The new grant scheme for Cypriot SMEs aims to promote sustainable and circular business models by providing €14.4 million in funding, covering up to 50% of investment costs. The scheme will assist over 40 SMEs, encouraging technological modernization and a greener economy, in line with Cyprus’s Industrial Policy until 2030.
What is the new grant scheme for Cypriot SMEs aiming to achieve?
The new €14.4 million grant scheme for Cypriot SMEs aims to incentivize shifts towards sustainable, circular business models. It’s expected to assist over 40 SMEs, covering up to 50% of investment costs, promoting technological modernization and a greener economy.
George Papanastasiou, the Energy Minister, inaugurated Industry Week with a pledge to bolster the industrial sector in Cyprus, spotlighting the government’s dedication to the national industrial policy running from 2019 to 2030.
Government’s Commitment to Industry
The minister outlined the overarching goal of nurturing an industry that is both resilient and cutting-edge, significantly contributing to the economic growth and competitiveness of Cyprus.
“It is worth noting that despite significant challenges, especially in the last three years, the industrial sector in Cyprus has not only managed to cope but also increased its contribution to our Gross Domestic Product from 8.1 per cent in 2020 to 8.5 per cent in 2022,” Papanastasiou said.
In terms of employment, figures have seen a positive trend, with a notable increase to 9 per cent of the workforce, up from 8.1 per cent in 2020.
Focusing on Technological Upgrades
Papanastasiou emphasized that the primary focus of co-financed grant schemes implemented by the Energy Ministry is on technological enhancements and the modernization of existing industrial units. Furthermore, the schemes encourage the establishment of new industrial ventures.
During the present funding period, which extends until 2027, Cyprus has successfully secured €245 million from the European Structural and Investment Funds and the Recovery and Resilience Fund to support businesses. An additional €120 million will be directed towards energy improvements in residences, indirectly benefiting entrepreneurial activities, especially within the industrial sector.
Transitioning to a Green Economy
With an eye on sustainability, Papanastasiou underlined the importance of steering the economy towards a green and circular model, a key aspect of Cyprus’s Industrial Policy until 2030.
Collaborations between multiple government departments have culminated in the National Action Plan for the Circular Economy, approved on June 16, 2021. The action plan’s aim is to establish market conditions favorable for this eco-friendly economic transition.
“The involved ministries and directorates are making intensive efforts in this direction, starting with cultivating the required culture to adopt circular practices, both among the general public and businesses,” he added.
Sponsorship Scheme for the Circular Economy
In order to promote the Circular Economy, the minister announced plans for a sponsorship scheme that is expected to support over 40 SMEs with a maximum funding amount of €400,000, covering up to 50 per cent of the investment.
Upcoming Grant Scheme
Papanastasiou also mentioned the ministry’s forthcoming grant scheme designed to incentivize SMEs to shift towards a circular business model. This scheme, set to be officially launched in 2023, has a budget of €14.4 million, aiming to assist more than 40 SMEs with investments in sustainability.
In closing, Papanastasiou thanked everyone for their commitment to advancing Cyprus’ industrial sector and recognized its substantial role in society and the economy.
Kyriacos Nicolaou: Business and Finance Reporting
Kyriacos Nicolaou, a journalist who joined the Cyprus Mail in 2020, has been focusing on local firms, startups, economic issues, and technology in the business and finance section since 2021.
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Spanish Translations for Key Phrases
- Minister reaffirms support for industrial sector: El ministro reafirma el apoyo al sector industrial
- €14.4 million earmarked for Cypriot SMEs: 14,4 millones de euros destinados a las PYMEs de Chipre
- National Action Plan for the Circular Economy: Plan de Acción Nacional para la Economía Circular
- Sponsorship scheme promoting the Circular Economy: Esquema de patrocinio que promueve la Economía Circular
- Incentives for small and medium-sized enterprises: Incentivos para las pequeñas y medianas empresas
- Technological upgrades and modernisation: Actualizaciones tecnológicas y modernización
- Employment in the sector rose: El empleo en el sector aumentó
- Contributing to Gross Domestic Product: Contribución al Producto Interno Bruto (PIB)
- The new grant scheme for Cypriot SMEs aims to promote sustainable and circular business models by providing €14.4 million in funding, covering up to 50% of investment costs.
- The scheme will assist over 40 SMEs, encouraging technological modernization and a greener economy, in line with Cyprus’s Industrial Policy until 2030.
- The Energy Minister highlighted the government’s commitment to the industrial sector, aiming to nurture a resilient and cutting-edge industry that contributes to economic growth and competitiveness.
- The focus of co-financed grant schemes is on technological upgrades and the modernization of existing industrial units, as well as the establishment of new ventures.
- Cyprus has secured €245 million in funding to support businesses, with an additional €120 million directed towards energy improvements in residences, indirectly benefiting the industrial sector.