Agro-Processing Support Scheme(APSS)
The Agro-Processing Support Scheme(APSS) stimulates investment in South African agro-processing and beneficiation enterprises. It supports agri-businesses that add value to agricultural raw materials after harvest. However, the scheme does not fund the growing or harvesting of crops or livestock.
Through this initiative, government encourages expansion and long-term sustainability within the agro-processing sector. As a result, qualifying enterprises can strengthen operations and improve market competitiveness.
Purpose and Strategic Outcomes
The scheme promotes increased production capacity and sustainable employment creation. It also supports the acquisition of modern machinery and equipment. In addition, it drives competitiveness, productivity improvement and broader economic participation.
By focusing on value addition, the programme enhances industrial development within the agricultural value chain. Consequently, it contributes to inclusive growth and sector transformation.
Grant Structure and Financial Support
The scheme offers a cost-sharing grant of between 20% and 30% of qualifying investment costs. It provides funding up to a maximum of R20 million over a two-year investment period. Beneficiaries must submit their final claim within six months after reaching the last approved milestone.
Furthermore, the Department of Trade, Industry and Competition may award an additional 10% grant. Projects must meet specific economic benefit criteria, including employment creation, transformation, geographic spread and local procurement.
Applicants may allocate the approved grant across a combination of investment costs. However, they must present a strong and well-motivated business case for the proposed activities.
Eligibility criteria for the Agro-Processing Support Scheme(APSS)
Applicants must submit a completed application form and a detailed business plan. The plan must outline beneficiation activities, budget projections and financial forecasts. It must also include projected income statements and balance sheets for at least three years. In addition, the project must demonstrate clear economic merit and long-term sustainability.
Applicants must submit their applications during the designated application window. They must apply before commencing processing or undertaking any related activities. The scheme does not recognise assets purchased or competitiveness improvement costs incurred before application submission.
Existing entities must provide their latest financial statements. An independent external auditor or accredited professional must review these statements. Furthermore, the statements may not be older than 18 months at the time of application.
Approved entities must maintain their employment levels. Specifically, they may not reduce staff numbers below the average employment level recorded during the 12 months prior to application. They must sustain these levels for the full duration of the incentive agreement.
Finally, the minimum qualifying investment, including competitiveness improvement costs, must amount to at least R1 million.
Contact Dream Team Capital for assistance with your APSS Application