The Aquaculture Development and Enhancement Programme, (ADEP) is an investment based cash incentive program available to those companies engaged in primary, secondary and ancillary aquaculture activities.
Qualifying Costs
The investment in qualifying owned land and/or buildings must constitute land and/or buildings at cost, acquired for the purpose of the aquaculture project(s) and must be owned by the applicant. The land and/or building costs must be directly associated with the purchase, renovation, or construction of an aquaculture facility for the investment project under consideration and be located on land or sea area that has been zoned for aquaculture commercial, industrial or mixed use. Expenditure incurred before the 1 April 2019 will not qualify.
Incentive Payment / Disbursement
The incentive is disbursed over two (2) payment periods based on a contract period, subject to the approved applicant meeting all the requirements of the economic benefit criteria and performance requirements.
Non-Qualifying Costs
- Operational costs, i.e. electricity, salaries, etc.
- Costs related to non-cultured fishing activities such as catching or harvesting of species from their natural habitat.
- Administration offices, change rooms and human resource offices.
- Operational costs, i.e. electricity, salaries, etc.
- Costs related to non-cultured fishing activities such as catching or harvesting of species from their natural habitat.
- Administration offices, change rooms and human resource offices.
- Second-hand (previously used) assets
- Hydroponic (plant & vegetables) portion of any production facility.
Benefits
Aquaculture Development and Enhancement Programme contribution is up to 50% (capped at R20m) of qualifying costs for new, upgrading or expanding projects, in:
- Machinery, equipment and tools;
- Bulk infrastructure (only in water & electrical infrastructure):
- Owned land (only applicable to small black enterprises);
- Buildings (ponds, cages, tanks, etc.);
- Leasehold improvements, capitalised in the balance sheet, where lease agreement is at least 10 years;
- Rental costs, (only for small black enterprises), capped at R20 000 per month and claimable at stage two only.
- Aquaculture feed, up to a maximum of 10% of total costs, (capped at 20% for small black enterprises)
- Commercial vehicles or work boats (owned or capitalised financial lease), not to exceed 50% of total qualifying costs;
- Competitiveness improvement activities (e.g. skills development) up to R500 000;
- Environmental impact assessments (EIA) and permits authorisation and costs (only for small Black enterprises).
- Mentorship (only or small enterprises), up to R200 per hour, 8 hours per day capped at R200 000 per approved project or application.
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 Aquaculture Development and Enhancement Programme initiative.
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