Cuba opens more sectors to private business

June 12, 2026 - 23:26

Cuban President Miguel Diaz-Canel announced on Friday a significant expansion of freedoms for small businesses operating across the island. The move marks another step by the communist government to gradually liberalize the nation's struggling economy, which has been battered by U.S. sanctions, the pandemic, and deep structural inefficiencies.

Under the new measures, private entrepreneurs will be allowed to operate in a broader range of economic activities that were previously reserved exclusively for the state. This includes sectors such as construction, transportation, and certain types of wholesale trade. The government also plans to streamline the licensing process, reducing bureaucratic hurdles that have long stifled small-scale ventures.

For decades, Cuba's economy was almost entirely state-controlled, but in recent years authorities have cautiously opened the door to private enterprise. The changes are seen as a pragmatic response to a severe economic crisis, marked by shortages of food, medicine, and fuel. By allowing more private initiative, Havana hopes to boost domestic production, create jobs, and reduce the strain on the state budget.

However, critics note that the reforms remain limited. The government retains tight control over key industries, and private businesses still face high taxes, import restrictions, and unpredictable regulatory shifts. Many Cubans remain skeptical, recalling past cycles where liberalization was followed by renewed crackdowns.

Still, for the island's growing class of small business owners, the announcement offers a glimmer of hope. "This is a step forward, but we need to see if it will be implemented fairly," said a restaurant owner in Havana. "We are tired of promises. We need real change."