President Nikos Christodoulides this week said that Cyprus’ industrial sector’s “vast potential” has yet to be fully exploited.
Speaking at the official dinner of the Agios Athanasios Industrialists’ Association in Limassol on Tuesday evening, Christodoulides said that the government is revising its industrial policy, focusing on internationalisation and expanding Cyprus’ industrial presence abroad.
Addressing attendees, including Transport Minister Alexis Vafeades, the president urged the swift implementation of a longstanding request from industrialists for a second entrance and exit to the industrial area.
“When it comes to safety issues, no delay is acceptable,” he stated.
Moreover, he reflected on the history of the Agios Athanasios industrial area, established in 1978 during Cyprus’ post-invasion reconstruction.
“The Agios Athanasios industrial area has been and continues to be a significant growth driver, not only for Limassol but for all of Cyprus,” he stated.
“It has hosted and continues to host a substantial number of businesses that play a decisive role in our economy’s competitiveness,” he added.
Reaffirming the government’s recognition of the sector’s contribution, he explained that “my presence here, along with the Transport Minister, is a testament to our appreciation of your role in economic development”.
He noted that “this is the result of our government’s responsible fiscal policy, but also of your ongoing efforts, of which we are proud”.
His speech also mentioned that since the industrial area’s inception, approximately €3 million has been spent on infrastructure maintenance.
Looking ahead, he announced plans for further road resurfacing in 2025, in collaboration with the local municipality of Amathous.
Christodoulides also underscored the importance of public-private cooperation. “Only through collaboration between the public and private sectors can we achieve further growth and effectively address challenges,” he said.
Key challenges in the industry today, he continued, include enhancing competitiveness and exports, improving access to finance, linking the services sector with industry, aligning education with economic needs, reducing production costs, and leveraging digitalisation.
To tackle these, he said, the government is “strategically utilising European and national funds for grant schemes”.
“For the 2021-2027 period, €226 million has been secured under the Thaleia programme, alongside €137 million from the Recovery and Resilience Mechanism,” he pointed out.
These funding schemes, the president explained, aim to support entrepreneurship, industrial innovation, manufacturing development, and the digital and energy transformation of businesses.
Beyond European funding, Christodoulides acknowledged the ever-evolving economic landscape and the need for an updated industrial policy.
“The data clearly show the necessity for a comprehensive strategy to boost industrial production and enhance the global competitiveness of Cypriot industries,” he said.
“In this context, we are focusing on the internationalisation of Cypriot industry – there are vast opportunities we have not yet fully utilised – and expanding the global presence of Cypriot industries, particularly those with increasing export trends,” he added.
The president mentioned that a policy document outlining this approach has been drafted and publicly consulted on.
Consequently, the “relevant ministry is now incorporating suggestions to develop a new action plan” aimed at further supporting Cypriot industrial products and ensuring sustainable economic growth.
Additionally, he announced progress on Cyprus’ tax reform, with proposals to be presented at a special event at the Presidential Palace on Wednesday.
“These proposals aim to strengthen the competitiveness of Cypriot businesses,” he stated.
“You will hear news that moves in the right direction, particularly regarding tax reductions for Cypriot enterprises,” he added.
Christodoulides also congratulated the board of the Agios Athanasios Industrialists’ Association and assured them of the government’s commitment.
“We see you as partners, as companions on this journey, and we are always available to collaborate and address any challenges together,” he concluded.