PRELIMINARY FIRST QUARTER PERFORMANCE AND FINANCIAL REPORT (01 APRIL TO 30 JUNE 2015) DR. PHIL MJWARA 1

DST Policy Mandate Conclusion Financial Performance DST Performance Overview DST Vision OUTLINE OF THE PRESENTATION 2 DST Programmes 5/27/2016 DST Mission Statement DST Key Goals DST Contribution to Outcomes Key goals of the Department

NSI can be understood as a set of functioning institutions, organisations and policies that interact constructively in the pursuit of a common set of social and economic goals and objectives, seeking to promote change through the introduction of innovations. The NSI remains an ideal for which South Africa continues to strive. It is an enabling framework for science, technology and innovation (STI). The Department of Science and Technology (DST) derives its mandate from the 1996 White Paper on Science and Technology, which introduced the concept of a National System of Innovation. 3 DST POLICY MANDATE 5/27/2016

In this regard, the measure of success will be the level to which science, technology and innovation (STI) play a driving role in enhancing productivity, economic growth and socio- economic development. The latter, particularly, seeks to contribute to the transformation of the South African economy from a resource-based into a knowledge-based economy, in which the production and dissemination of knowledge will lead to economic benefits and enrich all fields of human endeavor. The DST, as the custodial coordinator for the development of the NSI, influences this system through key strategies such as the National Research and Development Strategy (NRDS) and the Ten-Year Innovation Plan (TYIP). 4 DST POLICY MANDATE 5/27/2016

. 5 Vision Increased well-being and prosperity through science, technology and innovation DST VISION. 5/27/2016

. 6 Mission To provide leadership, an enabling environment, and resources for science, technology and innovation in support of South Africa’s development DST MISSION STATEMENT. 5/27/2016

A responsive, coordinated and efficient NSI. Increased knowledge generation. Human capital development. Using knowledge for economic development. Knowledge utilisation for inclusive development. 7 KEY GOALS OF THE DEPARTMENT 5/27/2016

The Department contributes to and reports on the following government outcomes: Outcome 2: A long and healthy life for all South Africans. O Outcome 4: Decent employment through inclusive economic growth Outcome 5: A skilled and capable workforce to support an inclusive growth path. Outcome 6: An efficient, competitive and responsive economic infrastructure network Outcome 7: Vibrant, equitable and sustainable rural communities and food security for all. Outcome 10: Environmental assets and natural resources that are well protected and continually enhanced. 8 DST CONTRIBUTION TO OUTCOMES 5/27/2016

DST PROGRAMMES Technology Innovation Research Development and Support International Cooperation and Resources Administration White Paper on S&T, National Research & Development Strategy, Ten-Year Innovation Plan White Paper on S&T, National Research & Development Strategy, Ten-Year Innovation Plan Socio-Economic Innovation Partnerships 9 5/27/2016

PURPOSE OF THE PROGRAMMES (1)  Programme 1: Administration To conduct the overall management and administration of the Department. 10 DST PROGRAMMES 5/27/2016

PURPOSE OF THE PROGRAMMES (2)  Programme 2: Technology Innovation To enable research and development in strategic and emerging focus areas to promote the realisation of commercial products, processes and services from R&D outputs; through the implementation of enabling policy instruments. 11 DST PROGRAMMES 5/27/2016

PURPOSE OF THE PROGRAMMES (3)  Programme 3: International Cooperation and Resources This Programme aims to strategically develop, promote and manage international relationships, opportunities and S&T agreements that strengthen the NSI and enable an exchange of knowledge, capacity and resources between South Africa and its regional and international partners. 12 DST PROGRAMMES 5/27/2016

PURPOSE OF THE PROGRAMMES (4)  Programme 4: Research development and support Provide an enabling environment for research and knowledge production that promotes strategic development of basic sciences and priority science areas, through science promotion, human capital development, the provision of research infrastructure and relevant research support in pursuit of South Africa’s transition to a knowledge economy. 13 DST PROGRAMMES 5/27/2016

PURPOSE OF THE PROGRAMMES (5)  Programme 5: Socio-Economic Innovation Partnerships This Programme enhances the growth and development priorities of government through targeted S&T-based innovation interventions and the development of strategic partnerships with other government departments, industry, research institutions and communities. 14 DST PROGRAMMES 5/27/2016

 During the 2015/16 first quarter, the Department achieved 82% of the planned targets (45) and 18% of the targets were not achieved. 15 FIRST QUARTER PERFORMANCE OVERVIEW (1) 5/27/2016

QUARTER 1 ACHIEVEMENTS - ADMINISTRATION 16 PERFORMANCE OVERVIEW Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus Four DST 2014/15 quarterly performance reports approved by DST EXCO and signed by the DG within 60 days after each quarter One DST 2014/15 quarterly performance report approved by DST EXCO and signed by the DG within 60 days after the end of the quarter. One DST fourth 2014/15 quarterly performance reports approved by DST EXCO and signed by the DG within 60 days after the end of the quarter. Achieved An annual report approved by DST EXCO and signed by the DG within 60 days after the end of the financial year A DST 2014/15 annual report approved by DST EXCO and signed by the DG by 31 May Achieved Eight communication and media plans approved by DST Exco and MMM by 31 March 2016 Two communication and media plans approved by DST Exco and MMM by 30 June Two communication and media plans approved. Achieved 5/27/2016

QUARTER 1 ACHIEVEMENTS - ADMINISTRATION 17 PERFORMANCE OVERVIEW Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus 10 public participation programmes held by 31 March 2016 Two public participation programmes (PPPs) by 30 June Two public participation programmes (PPPs) by 30 June 2015 namely Reitz, Cofimvaba PPPs. Achieved Four Science and Technology’s (S&T) media coverage monitoring reports tabled at Exco and MMM by 31 March 2016 One Science and Technology ‘s media coverage monitoring reports tabled at Exco and MMM by 30 June One report tabled at 6 July. Achieved One DST 2014/15 annual report approved by Exco and signed by the DG by 31 May 2015 One DST fourth 2014/15 quarterly performance reports approved by DST EXCO and signed by the DG within 60 days after the end of the quarter. Achieved Minimum of 92% of DST personnel submitting performance contracts and reviews on time by 31 March % of personnel submitting performance contracts and reviews by 31 March % of personnel submitted performance contracts and reviews submitted by 31 March Achieved 5/27/2016

QUARTER ONE HIGHLIGHTS: TECHNOLOGY INNOVATION (TI) – (1)  The Minister launched the Cofimvaba Hydrogen and Fuel Cell Technology on 12 June This was done in terms of the Cofimvaba Schools District Technology Project, a joint initiative between the Department of Science and Technology (DST), the Department of Basic Education (DBE) and the Eastern Cape Department of Education, that aims to contribute towards the improvement of rural education through technology-led innovation.  The Minister launched the DST/Mintek Nanotechnology Innovation Centre (NIC) National Cleanroom Facility on 8 April The term “Cleanroom” refers to the International Organisation for Standardisation (ISO) level 3 Cleanroom facilities, successfully constructed by the DST/Mintek NIC. This will enable the Centre, and researchers from other entities, to conduct research, development and innovation in an appropriate environment.  The negotiations and discussions with Pfizer on the technology transfer to Biovac is ongoing. This should see a final agreement drawn up in the near future. Agreement has also been reached in terms of the approach that will be utilised towards the creation of Ketlaphela as a State Owned Company (SOC). 18 5/27/2016 PERFORMANCE OVERVIEW

QUARTER ONE HIGHLIGHTS: TECHNOLOGY INNOVATION (TI) – (2)  In terms of mainstreaming Indigenous Knowledge Initiatives a workshop on agribusiness was also held during the quarter. The South African Bureau of Standards (SABS) also approved and issued the standards for Moringa oleifera (which is an energizing product that helps with healing and medical prevention as well) in terms of its production and product requirements. 19 5/27/2016 PERFORMANCE OVERVIEW

QUARTER 1 ACHIEVEMENTS - PROGRAMME 2: TECHNOLOGY INNOVATION 20 Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus 275 new disclosures and 10 reported by publicly funded institutions by 31 March 2016 Disclosures received in terms of biannual IP7 form submissions by 30 June new disclosures were received from publicly funded institutions Achieved Nine evaluation and assessment reports developed and approved by Exco by 31 March 2016 One evaluation and assessment report developed and approved by Exco by 30 June One evaluation and assessment reports developed and approved namely ; Feedback report on the TIA fourth quarter report was submitted through the DST Governance unit Achieved 5/27/2016 PERFORMANCE OVERVIEW

QUARTER ONE HIGHLIGHTS: INTERNATIONAL COOPERATION AND RESOURCES (ICR) – (1)  The South African and Swiss Research Chair in Global Environmental Health were launched at the University of Cape Town under the theme: Global Environmental Health.  Minister Pandor’s visit to the International Institute for Applied Systems Analysis (IIASA) opened opportunities for the benefit of SADC and the Continent in systems analysis and evidence-based policy advice and development. 21 PERFORMANCE OVERVIEW 5/27/2016

QUARTER ONE HIGHLIGHTS: INTERNATIONAL COOPERATION AND RESOURCES (ICR) – (2) The following initiatives also part of the achievements which were reported in the period under review;  A ministerial delegation from Egypt was hosted where the two countries committed a joint amount of R24 million towards joint calls and other bilateral activities.  South Africa, through Multilateral Cooperation and Africa (MCA), partnered with Namibia (the Namibian National Science and Technology Festival), and Sudan (joint Space Sciences workshop.  The DST also participated in the Africa Regional Forum on Sustainable Development. The Forum emphasised the importance of the role of science and technology to support sustainable development goals.  The evaluation of the Epidemiological Modelling and Analysis for HIV/AIDS Policy project was completed. This was supported by Canada at the South African Centre of Excellence in Epidemiological Modelling and Analysis (SACEMA). This is a project that enabled SACEMA to lead the world in the biomarker based incidence estimation field. 22 PERFORMANCE OVERVIEW 5/27/2016

QUARTER 1 ACHIEVEMENTS - PROGRAMME 3: INTERNATIONAL COOPERATION AND RESOURCES 23 PERFORMANCE OVERVIEW Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus R380 million in international funds directly invested in research, innovation and STI human capital development programmes as well as research infrastructure investments in South Africa as part of cooperation initiatives implemented by the DST by 31 March 2016 R60 million in international funds directly invested in research, innovation and STI human capital development programmes as well as research infrastructure investments in South Africa as part of cooperation initiatives implemented by the DST by 30 June 2015 R87 million rands in international funds invested in research, innovation and STI human capital development programmes and research infrastructure investments. Achieved R220 million invested by international partners in their own organisations and initiatives but targeted at cooperation in research, innovation and STI human capital development with South African partners as part of cooperation initiatives implemented by the DST by 31 March 2016 R20 million invested by international partners in their own organisations and initiatives but targeted at cooperation in research, innovation and STI human capital development with South African partners. R130 million invested by international partners in organisations targeted at cooperation in research, innovation and STI human capital development with South African partners. Achieved 5/27/2016

QUARTER 1 ACHIEVEMENTS - PROGRAMME 3: INTERNATIONAL COOPERATION AND RESOURCES 24 PERFORMANCE OVERVIEW Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus 400 international partner organisations (i.e. legal entities) collaborating with South African partners within the formalised framework of collaborative research, innovation or STI human capital development projects as part of cooperation initiatives facilitated by the DST by 31 March international partner organisations (i.e. legal entities) collaborating with South African partners within the formalised framework of collaborative research, innovation or STI human capital development projects as part of cooperation initiatives facilitated by the DST by 30 June international partners’ organisation collaborating with South African partners within the formalised framework of collaborative research, innovation or STI human capital development projects as part of cooperation initiatives facilitated by the DST. Achieved 10 dedicated international technical exchanges to build or reinforce South Africa’s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners facilitated by the DST by 31 March 2016 Two dedicated international technical exchanges to build or reinforce South Africa’s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners facilitated by the DST by 30 June 2015 Eight dedicated international technical exchanges to reinforce South Africa’s specifically referenced in the DST Strategic Plan, undertaken with the support of international partners facilitated by the DST. Achieved 5/27/2016

QUARTER 1 ACHIEVEMENTS - PROGRAMME 3: INTERNATIONAL COOPERATION AND RESOURCES 25 PERFORMANCE OVERVIEW Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus Four formally recorded decisions made in intergovernmental STI forums, such as multilateral organisations, with a direct bearing on resource allocation to support priorities of government's programme of action following specific DST intervention by 31 March 2016 One formally recorded decision made in intergovernmental STI forums, such as multilateral organisations, with a direct bearing on resource allocation to support priorities of government's programme of action following specific DST intervention by 30 June 2015 One contribution to the African Union (AU) declaration for financial inclusion of woman in Agribusiness. Achieved 5/27/2016

QUARTER ONE HIGHLIGHTS: RESEARCH DEVELOPMENT AND SUPPORT (RDS) (1)  The implementation plan of the Research Innovation and Scholarship (RIS) Human Capacity Development (HCD) Strategy will include the projections of the financial resources required to address the HCD needs of the National Development Plan.  The team comprising the DST, Department of Higher Education and Training (DHET), and NRF staff members has completed the modelling of the required enrolments of Master’s and Doctoral students which would ensure that by 2030 South Africa would produce 100 PhD graduates per million population per year.  On the next generation of researchers progress has been made during the reporting period. A trend of a declining proportions of black students as one goes to higher postgraduate studies has been observed, and the Department has completed a study to establish the reasons for this trend. 26 5/27/2016 PERFORMANCE OVERVIEW

QUARTER ONE HIGHLIGHTS: RESEARCH DEVELOPMENT AND SUPPORT (RDS) (2)  To determine the socio-economic impact of the DST investments in postgraduate training, the NRF has commissioned Centre for Research on Evaluation, Science and Technology (CREST) to do a preliminary investigation of all studies and players who have done work in this area.  On the established researchers, major work done in the reporting period include; The Centres of Excellence (CoE) to support established researchers; Alignment of Centres of Excellence with the areas of focus in the National Development Plan; and During the reporting period the Minister launched a new Centre of Excellence on HIV and AIDS prevention. It is co-hosted by the Centre for the AIDS Programme of Research in South Africa (CAPRISA) and the University of KwaZulu-Natal (UKZN). 27 5/27/2016 PERFORMANCE OVERVIEW

QUARTER ONE HIGHLIGHTS: RESEARCH DEVELOPMENT AND SUPPORT (RDS) (2)  On science promotion, during the reporting period the following progress has been made towards the building of a science centre in Cofimvaba. The Eastern Cape Department of Education (ECDoE) has secured the availability of the building site that has been provided by the Intsika Yethu Municipality. A written commitment has been made by the ECDoE regarding long-term support to sustain the science centre in teacher and curriculum development programmes including incoporating human resource requirements of the science centre into the ECDoE staff establishment, facilitating transfer of the science centre building to the Department of Roads and Public Works (DRPW). 28 5/27/2016 PERFORMANCE OVERVIEW

QUARTER 1 ACHIEVEMENTS - PROGRAMME 4: RESEARCH DEVELOPMENT AND SUPPORT 29 Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus 900 graduates and students placed in DST-funded work preparation programmes in SETI institutions by 31 March graduates and students placed in DST-funded work preparation programmes in SETI institutions by 30 June graduates and students placed in DST-funded work preparation programmes in SETI institutions. Achieved researchers awarded research grants through NRF-managed programmes as reflected in the NRF project reports by 31 March researchers awarded research grants through NRF- managed programmes as reflected in the NRF project reports by 30 June researchers awarded research grants through NRF- managed programmes. Achieved Approximately participants ( learners and members of the public) in science awareness and engagement programmes as reflected in project reports of the NRF and other service providers by 31 March 2016 Grant funding awarded to organisations implementing the initiatives by 30 June 2015 Grants were awarded to 57 organisations towards the host of NSW activities; grants were awarded to seven festival organisers to host 12 festivals country-wide Achieved 5/27/2016 PERFORMANCE OVERVIEW

QUARTER ONE HIGHLIGHTS: SOCIO-ECONOMIC INNOVATION PARTNERSHIP (SEIP) – (1)  The Waste Research Development and Innovation (RDI) Roadmap Programme Implementation Unit was established at the CSIR.  The Propella Business Incubator was launched in the Nelson Mandela Bay on 24 June. Propella is funded by the IDC, Nelson Mandela Metropolitan University, Innovolve and Engeli Enterprise Development and will focus on the advanced manufacturing and renewable energy sectors.  As part of the Data Science Skills Initiative - CSIR Meraka Institute in June 2015 appointed 32 students from 12 universities. The aim of the programme is to support capacity building in the emerging field of data science and analytics. 30 5/27/2016 PERFORMANCE OVERVIEW

QUARTER 1 ACHIEVEMENTS - PROGRAMME 5: SOCIO-ECONOMIC PARTNERSHIP 31 Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus Five decision-support interventions maintained and improved by 31 March 2016 Monitor the implementation of work plans for the five existing decision- support systems by the project teams by 30 June 2015 The implementation of the five work-plans was monitored as follows: Implementation of Phase 3 of the Rural Innovation Assessment Tool (RIAT) Sanitation Technology Assessment and Evaluation Tool Total Cost of Ownership model presented to the Eastern Cape Department of Education and a refined model developed Spatial Temporal Evidence Planning Tool The finding was that most tools have potential for wider application. Achieved 5/27/2016 PERFORMANCE OVERVIEW

QUARTER 1 ACHIEVEMENTS - PROGRAMME 5: SOCIO-ECONOMIC PARTNERSHIP 32 Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus 50 master's and doctoral students fully funded or co-funded in designated niche areas that support the green economy and sustainable development by 31 March masters and doctoral students fully funded or co-funded in designated niche global change areas supporting the green economy and sustainable development by 30 June masters and PhD students funded by 30 June Achieved Four knowledge and innovation products (patents, prototypes, technology demonstrators and technology transfer packages) added to the IP portfolio through fully funded or co-funded research by 31 March 2016 Begin negotiations with implementation agencies on proposed knowledge and innovation products to be added to IP portfolio by 30 June 2015 Negotiations with implementing agencies finalised. The Mini Stream Assessment Scoring System (MiniSASS) mobile application is under development and will be launched in quarter 2. Water related technologies are under development and will be reported on from quarter 3 Achieved 5/27/2016 PERFORMANCE OVERVIEW

QUARTER 1 ACHIEVEMENTS - PROGRAMME 5: SOCIO-ECONOMIC PARTNERSHIP 33 Annual TargetQuarter 1 TargetQuarter 1 ProgressStatus 160 interns fully funded or co-funded in R&D related to design, manufacturing and product development by 31 March interns fully funded or co-funded in designated niche areas related to design, manufacturing and product development by 30 June interns funded by 30 June Achieved Eight instruments funded in support of increased localisation, competitiveness and R&D-led industry development in aerospace, advanced manufacturing, chemicals, mining, advanced metals and ICTs by 31 March 2016 Seven instruments funded in support of increased localisation, competitiveness and R&D-led industry development in aerospace, advanced manufacturing, chemicals, mining, advanced metals and ICTs by 30 June 2015 Seven instruments funded by 30 June Technology Stations Programme (TSP) Sector wide technology assistance packages (SWTAPs) Firm level Technology Assistance Packages (FTAPs) Science, Engineering and Technology Industry Internship Programme (SETIIP) Sector Innovation Fund Industry Innovation Partnership. Incubators Achieved 5/27/2016 PERFORMANCE OVERVIEW

34 Quarter 1 TargetQuarter 1 ProgressReasons for non- achievement Status Five South African students participating in international training programmes offering a postgraduate qualification as part of cooperation initiatives facilitated by the DST by 30 June 2015 One South African student accepted for PhD programme at the Belgium University through the ERAFRICA projects Establishing the frameworks and programmes with foreign partners are taking longer than anticipated, hence only one South African student have started to participate in international programmes as part of cooperation initiatives facilitated by the DST Not Achieved postgraduate students and postdoctoral fellows supported through NRF and DST-managed programmes as reflected in the NRF and DST project reports by 30 June postgraduate students i.e. Honours (1 867); Masters (2 780); PhD (2 021) and Post-doc (449) The quarterly target cannot be predicted or managed within closer margins. As a result 323 fewer bursaries awarded because it depends on the pool of applicants, which cannot be predicted accurately. Not Achieved Preapproval decisions provided within 90 days of date of receipt of application for the R&D tax incentive by 31 March applications are still to be finalised, of which 7% were received more than 24 months ago, 14% more than 18 months, 46% more than 12 months and 33% is more or less than six months. Historical backlog and capacity constraints. Not Achieved 5/27/2016 PERFORMANCE OVERVIEW QUARTER 1 TARGETS WHICH WERE NOT ACHIEVED

35 Quarter 1 TargetQuarter 1 ProgressReasons for non-achievementStatus Stakeholder consultations on draft Basic Sciences Development and Support Framework completed by June 2015 No stakeholder consultation on draft Basic Science Development and Support Framework conducted Delays in consultation with the NRF delayed broader consultation, as consensus needed to be reached with the NRF first Not Achieved First draft of the Multiwavelength Astronomy Strategy implementation plan developed by 31 May 2015 A guideline document for the drafting of the Multi-wavelength Astronomy strategy implementation plan was completed. The draft will be ready by end of September 2015 Target date revised to end of September Not Achieved Five MeerKAT antennae installed by 30 June 2015 No MeerKAT antennae installedTwo antennas are in the dish shed being prepared for assembly. The contractor is struggling with qualification on the previous four antennas and verifying pointing and surface accuracies on system level; these challenges must be overcome before the next antennas are erected Not Achieved Project scoping document and plan approved by Exco by 30 June One recommendation on the review of innovation measurements were approved by EXCO on the 6 July 2015 Project scoping document for review still being drafted. EXCO comments are used in finalising the draft project scoping document and TORs for the review and will be presented to the DG for approval Not Achieved 5/27/2016 PERFORMANCE OVERVIEW QUARTER 1 TARGETS WHICH WERE NOT ACHIEVED

DST Financial Performance FINANCIAL PERFORMANCE REPORT 36 BUDGET SPLIT – BY PROGRAMME 5/27/2016

BUDGET SPLIT – BY ECONOMIC CLASSIFICATION 37 FINANCIAL PERFORMANCE REPORT 5/27/2016

FINANCIAL PERFORMANCE - SUMMARY 38 DST Financial Performance Report FINANCIAL PERFORMANCE REPORT 5/27/2016

EXPENDITURE BY PROGRAMME – 30 JUNE 2015 Programmes Compensation of Employees Goods and Services Transfer Payments Capital AssetsTOTAL Programme 1 141, ,693 12,796 2, ,776 Programme 2 41,428 21, ,081 1,008,817 Programme 3 43,729 17,219 61, ,997 Programme 4 30,054 14,894 4,202,118 4,247,066 Programme 5 34,113 8,962 1,761,389 1,804,464 Total 291, ,076 6,983,433 2,309 7,482, /27/2016

40 THANK YOU 5/27/2016