Some quick facts:
- Cuba is the largest island in the Caribbean
- Population est: 11 million
- GDP: $72.3 billion
- Distance from Havana to Miami: 366 km
- Agricultural products: sugar, tobacco, citrus, coffee, rice, potatoes, beans; livestock
- Industries: petroleum, nickel, cobalt, pharmaceuticals, tobacco, construction, steel, cement, agricultural machinery, sugar
- Currency: Cuban peso CUP (not free floating)
Cuba has been under a US embargo for 52 years and that has severely crippled its ability to grow, trade and attract investment.
Reports say the US could lift travel restrictions and restrictions on Americans sending money to Cuba. Obama and Raul Castro both plan announcements at noon ET. Officials say it will be the most-sweeping change in US policy since the embargo, according to CNN.
If the embargo is lifted, I have no hesitation in saying that Cuba is the best investment in the world. The proximity to the US and ties to the Cuban population there will spark a flood of capital inflows. The nation’s resources are highly under-exploited, including tourism and the workforce is well educated. The US Geological survey estimates about 4.6 billion barrels of undiscovered oil offshore.
At the same time, it could get very messy in the transition. It’s extremely tough to pick winners and losers but there are many Spanish, Canadian, British, Mexican and Italian companies, especially in tourism, doing business in Cuba. A full list of companies operating there is included here.
One company that’s rallied 10% today is Sherritt International, which is (or at least was) the largest independent energy producer in Cuba and also has significant operations in nickel there.
