The Agro-Processing Support Scheme is a cost-sharing grant for businesses that turn agricultural products into higher-value goods. It pays for part of the equipment, vehicles and buildings a processing expansion needs, which makes it one of the few incentives built around the capital costs that hold small processors back.
Which businesses it targets
The Department of Trade, Industry and Competition focuses the scheme on six sub-sectors:
- Food and beverage processing and value addition
- Furniture manufacturing
- Fibre processing
- Feed production
- Fertiliser production
- Essential oil production
It supports both new facilities and expansions of existing ones. The dtic relaunched the scheme in late 2022 to make it easier to access, after complaints that the original guidelines, including a R1 million minimum investment, were too onerous for smaller processors.
How much the grant is worth
The scheme offers a 20% to 30% cost-sharing grant, capped at R20 million, over a two-year investment period. The dtic may add a further 10% for projects that meet all its economic benefit criteria: employment, transformation, geographic spread and local procurement.
That extra 10% is worth designing for. A processor that locates outside the main metros, buys local inputs and adds jobs can materially improve its grant simply by building those outcomes into the project plan.
What it pays for, and what it does not
Qualifying investments include new machinery and equipment, commercial vehicles, buildings and competitiveness improvement costs such as certification and quality systems.
It does not fund working capital, salaries or existing debt, and costs you incur before submitting your application do not qualify. If your real problem is cash flow rather than equipment, this is the wrong instrument. A working capital loan is usually the better fit.
The conditions that come with the grant
An approved business may not reduce its average employment level from the 12 months before it applied, and must keep that level for the full incentive period. Existing businesses must also provide financial statements reviewed by an independent external auditor or accredited person, not older than 18 months.
If your project is a strong fit, our step-by-step guide on how to apply for the Agro-Processing Support Scheme covers the application itself, and our list of agro-processing business ideas is a useful starting point if you are still choosing a product.
Frequently asked questions
How much funding does the Agro-Processing Support Scheme offer?
A 20% to 30% cost-sharing grant capped at R20 million over two years, with a possible additional 10% for projects meeting all economic benefit criteria.
Which sectors qualify?
Food and beverage processing, furniture manufacturing, fibre processing, feed production, fertiliser production and essential oil production.
Does it cover working capital?
No. It funds capital items such as machinery, equipment, commercial vehicles and buildings, not working capital, salaries or existing debt.
Can I claim costs I have already paid?
No. Costs incurred before you submit your application do not qualify.
Do I have to keep my staff numbers up?
Yes. You may not reduce average employment below the level of the 12 months before you applied, for the full incentive period.
Originally published in May 2018. Updated September 2026.
