Business
South Africa Aims to Revive Business R&D Investment in 2025
The South African Department of Science, Technology, and Innovation (DSTI) is ramping up efforts to reverse the country’s declining business investment in research and development (R&D).
Through a nationwide roadshow planned for 2025, the government aims to encourage industries to prioritize innovation and technological advancement, which have flagged over the past decade.
A Decade of Decline
According to the 2023 South African Science, Technology, and Innovation Indicators Report, business R&D investment has dropped by a staggering 40% in the last ten years. This decline has hindered South Africa’s ability to compete with other OECD countries in industrial technology and innovation.
“South Africa is not breaking new ground in industrial technology because we are not investing enough,” the DSTI said in a statement.
Deputy Science Minister Nomalungelo Gina has already initiated engagement with business chambers in Durban, Gqeberha, and East London. These meetings are part of a broader effort to create partnerships that can rejuvenate the country’s innovation ecosystem.
Denise van Huyssteen, CEO of the Nelson Mandela Bay Business Chamber, highlighted ongoing efforts:
“We are deeply committed to addressing the skills gap through initiatives like the Bay of Opportunity and our Skills Development Desk.”
The roadshow will expand to other regions in 2025, focusing on bridging education gaps and strengthening supply chains in engineering, sciences, and technology.
Proposed Initiatives
The DSTI’s plans for 2025 include:
- Business Partnerships: Collaborating with industries to co-fund laboratories, mobile science labs, and advanced mathematics facilities for schools.
- University Collaborations: Strengthening ties between businesses, universities, and science councils to enhance innovation systems.
- Skills Development: Expanding programs like the Bay of Opportunity to address the skills gap in technology and engineering.
Why It Matters
South Africa’s lagging R&D investment is not just a science issue but an economic one. The country’s inability to match the innovation output of other industrialized nations has ripple effects on GDP growth, employment, and technological advancement.
By boosting business R&D, the government hopes to create a more robust economy and position South Africa as a leader in African industrial technology.
With 2025 set to be a pivotal year, South Africa’s focus on public-private partnerships and skill-building initiatives could lay the groundwork for a stronger R&D sector.
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