Cuba continues to open up the economy to privatization

Just one in eight employees in Cuba works in the private sector - the proportion could increase significantly in the future

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In Cuba, the communist government has announced that it will continue to open the state economy to private business.

The Cuban state media reported on Saturday that small businesses and the self-employed should be allowed in almost all industries.

The Council of Ministers approved the reform.

State-owned companies dominated the country's economy for years.

In 2010 the government decided to partially privatize it.

However, this has so far been limited to 127 activities.

In the future, more than 2000 activities will be allowed in the private sector, said Labor Minister Marta Elena Feito, according to the reports.

124 Activities will be “partially or completely restricted” in the future, continues Feito, without giving details.

Observers believe the restrictions will apply to strategically important areas such as the media, health care and defense.

There are currently more than 600,000 Cubans working in the private sector.

That is about 13 percent of the workforce, the country has 11.2 million inhabitants.

They are mainly employed in gastronomy, transport and tourism.

The reform is "an important step to increase the number of employees," wrote Economy Minister Alejandro Gil on Twitter.

The announcement comes against a backdrop of tense economic conditions.

Last year, the economy, battered by the pandemic and US sanctions, shrank by 11 percent.

There is a shortage of basic necessities in Cuba, with long queues in front of shops.

This has increased the pressure to implement long-promised but so far blocked reforms.

In addition to the further opening of the economy to the private sector, this also includes a currency reform and relief for foreign investors.

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