Department of Trade and Industry's Critical Infrastructure Program

12 October 2018

Dear Client

Do you know about the Department of Trade and Industry's Critical Infrastructure Program?

This program, known as the CIP is not new at all, but these days it attracts more interest. Farmers planning further development find it especially attractive, but actually it is available to almost every form of commercial business.

If you are looking to establish a new productive asset such as for instance, an orchard, a pack house or a processing plant, for which bulk infrastructure at substantial cost is required, then this program could be a saving grace! It offers a subsidy of between 15% and 50% on the cost of critical infrastructure in situations like that.

Examples of typical infrastructure costs are, bringing energy or water to the new development, developing a dam or drilling a borehole, paving or tarring of an access road. Note however, that the cost of the development itself, e.g. new orchard, pack house or factory, is not subsidised by the CIP; just the required infrastructure.

The CIP emphasises the potential benefits and spin-offs of the new infrastructure would bring, not only to the applicant but to other businesses and the community. It is on this point that your application might or might not persuade the authorities of the merit of supporting you. There are various ways to structure and to motivate your project for success and it does require careful planning and even innovation.

The CIP does not attract large numbers of applications and its budget is also not under pressure, all of which makes it a more attractive proposition.


A second important program is the Agri-processing Support Scheme ("APSS") which was reopened this past week. It is now open for applications until 31 March 2019.

This program is aimed at value added processing. In other words, it does not support primary agriculture.

APSS offers a subsidy of 20% to 30% on new production equipment, -buildings and -vehicles, for use in e.g. a new pack house, a juice factory, etc. Only the following types of activity are eligible.

  • Processing of Food and Beverage (In the case of wine cellars only "black winemakers" qualify).
  • Furniture manufacturing
  • Processing of fibre
  • Feed production
  • Fertiliser production

The APSS not only requires that the applicant has a Level 4 BEE certificate; it also requires that the processing plant must source 30% of its raw materials from black producers.

NEXT STEP

You are welcome to discuss your plans with us. We do not charge for that and we will confirm our opinion in a letter of advice, also free of charge.

Feel free to contact me or call our office and ask to speak to a specialist. 021 939 7496.

Yours sincerely



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