1. THE DST THIRD QUARTER PERFORMANCE REPORT PRESENTATION (1 OCTOBER 2012 TO 31 DECEMBER 2012) DR. PHIL MJWARA 06 MARCH 2013

2. DST Overview Conclusion DST Financial Performance DST Achievements for the Third Quarter DST Achievements per Programme OUTLINE OF THE PRESENTATION

3. DST Overview Conclusion Financial Performance DST Achievements for the Third Quarter DST Achievements per Programme OUTLINE OF THE PRESENTATION

4. THE MANDATE OF THE DEPARTMENT (1)  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.  The NSI remains an ideal for which South Africa continues to strive. It is an enabling framework for science, technology and innovation (STI).  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. 4 DST Overview

5. THE MANDATE OF THE DEPARTMENT (2)  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).  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.  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. 5 DST Overview

6. . 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 Vision To create a prosperous society that derives enduring and equitable benefits from science and technology DST Overview.

7. KEY OBJECTIVES OF THE DEPARTMENT  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 meet the needs of society.  To build world-class STI infrastructure.  To position South Africa as a strategic international RDI partner and destination. 7 DST Overview

8. GOVERNMENT OUTCOMES The Department also contributes to and reports on the following government outcomes:  Outcome 2: A long and healthy life for all South Africans.  Outcome 4: Decent employment through inclusive economic growth.  Outcome 5: A skilled and capable workforce to support an inclusive growth path.  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

9. DST PROGRAMMES. DST Overview Research, Development & Innovation International Cooperation & Resources Socio-Economic Partnerships Corporate Services & Governance White Paper on S&T, National Research & Development Strategy, Ten-Year Innovation Plan Human Capital & Knowledge Systems

10. PURPOSE OF THE PROGRAMMES (1)  Programme 1: Administration To conduct the overall management and administration of the department.  Programme 2: Research, Development and Innovation To facilitate knowledge generation and exploitation through R&D in key priority areas, namely, space science, bio-economy, and energy.  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. 10 DST Overview

11. PURPOSE OF THE PROGRAMMES (2)  Programme 4: Human Capital and Knowledge Systems Provide leadership in the creation of an innovative and competitive society with highly skilled human capital, and competitive knowledge and research infrastructure.  Programme 5: Socio-Economic 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. 11 DST Overview

12. Conclusion Financial Performance DST Achievements for the Third Quarter DST Achievements per Programme OUTLINE OF THE PRESENTATION

13. 13 DST Achievements for the Third Quarter Figure 1: Overall DST Performance for Q3 2012/13

14. OVERALL PERFORMANCE FOR THE THIRD QUARTER 14 DST Achievements for the Third Quarter

15. DST Overview Conclusion Financial Performance DST Achievements for the Third Quarter DST Achievements per Programme OUTLINE OF THE PRESENTATION

16. RESEARCH, DEVELOPMENT AND INNOVATION (RDI) – (1)  Through DST funding, the University of Cape Town announced the development of a candidate Malaria drug that shows potential activity against multiple points in the malaria parasite’s cycle  Through DST funding, the National Health Laboratory Services announced the discovery of potent antibodies which are able to kill 88% of HIV found throughout the world. This ground-breaking discovery provides important clues that could be useful in making AIDS vaccine. 16 DST Achievements Per Programme

17. RESEARCH, DEVELOPMENT AND INNOVATION (RDI) – (2)  NIPMO is being established as an institution at an increasing arms-length from the DST.  In December 2012, the DST, through NIPMO, launched its first series of guidelines mandated by the Intellectual Property Rights from Publicly Financed Research and Development Act (IPR-PFRD Act). The guideline is entitled: “Interpretation of the scope of the IPR-PFRD Act: setting the scene”.  The Technology Top 100 (TT100) awards event took place and was hosted by DST in its capacity as a strategic partner to the Da Vinci Institute. 17 DST Achievements Per Programme

18. RESEARCH, DEVELOPMENT AND INNOVATION (RDI) – (3)  In the reporting period, the DST, through its participation in Bridging Action for GMES and Africa (BRAGMA), organised the 1 st Global Monitoring for the Environment and Security (GMES) & Africa workshop in Mombasa, Kenya in October 2012 where African experts gathered to discuss and contribute towards the Marine and Coastal Management chapter of the much anticipated GMES & Africa Action Plan.  BRAGMA also organised a side event during the African Association of Remote Sensing of the Environment (AARSE) that was held in EI Jadida, Morocco.  The Space Science and Technology unit has made significant progress with respect to the implementation of the Cabinet resolution recommending the absorption of SunSpace capability into SANSA. 18 DST Achievements Per Programme

19. RESEARCH, DEVELOPMENT AND INNOVATION (RDI) – (4) Annual TargetQuarter 3 ProgressStatusReason for variance 1 MeerKAT antenna designed and aligned to SKA design The contract for the design, manufacture, installation and commissioning of the 64 MeerKAT antennas was awarded to a South African Company. The design of the MeerKAT is going according to plan On course 8 new technology products, processes or services developed for commercialisation by 31 March 2013 Through TIA, a total of 20 products, processes and services have been developed; with 3 of these being commercialised AchievedThe target for TIA was set higher than that of the DST 6 research chairs and 6 research initiatives in bio-science and energy related fields financially supported 8 research chairs in energy, biotechnology and health and 8 research initiatives in bio- technology and health financially supported Achieved 19 DST Achievements Per Programme

20. RESEARCH, DEVELOPMENT AND INNOVATION (RDI) – (5) Annual TargetQuarter 3 ProgressStatusReason for variance 5 technology-based enterprises supported financially by 31 March 2013 A total of 3 technology-based enterprises were established through TIA funding support On Course 274 undergraduates, post graduates and technicians funded by 31 March 2013 A total 333 students were funded as at 31 December 2012 AchievedAfter winning the SKA bid, a decision was taken to fund more students in SKA projects 40 South African candidates trained in IP and technology transfer specialised skills by March 2013 53 candidates were trained in technology transfer skills 24 candidates trained in Intellectual Property (IP) through World Intellectual Property Organisation (WIPO) Achieved 20 DST Achievements Per Programme

21. RESEARCH, DEVELOPMENT AND INNOVATION (RDI) – (6) Annual TargetQuarter 3 ProgressStatusReason for variance 1 prototype developed and a patent registered locally by 31 March 2013 Patent: Trial runs were performed on a membrane electrode assembly (MEA) production line, an assembled stack of proton exchange membranes (PEMs), catalyst and flat plate electrode used in a fuel cell. Among other advantages these are meant to provide high power density and have greater tolerance to poisoning. Prototype: 2kW HT PEMFC Stack developed. A proton exchange membrane (PEM) is a semi permeable membrane generally made from ionomers and designed to conduct protons while being impermeable to gases such as oxygen or hydrogen. On Course 21 DST Achievements Per Programme

22. RESEARCH, DEVELOPMENT AND INNOVATION (RDI) – (7) Annual TargetQuarter 3 ProgressStatusReason for variance 6 Publications resulting from R&D funded initiatives by 31 March 2013 11 Journal Articles published in peer reviewed journals Achieved 5000 requests for satellite data honoured by March 2013 162 544 Earth Observation data scenes were distributed Achieved 22 DST Achievements Per Programme

23. INTERNATIONAL COOPERATION AND RESOURCES (ICR) – (1)  In collaboration with European Development Countries Clinical Trials Partnerships and European Commission (EDCTP), DST organized a conference to consult with African international stakeholders to discuss the second round of EDCTP.  A project on building human capacity around Legume Science aimed at addressing food security and poverty in Africa was launched by the DST in collaboration with the Bill & Melinda Gates Foundation and the Tshwane University of Technology.  South Africa hosted the first of many SADC Policy Training Workshop in October 2012. These workshops are aimed at building science and technology policy capacity in the SADC region. 23 DST Achievements Per Programme

24. INTERNATIONAL COOPERATION AND RESOURCES (ICR) – (2)  The DST also hosted the second Brazil, Russia, India, China and South Africa (BRICS) Senior officials meetings in November 2012 which prioritized thematic areas of cooperation, with each country mandated to drafting a Memorandum of Understanding which serves as a framework for S&T cooperation.  Joint Committee meetings were convened with Australia and Japan with the key focus on new opportunities to strengthen human capital development in areas such as astronomy, space science and technology. 24 DST Achievements Per Programme

25. INTERNATIONAL COOPERATION AND RESOURCES (ICR) – (3) Annual TargetQuarter 3 ProgressStatusReason for variance R240 000 000.00 foreign STI funds leveraged by 31 March 2013 A total STI funds of R30 406 616.25 were leveraged as in 31 December 2012. Moderate RiskConfirmations from most Development Partners on in- kind contributions are still outstanding. This target will be achieved by end of March. More than R163 million was already confirmed by end of January, and this will be reported in the fourth quarter R46 500 000.00 South African and foreign funds spent on S&T-based socio- economic development in Africa by 31 March 2013 R32 496 699.41 foreign funds were spent on S&T- based socio- economic development in Africa. On Course 25 DST Achievements Per Programme

26. INTERNATIONAL COOPERATION AND RESOURCES (ICR) – ( 4) Annual TargetQuarter 3 ProgressStatusReason for variance 450 South African students participating in international cooperation STI research projects by 31 March 2013 A total of 197 South African students participated in international cooperative STI research projects. Moderate RiskSome calls were not placed as anticipated due to non commitment from countries like Brazil and Norway. Also, Japan could only contribute R4 million due to financial constraints 800 foreign participants in global knowledge and STI networks by 31 March 2013 A total of 366 foreign participants in global knowledge and STI networks Moderate RiskSome calls were not placed as anticipated due to non commitment from countries like Brazil and Norway 26 DST Achievements Per Programme

27. HUMAN CAPITAL AND KNOWLEDGE SYSTEMS (HCKS) – (1)  The Accreditation and Certification of norms and standards for traditional medicine were finalised.  An Indigenous Knowledge National Recordal System’s Communication Plan was approved by EXCO. 27 DST Achievements Per Programme

28. HUMAN CAPITAL AND KNOWLEDGE SYSTEMS (HCKS) – (2) Annual TargetQuarter 3 ProgressStatusReason for variance 6100 students financially supported by 31 March 2013 7058 students financially supported by 31 December 2012 Achieved 550 postgraduate students supported as interns in a SETI work environment by 31 March 2013 520 postgraduate students were supported as interns in a SETI work environment by 31 December 2012 Moderate RiskThe budget allocated to this indicator could only cover 520 students due to the nature of allocation of funds to students. Stipend amounts allocated were dependent on the level of degree. 27 IKS community of practice skilled workers developed by 31 March 2013 28 IKS community practice skilled workers developed by 31 December 2012 Achieved 28 DST Achievements Per Programme

29. HUMAN CAPITAL AND KNOWLEDGE SYSTEMS (HCKS) – (3) Annual TargetQuarter 3 ProgressStatusReason for variance 2600 researchers financially supported through NRF-managed programmes by 31 March 2013 2792 researchers supportedAchieved 1 photonics technician teaching and training platform established by 31 March 2013 The teaching and training platform has been established. The programme has been registered with SAQA and the programme commenced in January 2013 Achieved 7 nanotechnology flagship projects supported by 31 March 2013 10 projects currently fundedAchieved 29 DST Achievements Per Programme

30. HUMAN CAPITAL AND KNOWLEDGE SYSTEMS (HCKS) – (4) Annual TargetQuarter 3 ProgressStatusReason for variance 50 research equipment grants awarded by 31 March 2013 A call for NEP/NNEP grant proposal was issued in December 2012 due to the decision taken by Management to delay the call for priority reasons On Course 250 researchers accessing infrastructure 0Certainty While the award for the research grants will be made before end of the financial year, the transfer of funds will not be possible, due to delays of call for proposals for research equipment grants due to decision made by Management for priority reasons 30 DST Achievements Per Programme

31. 31 InstitutionInstrumentInvestmentResearch Focus Socio-economic Impact Nelson Mandela Metropolitan University High Resolution Electron Microscope and Feeder Instrumentation R 107 000 000 Clean coal technology, nuclear and hydrogen energy, synthetic diamonds and other hard products. Energy and materials research Rhodes University X-Ray Photoelectron Spectrometer and Atomic Force Microscope R 7 584 000 Cancer research, medical chemistry, nanotechnology Development of new cancer diagnosis and treatment methodology called “photo- dynamic therapy” which is intended as an alternative to chemotherapy. Tshwane University of Technology Ultra-High Resolution Field Emission Scanning Electron Microscope (UHR FE-SEM) and a Multipurpose Tribocorrosion Tester R 6 800 000 Processing and characterisation of advanced nanomaterials Advanced materials required for local industries and human capacity development.

32. NELSON MANDELA METROPOLITAN UNIVERSITY High Resolution Electron Microscope and Feeder Instrumentation

33. RHODES UNIVERSITY X-Ray Photoelectron Spectrometer and Atomic Force Microscope

34. TSHWANE UNIVERSITY OF TECHNOLOGY Ultra – High Resolution Field Emission Scanning Electron Microscope (UHR FE-SEM) and a Multipurpose Tribocorrosion Tester

35. HUMAN CAPITAL AND KNOWLEDGE SYSTEMS (HCKS) – (5) Annual TargetQuarter 3 ProgressStatusReason for variance 42 academic and research sites connected to SANReN by 31 March 2013 29 academic and research sites have been connected On Course A functioning NRS established in EC and FS provinces by 31 March 2013 IKS Documentation Centre (IKSDC) in North West and Free State equipped with NRS IT infrastructure Achieved Production processes for 2 candidate products piloted by 31 March 2013 This activity has been postponed pending the approval of TIA proposal to be resubmitted in the Fourth Quarter Moderate Risk The first proposal submitted by TIA was not accepted by the Department and had to be resubmitted 35 DST Achievements Per Programme

36. HUMAN CAPITAL AND KNOWLEDGE SYSTEMS (HCKS) – (6) Annual TargetQuarter 3 ProgressStatusReason for variance 15 leads identified for product development by March 2013 A total of 17 leads identified for product development Achieved 3 patents locally registered 2 provisional skin toning and anti-blemish patents were locally filed Moderate RiskThe filing of the anti-balding and anti-wrinkle provisional patents was delayed due to the need to outsource an independent reviewer of the study results 20 patents filed 140 products; prototypes and artefacts by 31 March 2013 Reported annuallyNone 36 DST Achievements Per Programme

37. HUMAN CAPITAL AND KNOWLEDGE SYSTEMS (HCKS) – (7) Annual TargetQuarter 3 ProgressStatusReason for variance 4000 peer reviewed; 70 books and 240 chapters Reported annually 10 peer reviewed publications resulting from research and innovation by Nanotechnology Innovation Centres (NICs) 40 journal articles have been published Achieved 385 000 people participating in science awareness and engagements programmes by 31 March 2013 421 005 people participated in DST-led science awareness and engagement programmes Achieved 37 DST Achievements Per Programme

38. SOCIO-ECONOMIC PARTNERSHIP (SEP) – (1) A total of 54 entrepreneurs were developed during this reporting period.  The first cohort of 26 entrepreneurs trained through Sasol the ChemCity have reached sustainability and were handed over to Sasol ChemCity Aftercare team.  A new 22 entrepreneurs from M’wamitwa village in Limpopo started training in August. Already, the cohort has had a total profit of more that R50 000 jointly with an average of over R2 000 per entrepreneur.  An additional 6 entrepreneurs are being trained by the Nkowankowa Distribution Centre through the mentoring programme of the Sasol ChemCity. 38 DST Achievements Per Programme

39. SOCIO- ECONOMIC PARTNERSHIP (SEP) – (2)  R&D tax incentives new amendments became effective from 1 October 2012.  As at December 2012, the DST received 222 applications from companies to be considered for the R&D tax incentive scheme. The evaluation of these applications is soon to follow.  In terms of promoting the new amended R&D tax incentives; to date:  7 meetings with private companies,  3 meetings with consulting firms and  meetings with Pharmaceutical Industry Association of South Africa (PIASA) and South African Clinical Research Association (SACRA ) industry association have been held. 39 DST Achievements Per Programme

40. SOCIO- ECONOMIC PARTNERSHIP (SEP) – (3)  The report on the Evaluation of S&T capabilities for the weather services has been completed and will be approved before the end of the financial year.  R&D survey 2010/11 has been received and the Clearance Committee has recommended that the report be approved for publication.  7 policy interventions were successfully completed and these include:  Exploring the opportunities of an African-Based System of Innovation.  Preserving and providing access to South African Social Science and Humanities Research Data.  Linking the South African System of Innovation with those in the rest of Africa, etc. 40 DST Achievements Per Programme

41. SOCIO- ECONOMIC PARTNERSHIP (SEP) – (4) Annual TargetQuarter 3 ProgressStatusReason for variance 400 livelihood opportunities created, sustained or improved by 31 March 2013 400 livelihood opportunities are being sustained On Course 50 companies on a register of companies provided with Technology Assistance Package (TAP) by 31 March 2013 36 companies are in the register Moderate riskThe were delays during TAP approvals processes. 14 companies will be approved before the end of March 2013 1928 small and medium enterprises receiving technology support 1619 enterprises are receiving technology support On Course 41 DST Achievements Per Programme

42. SOCIO- ECONOMIC PARTNERSHIP (SEP) – (5) Annual TargetQuarter 3 ProgressStatusReason for variance 373 Masters and PhD students funded in technology demonstrator and technology transfer packages 519 Masters and PhDs research graduates funded or co-funded in designated niche areas by 31 December 2012 Achieved 2 additions to the IP portfolio (patents, patent applications, prototypes, technology demonstrators and technology transfer packages) Investigation for optimal side for Lunar Laser ranger is on track The second IP will only be reported in the fourth quarter Moderate Risk Unforseen delays in the implementation of research activity that would yield another IP 13 patents, prototypes, technology demonstrators or technology transfer packages added to the IP portfolio by 31 March 2013 This target is on track with the exception of a ‘Detailed design of titanium metal powder plant’ Moderate Risk This was delayed to allow the completion of the chemical store for safety reasons 42 DST Achievements Per Programme

43. SOCIO- ECONOMIC PARTNERSHIP (SEP) – (6) Annual TargetQuarter 3 ProgressStatusReason for variance 50 scientific and technical papers accepted for publication by 31 March 2013 47 scientific and technical papers accepted for publication On Course 7 peer reviewed scientific papers published by June 2012 13 peer reviewed scientific papers published by December 2012 43 DST Achievements Per Programme

44. DST Overview Conclusion DST Financial Performance DST Achievements for the Third Quarter DST Achievements per Programme OUTLINE OF THE PRESENTATION

45. BUDGET SPLIT – BY PROGRAMMES DST Financial Performance Report

46. BUDGET SPLIT – BY ECONOMIC CLASSIFICATION DST Financial Performance Report

47. FINANCIAL PERFORMANCE - SUMMARY DST Financial Performance Report

48. FINANCIAL PERFORMANCE PER PROGRAMME – 31 DECEMBER 2012 DST Financial Performance Report

49. EXPENDITURE BY PROGRAMME ( JANUARY 2013) 49 Programme/ R'thousands Revised planned expenditure as at end of Jan 2013 Actual expenditure as at end of Jan 2013 Deviation from revised planned expenditure Amount Planned expenditure as % of total adjusted budget Amount Actual expenditure as % of total adjusted budget Amount Deviation as % of revised planned spending Administration163 74371.4%184 12780.3%(20 384)-12.4% Research Development and Innovation 1 105 54796.7%1 067 73293.4%378153% International Cooperation & Resources 10646776.4%11648983.6%(10 022)-9.4% Human Capital & Knowledge Systems 2 014 94497.6%1 980 94095.9%34 0041.7% Socio-Economic Partnerships 1 298 42291.2%1 249 10887.8%49 3143.8% Total 4 689 12393.8%4 598 39692%90 7271.9% DST Financial Performance Report

50. EXPENDITURE TRENDS AS AT END OF JANUARY 2013 50 DST Financial Performance Report

51. DST Overview Conclusion DST Financial Performance DST Achievements for the Third Quarter DST Achievements per Programme OUTLINE OF THE PRESENTATION

52. 52 Summary  MTSF, NRDS and TYIP inform our work.  42% of our annual targets have already been achieved.  Human capital development, knowledge generation and exploitation, infrastructure and Africa collaboration will remain key focus areas.  DST is committed in achieving at least 80% of its targets this financial year. Conclusion

53. 53 Dankie Enkosi Ha khensa Re a leboga Ro livhuwa Siyabonga Siyathokoza Thank You