With rising demand for infrastructure, technology, and professional services, coupled with a heavy reliance on imports, Cuba offers significant potential for UK exporters and investors. Here’s what businesses in Wales need to know…
Why trade with Cuba?
Cuba offers a distinctive and compelling opportunity for UK and Welsh businesses seeking new markets. With a highly educated and skilled workforce, competitive labour costs, and an increasing openness to foreign trade and investment, the country is positioning itself as an emerging trade partner and regional gateway. Strategically located between Europe and Latin America, Cuba provides an ideal base for accessing supply chains across the Caribbean and Central America.
The country was the UK’s joint 180th largest trading partner in 2024. English is widely spoken in business contexts, helping to reduce language barriers for UK firms. In the four quarters to Q4 2024, UK imports from Cuba totalled £16m (an increase of 6.7% or £1m compared to the previous year), while exports to Cuba amounted to £21m, signalling a modest but growing trade relationship.
While services dominate Cuba’s economy, the country generates substantial export revenues from medical products, food and beverages, and metals like nickel.
What are the investment opportunities?
Despite a complex economic environment shaped by decades of U.S. sanctions, Cuba is steadily opening to foreign investment. Its economic model prioritises state control of key industries, but recent reforms have aimed to attract international capital.
Investment prospects are enhanced by initiatives such as the Special Economic Development Zone of Mariel (ZEDM), which promotes industries including manufacturing, agriculture, clean technologies, tourism, and logistics.
Modalities of investment in the country include joint ventures, international economic associations and wholly foreign-owned enterprises. Another standout initiative presenting notable opportunities, particularly for companies with expertise in innovation and sustainability, is Cuba’s 2030 Energy Transition Plan, which targets generating 24% of the country’s electricity from renewable sources, including solar, wind, and biomass.
To support UK businesses interested in entering the Cuban market, Chambers Wales South East, South West and Mid recently hosted a webinar featuring Luisa Martinez, Director of International Relations at the Cuban Chamber of Commerce, and Mirta C. Rippes Aller, Senior Specialist in Commercial Policy. The session offered key insights into the evolving business and regulatory environment in Cuba.
Tailored for businesses considering expansion into Cuba, the discussion covered critical areas including foreign investment legislation, tax and labour frameworks, and cultural factors that impact business operations. The takeaway? While Cuba’s business environment is distinct and requires careful navigation, the opportunities are substantial for those willing to engage with its growing market.
