Why fund a research ‘Chair’ Christoph Schmocker Stellenbosch University 7 September 2012Copyright Advancement Academy1

By the end of the session we will understand, why funding a ‘Chair’ is attractive for the University for the researcher for a Company! 17 September 2012Copyright Advancement Academy2

Defining a Research Chair A Chair will → conduct and supervise research → mentor young academics → foster cross–disciplinary relationships → facilitate research and training. A Chair includes → A team of 10 – 15 people → lead by a senior researcher (Professor) → supported by 2 – 3 Post Doctoral Students (PhD) → train 10 – 12 post-graduate students → who all do research on a sub-topic of the ‘Chair’ i.e. ‘Chair for African Financial Markets’ 17 September 2012Copyright Advancement Academy3

Research Chair Needs Clear Vision Increased African economic growth through an improved mathematical and analytical understanding of African financial markets. Part of a dynamic academic environment → SU’s Department of Mathematical Sciences → offer Honours program in Math. Finance → Department has strong links with AIMS → for which it hosts masters + doctoral students → from all over Africa A long term commitment → Have a 5 – 10 years plan → Available funding of EUR 440’000 p.a. → Possibility to work trans-disciplinary 17 September 2012Copyright Advancement Academy4

Key Company Roles to target 17 September 2012Copyright Advancement Academy5 National Branch Global Company HR Marketing Products & Services Client’s offering Regional Strategy Global Strategy Corporate Foundation - Global offering - Local insight CEO - Growth strategy - Develop new markets - Profound knowledge - Attractive cost structures - Recruit well educated staff - Attract them at an early stage - Support company’s brand - Commitments for society - New platforms - Acquire new clients Research Partner - Strong brand - Stakeholders BEE relevant ? Exec. Board COO Sales Region Head Recruitment Director

Donor’s Pyramid 17 September 2012Copyright Advancement Academy6 R 1 – 5 million Grant Foundations & Trusts; Global Corporate Donors >R 10 mil. Governments R 100' million High Net Worth Individuals; National Corporate Donors; Embassies; R 12’000 – 99’999 Major Donors; income generations EUR 420’ – 500’000 p.a. Over 5 to 10 years Define research together Exchange experts Career plan for academics R 5 – 9.9 million Development Agencies; Research Funds

Why a Company may invest in a Chair 1.Company’s plan to explore new markets → Sub-Saharan Africa → Your country? 2.Company’s need to explore new services → i.e. analyse new methods for investments in Africa → i.e. new mathematical & financial thinking 3.Company seeks innovations → Unique Selling Proposition → Set new standards 4.Soft factors → A new Regional (Marketing) Head → Get access to qualified staff in your country 17 September 2012Copyright Advancement Academy7

Invest in ‘African Financial Markets Chair’ Global Level → Investment appetite gets global → BRICKS countries offer higher returns African Level → No Global Bank offers fundamental data on Africa → Only recently significant progress has been made in the mathematical investigation of trading and risk management in African markets Country Level (South Africa) → Start analysis in Africa’s strongest economy → Commodities, agriculture and retail are key Resources Level → SU is one of top research Universities in Africa → SU produces 50 African Mathematics Master Students yearly 17 September 2012Copyright Advancement Academy8

Analysis of whom? Mining → Anglo American, Anglo Platinum, Kumba Iron Telecommunication → MTN, Vodacom, Telkom Retail → Shoprite, Pick ‘n Pay, Massmart Insurance → Sanlam, Discovery, Outsurance Renewable Energy → ? 17 September 2012Copyright Advancement Academy9

Summary of key points 7 September 20120Copyright Advancement Academy10 1.Strategic partnership 2.Define ‘Chair’ package 3.Analyse Company’s needs

Questions? 7 September 2012Copyright Advancement Academy11