Cuba's Economic Challenges and Promises for Investors at FIHAV 2025

At the 41st edition of the Havana International Fair, known as FIHAV 2025, the Cuban government acknowledged the island's significant financial challenges while simultaneously promising a more dynamic and transparent environment for foreign investors.

Vice Prime Minister and Minister of Foreign Trade and Foreign Investment, Oscar Perez-Oliva Fraga, emphasized the reality of the financial difficulties but also expressed a strong determination to overcome these obstacles.

He stated, "The financial difficulties we are facing are a reality, but so is our determination to overcome them," highlighting the government's commitment to fostering confidence among investors. Perez-Oliva announced that the government is taking firm steps to modernize the economy, aiming to provide more facilities and guarantees for those investing in Cuba's future.

However, the situation remains precarious, as recent communications from the Cuban government have indicated to many international companies that they will not be able to repatriate or withdraw cash deposits held in foreign currency within Cuban banks.

Additionally, embassies have been informed that transferring funds or withdrawing cash from foreign-currency accounts could not be guaranteed. This acknowledgment of financial strain follows a series of compounded crises, including the effects of the pandemic, stricter U.S. sanctions, and failed economic policies, which have all deepened Cuba's economic troubles over the past five years.

The country is currently grappling with high inflation, shortages of essential goods like food and medicine, and daily blackouts. Despite these challenges, the FIHAV event brought together nearly 715 companies from 52 countries, with a notable presence from political allies such as Russia, China, and Venezuela, alongside European and Latin American nations.

Of the exhibitors, 240 are Cuban firms, including 181 state-owned and 61 private companies, showcasing Cuba's attempt to engage more actively with international markets. The fair aims to promote investment particularly in renewable energy and tourism, sectors deemed critical for economic recovery despite a decline in international visitors.

The event is seen as a manifestation of the government's will to project stability and opportunity amid ongoing difficulties, especially following the recent impact of Hurricane Melissa, which struck the eastern end of the island as a Category 3 storm.

The vice prime minister underscored that the very holding of the fair signifies a commitment to the country's economic momentum, stating, "The very holding of the fair is a sign of willpower when circumstances seem to challenge the country's momentum." Overall, while the Cuban government is striving to create a more inviting atmosphere for foreign investment, the underlying economic challenges present a complex landscape for potential investors.