Doing Business in Cuba Offers Reputational Risk and Lack of Transparency
Control Risks, a global risk consultancy service, issued a 4-page thought piece a few days ago asking the question is Cuba ready for business?
Some key points from the consultancy's political and business risk analysis:
- All eyes will also be on Cuba in 2018 as to who succeeds Raúl Castro as president. In fact, the final name may not matter hugely – more important will be to what extent the new president will be controlled by Raúl and his close allies in the military... The Cuban Communist Party and the military will remain firmly in control of the country’s political apparatus.
- Operating in the country requires a company to accept an inherent element of reputational risk, particularly as most productive sectors of the economy are controlled by state companies managed by the Cuban military.
- Companies also must accept far less transparency in government decision-making than they would normally expect; decisions on joint-ventures or investment proposals from foreign companies are ultimately politically driven, and priorities may change without great warning.