How the Automotive Production and Development Programme supports vehicle and component makers, and how an AI project relates to it.

dgm is an independent integration partner for osFoundry — it is not affiliated with osFoundry’s maker (OS LLC) and has not yet completed an integration project for any client.

The Automotive Production and Development Programme (APDP) supports vehicle and component makers. It is a manufacturing-sector incentive — relevant to an AI project only if that project is for an automotive OEM or supplier.

What the APDP is

  • APDP Phase 2 (APDP2) has been in effect since 1 July 2021 and provides the automotive incentive framework for 2021 to 2035, aligned to the South African Automotive Masterplan (SAAM) 2035 vision.
  • It is specific to the automotive sector — vehicles and components — rather than a general technology incentive.
  • Transformation is increasingly gated into the framework; reporting suggests an automotive supplier failing to meet a minimum B-BBEE level risks losing eligibility. Confirm the current rules against the gazetted APDP2 amendment before relying on them.

What it means for an AI project

  • The APDP is relevant to an AI engagement only when that engagement is for an automotive OEM or value-chain supplier; it is not a general tech or AI incentive.
  • An automotive supplier can use a tool like osFoundry in its own operations, but the APDP supports automotive production, not the purchase of AI software.

The honest framing

Public support in South Africa funds the company’s own research, development or innovation, or gives it a tax break — it does not buy an off-the-shelf AI subscription. The section 11D R&D tax incentive offers a 150% deduction on approved R&D, requires pre-approval by the Department of Science and Innovation and has been extended to 31 December 2033; the Technology Innovation Agency (TIA) and the Small Enterprise Development and Finance Agency (SEDFA, formed in 2024 from SEDA and SEFA) fund innovation and small enterprises; and DTIC sector programmes such as the Global Business Services (GBS) incentive and the automotive APDP support specific industries. Separately, Broad-Based Black Economic Empowerment (B-BBEE) is a procurement and empowerment scorecard, not a grant: a supplier’s B-BBEE level affects how many procurement points its customers earn, so it shapes who buyers prefer rather than paying for software. dgm is not a registered or accredited provider of any of these programmes; it can advise a beneficiary or act as a subcontractor.

Where dgm comes in

dgm is an independent integration partner that helps organisations in South Africa adopt the osFoundry platform — from identifying the first practical use case, to setting it up, to connecting AI to the systems you already run. dgm can help identify which parts of your activity might qualify — without committing that any incentive will be granted. dgm operates separately from osFoundry’s maker (OS LLC) and has not yet completed an integration project for any client, so everything above is a proposed service rather than a delivered outcome. If you would like to weigh up a practical first step, dgm would be glad to think it through with you. Arrange an introductory call with dgm.

This article is general information and is not legal, financial or tax advice. Incentives, tax rates and regulations change; always confirm the current position with an official source (SARS, the Department of Science and Innovation, the dtic, the Information Regulator, the FSCA or the relevant authority) or a qualified adviser before you act.