The Agro-Processing Support Scheme is a cost-sharing grant for businesses that process agricultural products into food, beverages and related goods. It reimburses an approved share of qualifying capital spend rather than paying the full cost, which means you must be able to fund your own portion, often upfront.
It is administered through the national trade and industry department, and applications open in defined windows.
What it funds and what it does not
Processing machinery and equipment, and buildings and infrastructure directly used in processing. In some cases competitiveness improvements such as certification or quality systems also qualify.
It does not fund working capital, salaries, existing debt or buying a going concern. If your need is cash flow rather than equipment, this is the wrong scheme, and applying wastes the window.
Who qualifies
South African registered entities in agro-processing, with current annual returns at the Companies and Intellectual Property Commission, tax compliance, and financial statements appropriate to the size of the business.
Assessment also looks at employment created, transformation, and whether the project genuinely expands processing capacity rather than replacing existing equipment.
Why applications fail
Incomplete documentation is the most common cause: missing financial statements, missing equipment quotations, or compliance that lapsed between preparing the application and submitting it.
Apply within the window, submit complete, and confirm current criteria with the Department of Trade, Industry and Competition rather than an older summary, since incentive terms are revised between cycles.
Plan for the cash requirement
Cost-sharing means you contribute a defined share, and in many cases you must fund the full purchase upfront with the grant portion reimbursed afterwards.
Businesses that win approval and cannot fund their share lose the approval. Free help preparing an application to standard is available through the Small Enterprise Development and Finance Agency.
Frequently asked questions
What does the Agro-Processing Support Scheme fund?
Capital expenditure: processing machinery, equipment and directly related buildings and infrastructure.
Does it cover working capital?
No. It excludes working capital, salaries, existing debt and buying a going concern.
Who can apply?
Registered South African agro-processing businesses with current annual returns, tax compliance and appropriate financial statements.
Why are applications rejected?
Incomplete documentation, usually missing financial statements or equipment quotations, and compliance that lapsed before submission.
Do I need to fund anything myself?
Yes. It is cost-sharing, and you often fund the full purchase upfront with the grant portion reimbursed afterwards.
Further reading
Originally published in May 2018. Updated September 2026 to explain how the Agro-Processing Support Scheme works and what makes an application succeed.
