Cuba opens up to publicprivate enterprises for the first time in nearly 70 years

"We must focus, immediately, on implementing the urgent, most necessary transformations that must be made to the economic and social model. The Cuban president was effectively acknowledging that there is no way for the country to stay afloat without forming an alliance with its private sector."

"The Cuban government, after decades of treating the private sector as an internal adversary, appears to be easing its stance for the first time in nearly 70 years. Facing a deep economic crisis, Cuba's Official Gazette has published a new decree-law allowing the creation of public-private enterprises."

"By Tuesday, the government had already made public Decree-Law 114/2025, titled On the Association between State and Non-State Business Entities, a measure that marks a turning point in Cuba's economic model. The decree provides cooperatives and micro, small, and medium-sized enterprises the legal framework they have long been requesting."

Facing severe economic crisis and U.S. sanctions, Cuba is fundamentally shifting its approach to the private sector after decades of treating it as an adversary. President Miguel Diaz-Canel called for urgent transformation of the country's economic model, emphasizing the necessity of state-private sector partnerships. The government published Decree-Law 114/2025, establishing a legal framework for public-private enterprises and creating mixed Limited Liability Companies. These partnerships grant cooperatives and micro, small, and medium-sized enterprises authority over pricing, wages, and product offerings. The measure represents a historic turning point, acknowledging that Cuba cannot sustain itself without private sector collaboration, particularly at municipal levels and through partnerships with diaspora Cubans.

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