Cuban American business owners in South Florida react to the island's announcement to allow foreign investment

Cuba's announcement that it plans to open parts of its economy to private investors in the United States is drawing mixed reactions from Cuban Americans in South Florida, with some seeing opportunity and others warning of serious risks. While Havana is signaling a willingness to allow foreign investment, many in the community remain skeptical, citing decades of political control and lack of economic transparency.

The latest move appears to signal a potential shift after Cuba has allowed limited private enterprise on the island since 2021, though those opportunities have largely excluded Cubans living abroad.

Cuban-American business owners in South Florida have mixed feelings on whether to invest in the island

CBS News Miami spoke with two Cuban American business owners in South Florida who share the same long-term goal—an end to Cuba's current system—but sharply differ on whether now is the time to invest.

Ralph Navarro, a Miami-based yacht company owner, is among those willing to take the risk, even as Cuba's government extends an invitation to U.S. businesses.

"I don't think we need to wait until that change happens to start making gradual changes," Navarro said, arguing that early investment could help accelerate change on the island. "That's part of the transition."

He believes early engagement could help expose challenges and speed up reform. "I think if we go in now, it will make the process faster, and you will identify the problems in Cuba sooner than waiting until everything is changed," he said.

Conversely, others are far more cautious. Frank Garcia, a South Florida insurance business owner, expressed interest in investing in Cuba but only under specific conditions.

"You have to first wait until everything is clear, by the book," Garcia said. He added that he would invest only under conditions that guarantee protection: "I would invest in business if Trump has power and control so that my money is safe."

Experts say the uncertainty surrounding Cuba's legal and political system makes any investment highly speculative.

"I think it would be very speculative to invest in Cuba without some democratic constitutional order in place," said Richard Tapia, a professor of political science and international relations at Miami Dade College.

Tapia warned that investors would face significant risks due to the lack of legal protections. "You have no property rights. The property can be taken away. You have no recourse—you're not going to be able to go to the courts. It's still a totalitarian regime," he said.

The debate comes as U.S.-Cuba relations appear to be entering a new phase, with ongoing discussions between Havana and the Trump administration about potential changes on the island. Internal pressure within Cuba, including fuel shortages and economic instability, could also play a role in forcing reforms.

"If oil runs out in Cuba and there is strong domestic pressure, you could see uprisings that force the regime to bring about change," Tapia noted. "But if the regime is given concessions, the question is whether it's just a temporary fix."

For now, Cuban-American business leaders remain divided, weighing the potential for economic opportunity against the risks of engaging with a system many still do not trust. The island is still subject to strict U.S. sanctions, which make it difficult for Americans to invest or do business there without government authorization.

In:

• Cuba
• South Florida
• Global Business Leaders
• Miami
• Trump Administration