Agriculture, Food & Beverages:

Cuba relies heavily on imports to satisfy its domestic food demand. 80% of Cuba’s subsidised food rationing system is currently supplied by imports. Import substitution in the food and agriculture sector and food security are top priorities of the government but will require time to reap tangible results. In the meantime, Cuba will continue to rely on imports. Demand in high quality food and beverages to serve the booming tourism (hotels and private restaurants) and domestic retail segments (hard-currency supermarkets) are also likely to increase.

Energy:

Cuba’s energy matrix results in important external dependency. Cuba use fossil fuels for 96% of its energy needs, of which 50% is imported oil from Venezuela and the rest is supplied by the domestic oil production. Although Venezuela has provided around 100.000 bpd to Cuba under a generous bilateral trade scheme, this flow has been substantially decreased during the past year. Cuba discovered several dozen extra-heavy oil fields and some fields with light, medium and very light oil. The use of renewable energy sources remains marginal (4.3% for electricity generation). The government aims to reach 25% of renewable energy use by 2030.

Health & Biotechnology:

Due to the availability of a highly trained human capital stock, an extensive public health infrastructure, numerous research and training institutions and a competitive pharmaceutical industry with great R&D and manufacturing capabilities, health and biotechnology sector is seen as a high-growth sector of the Cuban market with important export potential. Exports of health services already represent around 60% of total Cuban exports and are an important source of hard currency earnings. Domestically, public health services represent 9% of Cuba’s GDP with the health system relying heavily on imports (USD 110 million) of medical devices and supplies, mainly from Europe, China and Japan. Cuba’s pharmaceutical and biotechnological sector produces 580 medical drugs locally, including prophylactic vaccines against infectious diseases, cancer, cardiovascular and diabetes treatments. Due to its domestic and external importance, the sector has privileged access to hard currency allocation to import supplies.

Infrastructure & Logistics:

Cuba’s infrastructure stock has deteriorated because of low investment rates and the country’s lack of access to finance. The government has recognised the need to modernise and expand infrastructure to support the economy’s long-term development in several sectors. Infrastructure development will be key to promote domestic trade and distribution; support a growing tourism sector; address a growing domestic demand for passenger and commercial transport and cargo solutions. Also, the country’s strategic location for developing transport services and products, especially in the naval sector, create great opportunities.

Tourism:

Tourism offers the best medium-term growth perspectives and will continue to be a privileged sector of the economy due to its contribution to Cuba’s hard currency earnings. The sector has a privileged access to hard currency, which means that operators in this sector present exceptional solvency profiles. 3.2 million people visited Cuba in 2015, creating USD $2.5 billion. Arrival numbers are rising continuously since 2014 and Cuba is expected to successively break its arrivals record over the coming years. A likely loosening of travel restrictions for US citizens will drive tourism figures further. To meet the rising demand, the Cuban government aims to attract investments in the sector to build an additional 20.000 hotel rooms by 2020.