The Cuban regime announced this Tuesday a significant reduction of prohibited activities for the private sector, presenting the measure as a reform aimed at the "well-being of the population," according to the state media Cubadebate.
The new Decree 160, issued by the Council of Ministers on July 22, 2026, and published this Tuesday in the Official Gazette, repeals Decree 107 of 2024 and comes into effect on August 4, 2026.
The measure was presented at a press conference by Lázara Mercedes López Acea, president of the National Institute of Non-State Economic Actors (INAENE).
The repealed Decree 107 contained a list of 125 prohibited activities for private small and medium-sized enterprises (mipymes), non-agricultural cooperatives, and self-employed workers.
With the new regulations, 46 activities are completely authorized without restrictions, while another 35 have their operational conditions relaxed.
Among the sectors opening up to the non-state sector are pharmaceutical services, care homes for the elderly, wholesale trade, the importation of electric vehicles, and electricity generation from renewable sources.
Formal education and official degrees, however, remain the domain of the State.
The new decree introduces four categories of restrictions: absolute prohibition due to unregulatable risk, activities reserved for the state, activities prohibited only for self-employed workers but allowed for companies and cooperatives, and activities authorized or conditioned through prior license or certification. The Council of Ministers must review the regulation at least every two years.
López Acea presented the reform as a result of a consultation process with the private stakeholders themselves.
"We listened to their concerns, some grievances, recommendations, and suggestions," said the official, who also attributed part of the need for reform to "the intensification of the economic, commercial, financial, and energy embargo imposed by the United States government."
The measure is part of a broader package of reforms. In June 2026, the National Assembly approved in an extraordinary session 176 economic measures across 23 areas, including the removal of the limit of 100 workers for small and medium-sized enterprises (mipymes), allowing an individual to own multiple private companies, and the opening up of private banking and exchange houses.
Decree 160 also complements the Decree-Law 114, in effect since April 2, 2026, which allows for partnerships between state enterprises and non-state actors through joint ventures, although it expressly excludes the sectors of health, education, and activities related to the FAR and MININT.
The government insists that these measures do not represent a privatization but rather a "flexibilization," although the extent of the changes contrasts sharply with decades of absolute state control over the economy.
Cuba is experiencing a severe crisis characterized by shortages of food, fuel, and electricity, rampant inflation, and a massive exodus of its population. These pressures have prompted the regime of Miguel Díaz-Canel to adopt the most ambitious reform package in decades.
"We are therefore defining in this decree a significant reduction of the activities that were not authorized; thus, a considerable level of activities is being authorized or conditioned, allowing non-state economic actors to participate in the economy and, consequently, contribute to the well-being of the population," concluded López Acea.
Related videos:
Filed under: