Popular Post El Presidente Posted June 9, 2023 Popular Post Posted June 9, 2023 https://www.france24.com/en/live-news/20230609-small-shops-boom-as-cuban-private-sector-takes-hold Small shops boom as Cuban private sector takes hold Havana (AFP) – Like mushrooms after the rain, small stores are springing up all over Havana, many run from homes or garages as the private sector finally gains a foothold in communist Cuba. Small businesses, only authorized in 2021, are mounting a challenge to companies run by the one-party state which are emptier every day as Cuba battles a shortage of foreign currency and sky-high inflation amidst its worst economic crisis in 30 years. From garages, porches or small rented shops, Cubans sell anything from beers and sweets, meat, dairy and groceries that are becoming increasingly difficult to find elsewhere. "If you need something you can't find (in the state-run stores), they have it! They have the things you need," client Maria Leonor, 73, told AFP as she emerged from one of the new private outlets. After six decades of exclusively state-owned commerce, in August 2021 the government approved a law approving small and medium enterprises. In a private store, a kilogram of milk powder sells forabout 2,000 pesos (some $16) -- just less than half the average monthly salary © Yamil LAGE / AFP The sea change came as Cuba reeled from the after-effects of the Covid-19 pandemic, which flattened its critical tourism industry, and the tightening of US sanctions. Yogurt on the menu At the neighborhood store "El Bodegon 21," a colorful array of products are arranged prettily on wooden shelves -- a stark contrast to the monotony of indistinguishable cans and empty refrigerators in grey-hued state shops. For customers like Leonor, these new stores offer a chance to find products, like yogurt, missing from the official market. An added benefit: Cubans can buy at the private stores with the local peso while government stores require payment in foreign currency, which is hard to come by. But the downside, prices are "quite high," said Leonor. A kilogram of milk powder sells in a small private store for about 2,000 pesos (some $16) -- just less than half the average monthly salary. Before, it was only available on the black market, long absent from government shops or the "bodegas," outlets where Cubans have access to a limited selection of subsidized products through ration books. In May 2022, US President Joe Biden had pledged to "increase support for independent Cuban entrepreneurs" and help the private sector grow. About 22 percent of Cuba's small enterprises are in construction, 19 percent in gastronomy and tourism and 12 in industrial food production © Yamil LAGE / AFP A year later, last month, hundreds of Cuban tradespeople sent the American leader a letter urging him to follow through on this promise. They asked him for non-immigrant visas to permit them to travel and acquire supplies, to allow access to payment platforms like PayPal, the right to set up US bank accounts, and the reopening of US tourist travel to Cuba. Mission: 'generate wealth' Omar Bouso, 27, is among those trying to make a living under the new rules that have given rise to some 7,800 private SMEs in almost two years. He lost his work in a restaurant that closed during the pandemic, then opened a Hawaiian fast-food restaurant with two friends, which they run from a private home. "We found a niche in the market to do something different," he told AFP. Entrepreneurs like Bouso get their goods from private import companies that did not exist until recently. According to a recent UN report, about 22 percent of Cuban small enterprises are in construction, 19 percent in gastronomy and tourist accommodation, 12 percent in industrial food production and under three percent in trade. Inflation, which the government estimates will reach 39 percent in 2023 but analysts say will surpass 100 percent, hits the public and private sectors alike. Economy Minister Alejandro Gil recently sought to clear the government of blame for high prices. In a parliamentary session, he pointed the finger at the private sector, saying: "We are not expecting of anyone to work at a loss, but it is not possible to make a fivefold profit so fast." Inflation is officially estimated to reach 39 percent in 2023, but analysts say it will surpass 100 percent © Yamil LAGE / AFP Gil also defended state-owned companies, which he said "are not making a profit and pay minimum salaries so as not to increase prices to the population." The state sector continues to carry the economy and employ almost two-thirds of workers, according to a regional UN commission. Oniel Diaz, founder of private business consultancy Auge, said many of Cuba's problems can be addressed with responsible regulation, but stressed that the very purpose of small business will always be to "generate wealth." © 2023 AFP 5
Corylax18 Posted June 9, 2023 Posted June 9, 2023 Private restaurants have been thriving for years and provide far better quality and value than state-run restaurants. The mushroom metaphor is perfect, they've been underground for years and the right conditions are finally allowing them to emerge. 1
Ryan Posted June 10, 2023 Posted June 10, 2023 Some great deals in those private stores. A little hole in the wall beside Harris Brothers supermarket had Santiago 11 year old for 4,500 cup in February. Not bad compared to $48 in the MLC shops / cigar shops. 2
vladdraq Posted June 12, 2023 Posted June 12, 2023 On 6/9/2023 at 8:13 PM, Ryan said: Some great deals in those private stores. A little hole in the wall beside Harris Brothers supermarket had Santiago 11 year old for 4,500 cup in February. Not bad compared to $48 in the MLC shops / cigar shops. I saw the 12 YO Santiago 2800CUP in Moron. I was pretty sure it's a fake. Now you make me thinking i missed a deal 🙂. There is such a think like "fake" rum?
Ryan Posted June 13, 2023 Posted June 13, 2023 18 hours ago, vladdraq said: I saw the 12 YO Santiago 2800CUP in Moron. I was pretty sure it's a fake. Now you make me thinking i missed a deal 🙂. There is such a think like "fake" rum? That does seem cheap. There is such a thing as fake rum in Cuba, I've seen fake Santiago 11 year old in stores in Cuba, before the currency changes etc. Always check the seal on the top of the bottle as well as the quality of the printing of on the label and the outer packaging. (Blurry = Bad). Since the currency changes though, there is actually cheaply priced, officially produced rum available, as well as cigars if one knows where to look. Hotel lounges that sell cigars in local prices will have the best prices on the Island. Nightclubs and bars will often have specials on rum and whiskey. Expensive if one has changed their money at 25 cup : 1 dollar. Not so expensive at 200 cup : 1 dollar. 1
vladdraq Posted June 13, 2023 Posted June 13, 2023 I asked a friend to take some pics, she actually bought one bottle. i'll go and test it in 2 weeks, ill come back with a feed back just for the record. 🤓 The 12 YO is 2800Cup, the 8 YO is 2500 Cup LOL, same store! 1
BrightonCorgi Posted June 13, 2023 Posted June 13, 2023 Most likely refilled legitimate bottles. That's the easiest to fake in the distilled or wine business.
vladdraq Posted June 13, 2023 Posted June 13, 2023 2 hours ago, BrightonCorgi said: Most likely refilled legitimate bottles. That's the easiest to fake in the distilled or wine business. Agree! Probably some home made beach Ron. 🙂 I'll enjoy it with a Cohiba from a friend working at the factory! Dog piss with floor sweepings. Awesome! Joke aside, these aren't for sale in some tourists frequented areas. It's just mind blowing to sell fake cuban rum to cubans. I just don't get it.
JohnnyO Posted June 14, 2023 Posted June 14, 2023 Private bodegas like B21 are owned by government ranking officials disguised to look like they are owned by Juan Q Publico. They are full of fake rum/beer or as they like to say "inventado". Some of their products they bought at govenment stores in CUP at way lower prices only to be sold 5X or more. These people are protected. MIPYME is another facade of government workers. The story is they are allowed to "import" products as they have a license for that. Free market reforms supposedly. Only no one knows how to get that license or who the owner is of that local bodega. The locals usually say "ellos". Spaghetti 500 CUP/lb, rice 200 CUP/lb, I think the Pope sells it cheaper inside the Vatican. Don't get fooled into thinking these programs are to help the locals, its just for the folks with government ties. John 1
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