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FOREIGN INVESTORS FRUSTRATED BY CUBA INVESTMENTS
Cuba's Foreign investment Strategy announced in 2012 spoke positively of attracting more international investors and Cuba wanted to increase foreign investment from international mutual funds and stock market pension fund investors. The Cuban's did a strategic review of the long Cuban investment approval process and came to the conclusion that special economic free trade and Investment zones like joint venture golf courses, Cuba Insurance, real estate, marinas and new manufacturing investments are being planned all over Cuba.Cuba may want more foreign investment dollars but there have been more promises to change rather than actual investment changes that have many barriers to true foreign investment in Cuba.
Many other countries and their international insurance investment and mutual fund companies, America, Europe, China, Russia and Brazil to Singapore and various European Union members, have expressed desire to invest in Cuba despite the silly American U.S. trade embargo against Cuba.
Unfortunately the Cuban government is demanding at least a 51% majority interest in all joint ventures and is dragging its heels or obfuscating in negotiations. The main obstacle is that Cuba wants to maintaining its independence and sovereignty without any risk on their part without consideration to the Investors risk of loss of their investment which Cuba will eventually control.
Cubans have an historical problem with Communism, free enterprise and Cuban nationalism. Cuban investment organizations are simply not interested in minority shares so Cubans can say that no foreign company owns a piece of their island of Cuba. Many foreign investors complain the Cubans insisting on 51 percent ownership of all new Cuban Joint ventures so that Cuba keeps effective control of the entire business.
CUBA INVESTMENT RISK
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| CUBA HAVANA INVESTMENTS With President Castro of the Council of State and Council of Ministers of Cuba Raul Castro. (Photo credit: Wikipedia) |
When international investors drill down into the fine details the Cuban investment funds become cloudier and hazier the deeper you dig. In the end one investor said it clearly " the Cubans are very nice people but when it comes to foreign investment, Mutual funds, Insurance, home mortgages and financial investments in Cuba the control of 100% of your money is in their hands with absolutely no possibility of recouping even one penny if your Cuban business investment runs into problems. The risk of Investing in Cuba is 100% against you from the start because the Cubans make some of the rules in your favor today only to change all the rules against you in the future when its time to start making a profit on your initial high risk Cuban investment.
Another Investor from America stated the slow Cuban government is decades away from turning its Cuban Investment plans into reality. Cubans have been trying to invest in new businesses in the promised special economic zones, only to be told to come back next year after the Cuban Investment law that was introduced by the best Cuban Lawyers was approved.
In short if you want high risk low reward investments then Cuba is your best bet today. However everything can change in an instant as soon as American president lifts the economic sanctions against Cuba. This would send Cuba investments in Home mortgages, Health care, Insurance, and real estate into the hottest investment market on the planet. Investing in Cuba should be done with a long term capital appreciation horizon like an retirement pension fund.
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