1. CSIR 2018/19 Annual report presentation to
the Portfolio Committee on Higher Education,
Science and Technology
Wednesday, 9 October 2019

2. Contents > Chairman’s overview > The CSIR mandate
> Vision, mission and values
> The CSIR in numbers
> Strategic objectives
> CSIR Leadership
> Highlights

3. Chairman’s overview
The CSIR is the biggest multidisciplinary scientific research institution in Africa and a central role player in the National System of Innovation
Repositioning the CSIR as an industry-focused institution through new strategy
New strategic trajectory requires agility in processes and response to industry needs
Enhanced collaboration with government and private sector key to offering solutions for jobs and growth of our economy
The fourth industrial revolution is significantly impacting competitiveness, therefore nimble response to opportunities is required
Attraction and retention of high-end skills remains a challenge
We operate in challenging times, but CSIR has a solid governance structure, strong science, engineering and technology base and innovation capability to help steer it forward

4. The CSIR mandate CSIR MANDATE
“The objects of the CSIR are, through directed and particularly multi-disciplinary research and technological innovation, to foster, in the national interest and in fields which in its opinion should receive preference, industrial and scientific development, either by itself or in co-operation with principals from the private or public sectors, and thereby to contribute to the improvement of the quality of life of the people of the Republic, and to perform any other functions that may be assigned to the CSIR by or under this Act.”
(Scientific Research Council Act 46 of 1988, amended by Act 27 of 2014)

5. CSIR mandate unpacked
Better utilisation of the resources of the Republic
Manpower training to improve productive
capacity of its population
Improvement of technical processes and methods
to improve industrial production
The promotion and expansion of existing,
as well as the establishment of new industries

6. Vision and mission VISION
We are accelerators of socio-economic prosperity in South Africa through leading innovation
MISSION
Collaboratively innovating and localising technologies while providing knowledge solutions for the inclusive and sustainable advancement of industry and society

7. Our values Excellence People-centred Integrity Collaboration
We value integrity – in ourselves and in others. We are honest and fair in how we work and how we engage the world around us. We respect the trust that our colleagues and our stakeholders place in us and commit to ethical decision-making, delivery and governance.
We excel at R&D and industrial innovation solutions that address South Africa’s challenges. We are unashamedly passionate about the impact we make and pursue excellence in every facet of CSIR life.
We care about people – our impact through innovation aims to improve lives. We respect each other’s diversity, and uphold the dignity of every person, regardless of culture or belief system. We treat our stakeholders the way we like to be treated.
We are keen to learn from one another and collaborate across the organisation and with external partners, to ensure our work has the best chance to innovate a better future for South Africans.

8. The CSIR in numbers
The CSIR is a science council, classified as a national government business enterprise.
IN NUMBERS:
Pretoria
Johannesburg
Durban
Cape Town
Stellenbosch
1 608
*SET base
62%
Black South Africans
2 342
Total staff base
36%
Female South Africans
586
Staff with M-qualifications
320
Staff with PhDs
536
Publication equivalents
319
Journal articles
22 New patents
50 New technology demonstrators
R5.42 m
Royalty and licence income
R2 534 m
Total income
+R126 m
Total investment in HCD
*Science, engineering and technology figures as at 31 March 2019

9. Strategic objectives Build and transform human capital
Conduct high-quality research to foster
scientific development
Conduct relevant research to foster industrial development
Infrastructure renewal and development
Financial sustainability and governance

10. Dr Ramatsemela Masango
CSIR Board
Prof. Thokozani Majozi
PhD (Process Integration)
Dr Thulani Dlamini
PhD Chemistry, MBL
Dr Christine Render
PhD (Chemical Engineering)
Ms Phindile Baleni
LLB
Dr Amber-Robyn Childs
PhD (Ichthyology)
Ms Tiny Mokhabuki
CA(SA)
Dr Ramatsemela Masango
PhD Nuclear Engineering
Mr Stafford Masie
Entrepreneur
Mr Joel Netshitenzhe
MSc Financial Economics
Dr Vuyo Mthethwa
PhD Higher Education Governance
Mr Cassim Shariff
MBA

11. CSIR Executive management
Dr Thulani Dlamini
Chief Executive Officer
Dr Rachel Chikwamba
Executive: Project Synapse
(Acting) Group Executive: Chemicals, Agriculture,
Food and Health
Adv Esmé Kennedy
CSIR Group Executive: Legal, Compliance and Business Enablement
Cheryl Howell
(Acting) Chief Financial Officer
Khungeka Njobe
CSIR Group Executive: Business Excellence and Integration
Andile Mabindisa
(Acting) Group Executive: Human Capital
Dr Motodi Maserumule
CSIR Group Executive: Mining, Manufacturing, Defence & Security

12. Highlights for:
Build and transform human capital

13. Key performance indicators
BUILD AND TRANSFORM HUMAN CAPITAL
Key performance indicator
2018/19 Target
2018/19 Actual
Total size of SET base
1 860
1 608
% of black South Africans in SET base 62
62.08
% of female South Africans in SET base
≥ 37
35.95
% of SET base with Doctorates 20
19.47
% of Chief Researchers who are black 13
7.14
% of Chief Researchers who are female
14.29
% of Principal Researchers who are black 27
27.37
% of Principal Researchers who are female
16.84

14. Build and transform human capital
Young SA students' international track record in supercomputing
SA undergraduate students placed in the top three positions of the international Student Cluster Competition every year since 2013
Competitors typically include China, the United States of America, Germany and the United Kingdom
Teams made up of undergraduate computer science and engineering students
Group have taken the top honours in 2013, 2014, and 2018, and second in 2015 and 2017

15. Build and transform human capital
Class of 2018
These are some of the employees who obtained doctoral or master’s-level qualifications in 2018. 80
Total 57
Masters 23
PhDs

16. Build and transform human capital
DSI partnership funds new graduates pursuing degrees in priority thematic areas at public universities
839
DSI-CSIR Inter-Bursary Support Programme funds new graduates pursuing Honours, Master’s and PhD degrees
Students receive travel grant to present their publishable work at an approved conference
Attendance of high-level national conferences for Master’s and PhD students
Experiential learning through part-time or vacation work at a research and development institute
Students supported since inception
348
Students supported in last financial year alone

17. Graduate-in-training (GIT) programme
Currently 26 graduates supported, 17 engineers and 8 scientists
Provided with training and development towards professional registration
Alyssa Ramwell
Electro-mechanical Eng, UCT
Andries Steenkamp
Computer Eng, UP
Angela Rosenfeldt
Geo-Informatics, UCT
Fiona Oloo
Electrical Eng,
Wits
Ashim Asharaph Electronic Eng, UP
Bayanda Chakuma Computer Science, UP
Brenton Chetty Computer Eng,
Busisiwe Marole Civil Engineering, Wits
Carike Karsten Industrial Eng,
Devashen Govender Electr. Eng, UKZN
Dominic Pillay Electronic Eng, UKZN
Jody Julies Mechatronics Eng, SU
Jovan Joseph Mechanical Eng, UP
Juniet Kgaphola Geo & Environ Science, UP
Lihle Kula Civil Engineering, UCT
Lindokuhle Mbatha Electrical Eng, BSc Eng, Wits
Michandre Smit Civil Engineering, B Eng Hon, UP
Muhammad Sheik Mechanical Eng, BSc Eng, UKZN
Ngwako Kwatala Meteorology, BSc Hon, UP
Nhlanhla Dlamini Metallurgy & material Eng, Wits
Nonzwakazi Ncolosi Civil Engineering, UP
Paul Burger Industrial Eng, UP
Phumeza Pantsi Computer & Info Science, UP
Rebone Komane Geo-informatics,
Tina Chunga Chemical Eng,
Motlatsi Mantsi Geo-informatics,
NMMU

18. CSIR Youth Funded Bursary Programme
99 Undergraduate/Honours
11 Masters
4 PhDs
78 Engineering students
36 Science/IT students

19. DSI-funded/CSIR-managed Bursary Programme
The DSI funded Inter- Bursary Support Programme in all universities: 53 students at PDIs
Efforts made to provide support to students at PDIs through research core skills workshops, information sessions, etc

20. NATIONAL AND LOCAL PRIORITIES Technical and Entrepreneurship
CSIR-merSETA Partnership
Learning Factory for Industrial Development
NATIONAL AND LOCAL PRIORITIES
OUTCOMES
Technical and Entrepreneurship
Creation of decent jobs and entrepreneurship culture
Strengthened PSET system
Improved employability and prevented retrenchments
Support of SMMEs and Start-ups
Development of Black Industrialists
Improved commercialisation of technologies
Rural and townships economic revitalisation
Products/service localisation
Reduction of imports and increased exports
Theoretical learning
Practical learning
Practical Application
DSI
DTI
Industry Partners
Organised Labour
QCTO
SAQA
National & International
Collaborators
NRF, etc.
DHET
NSA
HEIs
NSF
SETAs
TVET Colleges
Community Colleges
Bursary 30
Internships (GIT)
Scholarships - Masters 10
Scholarships - PhD
Work Integrated Learning 50
Key Stakeholders
Total funding committed: R68.9 m

21. Example of curricular to be considered:
CSIR-merSETA Partnership
Characteristics of the ideal TVET College and Curricular
Example of curricular to be considered:
Computer programming/coding; Data, information processing and analytics
Ability to interact with modem interfaces (human-machine/robot)
AI and data analytics; Knowledge management; Cybersecurity
Digital manufacturing activities and processes

22. Build and transform human capital
Bringing science, engineering and technology to the public
Activities include: Career days at schools in Soshanguve, Venda and Hluhluwe, as well as universities, e.g. University of Mpumalanga, exhibitions and outreach programmes for SET awareness
Exhibition participation: Bio-Africa Convention, Budget Vote, 4IR exhibition in Parliament, Science Forum SA, Ministerial Imbizos, Scifest Africa and Sasol TechnoX
CSIR-hosted events: Black Science, Technology and Engineering Professionals student chapter visit, Emerging Researchers Symposium, Career Day
Approximately learners were engaged during outreach programmes

23. Highlights for:
Research, development and innovation

24. Key performance indicators
CONDUCT HIGH QUALITY, RELEVANT RESEARCH TO FOSTER SCIENTIFIC AND INDUSTRIAL DEVELOPMENT
Key performance indicator
2018/19 Target
2018/19 Actual
Publication equivalents
≥ 480
536
Journal articles
≥ 310
319
New patents granted
≥ 15 22
Contract income (R)
≥ R1 970
R1 746
New technology demonstrators
≥ 50 50
Royalty and licence income (Rm)
≥ 4 m
5.42
. After a period of constant growth since FY10, CSIR’s income has begun to decrease rapidly from FY16 to FY18.
Total income exhibited constant growth between FY10 and FY16 of 2%1 CAGR
This was largely driven by an increase in public sector income, despite decreasing income from private sector, international sources, the parliamentary grant as well as licensing and royalties
Total income declined significantly between FY16 and FY18 of -8%1 CAGR
Income decreased significantly from the public sector as a result of several factors, including
Declining spend from the South African public sector on science and technology activities
The redirection of National Expenditure to higher education institutions
Increased legislative constraints on CSIR (and other SOEs2), hampering its ability to strategically secure public sector contracts, without the need to award such contracts through public tendering processes
The decrease in income was driven by a further reduction in income from licensing and royalties, a marginal decrease from the private sector
Despite a reduction in total income, international income exhibited positive growth

25. Research, development and innovation for biomanufacturing
CSIR's Biomanufacturing Industry Development Centre (BIDC) focuses on building a critical mass of bioprocess and product development skills and infrastructure 84 12 75
biotechnology products developed and transferred
to enterprises
licences signed
permanent jobs created over a four-year period 79 39 14 4
Interns supported
Placed in permanent positions
Placed in temporary positions
Chose to further studies 25 18 14
enterprises
supported
black-owned enterprises
led by black females

26. Research, development and innovation for agriculture
Anti-microbial packaging for Avocados
SA produces prime quality export avocados BUT the fruit's shelf life is relatively short
CSIR and TUT pooled their skills in polymer and crop science to develop active packaging materials to help control post-harvest diseases in avocados
CSIR produced active essential oil films which were screened for anti-fungal activity and anthracnose disease reduction performance at the TUT crop science lab.
CSIR has scaled up the material and produced sachets of the essential oil pellets after a successful result
R&D has led to industry interest for similar solutions to other avocado varieties

27. Research, development and innovation for manufacturing
Technology roadmaps, valve manufacturing and smart factories
AISI developed technology roadmaps for eight companies in the aerospace industry, seven of which are SMMEs
 AISI assisted the companies to identify relevant technology support projects in line with their long-term technology planning needs
15 technology transfer and improvement projects:
Additive manufacturing for 3D-printed microwave sub-assemblies at LambdaG;
Localising software-defined radio technology at Lantern Engineering; and
Developing a resin via-filling capability for highly complex circuit boards at TraX Interconnect

28. Research, development and innovation for manufacturing
Technology roadmaps, valve manufacturing and smart factories
Technology Localisation Implementation Unit (TLIU)
Supports the development of 9 local manufacturers – 5 valve and 4 pump manufacturers – to provide nuclear components to Eskom’s Koeberg power plant
Aim is to assist local manufacturers, to be globally competitive, while increasing local content
Investing in context-aware real-time action and object recognition for smart factories
The CSIR-developed robot explores and maps unknown environments autonomously. When it recognises an object, it approaches the object and takes inspection-style images from multiple angles
Advances in this area will be relevant for 4IR,
which is introducing smart factories

29. Research, development and innovation for health
Early detection of cardiovascular disease and novel pharmaceutical dispensing unit
Cardiflow
A cost-effective and reliable device that can identify individuals at risk of cardiovascular disease by using a Doppler ultrasound probe
Benefits - simplified hardware and user-friendliness, eliminates need for highly skilled primary-care level operators to perform critical measurements.
Collaboration with Right ePharmacy
To design and develop a robotic pharmaceutical dispensing unit of medication to patients
Picking speed is 900 sachets per hour
It can apply labels to medicine sachets ready for patient consumption
Scans and verifies each product before dispensing it

30. Research, development and innovation for energy
A model for short-term renewable energy forecasting
SA has a carbon-intensive electricity supply system; currently transitioning towards a less carbon-intensive one
The CSIR and Eskom are developing a forecasting model to cater for the increased use of renewable energy
The work is novel in SA in that existing methods are being built upon and tailored to the local meteorological conditions
Initial test results show forecasting accuracies of 15% mean absolute error for solar PV and wind

31. Research, development and innovation for safety and security
Rhino poaching
The ‘Meerkat’ Wide Area Surveillance System was designed to detect and track rhino poachers in the Kruger National Park (KNP) - before they kill a rhino
It has been in continuous operational use in the KNP since early 2017
The system can detect and localise poachers, as well as discriminate them from animals
Has detected more than 90% of poachers that entered the deployment area
Has contributed to the successful arrest or disruption of more than 70% of all poaching groups detected; and effectively prevented a further 11% of poachers detected from shooting rhino
CSIR team received the SANParks Kudu Innovation Award in 2018 for system’s effectiveness

32. Research, development and innovation for safety and security
Cybersecurity centre for the City of Johannesburg
Centre enables the CoJ to respond effectively to cyber threats and tighten the security posture
CSIR facilitated cyber awareness training for COJ employees at all levels and developed related cyber governance
CSIR technologies used in setting up the centre: a social media analysis tool which is part of the threat intelligence component; a virtualised environment for training on incident response; and an online training platform for cyber awareness
Since the establishment of this centre, the city has been able to detect thousands of malicious activities on its infrastructure and networks, ranging from malicious login attempts to deliberate attacks

33. Research, development and innovation for human settlements
Online tool for local government settlements planning and design
The Greenbook is a new online tool that supports local government to plan and design climate-resilient settlements
Features detailed projections of future climate change
New models quantify the exposure of South African settlements to various hazards, i.e. drought, wildfires, inland floods and coastal flooding
8x8 km2
1x1 km2
213
resolution of future climate change
forecast settlement growth
local municipalities covered 83
1 637
adaptation actions
settlements covered

34. Research, development and innovation for human settlements
The Neighbourhood Planning and Design Guide
Redbook is an electronic or printed guideline for Human Settlement Planning and Design
The Department of Human Settlements appointed the CSIR to manage the process of developing the new guide
It provides practical information related to the planning and design of the range of services and infrastructure found in a neighbourhood development project
It addresses aspects such as neighbourhood layout, water supply, sanitation, stormwater management, electrical energy, roads, transport, public open spaces, housing and crime prevention through environmental design
Provides decision-making support to built environment professionals and practitioners

35. Research, development and innovation for the natural environment
CSIR informs water requirements of SA’s multi-billion rand fruit industry
Study conducted in prime apple-producing Western Cape province
Golden Delicious apples were studied; they have yields exceeding 100 tons per hectare
All the orchards were irrigated using one micro-sprinkler system per tree, delivering between litres of water per hour
The frequency of irrigation ranged from two to three times per week, lasting one to two hours early in the season
During the hot summer months, the frequency increased to daily or several times a day
Findings: Total orchard water use in the high-yielding orchards ranges from a little under to just over cubic metres per hectare, depending on canopy size

36. Research, development and innovation on the African continent
First waste management outlook for Africa
CSIR plays leading role in the publication of the first Africa Waste Management Outlook in 2018
The CSIR’s Prof. Linda Godfrey is the lead author and coordinator of the publication
It provides an analysis of the state of waste management in Africa, its impact on the continent and proposed solutions for improved waste management in the region
Study found that an estimated 70-80% of the 125 million tons of municipal solid waste generated across Africa is recyclable, only 4% of the waste generated is recycled
Poor waste management practices exacerbated by indiscriminate dumping in urban areas, increased the risk of disease, flooding and environmental pollution.

37. Highlights for:
Infrastructure renewal and development

38. Key performance indicators
INFRASTRUCTURE RENEWAL AND DEVELOPMENT
Key performance indicator
2018/19 Target
2018/19 Actual
Investment in property and equipment (Rm)
≥ 61 74
. After a period of constant growth since FY10, CSIR’s income has begun to decrease rapidly from FY16 to FY18.
Total income exhibited constant growth between FY10 and FY16 of 2%1 CAGR
This was largely driven by an increase in public sector income, despite decreasing income from private sector, international sources, the parliamentary grant as well as licensing and royalties
Total income declined significantly between FY16 and FY18 of -8%1 CAGR
Income decreased significantly from the public sector as a result of several factors, including
Declining spend from the South African public sector on science and technology activities
The redirection of National Expenditure to higher education institutions
Increased legislative constraints on CSIR (and other SOEs2), hampering its ability to strategically secure public sector contracts, without the need to award such contracts through public tendering processes
The decrease in income was driven by a further reduction in income from licensing and royalties, a marginal decrease from the private sector
Despite a reduction in total income, international income exhibited positive growth

39. Infrastructure focus areas and interventions
Campus Master Plan
Progress update:
Campus Planning and Development office established
Enabling policies drafted and under review
Governance mechanisms in place
Gateway to Science and Innovation Centre (GSCI)
Public face of the CSIR, will facilitate outreach activities
Business case and feasibility study underway
Target costs – R100 million, funding model: partnerships/ sponsorship
Interdisciplinary shared laboratory
State-of-the-art core research laboratory
Scoping and concept development underway
Initial estimate at R500 million
Residential accommodation
Provide a working environment for staff, visitors and conference delegates
Transaction Advisor being appointed
Estimated cost at R440 million; possible PPP funding

40. Highlights for:
Financial sustainability and governance

41. Key performance indicators
FINANCIAL SUSTAINABILITY AND GOVERNANCE
Key performance indicator
2018/19 Target
2018/19 Actual
Total income (Rm)
2 740
2 555
Net profit/loss (Rm)
7.7
B-BBEE rating
Level 2 contributor
Level 3 contributor
Disabling injury frequency rate
< 0.2
0.28
. After a period of constant growth since FY10, CSIR’s income has begun to decrease rapidly from FY16 to FY18.
Total income exhibited constant growth between FY10 and FY16 of 2%1 CAGR
This was largely driven by an increase in public sector income, despite decreasing income from private sector, international sources, the parliamentary grant as well as licensing and royalties
Total income declined significantly between FY16 and FY18 of -8%1 CAGR
Income decreased significantly from the public sector as a result of several factors, including
Declining spend from the South African public sector on science and technology activities
The redirection of National Expenditure to higher education institutions
Increased legislative constraints on CSIR (and other SOEs2), hampering its ability to strategically secure public sector contracts, without the need to award such contracts through public tendering processes
The decrease in income was driven by a further reduction in income from licensing and royalties, a marginal decrease from the private sector
Despite a reduction in total income, international income exhibited positive growth

42. Financial sustainability
Financial performance
Financial performance
In 2018/19 the CSIR made a net profit of R7.7 m
Extensive cost containment measures and improvements to internal processes were implemented
Challenges
Government policy on contracting with state-owned entities such as the CSIR limits uptake of CSIR’s technologies by government - in last financial year, R382 m government opportunities lost due to tender processes
Adverse economic climate and tight fiscal environment
Decline in national R&D investment
Cuts in Parliamentary Grant
Negative business impact of wage freeze far outweighs minimal potential savings

43. Maintaining good governance
Maintaining good governance, health and safety
Governance
Received a clean audit for the 2018/19 financial year
Achieved a recordable incident rate of < 0.28
Achieved a Level 3 B-BBEE status against a Level 2 target
Measures put in place to ensure regaining of Level 2 status include:
Implementation of Youth Employment programme (YES); and
Re-development of Learnership programmes
Health and safety
Goal remains: Zero harm, zero disabling injuries and zero fatalities
The Board approved the policy on Safety, Health, Environment and Quality

44. Thank you