**Cyprus Channels €500 Million into Business Modernisation**
In a significant move to enhance the competitiveness of its business sector, Cyprus has secured over €500 million for green and digital transition initiatives during the 2021-2027 programming period. This announcement was made by Commerce Minister Michael Damianos at the inaugural Cyprus IT Directors Forum, part of the third Cyprus Tech Summit, held on Thursday.
Minister Damianos emphasized that the future competitiveness of Cypriot businesses increasingly relies on embracing sustainable practices and digital transformation. The allocated funds will support various measures aimed at fostering entrepreneurship, industrial development, energy upgrades, and the circular economy. Furthermore, the investment will facilitate the digital upgrading and transformation of businesses across the island.
“The policies and grant schemes of the ministry are designed to assist businesses in modernizing their infrastructure and processes, thereby enhancing productivity and their ability to engage with international markets,” Damianos stated. He highlighted the government's commitment to creating a conducive business environment that encourages innovation, attracts investments, and promotes modern and sustainable business models.
During his address, Damianos identified three primary challenges facing businesses today: artificial intelligence, cybersecurity, and human resources. He noted that while the adoption of artificial intelligence is crucial, it is equally important to implement these technologies responsibly. The goal is to leverage AI to address genuine problems, enhance decision-making, and yield measurable outcomes.
Cybersecurity was underscored as a critical concern, particularly as more business operations transition online. “Security is now a matter of business continuity, corporate governance, and trust,” Damianos remarked, emphasizing the need for robust digital resilience in today’s business landscape.
On the topic of human resources, the minister pointed out that no digital investment could yield positive results without a workforce equipped with the necessary skills and a culture that embraces collaboration and adaptability. He stressed the importance of continuous skills development to ensure that employees can effectively leverage new technologies.
The minister also discussed the role of technology across various sectors of the economy. In retail and trade, technology can enhance customer experiences, improve inventory management, and streamline supply chains. In industrial settings, it can lead to more efficient production processes, energy savings, and better quality control. For small and medium-sized enterprises (SMEs), technology offers opportunities to overcome the challenges posed by limited scale and can be a catalyst for growth.
Additionally, Damianos noted the evolving responsibilities of chief information officers (CIOs), who are now integral to business strategy and decision-making rather than merely managing systems and infrastructure. This shift reflects the increasing importance of technology in driving business success.
“The state cannot and must not replace business initiative,” he stated, while also recognizing the government’s role as a facilitator in reducing barriers to investment and fostering cooperation among businesses, the technology sector, research institutions, and the public sector.
In conclusion, Minister Damianos expressed optimism for the future of Cyprus’ economy. He stated that with a clear vision, collaborative efforts, and strategic investments in knowledge and innovation, Cyprus can cultivate a more productive, resilient, and competitive economic landscape. The funding secured for the green and digital transition is a crucial step towards achieving these goals, positioning Cyprus to thrive in an increasingly digital and environmentally-conscious global market.