1. CSIR PRESENTATION TO THE PORTFOLIO COMMITTEE ARTS, CULTURE, SCIENCE & TECHNOLOGY Dr Sibusiso Sibisi President and Chief Executive Officer Dr Anthos Yannakou Executive Vice President: Operations 20 August 2002 and

2. Overview of Presentation CSIR Background/Impact National R&D Strategy: Link to CSIR Follow up on Committees September 2001 visit to CSIR

3. CSIR Mandate Constituted as a Science Council by an Act of Parliament: “In the national interest, the CSIR, through directed and multi-disciplinary research and technological innovation, should foster industrial and scientific development, either by itself, or in partnership with public or private sector institutions, to contribute to the improvement of the quality of life of the people in South Africa”. (Extract from CSIR Act)

4. Core Funding Reporting and Funding Structure Parliament (=100% Shareholder) Minister of Trade and Industry CSIR Board DTI CSIR Executive Management Board CSIR Strategic Business Units/Initiatives CSIR Strategic Business Units/Initiatives DACST (Science Budget) DACST (Science Budget) COTII DTI/CSIR Bilateral Innovation Fund Key Projects Competence BuildingRelevance and Impact BU’s Innovation Hub AIDC National Imperatives Ventures/Equity Partnerships Contract Income Royalties

5. CSIR Business Units Bio/Chemtek Boutek Defencetek Environmentek icomtek M&Mtek Miningtek Transportek Crosscutting initiatives: sustainable development, SMMEs, sport, NPDC, RRC, energy, Innovation Hub, AIDC

6. CSIR Organisational Priorities and Initiatives Strategic management of innovation (“market-mind-market”) Strategic relationship management Diversity and transformation, with excellence Impact on sustainable development Leverage Intellectual Capital and knowledge

7. HR Planning to 2002: Actual Performance at 31 March 2002

8. CSIR Qualification Breakdown September 2000 to March 2002

9. CSIR Parliamentary Grant and External Contract Income

10. CSIR Investment of Core Funding in Core Competences Technological Core Competency CSIR investment into core competences (%) 2000/012001/022002/03 Manufacturing31.53124 Information (ICT)21.522.529 Environment11.510.59 Biosciences9.511 Infrastructure111012 TOTAL85

11. Enterprise Development Spearheading the growth of the local biotechnology industry – a joint initiative has led to the establishment of a Bio- incubator aimed at stimulating the economic development of the biotechnology industry in South Africa Facilitating SMME development – the CSIR has put together a Development Process to assist SMMEs. This model forms an integral part of the CSIR’s overall job creation drive and can be applied to any innovation – several SMMEs have participated in this process and are now established in the mainstream economy Northern Province Special Craft Project benefits rural crafters – one hundred and forty one rural crafters from seven different groups in the province are the recipients of a special craft project that has enhanced and added value to remarkable traditional skills. DACST facilitated the North Province Special Craft Project, funded by the Department of Environmental Affairs and Tourism Poverty Relief Fund

12. Enterprise Development (cont.) Boosting entrepreneurial activity in the North West Province – the North West Department of Economic Development and Tourism SMME Support Services has developed – in partnership with the CSIR – a provincial five-year Strategic SMME Plan. Working in partnership five Entrepreneurial Support Centres have been established in the province Promoting and Commercialising South Africa’s indigenous foods – the CSIR’s indigenous Foods project, sponsored by the DACST addresses the alleviation of poverty in rural areas by exploiting the rich abundance of indigenous foods. The project aims to stimulate small to medium business enterprises, foster job creation and empower women to contribute to the economic and social development of the country

13. Information Technology Tsilitwa community crosses the digital divide – this DACST Innovation Fund project (a partnership between the CSIR and the community) is profoundly changing the lives of the community through improved health care and education and sustainable economic development Integrated Mineworkers Compensation System developed for Department of Health – in partnership with Molepe Consulting the CSIR is developing a compensation system which will improve the efficiency and effectiveness of compensating mineworkers and beneficiaries

14. Information Technology (cont.) Cultureware: enabling Digital Culture – in a DACST Innovation Fund project with the CSIR as main partner the focus is on new media productions technology and processes for the promotional purposes in particular for historically disadvantaged cultural groups Database to assist in combating child abuse – the CSIR Crime Prevention Centre is leading a team to perform a skills audit and develop a database of volunteers so as to empower them to contribute effectively and appropriately to the prevention of child abuse

15. Environmental Management Total Solutions to waste problems – the CSIR Centre for Integrated Waste Management provides appropriate, innovative and integrated solutions to waste management – recent successes include projects for the Malawian Government, UNESCO and in the field of product development from waste materials and waste disposal systems State of the Coast Report – on contract from the City of Cape Town this report will assist in the formulation of Coastal Zone Strategy and will inform the next stage in the sectoral planning process Conservation Plan for the Greater Addo Elephant National Park – this project, in conjunction with the University of Port Elizabeth, has developed the conservation plan for the expansion of the Addo Elephant National Park – the aim of this integrated conservation plan is to support the decision-making processes of South African National Parks

16. Infrastructure Integrated freight and logistics database – a joint venture with the Road Freight Association to support the transport industry in southern Africa for information sharing Support for labour-based road construction and contractor development – the CSIRis involved in a number of projects supporting labour-based road construction and contractor development, including a poverty relief project in the Eastern Cape, which will provide employment for approximately 800 people

17. CSIR Commercialisation Commercialising farm-based essential oils businesses: essential oils are high-value extracts from plants, which are used for instance, in perfumes and health products. These have been produced in commercial scale, farm-based processing plants developed by the CSIR, currently totalling 35. The CSIR has established a joint venture with Biosys Ltd UK, to develop a South African essential oils and botanical extracts industry from high-value plant extracts used in the perfume, cosmetics, health and food markets Production and processing of hemp: an Eastern Cape pilot project aimed at the commercial production of low-narcotic (dope-free) hemp has been launched following a pre-feasibility study conducted by the CSIR. The project forms part of a comprehensive programme to establish an SMME-based natural fibre value-added industry in South Africa, to supply the growing local and global demand for natural fibre products

18. CSIR Commercialisation (cont.) Fabrics that “breathe”: BreatheTex Corporation (Pty) Ltd, established as a result of the commercialisation of a CSIR lamination technology, manufactures high-performance breathable fabrics Small-scale medical waste incinerators: the CSIR has developed and is optimising a small-scale medical waste incinerator for use in rural clinics to reduce infection risks and improve waste management. Incinerator production will be licensed to a joint venture between a metalworking company and black-owned SMMEs, located close to areas of use Satellite imagery for precision farming: Agrimage (Pty) Ltd is a spin-off venture of the CSIR’s Satellite Applications Centre. The company provides satellite imagery for precision farming, an area that has experienced rapid growth in South Africa as a result of pressures to cut production costs

19. CSIR Commercialisation (cont.) Monitoring of foetal development improved by MRC/CSIR device: a stand-alone device developed by the CSIR and the MRC is a low-cost, easy-to-use screening tool to diagnose placental function. Widespread application of the technology could improve chances of survival for impaired foetuses from 48% to 80%. This locally developed system has completed a first round of trials at Tygerberg Hospital P57: a medical plant extraction facility for the production of complex botanical mixtures for use in human clinical trials, the first of its kind in the world, has been established at the CSIR. The CSIR and Phytopharm, a UK-based phytomedicine company, are jointly developing a novel anti-obesity agent (P57) that has been extracted from an indigenous plant. Pfizer in the USA has taken a license for the final clinical development

20. CSIR Support to National R&D Strategy Human Resource in SET to be renewed Private sector R&D to be increased Technology missions to be funded

21. Human Resources in SET In CSIR require larger pipeline plus more senior scientists for mentoring 7,3% PhD’s of who 70% are over 40; international benchmark 13 to 54% 32% of S&T professionals are Black and 35% are Women Need to strengthen SET base:  Populate S&T pipeline: bursars, interns, post-docs, scientists from Africa  Develop mentoring capacity  Create networks/alliances Require to invest R15 million in 1993/1994

22. Private Sector R&D In South Africa, business invest only 0,35% of GDP on R&D Survey by CSIR in 2001 amongst 20 major business:  R&D declined from 0,61% of sales to 0,42% from 1997 to 2001  R&D not expected to increase in next 3 to 5 years  R&D personnel declined by 10% from 1997 to 2001 CSIR Contribution:  40% of contract R&D for private sector in number of sectors  Developing core competences in ICT, Biotech, Infrastructure, Manufacturing, Environment  Partnership/collaboration to build competence/capacity in private sector (Innovation Fund etc.)  CSIR/Government “Centres” to support private sector eg. AIDC, NPDC

23. Technology Missions 1.POVERTY REDUCTION CSIR involved in 31 projects: cashmere, essential oils, plant fibre, indigenous foods, leather, mohair, seeds, weaving, wool, yoghurt Additional investment needed (R38 million) if want to:  Set up centre for managing public funds/building greater capacity to deliver  Extent pilot projects to other areas  Introduction of integrated programmes into infrastructure, health  Address indigenous knowledge and technology transfer issues

24. Technology Missions (cont.) 2.NATIONAL BIOTECHNOLOGY STRATEGY CSIR investing 11% of Parliamentary Grant in biotech (5% in 1999) CSIR with 13 TEI’s, 3 Science Councils, National Health Lab, 21 Private Sector companies submitted consortia proposal for DACST’s Biotechnology Regional Innivation Centres in: animal health, human health, plant biotech, industry/mining/environment programmes

25. Technology Missions (cont.) 3.ICT AIICT Business Plan being developed to close academia – industry gap. Mandate includes people development, high-quality research, innovation, local/global impact, effective networks/partnerships AIICT will:  Undertake world-class research  Champion emergent S.A. ICT industry  Decrease reliance on expensive imported technology  Provide networks to solve real problems and develop indigenous offerings  Assess ICT needs into the future  Help develop ICT strategies  Help train researchers

26. Technology Missions (cont.) 4.MANUFACTURING CSIR invests 31% of Parliamentary Grant in manufacturing CSIR coordinating for NACI the development of an advanced manufacturing and logistics strategy for SA 5.RESOURCE-BASED INDUSTRIES CSIR developing S&T competence in  Mining  Agroprocessing  infrastructure

27. Feedback on Some Issues Raised by Committee at CSIR in 2001 CSIR views on OPEN-SOURCE CSIR ENERGY R&D:  Strategic Decision Support  Energy Efficiency  Energy and the Environment  Renewable Energy  Energy for Rural Development CSIR involvement in NEPAD

28. CSIR’s NEPAD Involvement INFRASTRUCTURE INFRASTRUCTURE – Transportek, Environmentek and Boutek NEPAD are conducting an audit of Africa’s infrastructure, assessing development methodologies, and providing mechanisms for strengthening the African science and technology competence to develop the infrastructural base. PEACE & SECURITY PEACE & SECURITY – CSIR Defencetek is leading a process to harness CSIR competences to contribute to Africa’s Peace, Security and Reconstruction processes. MANUFACTURING MANUFACTURING – With Africa’s recovery heavily resting on value addition and the beneficiation of Africa’s natural resources. CSIR is helping to develop products and services for export, and provide the necessary infrastructural base, including ICT. ICT ICT – CSIR is interacting with all key players responsible for the leadership and management of the NEPAD ICT process including the e-Africa commission.