The 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.
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.
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).