The Ministry of Energy, Commerce, and Industry has successfully secured a funding of €245 million for the upcoming programming period stretching until 2027. This fund is earmarked for supporting businesses through meticulously devised grant programs. The primary aim is to maximally tap into various European Funds including the Recovery and Resilience Fund, shared Energy Minister George Papanastasiou at the General Electoral Assembly of the Paphos Chamber of Commerce and Industry.

Minister Papanastasiou outlined that these projects are tailored to nurture young entrepreneurship, amplify competitiveness, and promote energy efficiency among small and medium-sized enterprises. Additionally, they will facilitate digital transformation, endorse circular economy initiatives, fortify large enterprises, and support the modernization and establishment of units specializing in the processing and marketing of agricultural products.

Furthermore, an additional €120 million is set to be disbursed through the “Save and Upgrade” initiative targeting housing, which indirectly is a lever to spur entrepreneurship. In a bid to curtail consumer energy expenditure, the Ministry has unveiled grant schemes via the Renewable Energy Sources and Energy Conservation Fund, boasting a cumulative budget surpassing €80 million for 2022 and 2023.

The Minister revealed that the fund now meticulously reviews over 2,000 applications monthly. Specifically in Paphos district, over 1,000 households reaped the benefits of the fund's schemes in 2022, a figure projected to double this year courtesy of enhanced incentives.

On the topic of industrial areas and zones in Paphos district, Minister Papanastasiou mentioned ongoing efforts to address enduring issues by fostering infrastructure modernization, project upgrades, and sanitation endeavors in collaboration with local authorities. A notable mention was the forthcoming bridge project linking Mesogi Industrial Area to Tremithousa Industrial Zone, spearheaded by the Ministry alongside the Department of Public Works, slated to kick off in 2024 and conclude in 2025, with an allocated budget of €2 million.

In his remarks, the re-elected president of the Paphos Chamber of Commerce and Industry, George Mais, emphasized the necessity of collaborative efforts among the government, parliament, productive classes, and trade union movement to navigate through global political and economic challenges. He acknowledged the significant growth witnessed in Paphos during 2022 and 2023, particularly in the tourism sector, buoyed by investments chiefly in the real estate domain.

Mais also highlighted that Paphos magnetizes approximately 39% of the total tourist influx annually, with a significant number originating from the UK, Central European nations, Greece, and Israel. He expressed optimism for an uptick in visitors from Scandinavian countries and emerging markets such as Poland, Austria, Baltic nations, and Middle Eastern countries, underscoring the promising prospects lying ahead.

Furthermore, George Mais, has called upon the government to bolster entrepreneurship in light of the challenges faced by the Paphos business community, exacerbated by the war in Ukraine and developments in the Middle East.

According to Mais, these challenges are rooted in global economic uncertainty, inflationary pressures, high interest rates, and a lack of decisive action by the political system to implement necessary reforms. He expressed that businesses are in a precarious position, which needs to be acknowledged as it threatens the overall economy of the region.

Mais emphasized the need for the government to take concrete steps such as providing incentives (tax, planning, and others) to encourage business operations, mergers, and restructuring of companies. Additionally, he urged for improvements in the business environment by reducing bureaucracy and implementing essential institutional reforms, including expedited justice among others.

He also pointed out that the banking system is not conducive for businesses. Besides the high interest rates imposed by banks, they have significantly increased their other charges, becoming very stringent in responding to financing requests and providing liquidity to businesses, he noted.

The Paphos Chamber of Commerce president called on the government to address these distortions in these three sectors and strive to rectify them. He stressed that it's untenable for businesses to face excessive state bureaucracy and system inadequacy daily, on top of the significant risks they undertake.

Solutions need to be found here and now, as entrepreneurship is being shaken and tormented on a daily basis, Mais concluded.