If we look at our recent digital data, it is clear that the Agro-Processing Support Scheme (APSS) is generating a lot of interest from South African entrepreneurs looking at accessing DTIC incentives to help fund their expansion.
Despite this interest, it has been one of the trickier incentives to access due to structural challenges in local supply chains. This centres around the fact that one of the key requirements is that effectively 30% of key inputs have to come from black suppliers.
With value chains remaining under-developed, this provides a real challenge when it comes to unlocking expansion finance.
This blog post might be of interest to entrepreneurs operating in the following sectors:
- Agro-processing operations (excluding primary agriculture)
- Forestry
- Those seeking funding for equipment, plant and machinery expansion
Why the interest in the APPS?
While the agriculture sector makes up just under 3% of South African Gross Domestic Product (GDP), it has been one of the unsung heroes of the South African economy in 2025.
Despite tariff threats and the lapsing of the Africa Growth and Opportunity ACT (AGOA), the sector has had several positives.
The Citrus sector enjoyed a record 2025 while a lot of good work has been done to expand opportunities in theChinese market.
This is further supported by data recently shared by the StatsSA Agricultural Survey (2024) which was released on the 20th of November 2025 which showed:
“Total income earned in the agriculture and related services industry was R537,1 billion in 2024 compared with R489,6 billion in 2023. This reflects an increase of 9,7% between 2023 and 2024. In 2024, ‘animals and animal products’ generated the largest sales (R206,5 billion), followed by ‘horticultural crops and products’ (R131,3 billion) and ‘field crops’ (R114,6 billion).”
Expenditure in the sector is also not insignificant with the report noting:
“Total expenditure incurred by the agriculture and related services industry in 2024 was R511,3 billion compared with R460,0 billion in 2023 (an increase of 11,1%). The largest contributor to total expenditure was ‘purchases’ (53,0% of the total), followed by ‘salaries and wages’ (11,6%), ‘repairs and maintenance’ (4,9%) and ‘depreciation’ (4,9%).”
The report highlighted significant growth in capital expenditure:
Entrepreneurs in the sector primarily need funding for motor vehicles, plant, machinery and other equipment.
Recently released labour data from the Quarterly Labour Force Survey (QLFS) also highlights that “Skilled Agriculture” was a market segment which has seen a clear spike in hiring activity.
This is clearly a sector which has some momentum behind it and this is good news for entrepreneurs.
What is the Agro-Processing Support Scheme?
In short, the APSS is a cost-sharing grant designed to stimulate investment in agro-processing and beneficiation operations, excluding raw material cultivation. It offers 20% to 30% of project costs, capped at R20 million over a two-year investment period. There is an added 10% bonus possible for applicants meeting criteria around employment, transformation, localisation, and geographic inclusion.
The Agro-Processing Support Scheme is not the only DTIC incentive to consider
With the local input challenge, entrepreneurs in the sector shouldn’t be discouraged from looking for Working Capital and Expansion finance. There are other mechanisms which could potentially support your activities.
This includes the Black Industrialist Scheme and the Manufacturing Support Scheme – incentives which have proven easier to access with the right technical support.
Looking to access the Agro-Processing Support Scheme (APSS) or other DTIC incentives?
Is your business looking for expansion finance, access to DTIC incentives or simply seeking out Working Capital?
Our team of industry experts and partners are on hand to assist you.
If you would like to setup a discussion, share some of the details of your project and we will reach out to you.
Our contact details are available here.
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