The Agro-Processing Support Scheme is a cost-sharing grant for businesses that process agricultural products into food, beverages and related goods. It is aimed squarely at capital expenditure, meaning machinery, equipment and the buildings that house them, which makes it one of the more useful incentives available to a small manufacturer.
It is administered through the national trade and industry department, and applications open in defined windows.
What it funds and what it does not
Capital items are the focus: processing machinery and equipment, buildings and infrastructure directly used in processing, and in some cases competitiveness improvements such as certification or systems.
It does not fund working capital, salaries, existing debt or the purchase of a going concern. If your need is cash flow rather than equipment, this is the wrong scheme and applying wastes the window.
Cost-sharing means you contribute
The scheme reimburses an approved share of qualifying costs rather than paying the full amount. You must be able to fund your portion, and you must be able to fund the whole purchase upfront in many cases, with the grant portion following.
Plan for that cash requirement. Businesses that win approval and cannot fund their share lose the approval.
Who qualifies
South African registered entities in agro-processing, with current annual returns at the Companies and Intellectual Property Commission, tax compliance, and audited or independently reviewed financial statements depending on size.
Applications are also assessed on employment created, transformation, and whether the project genuinely expands processing capacity rather than replacing it.
Why applications fail
Incomplete documentation, most commonly missing financial statements, missing quotations for the equipment, 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 relying on published summaries, since incentive terms are revised between cycles.
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.
What does cost-sharing mean?
The scheme reimburses an approved share of qualifying costs. You must be able to fund your own portion and often the purchase upfront.
Who can apply?
Registered South African agro-processing businesses with current annual returns, tax compliance and financial statements appropriate to their size.
Why are applications rejected?
Incomplete documentation, usually missing financial statements or equipment quotations, and compliance that lapsed before submission.
Further reading
Originally published in July 2018. Updated September 2026 to explain how the Agro-Processing Support Scheme works and what makes an application succeed.
