Cyprus an Important Investment Destination

The relations between Cyprus and Germany are getting stronger by the day affirms German Ambassador to Cyprus Nikolai von Schoepff. He claims that the most prominent sector in the local economy is the shipping industry in Limassol, while also noting the significant operations of several companies operating in the fields of trade, tourism, and renewable energy. Furthermore, he notes that the Embassy is receiving requests for assistance by German companies on issues as regards administrative procedures.

How would you describe the bilateral relations between Cyprus and Germany?
The relations between Cyprus and Germany are excellent and are getting stronger day by day. Cyprus and Germany are close partners. We are members of the European Union. We are members of the Eurogroup. We are both committed to European integration. The good relationship became particularly apparent during President Anastasiades’ visit to Berlin and Hamburg in Mai 2014. He was received as a friend by Chancellor Merkel and press coverage was overwhelmingly positive. My last visit with the two Presidents of the Chambers of Commerce, President Pilides and President Toros, in June to Germany has also been extremely successful.

How might bilateral relations and trade cooperation between the countries be enhanced?
On the one hand the political cooperation between our countries is steadily enhanced. Besides this, we do also put clearly focus our efforts on enhancing business cooperation and even deeper sustainable relations in this area. We see Cyprus as an important investment destination both for the island itself and for whole the region. To this end we are conducting a series of activities with the Cyprus Chamber of Commerce and Industry and at the same time do jointly prepare future cooperation in the framework of the Cyprus – German Business Association.

Will you spearhead new initiatives to this end?
We have launched the first Cypriot – German Business Day of the economic division of the German Embassy end of May. Following this, I jointly travelled to a number of German Chambers of Trade and Industry with the Presidents of the Cypriot Chambers of Commerce in order to promote bilateral business ties. In future we will increasingly try to bring German business delegations to Cyprus to evaluate business options. We are convinced that there is strong political support in both of our countries to deepen business activities which will help a lot of course. The German Embassy is - jointly with Cypriot stakeholders - also involved in practical assistance and overcoming obstacles of German companies with their business endeavours in Cyprus.

What types of German businesses are currently operating on the island? 
Currently the most prominent sector is the shipping industry in Limassol. Most of the ship management companies operating on the island are indeed of German origin and do have German or German – Cypriot management structures. This sector accounts for 7 – 8 % of the island’s GDP. Besides this we do have a number of companies operating in trade, for instance we have wholesale chains and car sale franchising companies in Cypriot ownership. In the area of tourism we are active via our tour operators and do also have management activities and investments in hotels. And we are glad to see that German companies increasingly involve themselves in the sector of renewable energy. This goes for photovoltaics as well as for wind energy. Given the wide scope and variety of the German economy we can imagine other sectors of cooperation as well in future.

What must the local Government do in order to encourage new German businesses to establish operations on the island?
Generally, the creation of a positive investment climate on the island is of great importance. In this respect a large part is already envisaged by the implementation of the structural reform measures foreseen in the MoU between Cyprus and its international lenders and the prospect of upcoming privatisations. However, sometimes we receive requests for assistance by German companies regarding issues with administrative procedures. It would be helpful in such cases if we could find – jointly with Cypriot stakeholders and authorities – fast and practical tailor-made solutions. This would certainly facilitate economic activities of German companies in Cyprus and therefore be of mutual benefit to both our countries. Additionally we have to promote all the advantages of Cyprus as a business hub in the Eastern Mediterranean an especially in Germany.

What initiatives or schemes may be implemented so as to increase tourist traffic between Cyprus and Germany?
One of the major issues in tourist traffic is certainly the accessibility of the island by German tourists. Besides this, in my view, it is important to always keep an eye on the competitiveness and diversity of the sector compared to other destinations. German tourists in general expect good value for money. Some more of them would certainly be interested in visiting Cyprus during off-peak seasons as there are a variety of suitable offers which include specific activities. Therefore the diversification of the tourism product is certainly important. We also hope that Cypriots are increasingly interested in Germany as a tourist destination and do cordially invite everyone to visit our country. Experience shows that this further deepens friendship and mutual understanding between our countries. We are glad to see many Cypriots who have been travelling to Germany feeling even closer to our country afterwards.