Havana (AFP) - The Cuban government has announced that it will allow foreign investments in wholesale and retail trade, in an effort to find a solution to the country's acute shortage of goods.

"Foreign investment in wholesale and retail trade, organized by the state, will allow the expansion and diversification of supplies to the population and contribute to the recovery of the national industry," Economy Minister Alejandro Gil said in a tweet on Tuesday.

The Cuban government will maintain its monopoly on foreign trade.

Until now, foreign investments in Cuba were only permitted in the production of goods and services, in addition to a few sectors such as hotels.

According to the new procedures, wholesale companies can be 100 percent affiliated to private investors, but retail companies will remain subject to the island's mixed economy system, in which the state should retain participation.

Cuba's trade sector, which is controlled by the state, has great difficulty obtaining foreign currency and purchasing supplies.

Cubans are forced to wait in long lines to buy food and essential goods with Cuban pesos at government stores, where supplies are very limited.

Stores that can be paid in dollars started operating in 2019 and the stocks were generally more, but the shelves appeared empty in recent months due to the shortage of goods.

This situation fuels the black market and fuels the inflationary spiral.

And in 2021, consumer prices increased by 70 percent year-on-year, according to official figures.

And in August 2021, the Cuban government allowed small and medium-sized private enterprises, ending 52 years of state monopoly.

Cuba is currently experiencing the worst economic crisis in thirty years, exacerbated by the Covid epidemic and the sanctions imposed by the United States on the island sixty years ago.