At a time when many companies are looking for funding, in their effort to either expand, modernize, or even proceed to the next stage of the green transition, the plans of the Department of Industry and Technology of the Ministry of Energy, Trade and Industry come to provide a fairly attractive solution, or at least an interesting alternative.
Having supported at least 6,000 businesses since 2014 and contributing an amount of €156 million in the form of grants, the Agency for Industry and Technology continues its work and announces new plans for businesses, which are related to their digital or other upgrade, energy saving and investments in manufacturing.
In an interview with "F", the Deputy Director of the Industry and Technology Service, Themis Papasolomotos, refers to the plans that are currently running and those that will be announced soon.
First of all, we would like you to tell us what are the main objectives of the Agency for Industry and Technology?
The main objectives of the Service are to encourage and strengthen entrepreneurship and to improve the competitiveness of Cypriot businesses. Our concern is to listen to the needs of businesses and, through our actions and the implementation of targeted interventions, to support their efforts, aiming to enhance the competitiveness and entrepreneurship of the Cypriot economy.
To what extent do Cypriot companies make use of the sponsorship schemes implemented by the Service?
The response of businesses is great. From 2014 until today, about six thousand (6,000) businesses have been supported at least once by Projects announced by the Service, with the total amount of sponsorships amounting to €156 million. These figures prove the catalytic role that the Service plays in strengthening and empowering businesses.
What are the sponsorship schemes that are open for applications and which are expected to open soon?
Open for submission of applications until the end of May is the Plan "Save – Upgrade in Small and Medium-sized Enterprises and Non-Profit Organizations".
On May 20, the submission of applications for the "Digital Upgrading of Enterprises" Plan will begin. Within the second half of 2025, the "Sponsorship Scheme for Investments in the Processing and/or Marketing of Agricultural Products" is expected to be announced.
What are the objectives of the above-mentioned Plans?
So, let's take the plans in order:
(a) "Save – Upgrade in Small and Medium-sized Enterprises and Non-Profit Organizations": With a total budget of €24 million, this Plan aims to promote energy-saving investments in buildings and facilities owned and/or used by small and medium-sized enterprises and non-profit organizations, which will bring about energy savings of at least 35%. New or existing small and medium-sized enterprises of all economic sectors, as well as non-profit organizations that do not engage in economic activity, have the right to apply.
The aid intensity amounts to 40% of the eligible costs of each application. Beneficiaries that fall under the Non-Profit Organizations, as well as Small and Medium-sized Enterprises that will implement investments in mountainous and disadvantaged areas, may receive an increased percentage of sponsorship and, specifically, 60% of the eligible costs. The maximum amount of sponsorship that can be granted is €300,000.
(b) "Digital Business Upgrade" Plan: With a total budget of €14 million, this Plan aims to encourage investments in the digital technology sector. The Plan is addressed to existing small and medium-sized enterprises (SMEs), which intend to implement digital upgrade expenditures (including e-commerce), as well as to new SMEs, whose investment proposal necessarily includes e-commerce and/or implementation and substantial utilization of advanced digital technologies.
The intensity of the sponsorship amounts to 50% of the eligible budget of the proposal, with a maximum sponsorship amount of €50,000. In the case of companies that are or will be established in mountainous and disadvantaged areas, the sponsorship intensity amounts to 70% of the eligible budget of the proposal, with a maximum sponsorship amount of €70,000.
(c) "Sponsorship Scheme for Investments in the Processing and/or Marketing of Agricultural Products": With a total budget of €10 million, the Scheme, which is still under consultation, aims to support existing and new Small and Medium and Large Enterprises, which are or will be active in the processing and/or marketing of agricultural products.
The amount of the sponsorship will amount to 50% of the eligible costs, for all categories of beneficiaries, with a maximum amount of €400,000 for the category of small, medium and large enterprises and up to €200,000 for micro-enterprises. In the case of micro-enterprises, which are or will be located in mountainous and disadvantaged areas, the amount of the sponsorship will amount to 60% of the eligible costs and the maximum amount of sponsorship will reach €300,000.
Where can any interested companies get more information and guidance on the Projects?
They can obtain all relevant information through the website of the Agency for Industry and Technology (https://www.industry.gov.cy/gr/). The Guides of the Projects are posted on the website, in which all the details are recorded as well as the Model Application Form, the List of Required Supporting Documents and any other required form or document.
What would you advise interested parties to do before submitting their application?
A basic prerequisite is for interested parties to study the Project Guides very carefully and to understand the provisions and procedure and to apply only when their investment proposals are mature. It is understood that before submitting the application, they must possess all the necessary supporting documents.
Having covered the existing Sponsorship Schemes, what are the medium and long-term objectives of the Service?
With the announcement and evaluation of the above-mentioned Sponsorship Schemes, we are reaching the end of the 2021 – 2027 programming period, in the framework of which thousands of businesses have received or will receive sponsorships. It is therefore imperative to carry out an in-depth evaluation of the interventions that have been implemented in recent years, in order to ascertain their real impact, their footprint if you like, on businesses and by extension on the country's economy. For this very reason, we have already wheeled out the conduct of an Impact Study for all the Agency's Plans.
With regard to the planning of new interventions by the Service, we should emphasize that the new Plans will assimilate the necessity of digital transformation and the protection of the environment. The ultimate goal is to achieve a green and digitally upgraded domestic industry. Twins, as they are often called, these transitions are directly related to competitiveness as well. After all, all relevant reports by international organizations indicate that a competitive economy implies having achieved a high degree of digital and green transition. In addition, the reduction of bureaucracy and the simplification of procedures are high among our priorities for the new interventions, in order to further facilitate business activity.
In conclusion, I would like to emphasize that, as a Service, we recognize the weight of our responsibility towards the commercial and industrial world of our country. Our purpose is to provide practical support and facilitate business in fulfilling its role and maximizing its contribution to the economy of our country. Keeping the cooperation with all business stakeholders at the center, we will continue to work methodically to strengthen entrepreneurship and improve the competitiveness of Cypriot businesses.
