The Cuban regime announced this Tuesday a significant reduction in 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The repealed Decree 107 contained a list of 125 prohibited activities for private micro, small, and medium enterprises (mipymes), non-agricultural cooperatives, and self-employed workers.
With the new regulations, 46 activities are authorized without restrictions, while another 35 have relaxed operating conditions.
Among the sectors opening up to the non-state sector are pharmaceutical services, nursing homes for the elderly, wholesale commerce, the importation of electric vehicles, and electricity generation from renewable sources.
Formal education and official degrees, however, remain reserved for the State.
The new decree introduces four categories: absolute prohibition due to unmanageable risk, activities reserved for the State, activities restricted only for self-employed individuals but permitted for businesses and cooperatives, and activities authorized or conditioned by 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 actors themselves. "We listened to their concerns, some dissatisfaction, recommendations, and suggestions," stated the official, who also attributed part of the need for the reform to the "intensification of the economic, commercial, financial, and energy embargo imposed by the government of the United States."
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 axes, including the removal of the cap of 100 workers for small and medium-sized enterprises (mipymes), the possibility for an individual to hold multiple private companies, and the opening up to private banking and currency exchange houses.
Decree 160 also complements the Decree-Law 114, effective from April 2, 2026, which allows partnerships between state enterprises and non-state actors through joint ventures, although it explicitly excludes the sectors of health, education, and activities related to the FAR and MININT.
The government insists that these measures do not constitute privatization but rather a "flexibilization," although the extent of the changes contrasts with decades of 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 people, pressures that have prompted the regime of Miguel Díaz-Canel to adopt the reform package.
"We are therefore defining in this decree a significant reduction of unauthorized activities; thus, a considerable number of activities that allow the participation of non-state economic actors in the economy are either authorized or conditioned, enabling them to contribute to the well-being of the population," concluded López Acea.
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