Canadian Money, Cuban Risk
For decades, Canada has punched well above its weight in Cuba, second only to a handful of European nations as a source of foreign investment, with deep roots in tourism and resource extraction. But as Cuba's economy grinds toward crisis and the political winds shift, some of Canada's biggest names in the island market are staring down unprecedented uncertainty.
According to CBC News, companies like Sunwing, a major charter airline and resort operator with a significant presence in Cuban all-inclusive tourism, and Sherritt International, a Toronto-based mining and energy giant with longstanding operations on the island, now face risks that go far beyond the usual volatility of doing business in a tightly controlled socialist economy.
What's Driving the Crisis
Cuba's economic situation has deteriorated sharply in recent years. A combination of U.S. sanctions, post-pandemic tourism decline, chronic fuel shortages, and a crumbling infrastructure has pushed the country into a prolonged tailspin. Rolling blackouts lasting more than 12 hours a day have become routine. Food and medicine shortages are widespread. The Cuban peso has collapsed on informal markets.
Now, whispers of political change, from within and outside the country, are adding a new layer of unpredictability. For foreign investors like Sherritt, which has navigated decades of hostility from Washington simply by operating in Cuba, a transition in Cuban leadership could rewrite the rules of engagement entirely. Joint ventures that have operated under carefully negotiated bilateral frameworks may not survive a political restructuring intact.
Sunwing's Tourism Exposure
For many Canadians, Sunwing is synonymous with affordable winter escapes, a familiar logo on the tarmac of airports from coast to coast. The company's deep integration into the Cuban resort economy means disruptions there aren't just a business problem; they ripple out to Canadian travellers who have booked packages, paid deposits, or are mid-trip when things go sideways.
Canadians have long been among the top tourist groups visiting Cuba, partly because of Sunwing's affordable packages and Canada's traditionally warmer diplomatic relationship with Havana, a relationship Washington has often eyed with irritation. That diplomatic goodwill, however, offers little cushion against the hard economics of a country that simply can't keep the lights on.
Sherritt's Long Bet
Sherritt International has operated in Cuba longer than most companies dare to. The company's nickel and cobalt operations at Moa Bay have survived U.S. sanctions that bar American executives from even setting foot in the U.S. if they do business with Sherritt. That defiant posture made it something of a symbol of Canadian commercial independence from American foreign policy, but it also means Sherritt has more to lose than most if Cuba's economic or political order is upended.
What Comes Next
For Canadian investors and travellers alike, the situation in Cuba is one to watch closely. Political transitions in closed economies rarely go smoothly, and the ripple effects of instability in Havana will be felt by Canadian companies with assets, contracts, and joint ventures on the island.
The federal government has not signalled any intention to intervene or offer risk guarantees to Canadian firms operating in Cuba. For now, businesses like Sunwing and Sherritt are navigating the uncertainty on their own.
Source: CBC News. This article is based on reporting by CBC's political team.
