D Hanekom at Biotechnology International Convention

South Africa moves towards a bio-economy

8 May 2007

"Our National System of Innovation identifies biotechnology as one of the
key platforms from which to address our economic and social challenges. As a
developing country, we recognise the role of this cross cutting technology with
regard to poverty alleviation, improving health and environment," said Derek
Hanekom, South African Deputy Minister of Science and Technology.

Hanekom was speaking at the 2007 Biotechnology International Convention, an
event that attracts biotechnology scientists and experts, lobbyist and key
government decision makers from across the globe.

South Africa has successfully positioned itself as a preferred science and
technology destination in general and the biotechnology sector in particular.
The tax incentives introduced by government have further created an enabling
environment for investment in research and development.

South Africa's economy is growing at approximately five percent per year,
with inflation remaining below six percent. Fixed investment growth is also
gathering pace, reaching a level of more than 16 percent by the end of 2006.
Our economy has been largely developed from our mineral wealth. However, our
economy is shifting rapidly towards knowledge-based sectors. We have been
developing biotechnology since the late 1970s with significant positive impacts
on agricultural productivity and health services. Furthermore, the
implementation of our National Biotechnology Strategy has created a conducive
framework for further research and in particular the translation of research
into commercial products.

Prof Jocelyn Webster, Executive Director at Africa-Bio, highlighted the role
agricultural biotechnology has played in South Africa, where both commercial
and emerging farmers are benefiting from biotech crops. "Over 80 percent of the
cotton and approximately 50 percent of the maize and soya bean grown in South
Africa is genetically modified", said Prof Webster.

South Africa has recently won the bid to host the third component of the
International Centre for Genetic Engineering and Biotechnology. This will
enhance our efforts towards the development of an African biotechnology hub and
will enhance our ability to address the disease burden of the developing
world.

South Africa's progress in building a bio-economy relies on the existence of
an environment that is conducive to biotechnology research activity and the
commercialisation of such research. The creation of Biotechnology Innovation
Centres has proved to be a powerful instrument in moving towards a successful
bio-economy.

As Dr Blessed Okole, CEO of LIFE lab, points out: "There are support
structures in place, such as the government funded Biotechnology Regional
Innovation Centres (BRICs) and Biotechnology incubators, however what is key is
that these various sector support initiatives align to drive a shared vision
for achieving a viable bio-economy." Some success stories coming from these
initiatives include the microbiocide trials for HIV, diagnostic kits for
infectious diseases, new clinical research organisations, vaccine development
and harnessing new products from our medicinal plants, to mention a few.

One of the most important areas of work is on the development of an
effective AIDS vaccine, as well as the trials being conducted in various sites
in South Africa. Although it is still at an early stage, the early sign of a
novel treatment for the pandemic, emanating from work done by LIFE lab and
Elevation Biotech on a peptide that attaches to the virus and prevents viral
entry has aroused considerable excitement in the scientific community.

"We cannot claim to have done it all on our own. It is through strategic
partnerships, multilateral and bilateral agreements that we have managed to
fully exploit our resources. We believe that through more collaboration our
move towards a bio-economy will be strengthened" said Hanekom in closing.

Enquiries:
Nthabi Maoela
Cell: 082 944 0015

Issued by: Department of Science and Technology
8 May 2007

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