The plan is designed to encourage investments in digital entrepreneurship and enhance the integration of digital technology in businesses. This initiative aligns with Cyprus’s strategic objectives outlined in the Recovery Plan and Resilience (SAA), aimed at accelerating the country’s digital transformation.
Financial support will be provided through sponsorships for eligible costs related to implementing and leveraging digital upgrades for both existing and new SMEs.
Key objectives of the plan include:
Facilitating the digital transformation of the Cypriot economy.
Promoting digital entrepreneurship.
Increasing the adoption of information and communication technologies, particularly in the e-commerce sector, among small and medium enterprises.
Strengthening the digital presence and identity of businesses.
Creating new opportunities for businesses through digital transformation.
Promoting advanced digital technologies such as artificial intelligence (AI), blockchain, cloud computing, and big data.
Funding for the plan is sourced from the Recovery and Resilience Plan (RSP) Cyprus for the 2021-2026 period. This funding will be provided by the European Union’s Recovery and Resilience Mechanism, which is a central component of NextGenerationEU—a temporary recovery financing instrument aimed at addressing the crisis caused by the COVID-19 pandemic.
The total allocation for the plan’s implementation, under Measure C3.3I4 of the SAA, is set at €10 million. However, in the current announcement for 2023, applications with a budget of up to €14 million will be accepted, although approvals will not surpass the available budget.
The intensity of the sponsorship amounts to 50% of the eligible budget of the proposal with a maximum sponsorship amount of €50,000 and can cover costs for equipment required for the digital upgrade, “off the shelf” software, specialized software, systems, programs and IT services , as well as other digital upgrade costs not directly related to IT systems.
In the case of companies that are established or will be established in mountainous and disadvantaged areas, the intensity of the sponsorship amounts to 60% of the eligible budget of the proposal with a maximum sponsorship amount of €60,000.
Source: https://meci.gov.cy/assets/modules/wnp/articles/202302/590/docs/odigospsifiaki_anavasmisi2.pdf