An incentive scheme designed to boost investments in new and existing agro-processing projects has kicked off with a R1-billion cost-sharing grant fund in South Africa.

The Agro-processing Support Scheme (APSS) targets food and beverage value addition and processing (including black winemakers), fertiliser production and other sectors. It aims to increase capacity, create employment, boost competitiveness and contribute to transformation in these five sectors.

The Department of Trade and Industry has set aside R1 billion in this financial year to fund the scheme. It offers a 20% to 30% cost-sharing grant, to a maximum of R20 million, over a two-year investment period. The minimum investment value is R1 million.

“It’s clear which assets qualify as the incentive is industry-specific,” he says. “We expect the incentive to stimulate the creation of more local agriculture projects such as fruit and vegetable farms, which should also assist in transformation objectives,” Duane Newman, joint MD of Cova Advisory and head of the tax incentives committee of the South African Institute of Tax Professionals (Sait) said.

source: moneyweb.co.za