New Flexibilities Announced for the Private Sector

In line with the economic and social transformations approved by the National Assembly. Cuban authorities have announced a reduction in unauthorized activities for the non-state sector.

The measure, which includes the repeal of Decree 107 and the implementation of a new legal framework. It seeks to expand the participation of private economic actors in the national economy. In a context of profound financial difficulties and the intensification of the US embargo.

The information was provided at a press conference by the president of the National Institute of Non-State Economic Actors, Lázara Mercedes López Acea. Also who detailed the scope of this regulatory update, which directly impacts private companies, micro, small, and medium-sized enterprises (MSMEs). Non-agricultural cooperatives, and self-employed workers.

A Process of Listening and Updating in a Complex Context

López Acea explained that the new decree is the result of a “process of review, updating, and exchange” with the non-state economic actors themselves. “We listened to their concerns, some of their dissatisfaction, their recommendations, and suggestions,” she noted. Emphasizing that the goal is for these activities to contribute not only to the economy through their results. But also to the improvement of services and offerings for the population.

The official framed the decision within the complex scenario facing the island. Aggravated by “the intensification of the economic, commercial, financial, and energy blockade imposed by the United States government.” She also linked the update to the economic and social transformations approved at the recent National Assembly of People’s Power held in June. Which recommended reviewing the activities that should be authorized or made more flexible to align with the country’s new guidelines.

Consistency with other structural measures: Decree-Law 114

The president of the institute emphasized that this flexibility is not an isolated event, but rather part of a package of structural measures. In this regard, she recalled the existence of Decree-Law 114. Which already allows for economic partnerships and the creation of joint ventures between state and non-state entities.

“This complements all the measures that have been taken and truly enables and facilitates the participation of non-state economic actors in the country’s economy,” stated López Acea. Emphasizing that the new decree and Decree-Law 114 work synergistically. To break down barriers and facilitate the private sector’s integration into the national production network.

Historic Reduction of Prohibited Activities

The central point of the announcement is the significant reduction in activities prohibited for the non-state sector. As the institute’s president explained, the previous Decree 107 contained a list of 125 prohibited activities. With the new regulations, which repeal the previous ones, a substantial reduction has been achieved:

46 activities are completely removed from the list of prohibitions. Meaning they are now authorized without restrictions.

35 activities are modified, which means their operating conditions are made more flexible or new aspects are introduced within them. Which in turn “frees up other activities” and eliminates other prohibitions.

In practical terms, this means the new decree maintains a significantly smaller number of regulated or prohibited activities. Considerably expanding the scope of action for entrepreneurs and private businesses on the island.

Strategic Sectors and Economic Branches Benefiting

López Acea explained that the easing of restrictions covers a wide range of productive and service sectors. Allowing for better utilization of installed capacity and the country’s trained workforce. Among the sectors that will benefit, he mentioned:

-Industry and Manufacturing: with an emphasis on activities linked to the Ministry of Industry.

-Energy and Mining: with authorizations involving the Ministry of Energy and Mines.

-Transportation: with new opportunities for participation by non-state actors.

-Commerce: expanding the range of services and goods offered.

-Health and Education: two sensitive sectors where opportunities for private participation will be opened. Always in accordance with the country’s social policies. “In line with the economic and social transformations that have been approved. We are favoring not only the development of productive forces within the state environment. But also in that connection with the state sector,” the official pointed out.

Greater Participation, Better Use of Human Capital

One of the central arguments of the measure is the optimization of human capital. The president of the institute highlighted that Cuba currently has a high level of technicians and professionals working in both the state and non-state sectors.

“The flexibility of these activities will allow us to utilize all of this human capital to boost the economy,” she stated. Adding that the new regulations will also facilitate “better use of the country’s existing productive capacity in different branches of the economy.” If implemented correctly, could yield significant results.

Territorial Expression: Boosting Local Economies

López Acea emphasized that the increased flexibility will not only have an impact at the central level, but will also have an “expression in municipalities and localities.” The measure will allow the full potential of economic actors, both state and non-state. Also to be harnessed to address local problems and develop economic activities at the territorial level.

“Everything we are doing will allow not only a central-level perspective. But also […] will allow all the potential we have today from economic actors, both state and non-state. To contribute and be put to use in solving local problems,” she emphasized.

Business Sector Figures: More than 15,600 MSMEs Approved

In a relevant statistic regarding the sector’s growth, the president of the National Institute of Non-State Economic Actors reported that there are currently more than 15,600 micro, small, and medium-sized enterprises (MSMEs) already approved in the country. It is estimated that by the end of August, that number will rise to nearly 16,000, based on the approval process for new applications.

“With this network of approximately 15,600 businesses today, and others in the process of being established that will bring the total to nearly 16,000. The country’s business system, its business fabric, is truly expanding,” she stated. Highlighting the consolidation of a diverse and growing business ecosystem.

Clarification: This is not a privatization process.

At a key moment in her remarks, Lázara Mercedes López Acea was emphatic in dispelling any interpretation that might suggest a shift toward privatizing the Cuban economy.

“We are not moving towards the privatization of the economy,” she emphasized. “The socialist state-owned enterprise maintains its fundamental role as a company. As this fundamental pillar, but it is clearly being expanded, and non-state economic actors are being given greater participation.”

The official explained that expanding the space for the non-state sector responds to the potential these actors have in terms of human capital, resources, and financing and investment capacity. Which allows them to “undertake certain investments that can develop the different branches of the economy”. And, therefore, have a greater participation in accordance with the country’s needs.

Final objectives: well-being of the population and equal conditions

López Acea summarized the two main objectives of this liberalization:

To contribute to the well-being of the population by improving the provision of services and the supply of goods to citizens.

To level the playing field for all economic actors in the economy. Fostering the development of productive forces in the non-state sector and increasing the country’s business system in all its branches.

“We are therefore defining in this decree, in this relaxation of the decree, a significant reduction in the activities that were not authorized. Consequently, a substantial number of activities are authorized or conditioned. Allowing the participation of non-state economic actors in the economy and enabling them to contribute to the well-being of the population,” she concluded.

Download the Official Gazette of the Republic in PDF

Pharmaceutical services management approved for SMEs and cooperatives

The Cuban Ministry of Public Health announced important developments this Wednesday. Within the framework of the new decree that reduces prohibited activities for the non-state sector. While reaffirming that medical care at all three levels remains an activity reserved exclusively for the State.

The information was provided by Cristina Lara Bastanzuri, National Director of Medicines and Medical Technologies at the Ministry of Public Health. During the press conference led by the President of the National Institute of Non-State Economic Actors, Lázara Mercedes López Acea.

Lara Bastanzuri was clear from the outset of her remarks: in the new decree that repeals the previous Decree 107. Medical care remains prohibited for non-state economic actors.

“Medical care remains the responsibility of the state, and medical activity at all three levels of care continues to be guaranteed for the population.” “Cuban healthcare, with its free hospital services, as you already know,” the official stated.

She emphasized that the professional and technical work carried out in medical care and health services “continues to be regulated by the state. And, of course, methodologically led by the Ministry of Public Health.”

The big news: pharmaceutical services for MSMEs, cooperatives, and private companies

While medical care remains an area reserved for the state. The national director noted that “there is a group of activities for which we have, in some way, provided support for new management models.”

The most innovative aspect in the health sector, she explained, is the increased flexibility for the participation of non-state actors in the management of pharmaceutical services.

This opening is primarily aimed at:

Micro, small, and medium-sized enterprises (MSMEs)

Non-agricultural cooperatives

Private companies

These entities will now be able to provide pharmaceutical services. Provided they meet a strict set of requirements established by the Ministry of Public Health.

Requirements and Regulations for New Non-State Pharmacies

Lara Bastanzuri emphasized that “the entire issue of medication management is highly regulated”. And that the participation of the non-state sector “will also be regulated.” To provide pharmaceutical services, interested parties must comply with the following:

-Suitable Premises: These cannot be located in a house’s doorway. Or in a space that does not meet the optimal humidity, temperature, and storage conditions for preserving medications.

-Qualified Pharmacy Staff: Pharmacy staff must be trained to provide the service.

-Authorization by Public Health: The Ministry of Public Health will authorize the premises. Upon authorization, an operating license will be granted. Allowing the entity to expand its scope of business to include providing pharmaceutical services.

-Medications with Sanitary Registration: Non-state pharmacies may only stock medications that have sanitary registration and marketing authorization. Thus guaranteeing the safety of the products offered to the public.

A Complement to the State Network in the Face of Shortages

The national director explained that this measure is intended to provide “a percentage of the population. With an alternative to our pharmacies in the face of the shortages they are experiencing.”

The goal is for these new pharmacies to become “a place where the population can safely find the medication they need.” With the guarantee that the products have sanitary registration and marketing authorization.

Lara Bastanzuri emphasized that the network of state-run community pharmacies is not affected by this measure. “Community pharmacies, as you know, have highly subsidized prices. And respond to the needs of the population, and above all else, we will protect them,” she affirmed.

She specified that these institutions “will maintain the same prices as before, and the pharmacy staff will continue providing service.” Also that the country is implementing a series of measures to increase the availability of medications in the state network. Amidst the current complex situation.

Joint Control and Oversight

The official announced that a joint control system will be established between the National Institute of Non-State Economic Actors and the Ministry of Public Health. To ensure that “everything established that allowed the opening of this establishment is not distorted.”

The following will be monitored:

-The quality of the medications received

-The service provided

-The prices charged

“In some way, we will jointly guarantee that these entities function properly as a complement to the medication activity. Currently managed and led by the public health system,” she concluded.

Public Health Authorizes Permanent Care Residences for Seniors

The Ministry of Public Health announced this Wednesday the approval of a new care model for seniors through non-state management. Called day care residences and permanent care residences, which may operate with one or both care models.

The information was provided by Dr. Alberto Fernández Seco, head of the Department of Elderly Care, Social Assistance, and Mental Health at the Ministry of Public Health.

A response to population aging and the demand for care

Dr. Fernández Seco contextualized the measure within Cuba’s policy for addressing demographic dynamics. In a country facing a rapidly aging population. Currently, it is estimated that 26.7 percent of the Cuban population is elderly, a figure approaching 27 percent.

“One of the challenges facing Cuban society today is the issue of care,” stated the specialist. Also who explained that health systems were designed for promotion, prevention, care, and rehabilitation. But that care has historically been a responsibility assumed by the Cuban health system.

To date, the country has 156 nursing homes and 307 senior citizen centers. Social institutions that will continue to expand according to the established policy. Which includes increasing the number of these institutions, recovering beds and activated spaces. Improving their comfort in conjunction with local governments.

Demand for Care: Figures and Needs

Dr. Fernández Seco cited studies that reveal the magnitude of the demand for care among the elderly population:

1.3 percent of older adults require permanent care.

2.2 percent require daytime care.

He added that aging, coupled with migration (both international and internal). It has led to an increase in older adults living alone, which “also demands an increase in care.”

Characteristics of the New Care Facilities

The new model approved for the non-state sector will allow the creation of day care facilities, permanent care facilities, or institutions that combine both models. These will complement the existing state-run services and respond to the growing demand for care in the country. The doctor detailed the main regulatory aspects of this new management model:

1. Maximum capacity and reserved spaces for vulnerable individuals

Maximum capacity: each institution may have up to 60 spaces, either for residential (permanent) or semi-residential (daytime) care.

10 percent reserved for the State: of that capacity, 10 percent of the spaces will be allocated to vulnerable individuals. With an allocation mechanism established by the Ministry of Public Health. Similar to the one used for allocating spaces in state-run nursing homes.

The payment for this 10 percent will be the same as that established by the Ministry of Finance and Prices for certified senior centers and nursing homes.

“This allows us to ensure that the more institutions of this type we have now. The more capacity we have available for vulnerable members of the community,” Fernández Seco emphasized.

2. Medical care provided by a family doctor

A key aspect of the regulation is that care facilities will not have their own physician. Medical care will be provided by the family doctor in the health district where the facility is located, who will visit at least once a month.

“The long-term care residence will be attended by a family doctor or a doctor designated by the municipal director once a month,” the doctor explained. Adding that this same approach is already in place for senior living facilities.

3. Mandatory Training for Caregivers and Owners

The training will be provided by the health districts. Which will issue a certificate attesting to their preparedness for the care of older adults.

4. Systematic Link with the Health District

The health district to which the facility belongs will maintain constant contact with the residence. Specialists such as the epidemiologist, hygienist, and dietitian from the polyclinic will monitor the facility, similar to the follow-up provided for senior living facilities.

“Everything else, of course, is the responsibility of the owner,” the doctor clarified. Referring to food and other operational and management aspects.

A complement to the state system, not privatization of healthcare

Dr. Fernández Seco was categorical in stating that this measure “complements the increased demand for care” and does not constitute a privatization of public health.

“This is social, not welfare-based. In other words, if we are privatizing anything, it’s not public health,” he emphasized. Making it clear that medical care remains the responsibility of the State and that these institutions are a complement to the existing care system.

The specialist stressed that “all international experiences” regarding these care models. Which exist worldwide, were taken into account in drafting these regulations.

Even the mistakes made internationally were considered, especially those evidenced during the Covid-19 pandemic. When many private care institutions “were left adrift because they lack state involvement.”

In contrast, Fernández Seco emphasized that in the Cuban model, the State maintains control and systematic attention to these types of institutions. So “it is not improvised, but rather well established.”

MINCIN eases wholesale trade for the non-state sector

The Ministry of Domestic Trade (MINCIN) announced this Wednesday significant modifications to the regulations governing. Wholesale and retail trade for non-state economic actors. As part of the new decree that repeals the previous Decree 107 and substantially reduces the activities prohibited for the private sector in Cuba.

The information was provided by the First Deputy Minister of MINCIN, Yosvany Pupo Otero, during the press conference.

Background: Resolutions 56 and 18, and their controversy

Pupo Otero recalled that Decree 107, in its sole transitional provision, mandated the then Minister of Domestic Trade to establish the regulations for the organization of both wholesale and retail trade. As a result, Resolution 56 was issued in October 2024. Which was “controversial at the time” because it established conditions that limited the commercial activity of non-state actors.

“Based on these controversies and with a fundamental principle that always exists in the country—listening to the entire population. And in this case, to the stakeholders—visits were made throughout the country,” explained the Deputy Minister. Also who added that the opinions of economic actors were heard, who argued that the regulations “did not respect the will of the parties.”

Subsequently, in 2025, Resolution 18 was issued, extending the deadlines for non-agricultural MSMEs and cooperatives to develop their commercial activity.

Repeal of Resolutions 56 and 18

With the new decree now in effect, Pupo Otero announced the repeal of both Resolution 56 and Resolution 18 issued by the Minister of Domestic Trade. These resolutions established the process for issuing, processing, and controlling all business licenses related to the activities of non-state economic actors.

“With the modifications that Mercedes just explained, which are now published in the Official Gazette. There is no longer any reason for Resolution 56 and Resolution 18 to exist,” he stated.

New Features in Section F of the New Decree

The Deputy Minister detailed the main changes introduced in Section F of the new decree. Concerning trade, gastronomy, and service activities:

1. Wholesale Trade: Based on the Will of the Parties and Without Conditions

It is not conditioned on relationships with state entities: engaging in wholesale trade is no longer conditional on non-state actors establishing contractual relationships with state entities. “It is based on the will of the parties,” emphasized Pupo Otero.

It can be a primary or secondary activity: wholesale trade is no longer required to be the entity’s primary activity. It can be carried out as either a primary or secondary activity. Thus eliminating one of the main criticisms of the previous regulations.

The prohibition for self-employed workers remains: however, the new decree maintains the prohibition on self-employed workers engaging in wholesale trade activities. The arguments, according to Pupo Otero, are “multiple,” related to the number of workers involved in this activity and the complexities it entails.

2. Retail Trade: Open to All Participants

Retail trade “will be permitted for all participants,” including the self-employed, micro, small, and medium-sized enterprises (MSMEs), non-agricultural cooperatives, and producers. Who will also be able to sell their products both wholesale and retail.

Requirement to Register with the Central Commercial Registry

Pupo Otero reminded everyone that all economic actors are required to register with the Central Commercial Registry. A regulation that “dates back to 1993” and remains in effect. This requirement is not exclusive to non-state actors but applies to all economic actors and others authorized in this process.

The Deputy Minister announced that Decree 184, which governs this registry, will soon be amended to “make the terms more flexible” and “streamline procedures.” These modifications address two thematic axes of economic and social transformations:

-Thematic axis number 1: reducing the number of terms and procedures, and eliminating the limitation that productive and service activities must be carried out only as a primary or secondary activity.

-Thematic axis number 19: transformations in commerce, gastronomy, and services, aimed at a greater presence of non-state economic actors.

Technical and formal requirements without retroactive effect

A new element being incorporated is the requirement of formal and technical requirements for registration in the Central Commercial Registry. Following comparative law from “anywhere in the world,” where certain requirements must be met to carry out a commercial activity.

Pupo Otero clarified that these requirements are not retroactive: actors who are already operating “will be able to continue their activity perfectly well without having to make any modifications.” There will be a period for verifying these requirements. Allowing the economic actor “to gradually create the conditions and promote the supply of goods and services.”

The Deputy Minister highlighted the possibility for non-state actors to utilize the existing infrastructure of state-run commerce. In line with Transformation 149 of Thematic Area 19. Which prioritizes “non-state management models” in the process of transforming the administrative management of commerce, gastronomy, and services.

“It is an advantage to be able to use the network that exists today throughout the country,” he stated.

Benefits for the Population and the Domestic Market Pupo Otero summarized the benefits of these modifications:

Greater availability of goods and services for the population.

Elimination of conditions that limited access to goods in wholesale and retail channels.

Strengthening the Cuban domestic market by expanding the opportunities for participation by non-state economic actors.

“This is a decree that allows everyone to win, and the biggest winner is the population,” the Deputy Minister concluded.

MITRANS Easier Importation of Electric Vehicles and Management of Terminals

The Ministry of Transportation (MITRANS) announced significant relaxations in the transportation sector this Wednesday. As part of a new decree that reduces prohibited activities for non-state economic actors. Including the direct importation of electric vehicles and the management of passenger and freight terminals.

The information was provided by Danna Álvarez, General Director of the Planning, Organization, and Information Department of MITRANS. During a press conference announcing the measures of the new legal framework, which repeals the previous Decree 107.

Direct Importation of Electric Vehicles with Tax Exemption

One of the main new developments announced by Álvarez is the authorization for authorized state and non-state legal entities. To directly import electric vehicles for commercial purposes, specifically for assembly and sale.

The measure covers the following vehicle categories:

Motorcycles

Cycles

Cars

“We are going to allow, or rather, we are allowing, the direct importation of electric vehicles for commercial purposes,” the director stated.

Importation Conditions

The official specified that this importation must comply with two essential conditions:

-Charging Station with Renewable Energy Sources: Imported vehicles must be accompanied by their corresponding charging station, which must use renewable energy sources.

-Full Coverage: The charging station must guarantee full coverage for the operation of the vehicles.

Tax Exemption

Álvarez highlighted that, in this regard, importers will be exempt from taxes. Representing a significant incentive to promote electric mobility in the country and the participation of the non-state sector in this activity.

Terminal Management and Pier Operation

In addition to the importation of electric vehicles, MITRANS valued the easing of restrictions on another group of activities “very important for the country’s economy”. That can increase their development with the participation of non-state actors.

These activities include:

-Passenger terminal management: especially in road and rail transport.

-Cargo terminal management: also with an emphasis on road and rail transport.

-Pier operation: port facilities that allow vessels to dock.

-Port terminals: those that are not of national interest to the country may be managed by non-state actors.

“The easing of restrictions on another group of activities that is very important to the country’s economy and that could increase or boost its development was also considered,” Álvarez noted.

With information from Oscar Figueredo Reinaldo/cubadebate.cu