Keynote address by the Minister of Science, Technology and Innovation, Prof Blade Nzimande, on the occasion of the Policy Dialogue on Industrialisation through Innovation
Programme Director, Ms. Funeka Khumalo, Member of the NRF Board;
My Co-Host of the Dialogue, Mr. Parks Tau Minister of Trade, Industry and Competition, in absentia;
Acting-Director-General of the Department of Science, Technology and Innovation, Ms. Gugulethu Zwane;
The MEC for e-Government, Mr. Bonginkosi Dhlamini;
Executive Mayor for Ekurhuleni Metropolitan Municipality, Cllr. Xhakaza
My Special Advisor, Mr. Nqaba Nqandela;
Prof Derrick Swartz, our Science Expert;
The Chairperson of the National Advisory Council on Innovation, Mr. Tilson Manyoni and his executive;
Dr Ezra Ndwandwe, Chairperson of the OR Tambo Special Economic Zone;
Ms. Thandiwe Ngqobe, Chief Executive Officer of the OR Tambo SEZ;
Chairpersons and CEOs of the DSTI Entities;
Representatives of Academic Institutions;
The President of Business Unity South Africa (BUSA), Mr. Mxolisi Mgojo;
Representatives of Continental and Global Bodies;
Leaders of industry and Entrepreneurs;
Distinguished Guests and Delegates;
Exhibitors;
Members of the media:
It is my honour and privilege to address you at this Inaugural Policy Dialogue on Industrialisation through Innovation.
Given the strategic importance of this Dialogue for South Africa’s innovation and industrial policy trajectory over the next 10 to 15 years, and as we set the tone for the deliberations over the next day and a half, I wish to reflect on several issues that deserve the attention of a gathering of this stature.
The world is undergoing seismic shifts, including the reconfiguration of supply chains, intensifying technological rivalry and disruption, growing climate imperatives, and deepening economic uncertainty.
These pressures are compounded by persistent and unacceptable levels of global inequality, ongoing armed conflict, and renewed threats to multilateralism, particularly as represented by the current United States administration and its allies.
In response to these shifts and pressures, we take the view that one of the most logical and sustainable actions countries can take is to strengthen their capacity to innovate.
In its report, The Innovation Imperative, the Organisation for Economic Co-operation, and Development observes that “new sources of growth are urgently needed to help the world move to a stronger, more inclusive, and sustainable growth path following the financial crisis. Innovation—which involves the creation and diffusion of new products, processes, and methods—can be a critical part of the solution.”
In his address at the Chinese Major Conference on Science and Technology in 2024, the Chiense President, Xi Jinping’s asserted “ We must persist in innovation-led development, firmly establish the concept that a firm hold on innovation is a firm hold on development and that seeking innovation is seeking the future, and use science and technology novation to lead high-quality development and guarantee high-level security.”
This means that, as South Africa, we must continually strengthen our productive capabilities and economic resilience. As we do so, we must also safeguard our technological and epistemic sovereignty. Achieving this will require deliberate, coherent, and coordinated policy action in several key areas.
The first is the need to develop the capacity to respond to technological shifts and the new industrial era. Emerging technologies such as artificial intelligence, advanced manufacturing, robotics, biotechnology, quantum technologies, and green technologies are reshaping global production and trading systems. South Africa must therefore accelerate technological upgrading across its core industries to create and sustain new jobs, develop new products and services, expand market access, and drive global competitiveness.
The second is the importance of strengthening our policy coherence for innovation. South Africa’s industrialisation ambitions require greater coherence between industrial policy, science, technology and innovation policy, skills development, trade, investment, competition policy, and infrastructure planning.
The NACI report on industrialisation through innovation, which inspired this dialogue, emphasises the need for stronger alignment as one of its key recommendations.
Greater alignment is also required among government departments, public entities, development finance institutions, research institutions, and industry stakeholders. This will ensure that policy instruments operate as a coordinated system that enables and drives industrial innovation across sectors such as energy, health, food, transportation, and minerals beneficiation.
The third is the importance of using industrialisation to drive inclusive growth, employment, and youth Empowerment. Industrialisation must address South Africa’s persistent challenges of unemployment, poverty, inequality, and slow economic growth.
Particular attention should be given to youth employment through skills development, entrepreneurship, innovation ecosystems, and support for emerging industries. Innovation-led industrialisation should create quality jobs, expand economic opportunities, and support inclusive participation in the economy.
The fourth is the need to build a stronger Innovation–industrialisation partnership. The success of innovation-led industrialisation depends on collaboration across the entire National Innovation System. South Africa requires stronger coordination among its partners, alongside greater investment in research commercialisation, technology transfer, industrial financing, localisation of production and enterprise development.
The fifth is the importance of financing industrialisation and Innovation at scale. Innovation-led industrialisation requires patient capital, industrial financing, venture funding, and investment in strategic sectors, especially in the most promising greenfield sectors and subsectors.
Public and private financing institutions must work together to support technology-intensive industries and build diversified midstream and downstream labour-absorbing pipelines in the economy. Development finance institutions have an important role to play in de-risking investments and supporting jobs-led industrial transformation.
The sixth is the establishment of science and innovation Parks. The initiative seeks to establish a fully integrated Science and Innovation Park within a Special Economic Zone as a flagship model for the future development of science and innovation parks in South Africa.
While various science park models exist nationally, they have not consistently demonstrated an integrated approach that aligns research and development, technology commercialisation, advanced manufacturing, industrial policy instruments, SEZs and inclusive development objectives within a coherent governance and financing framework.
The proposed Science and Innovation Park will address this gap by creating an innovation-driven ecosystem that translates research into economic and social impact, directly catalysing the growth of new greenfield sectors, skills, innovations, and enterprises.
The seventh and final policy imperative I wish to reflect on is the importance of advancing regional integration and continental industrialisation. South Africa’s industrialisation and innovation agenda must contribute to regional integration within SADC and advance the objectives of the African Continental Free Trade Area, among others.
South Africa should leverage regional value chains, continental markets, and cross-border innovation partnerships to expand industrial opportunities. Industrialisation must therefore be viewed not only as a national project, but also as part of Africa’s broader economic transformation agenda.
Informed by this background, we expect this Dialogue to help us develop practical responses that will enable South Africa to:
1. Strengthen industrial policy coherence;
2. Leverage innovation to accelerate industrialisation;
3. Strengthen the institutional and partnership arrangements required to support innovation-led industrial development;
4. Develop a sustainable model for building science and innovation parks;
5. Improve industrial competitiveness and technology commercialisation; and
6. Advance inclusive national economic growth and contribute to a more resilient, innovation-driven regional economy.
In conclusion, I once again wish to express our sincere gratitude to our local, continental, and global partners and stakeholders for responding positively to our call to help shape the substance and outcomes of this historic Dialogue.
I urge you to ensure that this Dialogue produces well-considered, practical, and actionable outcomes. I wish you productive deliberations and look forward to the outcomes of your discussions.
