Agro-Processing Support Scheme (APSS)

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The Agro-Processing Support Scheme (APSS) aims to stimulate investment by the South African agro-processing / beneficiation (agri-business) enterprises. The Agro-Processing Support Scheme (APSS) provides up to R20million in grant funding on a cost-sharing basis to eligible agro-processors. Agro-processing refers to post-harvest value adding of agricultural raw material. This fund is not applicable to the growing and harvesting of the raw crop or animals.

The investment should demonstrate that it will achieve some of the following:

  • Increased capacity
  • employment creation
  • modernised machinery and equipment
  • competitiveness and productivity improvement and broadening participation.

Benefits

  • The scheme offers a 20% to a 30% cost-sharing grant to a maximum of R20 million over a two-year investment period, with a last claim to be submitted within six months after the final approved milestone.
  • the dtic may consider an additional 10% grant for projects that meet all economic benefit criteria such as employment, transformation, geographic spread and local procurement.
  • The maximum approved grant may be utilised on a combination of investment costs provided the applicant illustrates a sound business case for the proposed investment activities.

Eligibility criteria

  • An applicant must submit a completed application form and business plan with detailed agro-processing/beneficiation activities, budget plans and projected income statement and balance sheet, for a period of at least three years for the project. The project/business must exhibit economic merit in terms of sustainability.
  • The application must be submitted within the designated application window period, prior to start of processing/beneficiation or undertaking activities being applied for. Any assets bought and taken into commercial use or competitiveness improvements costs incurred before applying for the incentive will be considered as non-qualifying.
  • For existing entities, submit latest financial statements, reviewed by an independent external auditor or accredited person, not older than 18 months.
  • The approved entity may not reduce its employment levels from the average employment levels for a 12-month period prior to the date of application, and these employment levels should be maintained for the duration of the incentive period/ agreement.
  • Minimum qualifying investment size, including competitiveness improvement cost, will be at least R1 million.