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Foreign companies interested in pursuing contracts with the Cuban state-owned enterprises have to introduce their company to potential government’s representatives, to research the Cuban marketplace for available opportunities, and understand how it works.
Some facts to take into consideration:
It is not a free market
Most of the Cuban economy is under state ownership, which means the market is controlled and regulated by government policy, thus based on the fact that your partner will be the government, the competition is almost zero.
Assessment and acceptance
As probably most of you know, selling to the government is different than selling to a private sector, and Cuba isn’t an exception. You should make sure you know your own company inside and out. Experience counts, and the government also looks for financial stability; which indicates you’ll be in business in the years to come.
In short you have to prove who you are what you do.
Public procurement
The government purchases goods and services, which must meet certain requirements, such as the best possible cost to meet the needs in terms of quality and quantity. Your products or services need to be aligned with the Cuban economic model in terms of improvements and social interest.
To facilitate public procurement your company should be registered with the state-run agencies to be placed on potential supplier lists. If you are ready to bid on government contracts, it’s necessary to submit your business profile to the government agencies that are used to locate contractors.
Build a relationship
Government officials are also human beings, and therefore they like you also need to know the person behind the potential partner. Get your foot in the door, go to Cuba and meet them, participate in their business events, show your interest, it will help you know better marketplace opportunities and figure out if there is a real business opportunity for you.
Wholesale and Retail business are run by agencies set up as corporations by the government. Forget about the idea of your home rules related to exporting/importing your goods and services by yourself, it doesn’t apply, getting a government contract is the way to go.