3 OPPORTUNITIES OF INVESTMENT IN CUBA
“Price is what you pay. Value is what you get.” – Warren Buffet
Cuba is pursuing participation in a variety of tourism sector ventures. Cuba investment include new building projects, renovation, the development of complementary infrastructure, and the pursuit of contracts for the management by renowned chains. There are similar opportunities to provide hotel operators and restaurants with supplies. In the manufacture and distribution of medication, international involvement is sought.
For investors, Cuba crosses many boxes: a relatively large population, stable and educated citizens, an increasing economy, and a low degree of public debt. There is also a stimulus for Cuba investment: a stronger partnership with the United States that would unlock more transfers of money.
When it comes to agriculture, Cuba has tremendous potential. A well-known French agronomist, René Dumont, once said, “with proper management, Cuba could feed five times its current population adequately.”
The latest national reforms began in 2013, according to Egozcue, including making privatized urban agriculture a priority for the region. Via a lease agreement incentive scheme, the government also offers land to residents and introduced a new tax structure. The hope is to make it more effective and sustainable for farmers.
Sugarcane, the most important crop in Cuba and its largest export, is cultivated all over the island, but mainly in the eastern half. Sugar production and prices are controlled by the government.
Today, agriculture is Cuba’s largest industry, with 18% of working Cubans employed. Although sugar cane remains the primary crop and agricultural chemicals are still distributed to cooperatives, the small-farm ‘agroecological’ sector is booming and has become recognized worldwide.
In past years, Cuba’s most important sugar markets have been China, Belarus, and Portugal, and Germany is a growing market for honey and green coffee. With this saying, You can invest in the agriculture industry for better growth and impactful business.
The mining industry has a bright future in Cuba. For this, the best example is, The Canadian company Sherritt International, which is a materials and energy company. It trades in Canada and has a market capitalization of $270 million. The company has operated in Cuba for over twenty years and produces a significant amount of oil for the country. It derives 75% of its business from Cuba and has a joint venture with the Cuban government for nickel and cobalt production.
In 2019, Cuba welcomed a total of approximately 4.28 million tourists. This represented an increase of around 9.3 percentage in comparison with the number of international arrivals reported in the prior year.
Tourism in Cuba is a business that generates more than 4.7 million arrivals as of 2018 and is currently among the chief sources of earnings for your island.
Using its positive climate, beaches, colonial buildings, and different cultural heritage, Cuba has been an attractive destination for both vacationers.
“Cuba treasures 253 shielded places, 257 national temples, 7 UNESCO World Heritage Sites, 7 Organic Biosphere Reserves and 13 Fauna Refuge one of the other non-tourist zones” Was Spain’s closest colony into the United States before 1898, at the very first part of the 20th century Cuba continued to grow with the effect of large cuba investment, the production of various businesses, and expanding travel to encourage largely US interests and corporations.
Its proximity (approximately 90 miles (140 kilometers) in the Florida Keys) and near connection to the United States also helped Cuba’s marketplace economy prosper rather fast. Since connections between Cuba and the United States slowed immediately after the Cuban Revolution of 1959 along with the consequent expropriation and nationalization of companies the island became cut away from the traditional marketplace via a continuing embargo plus a travel ban has been enforced on U.S. citizens visiting Cuba. The tourist sector dropped to record low rates over a couple of decades of Castro’s accession to power.
Why should you invest in Cuba?
Growing real estate market
The real estate market in Cuba is a multimillion-dollar business which accounts for nearly half of the island’s Gross Domestic Product (GDP), according to research released by the Miami-based magazine (Cuba Geografica), The selling of private real estate has been headquartered in 2011, sparking a boom on the marketplace.
García Pleyán, who resides in Havana, said that 45,000 sales were reported in 2012 and 88,000 in 2013. Properties in Havana, Matanzas, and Santiago de Cuba have the Greatest prices.
One of the most expensive places is at Varadero Beach in Matanzas and the Havana areas of Miramar, Siboney, and Vedado. Kholy, home to several military officials, also attracts high prices. García Pleyán said his observations have been based on sales posted on sites from 2017, news articles, studies, and other printed data.
The Cuban government has released a few official figures. For instance, the website porlalivre.com shows over 1,000 properties listed at more than $100,000, such as 43 priced at greater than $500,000 — nearly all of them at Havana. Several announcements on Porlalivre use the adjective “capitalist” to signify the property was constructed before 1959, which adds value to the house since it’s considered a higher grade.
As of 2015, there have been roughly 5.11 million people engaging in Cuba’s labor force. Nearly three-quarters of this labor force is used by the government, while the rest of the quarter is used by the “personal” or even non-state sector. This informative article indicates that despite starting to permit entrepreneurship and small business ownership. You can start your business with a Cuban venture and that will help you to get qualified employees to run your business for the best cause.
Safe future of Cuba
It’s possible to feel the frisson towards the coming post-Castro future from the nation’s amazing arts arena. Whether it’s the increasingly political hip-hop landscape, which in the past decade has sparked periodic crackdowns) or even more aesthetically impressive, the revolutionary art from leading galleries such as the Fabrica de Arte Cubano, in which big scale erotic canvases blend with intensely hybrid American-Afro-Cuban dancing bands, into storefronts with still largely unknown artists young and old. They also are desperate not to become like other Latin American neighbors; that is, states rocked by massive poverty, inequality, violence, and corruption. And here is the most significant problem facing Cubans today. They understand full well the plethora of failures and limitations of the communist system. But they’re justifiably scared of what will happen after Raul Castro is gone if the US, led to the uber-conservative and also rabidly anti-communist exile community in Miami, took charge of the inevitable transition in the next few years. (ALJAZEERA)
To conclude, I can say that investing in Cuba will be good for all foreign investors. Cuba has many industries to invest such as Agriculture, mining, and Tourism. Tourism is regarded as the best industry to invest in Cuba as it has many advantages and proved a profitable investment. There are many reasons why should you invest in Cuba such as Quality employees, a better future, and the growing real estate industry.
As Warren Buffet said, “Risk comes from not knowing what you are doing.”