Better Informed, Richard Branson Could Provide Essential Value To MSMEs In Cuba, To Diaz-Canel-Valdes Mesa Adminstration In Havana, And To Biden-Harris Administration In Washington

Entrepreneurship is Cuba’s best way forward
14 February 2023
By Richard Branson
Founder of Virgin Group

Excerpt: "The US must also rise to the occasion by allowing American investment in these start-ups and allowing Cuban entrepreneurs to access tools such as cloud-based services and APIs. It is tough enough to be an entrepreneur as it is. Now imagine the struggle of these Cuban entrepreneurs who must run their businesses without access to capital, no means of digital payment, and little infrastructure support or mentorship. The international business community must do its part and help cultivate Cuba’s startup ecosystem." LINK: https://www.virgin.com/branson-family/richard-branson-blog/entrepreneurship-is-cubas-best-way-forward 

Mr. Branson is unaware that on 10 May 2022 the Biden-Harris Administration (2021- ) authorized the first direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.  Links to posts:  

• Biden-Harris Administration Approves First Equity Investment Since 1960 In A Private Cuban Company May 10, 2022 

• With U.S. Government Authorization For First Direct Equity Investment Into A Private Company In Cuba, Here Is Important Context And Details.  About The Parties; About The Message. May 16, 2022    

Unfortunately, the government of the Republic of Cuba has yet to specifically authorize and publish regulations for the delivery of direct investment in and direct financing to a privately-owned company in the Republic of Cuba owned by a Republic of Cuba national.   

Mr. Branson is correct that the absence of efficient banking for micro, small, and medium-size enterprises (MSMEs) constrains their operational efficiencies and their potential.  The Biden-Harris Administration continues to refuse to re-authorize direct correspondent banking.  Incredulously, the Obama-Biden Administration (2009-2017) had authorized United States-based financial institutions to have correspondent accounts at financial institutions located in the Republic of Cuba, but did not authorize Republic of Cuba-based financial institutions to have correspondent accounts with financial institutions located in the United States.  Absent direct correspondent banking and re-establishment of U-turn transactions for financial institutions located in the United States and in the Republic of Cuba, transactions relating to the export from the United States of authorized agricultural commodities, food products, healthcare products, and for authorized services- including the delivery of MSME investment and financing, continue to require use of a financial institution located in a third country which adds time, cost, and lacks transparency.  Links to posts:   

• Another Bank Outside U.S. Reported To Cease Providing Wire Transfers To Cuba. No Reason Provided. Shows Urgent Need For Permitting Correspondent Accounts For Cuba Banks With U.S. Banks. December 04, 2022

• Home Delivery For Electric Scooters To Cuba: As Biden-Harris Administration Expands U.S. Export Opportunities, A U.S. Company Responds Quickly To Customer Requests. Next Correspondent Banking? December 04, 2022

• Airbnb Successfully Lobbied Trump Administration. Airbnb Should Now Focus On Biden Administration To Advocate For Direct Correspondent Banking So Hosts In Cuba May Access Funds Directly, Efficiently. April 06, 2022 

Helpful indeed if Mr. Branson would advocate to the government of the Republic of Cuba about the lack of MSME investment/financing regulations which, if issued, would address one of the items on Mr. Branson’s to-do list for the Biden-Harris Administration and provide an incentive for the Biden-Harris Administration to re-authorize direct correspondent banking and U-turn transactions.