Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
DOING BUSINESS IN THE NEW CUBA CHALLENGES & OPPORTUNITIES CUBA IS OPEN FOR BUSINESS! ▪ What opportunities exist? ▪ How do you navigate through Cuba’s complicated bureaucracy? ▪ What are the challenges of doing business in Cuba? CUBA: PRE-REVOLUTION ▪ Booming tourism industry ▪ The world’s third largest exporter of sugar ▪ Tumultuous political environment: Numerous uprisings and revolts Frank Sinatra – 1957 – Copyrights: Public Domain CUBA: POST-REVOLUTION ▪ In 1959, Cuban revolutionists ousted and replaced the government of the day. Cuba has since been governed as a socialist state by the Communist Party under the leadership of the Castro brothers. ▪ By 1960, the Castro government seized private lands and nationalized hundreds of private companies, including several U.S. subsidiaries. ▪ The U.S. government responded by imposing a series of trade restrictions that created long-term economic hardships for the Cuban people. Fidel Castro – 1957 – Copyrights: Wikipedia Commons ALLIANCE WITH THE SOVIETS ▪ Castro’s economic response to the U.S. embargo was to expand trade with its communist ally, the Soviet Union. ▪ The Soviets approved the purchase of Cuban sugar in exchange for Soviet oil. ▪ The deal sustained the Cuban economy for decades. Cuba-Russia friendship poster showing Fidel Casto and Nikita Krushchev, stating "Long live the eternal, indestructible friendship and cooperation between the Soviet and Cuban peoples“ Copyright: Wikipedia, Creative Commons. THE SPECIAL PERIOD ▪ The fall of the Soviet Union in 1991 devastated the Cuban economy. ▪ National oil supplies dropped by 80%, paralyzing the country’s transportation, industrial and agricultural sectors. ▪ It is estimated that Cuba’s GDP dropped by 40% in the course of five years - a period which has come to be known as the “Special Period. POST-SOVIET ERA ▪ Cuba re-established its tourism industry catering to Canadian and European visitors. ▪ Cuba also created ties with the socialist government in Venezuela, trading its highlytrained doctors and literacy specialists for oil and other goods. Playa Ancón, Trinidad, Cuba, Photo by: Esteban De Souza, Creative Commons THE 21ST CENTURY ▪ Fidel Castro steps down. ▪ Government announces plans to reduce the state sector. ▪ Government legalizes the private sale of cars and homes. ▪ Cuba introduces new foreign investment rules, promising a secure climate for international investors. ▪ United States takes steps towards normalizing relations. President and Cuban President Raúl Castro, Official White House Photo, April 2015 CUBA: A COUNTRY OF CONTRADICTIONS CUBA HAS… BUT… ▪ A population of 11 million people ▪ It is an impoverished country ▪ A government that is keen to open up its economy ▪ It is still a communist country ▪ A population that is ready for economic, cultural and social change ▪ In many ways, is still stuck in the 1950’s WHY DO FOREIGN BUSINESSES FAIL IN CUBA? ▪ Many foreign businesses have failed in Cuba because they try to sell things to Cubans that they don’t have (i.e.: laptops, blue jeans, etc.…). Most Cubans, however, have little purchasing power. ▪ Foreign business people often don’t understand the Cuban culture. ▪ Foreigners sometimes lose patience with the Cuban bureaucracy. IT’S BETTER TO BUY FROM CUBANS THAN TO SELL TO CUBANS OPPORTUNITIES: PHARMA ▪ Cuba has an advanced bio-pharma industry. ▪ We have helped our clients negotiate licensing agreements with Cuban pharma producers. ▪ Examples: ▪ Vaccine for bovine ticks ▪ Vaccine for sea-lice Photo by: Daniel Schwen, Wikipedia, Copyright: Creative Commons OTHER OPPORTUNITIES: ▪ NEUTRACEUTICALS: Cuba produces effective acne soaps and pumpkin seed oil products for managing hair loss. ▪ TOURISM: With the U.S lifting its embargo on American visitors to Cuba, there are many opportunities to build resort hotels outside of Havana. ▪ FILM INDUSTRY: Cuba has a burgeoning film industry that is attracting foreign production companies. Recent productions include Amazing Race, Survivor, and Cuban Chrome – a Discovery Channel miniseries. ▪ MEDICAL TOURISM: Imagine having dental work done at a Cuba dental college on a Monday and recovering on a beach, under a palm tree, for the rest of week. HOW CAN SLOAN PARTNERS HELP? WE CAN: WE HAVE EXPERIENCE DOING BUSINESS IN CUBA ▪ Identify opportunities ▪ Assist your clients in navigating through the Cuban bureaucracy ▪ Meet with and facilitate meetings with Cuban officials Allen Sloan, Managing Partner Sloan Partners LLP ADDRESS: 4646 DUFFERIN ST #6, TORONTO, ON M3H 5S4 T 416-665-7735 Email: [email protected] www.sloangroup.ca