M Mangena: Science and Technology Dept Budget Vote 2007/08

Budget Vote speech by the Minister of Science and Technology,
honourable Mosibudi Mangena, Parliament, Cape Town

25 May 2007

Chairperson
Honourable members
Ambassadors
Chairpersons of science councils
Chief executive officers (CEOs) of Science Councils
Distinguished guests
Ladies and gentlemen

We are on a path we have chosen for ourselves. We embarked on this road when
we made a commitment to transform our science and technology system from an
inward looking and embattled sector, into one that is far more innovative,
flexible and responsive to the needs of our liberated society. We do not know
precisely how long our journey will take but we do have a firm belief that the
full meaning of our liberation will not be realised until all our people are
freed from the dehumanising poverty and inequality and we call on science and
technology to accelerate our progress.

Let me also remind you that as a country we have long decided that what is
good for Africa is good for South Africa. The growth and progress of the States
on our borders, their neighbours and theirs in turn across the entire
continent, therefore occupy a very special place both in our hearts and in our
endeavours. And it is therefore wholly appropriate that today, 25 May, we
celebrate Africa Day together with the whole continent. This is the day on
which we celebrate our uniqueness and the extraordinary contribution we have
made to the progress of humankind.

Today we observe the anniversary of the creation of the Organisation of
African Unity (OAU) and pay tribute to the founding Heads of State, who in the
1960s through a shared vision of unity and common purpose decided to seek a
joint African solution to the problems and challenges facing Africa.

This bold initiative was given further impetus in Durban in 2002 with the
formation of the African Union (AU) and the subsequent incorporation of New
Partnership for Africa's Development (Nepad), as the implementation programme
of the AU. This signalled a new determination by Africans to take the destiny
they share into their own hands, to work together to eliminate debilitating
legacies like slavery and colonialism and to encourage all Africans together
with those who love Africa wherever they are located to work together, to build
the continent collectively and to ensure its progressive prosperity.

From the earliest times, the advancement of science and technology has
consistently produced economic development, across the face of the world.
Regrettably in today's world these benefits are not shared, either widely or
equally. Africa, in particular, has been largely sidelined by the modern day
technological revolution and has thus not shared in its attendant dividends of
prosperity. As a result today the knowledge and technology gap between Africa
and other continents is wide and growing.

It was partially in recognition of this increasingly dangerous and unwelcome
divide, that when the Heads of State and government met during the Eighth
Ordinary Session of the Assembly of the AU in Addis Ababa in Ethiopia in
January this year chose as their focal theme, "Science and Technology, Climate
Change and Sustainable Development in Africa."

Some of the subsequent decisions and declarations from that AU meeting have
a significant bearing on the work of my department, as well as on Africa's
collective drive to take our continent to the next level of innovation in
scientific and technological development.

It is particularly significant that the Heads of State made a solemn
undertaking to put science and technology in the service of development by
reinforcing the autonomous capacity of our countries in this field. Central to
this declaration, is a pledge that each country will devote 1% of its Gross
Domestic Product (GDP) to supporting research and development (R&D) by the
year 2010. They also endorsed a 20-year Biotechnology Action Plan, which calls
for co-operation among African nations in specific regions to bolster research
in different fields of research according to regional strength.

In addition, the Heads of State designated 2007 as the 'Year for Scientific
Innovations.' They also took note of the need to establish a single Pan-African
Intellectual Property Organisation to protect indigenous innovations and urged
all member states to lend full support for the implementation of such a
decision. Lastly, they endorsed the need for both south-south and north-south
co-operation in science, technology and innovation and to enhance Africa's role
in international partnerships.

In this regard, honourable members, I am pleased to report that South Africa
is on course in implementing the decisions and resolutions of the eighth
ordinary session of the AU.

South Africa is hosting the Nepad focal points such as the African Laser
Centre (ALC), the African Institute for Mathematical Sciences (AIMS) and the
biosciences initiatives on which we reported extensively during our last budget
vote speech. Most of these programmes are growing from strength to strength.
For example, every two years, the African Laser Centre hosts summer schools
co-funded by the United States based National Science Foundation and AIMS is in
the process of establishing a network of institutes in the rest of the
continent.

We have strengthened and enhanced south-south co-operation by fostering
partnerships with the countries of the South and in particular African
countries. We are spearheading a number of bids to host significant
international facilities in Africa and we are doing this not in competition
with our partner African countries. This is how we approached the decision to
host the regional offices of the World Association for Industrial and Technical
Research Organisations (WAITRO), the International Council for Science (ICSU),
the third component of the International Centre for Genetic Engineering and
Biotechnology (ICGEB) and the European and Developing Countries Clinical Trials
Partnership (EDCTP). In the same spirit, we are working towards winning the bid
to host the Square Kilometre Array (SKA) radio telescope in partnership with
and for the benefit of the entire continent.

Now let me turn to what my department is doing to engage the sciences and
technology to influence and accelerate the growth and development of our own
country.

It is important to remember that, in scientific terms, the time frames
between commitment to action, implementation of action and the subsequent
results of action can often be irritatingly lengthy.

With this in mind I'm sure you will be pleased to learn that the National
Research and Development Strategy (NRDS) has been well received in the science
system and substantial financial resources have already been committed by
National Treasury for the attainment of its stated objectives. The department
will receive an additional allocation of R1,2 billion over the medium term and
this is intended to help us achieve our aim of having 1% of our GDP devoted to
R&D spending by the 2008/09 financial year.

Projections of future R&D spend show that in the year 2008, when it is
anticipated our GDP would have reached about R1,991 billion, an additional R6
billion would be required for investment in R&D, in order to attain the 1%
of GDP target. However, our ability to measure and understand the National
System of Innovation (NSI) has moved forward significantly in the past few
years, all because of the critical path that we have chosen in leading our
country in science, technology and innovation.

In April, we launched the highlights of the first official innovation survey
carried out by my department. That survey shows considerable levels of
innovation occurring in the business sector at levels comparable with our
international competitors. Our rate of innovation is well above that of the
European average of 42% for 2004. This is a welcome finding indeed.

South African enterprises spent about R28 billion on innovation activities
in 2004, which includes research and development, acquisition of machinery,
equipment and software and the acquisition of technology through licensing. In
addition, some 10% of successful innovators in industry received public funding
for innovation activities. And that shows that the funding programmes of
government are having a penetrating effect in the private sector.

Today I am pleased to announce the high-level results of the 2005/06 Survey
on Research and Development. The 2004/05 results indicated that two years ago
business, universities, science councils, government research institutes and
non-government organisations (NGOs) spent R12 billion on R&D, equivalent to
0,87% of GDP. The 2005/06 R&D survey reports expenditure that has risen
even faster than the increase in GDP. This has resulted in the current spending
of R14 billion or 0,91% of GDP. The business sector share of this R&D
activity has risen from 56% to 59%. Honourable members, once again, these
achievements reflect the milestones on the path we have chosen.

As our business sector engages in innovation and R&D, their returns
contribute to economic growth. We are delighted with this trend. And to
encourage further R&D investments, last year we worked together with
National Treasury and the South African Revenue Services (SARS) to introduce
enhanced tax incentives for R&D. But I must, however, report a concern that
few business leaders appear to be aware of the new incentives. We urge
businesses to carefully examine their production processes, correctly identify
their R&D activities and increase their investments further. The target of
spending 1% of GDP on R&D by the 2008/09 reporting period is now well
within our sights.

The surveys I mentioned earlier indicate that we have increased our national
spending on R&D by about R4,5 billion over the past five years. This is a
substantial amount of new spending. As the custodians of the NSI, we recognise
that our investment decisions can be enhanced with a strong information base on
research activities funded from the public purse. For these purposes, my
Department is in the process of setting up a Research Information Management
System (RIMS) that will serve to gather and make available information on the
research activities within science councils and other government research
agencies. This will strengthen our capacity to monitor the performance of the
science and technology (S&T) system and provide a rigorous long-term
planning platform for the national system of innovation. The Department of
Science and Technology (DST) is also providing resources and co-operating with
universities and the National Research Foundation (NRF) to use a licensed
information technology platform to gather and make available information on
research activity within tertiary education institutions.

The lion's share of the department's budget, over the medium term, about
R323 million goes to our human capital development programme which addresses
the adequate development and renewal of the human scientific resources. It will
strengthen our current programmes which include but are not limited to:

* the Research Professional Development Programme which targets young SET
Masters and Doctoral students
* the Post-Doctoral Fellowship Programme
* the Centres of Excellence Programme.

The research chairs initiative which has been consolidated with the
announcement of the first group of scientists appointed as university research
chairs last year in December. We have allocated R200 million to the South
African Research Chairs Initiative and we have seen the first 21 scientists in
different fields assume their duties at the beginning of this year. This
initiative has been well received by all role players. The aim is to create 56
research chairs by 2008 and 210 by 2010.

And there is no doubt that we have to do more to address the very real
problem of South Africa's weak supply of qualified human resources in
practically every scientific field of activity. We need to be innovative and
inventive to solve this problem.

We have also allocated R178 million to provide modern research facilities
and infrastructure for the research community. This money will be used to
acquire or upgrade instrumentation for national research institutions and to
provide infrastructure for research capacity development. Working with the
National Advisory Council on Innovation, the department has produced a
comprehensive report on the infrastructure requirements for both science and
innovation and this will form the basis of a long-term infrastructure plan for
science and technology.

Other infrastructure projects that we expect to benefit from include, the
Centre for High Performance Computing, Nanotechnology Characterisation Centres,
Astronomy and Space Science. With regard to nanotechnology and nanoscience, we
are in the process of creating the physical infrastructure that will enable
first class basic research, exploration of applications, development of new
industries and the commercialisation of innovations.

Now, as you know, we are bidding to host the Square Kilometre Array (SKA)
which will be the largest radio telescope ever constructed. The other country
to make it onto the SKA site shortlist is Australia. A final decision on the
matter is not expected before the end of the decade. This year's budget
allocated R500 million, both for the SKA and for the construction of the Karoo
Array Telescope (KAT) which will in turn provide the means to train scientists
and engineers to acquire relevant capabilities and skills.

Initially, in our bid for the SKA we intended to be considered only as a
site. However, during the bid process it soon became clear that we could play a
far greater role in the development of the SKA technology and its science.
Recognising this we have assembled an excellent team to build the KAT which
will be equivalent to approximately 1% of the SKA. And this in turn has, in a
short time, ushered us into a leading role in the global SKA development. One
of the welcome results of this mission driven innovation has been a steady
attraction of key personnel back to South Africa in affirmation, once again, of
the correctness of the path we have chosen.

The KAT team has already been recognised for its competence and is being
called upon to assist and advise the international SKA project office on system
engineering, costing and other key technology areas. The team is playing a lead
role in collaboration with researchers in the United Kingdom (UK), Holland,
Australia and the United States of America (USA) in the development of digital
signal processing for the telescope, software development and in partnership
with industry in the development of innovative telescope antennas using
composites. In support of the astronomy programme we will be submitting to
Parliament this year the Astronomy Geographic Advantage Bill which will enable
the introduction of the measures to protect the sensitive astronomy sites and
maintain South Africa's geographic advantage.

In the past year we have been engaging with various space players in the
country to formulate the framework for the establishment of the South African
Space Agency (SASA). Legislation leading to the creation of the SASA is being
drafted and we hope to present it to Parliament later in the year.

The construction of the low earth observation satellite, SumbandilaSat, was
completed on time and handed over to us in November last year. We intend to
build on the success of the SumbandilaSat project by continuing to support
efforts within the space science and technology arena. This year the nine black
engineering interns will finish building the training model satellite. At the
same time we have commissioned the technology development of a new sensor which
we expect to use in a future remote sensing satellite.

During the last five years we have made significant contributions in the
fields of biotechnology and Indigenous Knowledge Systems (IKS) and we are
looking to harness investments to take these further. Firstly, I would like to
share with you what we propose doing with biotechnology followed by IKS.

Commonly, the results of biotechnology investments have long lead times,
sometimes up to 15 years, yet some success stories resulting from the
investments and interventions made by the biotechnology institutions are
already being reported. Our goal is to expand the country's biotechnology
platform and develop a bio-economy base. Our plans were given a major boost at
the end of 2006, when the International Centre for Genetic Engineering and
Biotechnology (ICGEB) decided to locate its African component here in Cape
Town. The organisation currently has components in Trieste, Italy and New
Delhi, India. The new Cape Town component, we intend launching before the end
of this year, will focus initially on infectious diseases but its remit is
expected to expand to include fields such as agricultural biotechnology.

Since we launched the IKS policy in 2004 we have achieved a number of
successes on key cross cutting issues, not least the timely establishment of a
Ministerial Advisory Committee which will assist on the establishment of IKS
chairs to be located within higher education institutions based on nationally
prioritised areas such as traditional medicines, knowledge studies and
indigenous food security.

In March, South Africa and the Ministry of Science and Technology of Zambia,
successfully hosted the second Southern African Development Community (SADC)
workshop on IKS policy development in the region. Emanating from this workshop
is a number of compelling recommendations for member states, amongst which is
the need to harmonise the region's policy framework within the next two years.
This will be another healthy step forward on our chosen path.

In the coming year, we will start the development of IKS databases following
an audit of those residing at various institutions. It is also envisaged that a
hardware multimedia recordal system to capture synchrotextual documentation
such as the registration of holders of indigenous knowledge, interviews and
satellite information linkages will be developed. In this way the IKS centres
will be the vehicles, at local level, through which the indigenous knowledge
(IK) wealth located in various communities can be captured. The first pilot IKS
centre is being established at the University of Zululand. It will support the
IKS Laboratory on traditional medicines at the Medical Research Council
(MRC).

I should add that all our activities always include initiatives to deal with
poverty and its impact on people's lives. We continue to undertake a number of
projects in the field of job creation and poverty alleviation using established
and effective technology platforms. These projects have demonstrated that
positive results can be achieved by combining technology with the
entrepreneurial skills of our people.

However, we are concerned that not enough of our research results are being
turned into products and to this end we will soon be presenting to Cabinet for
approval an entity we hope to name the Foundation for Technological Innovation
(FTI). This is a public institution that will stimulate the development of
technology enterprises in the South African system by utilising the talent and
skills within that knowledge base to develop products, services and processes
and to creating the right support environment for commercialisation.

Let me once again congratulate Professor Okkie de Jager and his team for
winning the European Union's (EU's) prestigious Descartes Prize for Research
for 2006. Professor De Jager and his team have put South Africa on the map
through their groundbreaking research on the Milky Way Galaxy using our
High-Energy Stereoscopic System (HESS).

Chairperson, honourable members, on the path we have chosen we have come
thus far. Our encounters and discoveries, our challenges and triumphs have made
us more determined and more focused. So with our eyes firmly on the road ahead
we shall increase our speed to inch closer and closer to our destination of a
better quality life for our people.

In closing, chairperson, honourable members, my ministry cannot possibly
make all these achievements without the unwavering support of Deputy Minister,
Derek Hanekom. I wish to thank him for his hard work and comradeship. But the
Deputy Minister and I do not run the various projects and programmes.
Therefore, our gratitude and congratulations go to the fantastic team of
officials in my department led by the dedicated and insightful
Director-General, Dr Mphathi Mjwara. Thank you all for a job well done. Since
the establishment of this ministry three years ago, we expect that all of you
have now learnt how to walk properly on the path we have chosen from now on, we
look forward to the strides you will be making on the road ahead.

I wish you a joyful Africa Day and I thank you.

Issued by: Department of Science and Technology
25 May 2007

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