Cyprus is recording one of the strongest growth rates in Europe, driven by the resilience and initiatives of its business community, according to Energy Minister George Papanastasiou.
Addressing the annual assembly of the Larnaca Chamber of Commerce (Evel), Papanastasiou praised the city’s transformation into a significant investment hub following the relocation of oil, gas, and bitumen facilities from its seafront.
“We have moved to the era when the Larnaca seafront, in the area of the former refineries, is the new emerging investment hub of Cyprus, with developments worth hundreds of millions of euros in the pipeline,” he said.
The minister attributed this progress to strong cooperation between the government, local authorities, and the business community.
“The government, local authorities and, of course, the active business community of Larnaca, have as a common goal and effort the transition of the province to sustainable development and a local economy that is green, digital and prosperous,” he said.
Efforts to restore the former refinery site are also advancing, with completion expected by July 2027.
“It has taken the necessary steps to begin the environmental restoration of its land, with the implementation horizon of July 2027, aiming to create a clean and environmentally friendly space that can be used for the benefit of the community,” Papanastasiou noted.
Papanastasiou also drew attention to national energy projects, including developments at the Vasilikos Energy Centre, supported by the European Investment Bank.
“We are currently in the process of developing the management framework for the Vasilikos Energy Centre,” he said, adding that “a comprehensive governance model is expected to be completed by 2025 to ensure its smooth and secure operation.”
In addition, the Organisation for the Storage and Management of Oil Stocks (Kodap) is pressing ahead with plans to design, construct, and operate a fire suppression system at the energy centre.
“The project will start within the next few days, with funding from the state budget,” he said.
Turning to economic performance, the minister emphasised the resilience of Cyprus’ economy and its capacity to overcome challenges.
“It is through their hard work and their initiatives, the business community of Cyprus, that the Cypriot economy, despite all the challenges, currently has one of the strongest growth rates in Europe,” he stated.
Official figures showed domestic exports increased by 4 per cent in the first seven months of 2024, reaching €1.22 billion compared to €1.18 billion during the same period last year.
“Official figures for January – July 2024 show a 4 per cent increase, reaching €1.22 billion from €1.18 billion,” Papanastasiou said.
To boost the visibility of Cypriot products and services abroad, the government is developing a National Visual Identity.
“With the ‘Cyprus Made’ logo at the forefront, the use of this new Visual Identity will initially apply to industrial and agricultural and processed agricultural products, as well as Cypriot handicrafts, while at a later stage it may be extended to the service sector,” he explained.
The minister also outlined grant schemes totalling €363 million to support small and medium-sized enterprises.
“We provide incentives for investments related to enhancing competitiveness and energy saving for small and medium enterprises,” the minister said.
He added that the schemes also aim to support larger enterprises.
“This includes digital upgrading of enterprises, strengthening large enterprises, and the modernisation or creation of units engaged in the processing or marketing of agricultural products,” Papanastasiou mentioned.
Papanastasiou concluded by calling for targeted collaboration to sustain Cyprus’ economic momentum.
“In order to face the challenges and take advantage of any opportunities that arise, we need to work in a targeted manner to make the most of the knowledge and experience of our commercial and industrial world, for the benefit of the local community of Larnaca and our Cyprus in general,” he concluded.
