PERFORMANCE AND FINANCIAL REPORT (01 APRIL TO 30 JUNE 2014) DR. PHIL MJWARA PORTFOLIO COMMITTE 27 AUGUST

DST Overview Conclusion Financial Performance Achievements for the Quarter 1 Reasons for Delays in Achieving Targets OUTLINE OF THE PRESENTATION Summary of Outcomes Progress 2 Remedial Actions Challenges on Specific Indicators Achievement per Programme 7/3/2015

THE MANDATE OF THE DEPARTMENT (1) 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 OVERVIEW 7/3/2015

THE MANDATE OF THE DEPARTMENT (2) 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 OVERVIEW 7/3/2015

. 5 Vision To create a prosperous society that derives enduring and equitable benefits from science and technology DST VISION. 7/3/2015

. 6 Mission To develop, coordinate and manage a National System of Innovation (NSI) that will bring about maximum human capital, sustainable economic growth and improved quality of life for all DST MISSION STATEMENT. 7/3/2015

To enhance South Africa’s knowledge- generation capacity. To develop the innovation capacity of the NSI. To develop appropriate science, technology and innovation human capital. To build world-class STI infrastructure. To position South Africa as a strategic international RDI partner and destination. 7 KEY OBJECTIVES OF THE DEPARTMENT 7/3/2015

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 OVERVIEW 7/3/2015

DST PROGRAMMES DST OVERVIEW Technology Innovation Research Development and Support International Cooperation and Resources Administration White Paper on S&T, National Research & Development Strategy, Ten-Year Innovation Plan Socio-Economic Innovation Partnerships 9 7/3/2015

PURPOSE OF THE PROGRAMMES (1)  Programme 1: Administration To conduct the overall management and administration of the department. 10 DST OVERVIEW 7/3/2015

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 OVERVIEW 7/3/2015

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 OVERVIEW 7/3/2015

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 research infrastructure and relevant research support in pursuit of South Africa’s transition to a knowledge economy. 13 DST OVERVIEW 7/3/2015

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 OVERVIEW 7/3/2015

DST PERFROMANCE OEVERVIEW (5) The DST’s overall performance (total number of output targets n=65). Of the 65 targets set for the 2014/15 financial year, the Department is on course with a total of 44 (68%). Figure 1 below shows that only 19 (29%) were at moderate risk with three percent achieved. 15 DST OVERVIEW (1) 7/3/2015

DST OVERALL PERFROMANCE FOR Q1 PERFORMANCE FOR 2014/15 16 DST OVERVIEW (2) 7/3/2015

MAJOR REASONS FOR DELAYS IN ACHIEVING TARGETS  Administrative delays Changes in the scope of work. For example; The research community requested further consultation before the finalisation of the first draft of the Marine and Antarctic Research Strategy  Process delays Inputs that could not be solicited from other major stakeholders e.g. Progress on the Cabinet memo is contingent on a response from the DTI  Targeting process The target commences in the second/ third or fourth quarter. For example; Total number of graduates and students placed in DST- funded work preparation programmes in SETI institutions. 17 REASONS FOR DELAYS IN ACHIEVING THE SET TARGETS 7/3/2015

IMPROVEMENT PLAN  EXCO- led process to address the issues that relate to administrative delays. The DDGs are expected to indicate the tentative performance status; i.e. how programmes will ensure that targets on course, at moderate risk and certainty will be achieved. Workshops have been conducted to solicit inputs from the marine research community  Improved planning processes. With the intervention of the DDG for the programme implicated: discussion meeting has been scheduled with the DTI 18 REMEDIAL ACTIONS 7/3/2015

SOME CHALLENGES THIS REPORTING QUARTER PER INDICATOR (1) Quarter One Target Quarter One ProgressStatusReason for variance Action First draft of the Marine and Antarctic Research Strategy completed by 30 June 2014 The first draft could not finalised; however the Stakeholder inputs are being incorporated into the document by the NRF Moderat e Risk The research community requested further consultation A workshop was held on 20 May 2014 to solicit more inputs from the marine research community 19 CHALLENGES ON SPECIFIC INDICATORS 7/3/2015

SOME CHALLENGES THIS REPORTING QUARTER PER INDICATOR (2) Quarter one Target Quarter one Progress StatusReason for variance Action 100 interns fully funded or co-funded in R&D of design, manufacturing and product development by 30 June interns supported through Mintek (Phase 3) by 31 June Moderat e Risk 60 interns are actually being supported through TIA; however, this figure was not included in the TIA quarter 1 report as funding had not been transferred from DST Contract finalisation will be expedited and this number will be included in the TIA quarter 2 report 20 CHALLENGES ON SPECIFIC INDICATORS 7/3/2015

QUARTER ONE HIGHLIGHTS: ADMINISTRATION- (1) 21 ACHIEVEMENTS PER PROGRAMME Annual TargetQuarter One TargetQuarter One Progress Status One DST 2013/14 annual report approved by DST EXCO and signed by the DG by 31 May 2014 One DST 2013/14 annual report was approved by DST EXCO and signed by the DG by 31 May 2014 Achieved Vacancy rate reduced to six percent by 31 March 2015 No targetCurrently the average vacancy rate is seven percent for the first quarter On Course 7/3/2015

QUARTER THREE HIGHLIGHTS: TECHNOLOGY INNOVATION (TI) – (1)  The Innovation Priorties and Instruments Chief Directorate championed the hosting of the South Africa-Taiwan Innovation and Commercialisation Workshop that was held in Taiwan, and formed part of the South African delegation that attended the South Africa-Taiwan Joint Committee (JC) Meeting on Science and Technology (S&T) Cooperation.  The three Hydrogen South Africa (HySA) centres of competence (CoCs) were financially supported through two streams of funding (human resources funding for salaries and project funding). This support resulted in eight publications in peer reviewed journals being produced, and two patent applications being filed. The first patent involves a metal hydride (MH) storage container and the second involves an MH storage unit, integrated with a fuel cell power pack. 22 ACHIEVEMENTS PER PROGRAMME 7/3/2015

QUARTER THREE HIGHLIGHTS: TECHNOLOGY INNOVATION (TI) – (2) Annual TargetQuarter One TargetQuarter One ProgressStatus 352 postgraduate students (MSc, PhD) financially supported in key strategic areas by 31 March 2015 No target 79 postgraduate students (MSc, PhD) financially supported in key strategic areas by 30 June 2014 On course 340 trainees supported in key strategic areas by 31 March trainees supported in key strategic areas 30 June trainees supported in key strategic areas 30 June 2014 On Course ACHIEVEMENTS PER PROGRAMME 7/3/

QUARTER THREE HIGHLIGHTS: INTERNATIONAL COOPERATION AND RESOURCES (ICR) – (1)  The Programme continued to expand South Africa’s already extensive portfolio of bilateral STI partnerships with the conclusion of the first formalised STI cooperation framework (a Memorandum of Understanding) with Malaysia in April  Innovation partnerships strengthened with Asia (Taiwan). The programme included a major innovation and commercialisation workshop, which provided a platform for sharing experiences with regard to enterprise development, intellectual property management and innovation funding. 24 ACHIEVEMENTS PER PROGRAMME 7/3/2015

QUARTER THREE HIGHLIGHTS: INTERNATIONAL COOPERATION AND RESOURCES (ICR) – (2)  Delegation led by the Minister who was a speaker in several sessions, South Africa was by the far the most prominent non-European country participating in the European Open Science Forum (ESOF-2014) conference held in Copenhagen in June  Within the broader multilateral area, the Minister participated in the prestigious Carnegie Group meeting, bringing together the Science Ministers and Advisors of the G8, the European Commission, Brazil, China, India, Mexico and South Africa. The Minister had the invaluable opportunity to exchange perspectives with her counterparts on strategies to enhance global STI cooperation in areas such as anti- biotic resistance, energy security and research infrastructure. 25 ACHIEVEMENTS PER PROGRAMME 7/3/2015

QUARTER THREE HIGHLIGHTS: INTERNATIONAL COOPERATION AND RESOURCES (ICR) – (3) Annual TargetQuarter One targetQuarter One ProgressStatus R354.6m foreign STI funds secured from international partners through agreed instruments for knowledge production, technology transfer, enhanced innovation, and STI human capital development by 31 march 2015 R22m foreign STI funds secured from international partners through agreed instruments for knowledge production, technology transfer, enhanced innovation, and STI human capital development by 30 June 2014 R 70,830,601 foreign STI funds secured from international partners through agreed instruments for knowledge production, technology transfer, enhanced innovation, and STI human capital development by 30 June 2014 On Course 26 ACHIEVEMENTS PER PROGRAMME 7/3/2015

QUARTER THREE HIGHLIGHTS: RESEARCH DEVELOPMENT AND SUPPORT (RDS) (1) In June 2014 the Department of Arts and Culture (DAC) requested to collaborate with DST in the areas of heritage, indigenous knowledge and palaeontology to present a joint project that highlights South Africa’s heritage and scientific convergence. The two departments agreed to participate jointly during the South Africa Year in China and Cultural Season to take place in September and October 2014, in China.  The Department of Science and Technology held public launch events at various host institutions for the four new Centres of Excellence that were awarded in December 2013, namely: Food Security CoE (University of Western Cape), Human Development CoE (University of the Witwatersrand), Integrated the Mineral Resources and Analyses CoE (University of Johannesburg), and Maths and Statistics CoE (University of the Witwatersrand). 27 ACHIEVEMENTS PER PROGRAMME 7/3/2015

QUARTER THREE HIGHLIGHTS: RESEARCH DEVELOPMENT AND SUPPORT (RDS) (2) Several workshops were held with respect to the commercialisation of the Reconfigurable Open Architecture Computing Hardware (ROACH) – the first to discuss the general approach and the second to determine the IP arrangements. The investigations for the IP arrangements were concluded and an application was made to the Technology Localisation Implementation Unit within the CSIR for financial support to develop the local manufacturing capability. The SKA Project Office also issued a tender for the development of ROACH ACHIEVEMENTS PER PROGRAMME 7/3/2015

QUARTER THREE HIGHLIGHTS: RESEARCH DEVELOPMENT AND SUPPORT (RDS)– (3) Annual TargetQuarter One target Quarter One ProgressStatus 60 research infrastructure grants awarded as per award letters 31 March 2015 No target The funding contract for implementation and management of the National Equipment Programme (NEP), National Nanotechnology Equipment Programme (NNEP) and the National Facilities (NF) has been approved The NRF has issued a call for proposals for the 2014/15 financial year On Course 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 were awarded research grants through NRF- managed programmes as reflected in the NRF project report On Course 29 ACHIEVEMENTS PER PROGRAMME 7/3/2015

QUARTER THREE HIGHLIGHTS: RESEARCH DEVELOPMENT AND SUPPORT (RDS)– (4) Annual TargetQuarter One Target Quarter One ProgressStatus Multi-wavelength astronomy strategy approved by DST EXCO by 31 December 2014 Draft multi-wavelength Astronomy strategy finalised by 30 June 2014 Multiwavelength astronomy strategy draft finalised On Course participants in science awareness and engagement programmes by 31 March 2015 Grant funding awarded to organisations implementing the initiatives by 30 June 2014 Grants were awarded to organisations conducting science festivals and the National Science Week by 30 June 2014 On Course 30 ACHIEVEMENTS PER PROGRAMME 7/3/2015

QUARTER THREE HIGHLIGHTS: SOCIO-ECONOMIC INNOVATION PARTNERSHIP (SEIP) – (1) The selection of innovative sanitation technologies through the DST and Bill and Melinda Gates Foundation agreement has been concluded. These innovative sanitation technology solutions will be piloted in selected rural schools of the Nciba Circuit of the Eastern Cape. An Imagine Cup Local final was held on 28 April This competition challenges the countries’ best student programmers to develop solutions to real-world problems being experienced within their respective communities. The South African winning team, Super Sea Dragons, developed a 2D action-adventure planet plat-former, which also won the global Skype award worth $ ACHIEVEMENTS PER PROGRAMMES 7/3/2015

QUARTER THREE HIGHLIGHTS: SOCIO- ECONOMIC PARTNERSHIP (SEP) – (2) Annual TargetQuarter One Target Quarter One ProgressStatus Two knowledge products on technology-led opportunities for sustainable livelihoods published on DST website by 31 March 2015 Through consultation and review, identity the topics and format of the two new knowledge products by 30 June 2014 The topics and format were identified for two knowledge products by 30 June These are on stimulating agro-processing in a rural economy (Nkowankowa Demonstration Centre) and on using a school as a catalyst for local economic development On Course 20 knowledge and innovation products (patents, prototypes, technology transfer packages) added to the IP portfolio by 31 March 2015 Monitoring of signed contracts with implementing agencies and take timeous corrective action by 30 June 2014 Monitoring of signed contracts ongoing. The CSIR Meraka filed one patent on 27 May 2014 on "Switching between Video Streams". On Course 32 ACHIEVEMENTS PER PROGRAMMES 7/3/2015

DST Financial Performance FINANCIAL PERFORMANCE REPORT 33 BUDGET SPLIT – BY PROGRAMME 7/3/2015

BUDGET SPLIT – BY ECONOMIC CLASSIFICATION 34 FINANCIAL PERFORMANCE REPORT 7/3/2015

FINANCIAL PERFORMANCE - SUMMARY 35 DST Financial Performance Report FINANCIAL PERFORMANCE REPORT 7/3/2015

Donor Funds 36 ANALYSIS OF DONOR FUNDS 7/3/2015

EXPENDITURE BY PROGRAMME – 30 JUNE /3/2015

EXPENDITURE TRENDS AS AT 30 JUNE /3/2015

39  Currently 71% of the annual 2014/15 targets are on course including the achieved. EXCO put processes in place to ensure that all targets on course will be achieved as planned.  Human capital development, knowledge generation and exploitation, infrastructure and Africa collaboration will remain key focus areas and are central in the 2014/15 Annual Performance Plan. The Department commits itself to continuous improvement in the policies, processes, structures and instruments that have been put in place in pursuit of an effective NSI whose contribution to national development is being optimised. Also in continuous pursuit of addressing the triple challenges ( poverty, unemployment and inequality) facing the country. CONCLUSION 7/3/2015

40 THANK YOU 7/3/2015