Good morning, ladies and gentlemen of the media. Thank you for taking time off your busy schedules to be with us this morning, ahead of my department's Budget Vote at the Old Assembly Chamber at 14h00.
The theme for our Budget Vote is "Science and innovation: driving forces for future growth". The theme captures the fact that much of the work of the National System of Innovation involves medium to long-term horizons. The decisions we make, and the actions we take today may have an immediate impact but will definitely shape the future.
The Budget
For the 2015/16 financial year, the DST has been allocated R7, 482 billion, of which 92.2 percent (R 6, 9 billion) of it is allocated to entities that report to the Minister of Science and Technology. Of this R 6, 9 billion, R 2, 534 billion are Parliamentary grants which are transferred as follows;
- The Council for Scientific and Industrial Research - R827,7 million
- The National Research Foundation - R885,9 million
- The Human Sciences Research Council - R288,7 million
- The Technology Innovation Agency - R385,2 million
- The South African National Space Agency - R124,4 million
- The Academy of Science of South Africa - R22,991 million
The remainder will be transferred to entities for various projects and programmes during the course of the year.
We continue to work closely with National Treasury to map out a process for ensuring that we reach the ANC’s manifesto target of gross expenditure on research and development to be 1,5% of GDP by 2019.
The DST's key priorities for 2015/16
The National Development Plan has set ambitious targets, and we believe our recently completed Human Capital Development Strategy will help us meet those targets.
Our key priority areas over the medium term remain as follows:
- The development of human capital
- Creating new knowledge
- Investing in research and infrastructure
- Encouraging innovation by funding marketable products emerging from research and incubation, (Details are in the Minister’s Speech).
We will also intensify our international cooperation to secure a strategic target of R380 million in foreign investments in the National System of Innovation during the year.
To improve South Africa's global competitiveness, the DST will make transfer payments to the National Research Foundation to fund 14 880 postgraduate research students in 2015/16.
Flagship Projects
The DST will continue funding the construction of the MeerKAT, the precursor to the Square Kilometre Array radio telescope. The MeerKAT, which will eventually have 64 antennas, will increase from four dishes in 2014/15 to 32 in 2015/16.
On the human capital development front, more than 700 students and postdoctoral fellows have been supported through the SKA SA Bursary and Scholarship Programme and the National Astrophysics and Space Physics Programme.
Our Technology Localisation Programme, R 524 million which began in 2011, assists local companies to take advantage of public procurement programmes by strengthening their technological capabilities. We have assisted over 140 manufacturing companies thus far. New jobs have been created and 20 companies have secured new contracts with state-owned enterprises.
Technology Innovation Agency receives R385 million. It has implemented a successful turn-around strategy and now has a new CEO. Under the guidance of the incumbent TIA Board, and the appointment of the new Chief Executive Officer, Mr JB Manilal, it is our firm belief that the Agency will demonstrate further improvements to its growing track record.
TIA has now been effectively repositioned as an agency whose funding instruments will better enable innovators, entrepreneurs and small and medium enterprises to commercialise their technology innovations.
Three funds are provided for in the new TIA strategy:
- Seed Fund, which is aimed at assisting universities, in particular, in bridging financing requirements to translate research outputs into fundable ideas for commercialisation;
- Technology Development Fund, which is available to organisations, individual entrepreneurs and SMEs to advance technologies along the innovation value chain; and
- Commercialisation Support Fund, which prepares innovators for follow-on funding.
Since 2010 TIA has supported more than 8,130 small and medium enterprises in accelerating technical innovation through technology development.
I am also delighted to report that one of the biotech start-up companies supported by TIA; Kapa Biosystems, continues to export products overseas, and the company requested to (negotiated a) buy out (of) TIA’s equity share (in the South African subsidiary) to the value of US$4.93 million. (~R57.9M).
In the fields of health innovation and the bio economy, through partnerships with industry in the pharmaceutical sector and the agricultural sector – for example through our work in indigenous knowledge – we have registered seven patents, supported 20 PhDs and 39 master's students, created 133 jobs, trained 198 community members in technology transfer and skills development. We have established two agro businesses and signed intellectual property agreements with L'Oréal, Nestlé, Kalahari, Nativa, and several other companies.
The impact of the support to SMEs has resulted in significant improvement in technical skills, product quality, productivity, cost-savings, energy efficiency, waste management and most important of all employment creation.
This year we will launch three more enterprises in agro-processing and the commercialisation of value-added products in Mamelodi and Hammanskraal in Gauteng and in Tooseng in Limpopo.
The department will invest about R70 million in research into HIV and AIDS, TB, malaria and non-communicable diseases. This includes the development of new drugs and diagnostics.
Our investment in indigenous knowledge-based innovation will see the establishment of three community-based enterprises this year. A total of R80 million as has been allocated towards the development of hydrogen fuel cell generator prototypes that will be deployed in selected off-grid applications to provide primary and uninterrupted power.
Areas where hydrogen fuel cells have already been deployed include the University of Western Cape Nature Reserve, here in Western Cape, Windsor East Clinic in Randburg and three schools in the Cofimvaba district in the Eastern Cape.
Announcements
On the 12 June 2015, we are launching the Technology for Rural Education and Development (TECH4RED) Project in Cofimvaba in Eastern Cape. TECH4RED is a partnership project led by my Department, and involves the Department of Basic Education (DBE), the Eastern Cape Department of Education and the Department of Rural Development and Land Reform as partners.
It focuses on how best to integrate science, technology and innovation to contribute to improve the delivery of basic education and has six focus groups, namely the Information and Communication Technology, Nutrition, Sanitation Technologies, Energy, Science Centre and Health.
On 8 and 9 December 2015, the Department will hold a major international public science event, namely, Science Forum: South Africa, designed to ignite a vibrant national conversation on the role of science, technology and innovation in society.
My department and the Ministry of Science and Technology in China will in November 2015 jointly host a high-tech exhibition in Johannesburg, which will serve as a platform for promoting investment opportunities and the development of business to business contacts between the two countries, including the expansion of cooperation in human capital development in high-tech areas.
Minister's guests
- Mr Whiskey Kgabo, mango supplier to the Nkowankowa Demonstration Centre in Limpopo.
- Ms Suzan Malangana, who wrote a letter to Minister expressing appreciation for government's support for the centre, something which she says has enabled her to build a house and pay fees for education.
- Ms Mabunda Mbali and Ms Chrisma Bredekamp, who work at the Nkowankowa Demonstration Centre, which is now transitioning from a demonstration centre to a fully-fledged factory that will service farmers and retailers on a large scale.
- Nine young scientists, who will be representing South Africa at international events in London and Belgium in July this year.
- Mr Jacobus Viljoen and his team, made up of Thululeni Dube, Tshifhiwa Maano and Stephanus Viljoen. They are part of the Iluba project, which employs more than 75 people and has a turnover of more than R10 million. The company uses technology developed by the Nelson Mandela Metropolitan University to embalm roses to enable them to last for up to two years. These flowers are now exported to Europe, the Far East, the Middle East and North America. This again demonstrates how science and innovation are key drivers for economic growth.
- A team from mLab, which comprises young people from Angola, South Africa and the Democratic Republic of Congo, have developed an online anti-xenophobia campaign, namely, #WeAreAfrica, where people can both pledge their support against xenophobia and also report incidents of xenophobia. They have shown that innovation, science and technology can assist society in dealing with socio-economic challenges.
Enquiries:
Lunga Ngqengelele
Cell: 082 566 0446
