Agro-processing incentive is welcome — but needs some tweaking, experts say
The Department of Trade and Industry’s scheme offers cost-sharing for investment in new or expanded projects that protect or create jobs
The government has a new incentive to encourage investment in agro-processing projects, but experts are questioning whether it can achieve its goals in its current form. The Department of Trade and Industry’s Agro-processing Support Scheme is a sector-specific incentive for agro-processing aimed at boosting investments in new projects, as well as expansions or upgrades in existing projects, in five important sectors through a cost-sharing grant. The objective is to increase capacity in these sectors, create employment, increase competitiveness and to ensure transformation. The scheme targets food and beverage value addition and processing (including black winemakers); furniture manufacturing; fibre processing; feed production; and fertiliser production. The department has set aside R1bn in the current financial year to fund the scheme. It offers a 20%-30% cost-sharing grant, up to a maximum of R20m, over a two-year investment period. The minimum investment value is R1m. Duane Newman...
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