Agro-Processing Support Scheme

The Objectives of the Agro Processing Support Scheme:

The objective of the Agro Processing Support Scheme is to stimulate investment by South African agro-processing/beneficiation (agri-business) enterprises. The investment should demonstrate that it will achieve some of the following:

• Increased capacity,
• Employment creation,
• Modernised machinery and equipment
• Competitiveness and productivity improvement,
• Broadening participation.

Qualifying Processes/Projects

New and existing agro-processing/beneficiation projects. This can also involve a wide range of processing or beneficiation activities of post-harvest, that result in value addition and/or enhanced storage life, such as cleaning, sorting, grading, waxing, controlled ripening, labelling, packing & packaging, warehousing, canning, freezing, freeze drying, wood carving, extrusion, synthesizing, polymerisation, and various levels of processing that change agricultural product form. In the forestry value-chain may also include sawing, pulping, peeling and preservation.

The Scheme will be targeted at five (5) key identified sub-sectors (focus areas) as follows:

• Food and beverage value addition and processing (including Black winemakers);
• Furniture manufacturing;
• Fibre processing;
• Feed production; and
• Fertilizer production.

Interpretation of the focus areas within each sector will be at the discretion of the dti. Agro-processing/beneficiation activities will be considered based on economic impact in terms of job creation, geographic spread and strengthening supply chains.

Mandatory Conditions

The applicants must:

• Be a registered legal entity in South Africa in terms of the Companies Act, 1973 (as amended) or the Companies Act, 2008 (as amended); the Close Corporations Act, 1984 (as amended) or the Co-operatives Act, 2005 (as amended).
• Be a taxpayer in good standing.
• Be involved in starting a new Agro-processing/beneficiation1 operation or in expanding or upgrading an existing Agro-processing/beneficiation operation.
• Be B-BBEE compliant in terms of the B-BBEE codes (achieve level 1 to level 4) and submit a valid B-BBEE certificate of compliance or affidavit.
• Undertake an investment project which should result in retaining and creating direct employment.
• Indicate that the project will be able to boost the local capacity of identified product(s); or where possible prospects of export orientation.
• Adhere to sectorial minimum wage and legislative requirements governing the sector.
• Demonstrate that at least 50% of the inputs (raw materials) will be sourced from South African suppliers and that at least 30% of the inputs will be sourced from Black South African suppliers in particular.
• Where inputs cannot be sourced locally and from Black suppliers, applicants must provide a motivation including a sourcing plan to adhere to 4.1.8 within 2 years.
• Commencement date of the project or activities applied for must take place within 90 calendar days after the application has been approved.

Going forward, incentive and Dream Team Capital can play an even more important role in the co-ordination, integration and reporting on the consolidated performance of the various fragmented energy efficiency initiatives in the country. Contact us today for professional assistance in streamlining your application for the Agro Processing Support Scheme.