Cyprus is strengthening its support for entrepreneurship and industry through targeted policies and new investment tools, the general director of the energy ministry Marios Panayides, told the Nicosia Chamber of Commerce and Industry’s (Evel) general assembly this week.

Panayides said the government’s priority is to promote innovation, expand circular-economy practices, upgrade manufacturing, and accelerate the digital and energy transition of local businesses.

As part of this, he pointed to €226 million in schemes under the Thalia 2021-2027 programme and a further €137 million from the EU’s Recovery and Resilience Facility (RRF) and REPowerEU, noting that €101.2 million has already been paid out.

He also referred to the new 2025–2030 Policy Document on Competitiveness and Internationalisation, describing it as a plan aimed at strengthening industry through sustainable technologies, digital transformation and global expansion, while placing particular emphasis on skills development.

Moreover, Panayides highlighted €8m worth of projects implemented this year in 14 industrial areas.

In Strovolos, he said, pavement reconstruction costing €600,000 was completed in 2025, along with new fencing, while a controlled access system is expected in 2026.

Another focus of the ministry, he added, is promoting Cyprus as an international business centre.

Alongside the operation of the Business Support Centre and the Export Helpdesk, he said the forthcoming national branding identity for Cypriot products is expected to boost the visibility of exports.

Panayides added that service exports rose from €14.9 billion in 2020 to €28.7bn in 2024, while domestic product exports, excluding petroleum, increased 2.3 per cent last year, reaching €1.24bn. Total exports climbed 2.6 per cent to €2.43bn.

Michalis Moushouttas, Evel’s president said the upcoming EU Council Presidency is a key opportunity for Nicosia to showcase its advantages and to improve the capital’s appearance, particularly on routes leading into the city.

However, he stressed that businesses “need a predictable and stable environment”, adding that society needs “hope” and Nicosia “a solution to our national problem”.

Turning to economic challenges, he said the Cost of Living Allowance (CoLA) “fuels inflation” and places the burden entirely on employers.

Although progress has been made in securing foreign labour, he noted that recent strikes underline the need for legislative regulation of industrial action in essential services.

Moushouttas also said delays, bureaucracy and weak technical support continue to hold back businesses, arguing that real growth requires bold reforms and simpler procedures.

On Nicosia itself, he warned that chronic issues such as traffic congestion must be tackled ahead of the Presidency, and expressed support for development plans at the state fair grounds and Sopaz.

Energy costs and water scarcity, he added, remain major concerns for the business community.

The assembly also heard greetings from former Cyprus Chamber of Commerce and Industry president Christodoulos Angastiniotis and Nicosia’s mayor Constantinos Yiorkadjis.

The assembly concluded with the proclamation of board member Panayiotis Papaphilippou as honorary president.