Cyprus has secured more than €500 million for 2021–2027 to support initiatives advancing the green and digital transition of local businesses, Energy, Commerce and Industry Minister Michalis Damianos said Thursday.
Funding To Modernize Business
Speaking at the 1st Cyprus IT Directors Forum during the 3rd Cyprus Tech Summit, Damianos said the funding covers entrepreneurship, industrial development, energy upgrades, the circular economy and digital transformation.
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Through policy measures and grant schemes, companies are being supported in upgrading infrastructure and processes to improve productivity and expand into international markets. The ministry is also working to create conditions that encourage innovation, attract investment and support modern, sustainable business models.
AI, Cybersecurity And Skills
Damianos identified artificial intelligence, cybersecurity and human capital as the three main challenges facing businesses.
AI adoption should go beyond introducing new tools, he said, focusing instead on practical problem-solving, better decision-making and measurable results. As business operations become more digital, cybersecurity is also a matter of continuity, governance and trust rather than simply a technical issue.
Human capital remains equally important, with digital investment unable to deliver value without the right skills, continuous upskilling and a culture that supports collaboration and adaptation.
For Cyprus’s small and open economy, these challenges are closely linked to productivity, access to international markets and the ability to adapt quickly.
Technology’s Role Across Business
Technology can improve customer experience, inventory management and supply chains in trade, while manufacturers can use it to increase efficiency, reduce energy and raw-material consumption and strengthen quality control.
For small and medium-sized enterprises, digital tools can help offset disadvantages linked to scale and create new opportunities for growth. Damianos also said IT directors are taking on a broader role, contributing increasingly to business strategy and decision-making.
State As A Partner
“The state cannot and should not replace entrepreneurial initiative,” Damianos said. It can, however, support businesses by reducing barriers, encouraging investment and strengthening cooperation among companies, technology providers, research institutions and the public sector.
Cyprus can build a more productive and resilient economy through investment in knowledge and innovation, Damianos said.
