Recently, the Finance Minister, Makis Keravnos, expressed his concern over the current account deficit and emphasized the urgency of addressing this issue.

To tackle this, the Minister gathered Cypriot industrialists and craftsmen to discuss their needs for increased investment and changes required to attract more foreign investors to Cyprus, aiming to boost domestic production.

Brief contacted the two federations of manufacturers, OEB and CCCI, recording their positions on the challenges they face, and the changes needed to improve and strengthen the business climate in Cyprus.

The concerns of both organizations align in terms of worries arising from geopolitical developments and the need for rectifications to create a more attractive business environment.

1. A Better Ecosystem

Both organizations agree that the first priority for any business is sustainability. They highlight the need to create a proper ecosystem that enables businesses to be sustainable and reinvest.

2. Streamlining the Hiring Process from Third Countries

One of the biggest current challenges for businesses, as they have long stated, is finding specialized and unskilled personnel. They request a differentiation in the processes for hiring staff from third countries to make them easier and faster.

3. Tax and Financial Incentives

Another area for improvement, according to OEB and CCCI are incentives for businesses. They suggest that the government could offer tax exemptions and subsidies to aid sustainability, reduce risk, and facilitate reinvestment.

4. Reducing Bureaucracy and Administrative Stress

A significant issue listed by the organizations is the delay in licensing and other approvals due to bureaucratic processes. Tied to bureaucracy is the administrative stress businesses face. They call for the simplification of the myriad regulations and different rules that businesses must follow.

5. Addressing Energy Costs and Borrowing

OEB and CCCI point out that two of the biggest problems facing businesses that need addressing are energy costs and high borrowing costs. They recommend initiatives to help businesses become less dependent on fossil fuels and to tackle the high cost of borrowing, which adds additional costs and financing issues.

6. A Clearer Investment Environment

Finally, OEB and CCCI agree that the investment environment needs to be clearer and more straightforward. They stress the importance of implementing announced reforms on schedule, as potential and existing investors need to know the changes in the business environment over time.