The Agro-processing Support Scheme incentive scheme is a R1-billion cost-sharing grant fund designed to boost investments in new and existing agro-processing projects.
The Objectives of the Agro-processing Support Scheme:
The investment should demonstrate that it will achieve some of the following:
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Increased capacity,
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Employment creation,
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Modernised machinery and equipment,
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Competitiveness and productivity improvement,
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Broadening participation.
Qualifying Sectors
The scheme targets food and beverage value addition and processing (including black winemakers), furniture manufacturing, fibre processing, feed production, and fertiliser production.
Grant Offering
The scheme offers a twenty percent (20%) up to a thirty percent (30%) cost sharing grant to a maximum of twenty million rand (R20 million) over a two (2) year investment period, with a last claim to be submitted within six (6) months after the final approved milestone.
Benefits
The scheme offers support on a cost-sharing basis towards:
New Machinery and Equipment
- New machinery and equipment (owned or capitalised financial lease), tools, and forklifts, at cost and will also include green technology, energy and resource efficiency equipment.
Commercial Vehicles
- New commercial vehicles (owned or capitalised financial lease) are only eligible if such vehicles are to be used for commercial purposes linked to the production process. This includes vehicles such as collection, delivery and distribution vehicles.
- Commercial vehicles must be registered in the name of the applicant.
- Investments in commercial vehicles may not exceed 25% of the qualifying investment in machinery and equipment, up to a maximum grant amount of two million rand (R2 million).
Buildings
- The investment in buildings must not exceed the qualifying investment in machinery, equipment and tools and is limited to a maximum grant amount of two million rand (R2 million).
Competitiveness Improvement Costs
- Competitiveness costs to a maximum of ten percent (10%) of the qualifying investment in machinery and equipment and limited to a maximum grant amount of two million rand (R2 million).
