A New program has just been released and is open for applications

24 May 2017

Dear Clients, Associates and Colleagues

The program, Agro-Processing Support Scheme (APSS) is applicable to activities that take place after harvesting of the product. It is apparent that this program is aimed at small to medium sized businesses. There are rumours that a more specialised program for large operators may be coming.

Salient features of the APSS
The following definition from the guidelines helps to understand the meaning of qualifying activities: Agro-processing/beneficiation entails changing the form of a product originating from agriculture, forestry and fisheries. The program covers the production of food and beverage, Furniture, Fibres, Feeds, Fertilizer, and also covers the cost of ripening, of packaging and of storage, as well as sawing (forestry), pulping, peeling and preservation.

New, as well as expansion projects are eligible and the grant varies between 20% and 30%, with a maximum grant of R20 million. Expenditure that will be subsidised includes, new equipment, commercial vehicles, own buildings, as well as costs to improve competitiveness. Assets already acquired do not qualify. Projects that have already started production are obviously also disqualified.

The challenge in this program lies in BEE certification (Level 4) and sourcing of raw materials from black suppliers (30%).

As with all new program guidelines, there are some anomalies. In this case it is around the timing of the project starting date and purchase date of assets. We are busy making enquiries to get clarity.

Please contact us if you are interested to apply or if you need more details.

Theo Meintjes
Petrus le Roux


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