Cuba Economy Counts on Over 11 Thousand New Companies

Cuban economy counts on 11 thousand 350 new micro, small and medium companies, along 71 cooperatives, including 11 thousand 46 private businesses, 233 state-run companies.

The announcement was made by Cuban Economy and Planning Minister Joaquin Alonso as he submitted his sector’s report at the Session of the National Assembly of People’s Power (Cuban Parliament).

During the first half of the year the private sector imported goods valued at some 900 million dollars, particularly foodstuffs and drinks, but this had no similar impact on fiscal income or taxes, which revealed the existence of distortions and indiscipline in this sector, said the Minister.

The official recalled that amidst the current scenario the people are expressing dissatisfaction about the high prices of consumer goods offered by the private sector.

Exports by private companies in the first half of 2024 have translated into 15 million dollars, particularly products like charcoal, and certain services like I.T. applications; this – said the Minister—reveals weak export vocation and the need to advance towards tighter integration with the state sector.

Such integration must be encouraged for joint production and linkage between the two sectors so to achieve larger productions of goods and services at affordable prices for the people.

According to the Minister, although the major private activity is related to services, there is a large number of these businesses largely dedicated to manufacture and food production. However, not in few cases, this major activity is not taking place, instead the carry out only commercialization.

A series of rules to be applied to the non-stage performance were considered these months as well as the improvement of the country’s fiscal policy following distortions such as tax evasion and avoidance by a group of private businesses, as well as a trend to import final products instead of raw materials for local production.

Amidst a wide and diverse universe marked by emergent private businesses, the state companies are the main actors in the production of goods and services, but they badly need to improve efficiency indicators, the Minister noted.

There are some 18 thousand 973 companies in Cuba, two thousand 674 of them are state-run enterprises, 120 joint ventures, 11 thousand 46 private businesses and five thousand 133 cooperatives.

Along with that there are 596 thousand 167 self-employees, and the state sector employs one million 300 thousand workers contributing 80 percent of the exports of goods and services.

According to the Minister, by the end of the first half of the year, the state sector continued to receive negative impact due to lack of basic resources like hard currency, fuels, raw materials and resources and all this limit the sector’s real autonomy and the implementation of measures already approved.

The medium monthly salary in the state entrepreneurial sector is about 5 thousand 955 Cuban pesos, some 49 dollars at the official change—1 dollar equals 120 Cuban pesos.

As part of the transformations underway, a new policy for the state socialist enterprises has been drawn up establishing changes as to autonomy, integration, social responsibilities, workers’ participation, science and innovation among other aspects.