Agro-Processing Support Scheme by the DTIC

posted in: Business Grants | 0

agro-processing support schemeThe Department of Trade Industry and Competition (the DTIC) has made available the Agro-Processing Support Scheme for beneficiation enterprises for manufacturers of furniture and fibre, and producers of fertilisers and feed.

The Agro-Processing Support Scheme offers a 20-30% cost-sharing grant to a maximum of R20 million over a two-year investment period, with a last claim to be made 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.

agro-processing support scheme The objectives of the Agro-Processing Support Scheme are to increase capacity, create employment, modernise machinery and equipment, improve competitiveness and productivity, and broaden participation.

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 of 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 brought and taken into commercial costs and competitiveness improvements costs incurred before applying for the incentive will be considered as non-qualifying.

Existing entities must submit their latest financial statements, reviewed by an independent external auditor or accredited person, not older than 18 months.

Agro-processing support scheme 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.

The minimum qualifying investment size, including competitiveness improvement cost, will be at least R1 million.

Contact us for assistance with qualifying for the Agro-Processing Support Scheme provided by The Department of Trade Industry and Competition (the DTIC).