY OF AGRICULTURE; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
22
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Agriculture, food & beverages
 Light manufacture
 Tourism
 Energy
 ICT
 Healthcare
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
23
CUBA’S INDUSTRIAL SECTOR MANUFACTURES BASIC
PRODUCTS TO COVER THE LOCAL DEMAND
ELECTRONICS, INFORMATICS, AUTOMATION AND TELECOM
Solar panels
WORKER AVAILABILITY
Voltage protectors, home and
industrial lighting
LCD to LED TVs
Qualified
workers
5,182
CONSUMER GOODS INDUSTRY
Textile garment
Printing
Textile
Cleaning products and
cosmetics
Furniture
Matches, leatherwork, footwear
and paint
Higher
education
level
9,831
CHEMICAL INDUSTRY
Industrial gases
Chemicals
Fertilizers and pesticides
Rubber
Paper
Glass
Middle
technician
level
15,635
METAL-MECHANICAL AND RECYCLING INDUSTRY
SOURCE: MINISTRY OF INDUSTRIES; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
24
PLANNED PROJECTS AIM TO MODERNIZE THE SECTOR
REPLACING IMPORTS AND PROMOTING EXPORTS
Project
Production and commercialization
of products and services for
Informatics Solutions
Production and commercialization
of Footwear
Solid Urban Waste Handling
Integrated System
Investment type
Joint Enterprise
Joint Enterprise
Joint Enterprise
Cuban Party
GEDEME
COMBELL footwear company
Union of Raw Materials Recovery
Enterprises (UERMP)
Estimated
Investment
9.60 MUSD
12.60 MUSD
First stage: 115 MUSD
Estimated
anticipated results
Current estimated annual demand
75,000 computers. In 10 years
approximately one million
47 million pairs of shoes per year
Domestic industry and the excess will
be exported
Project
Production and Commercialization
of Newsprint and Bond Paper
Production and Commercialization
of Tissue Paper and its conversion
Production and Commercialization
of Long Products made of
Stainless Steel and Alloys
Investment type
Joint Enterprise
Joint Enterprise
Joint Enterprise
Cuban Party
QUIMI S.A.
QUIMI S.A.
“Acinox Tunas” Stainless Steel
Enterprise
Estimated
Investment
107.20 MUSD
73.10 MUSD
222.50 MUSD
Estimated
anticipated results
Domestic demand of 40,000 tons and
20,000 tons for exportation
Domestic demand of 20,000 tons
Domestic demand of 4,000 tons per
year and exports
SOURCE: MINISTRY OF INDUSTRIES; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
25
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Agriculture, food & beverages
 Light manufacture
 Tourism
 Energy
 ICT
 Healthcare
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
26
THE CUBAN TOURISM SECTOR RECEIVED OVER 3
MILLION VISITORS IN 2014, MAINLY FROM CANADA
VISITOR ARRIVALS (1985-2014)
MAIN VISITORS BY TOP-5 COUNTRY
MILLION
SHARE OF 1.65 MILLION VISITORS
3,50
+2,76 million visitors
France
7%
3,00
Italy
6%
Germany
8%
2,50
2,00
England
8%
1,50
Canada
71%
1,00
0,50
0,00
1985
2010
2011
2012
2013
2014
THE CUBAN TOURISM SECTOR HAS A CAPACITY OF OVER 61,000 ROOMS (28% 5-STARS AND 37% 4-STARS)
SOURCE: MINTUR; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
27
FOUR MAIN ACTORS ARE INVOLVED IN THE TOURISM
SECTOR IN CUBA
GRAN CARIBE
CUBANACAN
With 20 years of experience in the Cuban tourist
industry, it operates 45 tourist facilities divided into All
Inclusive, Family, Historical, Business/City, Beach and
Cays categories.
Since 1987 its business has grown to include
associations with prestigious international hotel chains.
Its services can be found under the brand names: Hola
Club, Club Premium and Classic.
Besides city hotels it has secured these commercial
Sun and Beach brand names: Brisas and Cub Amigo
Horizontes, with hotels that are located in natural
settings.
GAVIOTA S.A.
CUBAGOLF S.A.
With 25 years of experience today it is the fastest
growing organization in Cuban tourism.
This tourism group has among its aims to promote and
sell hotel and tourism services as well as specialty
packages for health, boating, fishing, diving and others.
Newly created, CUBAGOLF S.A., belonging to the
Grupo Empresarial Extra Hotelero Palmares looks after
the development of the Cuban project to promote the
island as a golf-holiday destination.
Currently it is in negotiations with several foreign
partners to incorporate joint ventures to build, manage
and run tourism-real estate golf complexes throughout
the country.
ALL PLANNED PROJECTS HAVE THESE FOUR CUBAN COMPANIES AS MAIN PARTNERS
SOURCE: MINTUR; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
28
CUBA IS LOOKING FOR FOREIGN INVESTMENT
DIRECTED TO NEW HOTELS CONSTRUCTION
Project
Building and Commercializing topquality hotel accommodations in
the Trinidad Resort Area in Sancti
Spiritus
Building and commercializing topquality hotel and villa capacities at
the Covarrubias Resort Area in
Las Tunas
Building and commercializing topquality hotel and villa capacities at
the Guardalavaca Resort Area in
Holguin
Investment type
Joint Enterprise
Joint Enterprise
Joint Enterprise
Cuban Party
Cubanacan S.A.
Cubanacan S.A.
Cubanacan S.A.
Estimated
Investment
480 MUSD
183 MUSD
215 MUSD
Estimated
anticipated results
2,400 rooms in seven resorts
1,080 rooms in two resorts
862 rooms in three resorts
Project
Building and commercializing topquality hotel and villa
accommodations in the Santa
Lucia Resort Area of Camaguey
Real Estate Development
associated with the Golf Course at
El Faro/El Jagüey. Rancho Luna
Pasacaballos Resort Area
Real Estate Development
associated with the Golf Course at
Loma Linda
Investment type
Joint Enterprise
Joint Enterprise
Joint Enterprise
Cuban Party
Cubanacan S.A. or the Gran Caribe
Hotel Group
CUBAGOLF, S.A.
CUBAGOLF, S.A.
Estimated
Investment
175 MUSD
580 MUSD
380 MUSD
Estimated
anticipated results
1,070 rooms in four resorts
70.8 MUSD/year (60% for owners,
40% for the joint enterprise)
70.8 MUSD/year (60% for owners,
40% for the joint enterprise)
SOURCE: MINTUR; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
29
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Agriculture, food & beverages
 Light manufacture
 Tourism
 Energy
 ICT
 Healthcare
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
30
THE USE OF RENEWABLE ENERGY SOURCES IS ONE OF
THE MAIN PRIORITIES FOR CUBA’S DEVELOPMENT
43,057 FACILITIES USING RENEWABLE SOURCES:
FOSSIL SOURCES
 Total oil and gas production – 4 million tones per year (25
million barrels)
 3 million tons per year (10 million barrels) crude oil
 1,100 million cubic meters natural gas per year
 20 prospects with potential of 10,000-20,000 extractible
barrels
Modify the energy
matrix of generation
and consumption of
electricity
Reduce
dependence on
fossil fuels
Increase
competitiveness of
the economy as a
whole
24% RENEWABLE ENERGY - 2030
Decrease the
inefficiencies in the
electrical system
Contribute to
environmental
sustainability
Decrease the high
cost of energy
delivered to
consumers due to
fuel prices
4 Wind farms
7
57
169
Solar parks (11 MW)
Sugar mills (470 MW)
Hydroelectric facilities
827
Biogas plants
9,343
Windmills
9,476
Solar panels
10,595
Solar heaters
UP TO DATE ONLY 4.3% OF ENERGY IN CUBA IS OBTAINED FROM RENEWABLE SOURCES
SOURCE: UNE; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
31
THE CURRENT SECTOR POLICY IS FOCUSED IN FOUR
MAIN AREAS FOR RENEWABLE SOURCES DEVELOPMENT
•
Top priority for Cuba’s goal to change
its Energy Matrix
•
Plans to install 755MW at 19
Bioelectric Plants at Sugar Mills
•
The 19 Bioelectric plants will produce
over 1900 GWh/year and will stop
issuing approximately 1,700,000 tons
of CO2 into the atmosphere
•
Studies are now underway to
indicate project feasibility
•
The potential of solar radiation
registered in Cuba is approximately
5KWh per square meter per day
•
Studies for the installation of 700
MWp by 2030 in Photovoltaic Solar
Parks (PSFV) connected to the
National Electrical System
•
Cuba has one Solar Panel
Manufacturing Plant to produce 150
and 240 Wp photovoltaic panels
Biomass
Photovoltaic
•
Technical Project Assessment for
Wind Power Prospects by Garrad
Hassan Iberica estimated 10 potential
zones and installed 4 demonstration
wind farms (11.7 MW)
•
UNE has studied the installation of
633 MW in 13 Wind Farms, with
capacity factors over 30% which will
produce over 1000 GWh/year and
thereby not be issuing some 900,000
tons of CO2 into the atmosphere
•
Program to build 74 small
hydroelectric plants (PCHE) with over
56 MW
•
Once all the planned power has been
installed, the program will produce
274 GWh generated power per year,
thereby stopping harmful emissions
into the atmosphere of 230,000 tons
of CO2
Windpower
Hydroenergy
SOURCE: UNE; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
32
SEVERAL PROJECTS ARE PLANNED TO REACH CUBA'S
2030 GOAL – 25% GENERATION FROM RENEWABLES
Project
Banes Wind Farm Project
Maisi Wind Farm Project
Bioelectrical Plants
Investment type
100% Foreign Capital Enterprise
100% Foreign Capital Enterprise
Joint Enterprise
Cuban Party
Union Electrica (UNE)
Union Electrica (UNE)
ZERUS S.A.
Estimated
Investment
200 MUSD
285 MUSD
72/144 MUSD
Estimated
anticipated results
102 MW
174 MW
30/60 MW
Project
Generating Energy from Forestry
Biomass
Oil Exploration at risk and shared
production in blocks in national
territory shallow waters (8 Blocks)
Oil Exploration at Risk and shared
production in blocks of the
Exclusive Economic Zone in the
Gulf of Mexico (52 Blocks)
Investment type
Joint Enterprise
International Economic Association
Contract at risk for exploration of
hydrocarbons and its production
International Economic Association
Contract at risk for exploration of
hydrocarbons and its production
Cuban Party
Empresas Forestales Integrales
Union Cuba Petroleo (CUPET)
Union Cuba Petroleo (CUPET)
Estimated
Investment
Macurije 32.3 MUSD
Minas de Matahambre 14.4 MUSD
N/A
N/A
Estimated
anticipated results
54.9 GWh
N/A
N/A
SOURCE: UNE; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
33
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Agriculture, food & beverages
 Light manufacture
 Tourism
 Energy
 ICT
 Healthcare
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
34
CUBA REACHED 3.2 MILLION MOBILE SUBSCRIBERS BY
2015 AND 88 THOUSAND BROADBAND INTERNET USERS
2012
2013
2014e
2015f
2016f
2017f
2018f
2019f
1,681.6
1,995.7
2,530.8
3,296.6
4,091.8
4,698.6
5,339.9
5,873.9
14.9
17.7
22.5
29.3
36.4
41.9
47.7
52.5
1,216.5
1,237.3
1,268.2
1,296.1
1,315.6
1,328.6
1,335.0
1,340.3
Main Telephone Lines/100
Inhabitants
10.8
11.0
11.3
11.5
11.7
11.8
11.9
12.0
Broadband internet
subscribers, '000
54.0
64.3
75.6
88.4
101.1
114.0
127.0
144.4
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.3
Cellular Mobile Phone
Subscribers, '000
Mobile Phone
Subscribers/100 Inhabitants
Main telephone lines in
service, '000
Broadband internet
subscribers/100 Inhabitants
 Cuba experienced major developments in its relationship with the US during this past year, which could have huge
long-term ramifications for the telecoms market
 The US government has said that it is initiating new efforts to increase Cubans' access to telecoms and their ability to
communicate freely, as part of reconciliation steps announced
 This timeframe could be as long as five to ten years, however, combined with more recent developments with
ETECSA* expanding products and coverage
SOURCE: BMI; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
* EMPRESA DE TELECOMUNICACIONES DE CUBA
1 APRIL, 2016
35
SEVERAL INTERNATIONAL COMPANIES HAVE ALREADY
APPROACHED ETECSA FOR COOPERATION
EMPRESA DE TELECOMUNICACIONES DE CUBA
(ETECSA)
Ownership: Government (73%), Rafin (27%)
Cuba - fixed-line telephony (local, long distance,
international), mobile (AMPS, TDMA, GSM), data,
internet
http://www.etecsa.cu/
MINISTERIO DE LA INFORMÁTICA Y LAS
COMUNICACIONES (MIC)
The Cuban telecoms market is supervised by the Ministry
of Communication
http://www.mincom.gob.cu/
 ETECSA, was 27% owned by Telecom Italia until Q3 2010,
when it sold its stake to Havana-based financial company
Rafin, which is owned by Fidel and Raúl Castro.
 ETECSA has announced plans to offer residential ADSL
broadband access to reach 50% of the households by 2020.
 Chinese telecoms firm Huawei is in discussions with the
government of Cuba to invest in the country's telecoms
market.
 Cuba aims to boost internet access to 50% of its homes by
2020, while increasing penetration of mobile telephony
services to 60%. Cuba's ability to reach the objectives will
depend on its capability to buy required infrastructure
upgrades.
 Orange signed a confidential agreement with ETECSA in
July 2014 to sell phones and services through its Orange
Horizons Digital subsidiary and to share knowhow with
ETECSA. It also made a commitment to create an institute to
provide national and regional training.
THE TELECOMMUNICATIONS COMPANY OF CUBA, ETECSA, HAS A MONOPOLY ON THE TELECOM SECTOR
SOURCE: BMI; ETECSA; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
36
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Agriculture, food & beverages
 Light manufacture
 Tourism
 Energy
 ICT
 Healthcare
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
37
CUBA ASSIGNS ALMOST 9% OF ITS GDP IN PUBLIC
HEALTH SERVICES FOR ITS POPULATION
SECTOR OVERVIEW
HEALTHCARE EXPENDITURE
BUSD
10
 The healthcare expenditure in Cuba reached a value of
7.2 BUSD in 2014, accounting for 8.9% of its GDP
8
 Public healthcare spending accounts for nearly all
expenditure on healthcare (94% in 2014)
6
 Given that all medical care is officially free, private
expenditure is limited to unofficial payments to officials
and healthcare professionals in the 'black market‘
 Although officially Cuba's healthcare system remains
under the control of the National Health System (SNS Sistema Nacional de Salud), part of the Ministry of Public
Health (MINSAP - Ministerio de Salud Pública), healthcare
service is gradually increasing on the 'black market‘
4
2
0
2012
2013
2014
Public Expenditure
2015f
2016f
Private Expenditure
 The trade embargo imposed by the US since the 1960s
has led to serious deterioration in Cuba's national
healthcare facilities and a lack of essential medicines
IT IS EXPECTED THAT BY 2016 THE HEALTHCARE EXPENDITURE WILL REACH ALMOST 8 BUSD
SOURCE: BMI; SNS; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
38
CUBA ACCOUNTS FOR AN EXTENSIVE PUBLIC HEALTH
CARE SERVICES INFRASTRUCTURE
TRAINING HUMAN CAPITAL
11,550
497,021
451
doctor’s offices
health workers
polyclinics
13
research
institutions
142
maternity
homes
246
144
old age homes
152
hospitals
community
seniors’
centers
1,215
dentistry
services





14 universities
3 independent medical sciences faculties and 18 affiliates
University campuses in all the country’s municipalities
National School of Public Health
National Center for Technical Improvement and
Professional
DEVELOPMENT OF SCIENCE AND TECHNOLOGY




48 science and technological innovation entities
18 research institutes and centers
30 scientific-technological development centers
2,095 categorized researchers (867 doctors in sciences)
BASIC MEDICINES
 885 items
 305 imported
 580 national produced
CUBA'S STRONG HEALTHCARE SECTOR HAS A GREAT WORLDWIDE RECOGNITION
SOURCE: BMI; SNS; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
39
IT IS EXPECTED THAT THE CUBAN MEDICAL DEVICE
MARKET WILL REACH 154 MUSD IN 2016
MARKET OVERVIEW
MEDICAL DEVICE MARKET
TOTAL VALUE MUSD
200
PER CAPITA USD
20
 It is forecasted that the small Cuban market will register
moderate growth over the coming years, supported by
stronger economic growth
160
16
 The market will rely on imports from mainly Europe and
China, and increasingly from Japan
120
12
 US suppliers cannot compete due to the economic
embargo
8
 Opportunities remain for other foreign companies,
particularly from the fellow communist China
4
 The market will register a moderate 2014-2019 CAGR of
7.6% in US dollar terms, which will take expenditure to
182.5 MUSD
0
 Import reliance will remain strong despite the
government's efforts to contain imports
80
40
0
2014
2015f
2016f
2017f
2018f
2019f
THE MEDICAL DEVICE MARKET EXPENDITURE PER CAPITA REACHED 13,7 USD IN 2016
SOURCE: BMI; SNS; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
40
IN 2014 CUBA IMPORTED 110 MUSD OF MEDICAL
DEVICES
MEDICAL DEVICE IMPORTS BY PRODUCT AREA, 2010-2014 (K USD)
2010
2011
2012
2013
2014
15,395
24,796
19,282
33,115
25,882
Bandages & Dressings
4,425
6,486
3,101
8,501
3,438
Suturing Materials
2,161
4,570
4,691
5,237
7,097
Syringes, Needles & Catheters
7,584
10,474
8,030
14,422
12,348
Other Consumables
1,225
3,266
3,460
4,955
2,999
DIAGNOSTIC IMAGING
13,996
11,068
13,472
23,059
21,818
Electrodiagnostic Apparatus
6,019
2,819
3,194
4,837
6,651
Radiation Apparatus
1,240
1,507
1,411
4,255
5,146
Imaging Parts & Accessories
6,737
6,742
8,867
13,967
10,021
4,681
5,566
3,110
3,223
4,898
255
1,156
508
916
918
4,426
4,410
2,602
2,307
3,980
2,873
3,940
5,288
4,772
4,328
14,068
5,254
7,727
13,566
15,995
10,288
3,973
6,254
10,862
10,186
Therapeutic Appliances
3,780
1,281
1,473
2,704
5,809
OTHER MEDICAL DEVICES
23,517
28,181
26,089
32,351
37,989
TOTAL
74,530
78,805
74,968
110,086
110,910
CONSUMABLES
DENTAL PRODUCTS
Capital Equipment
Instruments & Supplies
ORTHOPEDICS & PROSTHETICS
PATIENT AIDS
Portable Aids
CONSUMABLES AND DIAGNOSTIC IMAGING EQUIPMENT ACCOUNTED FOR ALMOST 50% OF THE IMPORTS IN 2014
SOURCE: BMI; SNS; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
41
OVER 50% OF CUBA’S IMPORTS OF MEDICAL DEVICES
ARE FROM GERMANY, CHINA AND ITALY
TOP 10 MEDICAL DEVICE SUPPLIERS TO CUBA, 2014
Rank
Country
Value (K USD)
% Total
1
Germany
22,229
20.0
2
China
20,814
18.8
3
Italy
19,829
17.9
4
Japan
12,908
11.6
5
Spain
12,175
11.0
6
South Korea
3,983
3.6
7
Brazil
2,738
2.5
8
France
2,270
2.0
9
Mexico
1,533
1.4
10
Sweden
1,529
1.4
Others
10,902
1.3
TOTAL
110,910
100.0
 Import reliance will remain strong despite the government's
efforts to contain imports
 It is expected that the import growth will remain volatile,
following a period of contraction evident since 2008
 In May 2015, the Japanese government agreed to issue
credit lines and donate medical equipment to state
companies in Cuba. It is expected that Japan will strengthen
its market share due to this announcement
 The German company Ottobock has donated around 500 K
USD to refurbish the production facilities operated by the
National Centre of Technical Orthopedics (CNOT)
Cuba/RDA. This means that production will increase in 2016
 In addition, Ottobock will issue selected grants for Cuban
students to study orthoprosthesis in Germany
 The improved US-Cuban diplomatic relations is expected to
drive scientific exchanges in coming years
SWEDEN EXPORTED 1.53 MUSD OF MEDICAL DEVICES TO CUBA DURING 2014
SOURCE: BMI; SNS; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
42
CUBA’S PHARMACEUTICAL MARKET WAS VALUED AT
1.50 BUSD IN 2015, ACCOUNTING 1.76 OF THE GDP
PHARMACEUTICAL MARKET
Imports
MUSD
Sales
MUSD
% of health
expenditure
% of GDP
2011
N/A
1,244
16.7
1.74
2012
N/A
1,282
20.4
1.74
2013
77.18
1,348
19.8
1.74
2014
81.75
1,428
19.8
1.75
2015f
86.65
1,513
19.9
1.76
2016f
91.91
1,605
20.1
1.78
2017f
97.54
1,704
20.3
1.79
2018f
103.58
1,809
20.5
1.81
2019f
110.06
1,922
20.7
1.82
MARKET OVERVIEW
 Cuba's high quality pharmaceutical sector and
manufacturing capabilities, along with its advanced R&D
capabilities, will ensure the country's positive pharmaceutical
trade balance in the coming years
 Cuba's decades of isolation has resulted in an increased
self-sufficiency to meet the healthcare needs of its
population
 Although Cuba has a relatively strong pharmaceutical
industry, an isolated country with limited resources cannot
produce all medicines that local patients need
 Cuba established health system and pharmaceutical industry
generates highly innovative medicines for which many
countries have established trade ties to recap the benefits of
Cuban medications
PHARMACEUTICAL IMPORTS IN CUBA ONLY ACCOUNT FOR 5.7% OF THE MARKET VALUE
SOURCE: BMI; SNS; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
43
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
44
SEVERAL INITIATIVES HAVE BEEN DEVELOPED IN
RECENT MONTHS TO REGULATE CUBA'S EMBARGO
Presidents Barack Obama and Raúl Castro
announce moves to reestablish diplomatic
relations and to loosen travel and economic
restrictions
Cuba officially removed from U.S. list of state
sponsors of terrorism
Jan
2015
1958
Dec
2014
The United States imposed an
arms embargo on Cuba during the
armed conflict with rebels led
by Fidel Castro
2016-2018
Feb
2015
Talks between U.S. and Cuban officials
began in Havana to discuss lifting the
embargo
Economic embargo
expected to be
completely lifted
ECONOMIC EMBARGO IS EXPECTED TO BE LIFTED IN THE COMING YEARS, ALLOWING TRADE BETWEEN CUBA, U.S. AND THIRD COUNTRIES
SOURCE: BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
45
IN 2014 SEVERAL ECONOMIC AND DIPLOMATIC
CHANGES BETWEEN U.S. AND CUBA WERE ANNOUNCED
Travel
Insurance
Telecommunications
Financial Services
US insurers will be authorized
to provide coverage for global
health, life, or travel insurance
policies for individuals residing
in a third country who travel to
or within Cuba
Travelers may now receive
emergency medical services
and make related payments
In order to facilitate improved
and efficient
telecommunications between
the two countries, a new
OFAC license will allow formal
establishment of commercial
telecommunications including
authorized internet-based
communications
US credit and debit cards are
now authorized for use in
Cuba and financial institutions
will now be able to process
transactions for improved
efficiency
Remittances
Third-Country Effects
Small Business Growth
“Cash in Advance”
The limits on generally
licensed remittances to Cuban
nationals other than certain
prohibited Cuban Government
and Cuban Communist Party
officials will be increased from
$500 to $2,000 per quarter
US-owned or controlled
entities in third countries,
including banks, will be
authorized to provide goods
and services to an individual
Cuban national located
outside of Cuba, provided the
transaction does not involve a
commercial exportation of
goods or services to or from
Cuba
Certain micro-financing
projects and entrepreneurial
and business training, such as
for private business and
agricultural operations, will be
authorized
Several categories of travel
are authorized to Cuba
without the need to apply for a
specific license before a trip
Authorized travelers will be
allowed to carry with them to
Cuba $10,000
Trips solely meant for tourist
purposes are not yet
permissible
Commercial imports of certain
independent Cuban
entrepreneur-produced goods
and services will be
authorized
In order to enable expanded
financing for exports, the
regulatory interpretation of
"cash in advance" was
redefined from "cash before
shipment" to "cash before
transfer of title to, and control
of"
SOURCE: LOOP CAPITAL MARKETS; BUSINESS SWEDEN ANALYSIS
BUSINESS SWEDEN
1 APRIL, 2016
46
AGENDA
 Cuba overview
 Business Climate for FDI
 Focus sectors
 Embargo
 Contact information
BUSINESS SWEDEN
1 APRIL, 2016
47
CONTACT US
BUSINESS SWEDEN IN MEXICO, CENTRAL AMERICA AND THE CARIBBEAN
Business Sweden
Miguel de Cervantes Saavedra 193 – 802. Mexico D.F. 11520
T +52 55 9126 3430, F +52 55 9126 3440
mexico@business-sweden.se
www.business-sweden.se/mexico