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14/1/2
NATIONAL ASSEMBLY
WRITTEN REPLY
QUESTION NO. 1407
DATE OF PUBLICATION IN THE INTERNAL QUESTION PAPER: 13 MAY 2016; QUESTION PAPER 14 - 2016
“1407 Mr DC Ross (DA) to ask the Minister of Science and Technology:
Whether (a) her department and (b) entities reporting to her are running development programmes for (i) small businesses (ii)) co-operatives; if not, why not; if so, in each case, (aa) what are the relevant details, (bb) what amount has been budgeted and (cc) how many jobs will be created through specified development programmes in the 2016-17 financial year?”
NW1075E
REPLY:
1. (a) The Department of Science and Technology (DST) prefers to utilise the
entities in the innovation and science system to execute specific interventions.
In this instance the DST does not have its own development programme for
SMMEs:
(i) No
(ii) No
(aa)
(bb)
(cc)
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1. (b) Entities responses are provided in the table below:
Entity (i) (ii) (aa) (bb) (cc)Academy of Science of South Africa (ASSAf)
No N
o
The running of
development
programmes does not
fall within the
mandate of ASSAf.
N/A N/A
Human Sciences Research Council (HSRC)
No N
o
The running of
development
programmes does not
fall within the
mandate of HSRC.
N/A N/A
National Research Foundation (NRF)
Ye
s
N
o
Square Kilometre
Array (SKA) South
Africa, a business unit
of the NRF and NMC
Civils have partnered
with Absa in an
Enterprise and Supply
chain Development
(ESD) initiative to
develop small and
medium enterprises
(SMEs) in the
Northern Cape. This
programme will
enable qualifying
SMEs to obtain
funding from Absa so
that they can provide
services and goods to
NMC Civils in the
80km road project.
Approximatel
y R34,5
million
There are
potentially
34
Companies
in Northern
Cape to
benefit from
this initiative
assuming
they meet
the criteria.
South African National Ye N The satellite To date the Small
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Space Agency (SANSA)
s o development
programme that is
currently being
pursued by SANSA,
under the support of
the Department of
Science and
Technology, has an
industry development
and localisation
initiative in it. As part
of the satellite
development
programme all
contracts established
include an element of
industry development
and localization. To
this end, there are
four small businesses
currently being sub-
contracted as part of
the broader satellite
development
programme.
satellite
programme
has invested
R 5 944 687
with the said
four small
businesses.
businesses
account for
indirect
jobs. 46
direct
technical
jobs and 7
support staff
at Denel
Spaceteq.
Skills
developmen
t for 7
students
with a target
of over 20
students by
the end of
the
programme.
Council for Scientific and Industrial Research
See Annexure A
Technology Innovation Agency
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Annexure A
COUNCIL FOR SCIENTIFIC INDUSTRIAL AND RESEACH (CSIR)
1. (b)(i) Yes
(ii) No
Development Programme 1(aa) The Bio-manufacturing Industry Development Centre (BIDC). The
BIDC supports SMMEs through the prototyping and scale-up phases of
product development, assists them to do market acceptance testing and
to launch products in the market. The companies remain the sole owners
of their innovations and retain absolute control over their future in terms of
value add and partnerships. The BIDC helps to lower the cost and
barriers that inhibit innovative enterprises from translating their inventions
into market-ready products.
The BIDC’s support for SMMEs is through the development of bio-based
manufacturing processes and products. Enterprises that are incubated at
the BIDC have access to ready-to-use bio-manufacturing facilities,
support in research and development laboratories as well as access to
experts in the fields of agro-processing and bio-processing product
development and scale-up.
Currently the BIDC is supporting 19 enterprises of which 16 are owned by
black entrepreneurs, including 10 black women-owned enterprises. To
date, 33 products with applications in the cosmetics, nutrition and
biotechnology industries have been developed and transferred to the
enterprises. The programme has resulted in 105 permanent jobs being
created, the majority of which are within the enterprises and their value
chains, while an additional 165 temporary jobs have also been created.
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At least 54 interns have received training in the BIDC vocational learning
programme in order to provide the bio-manufacturing sector with a skilled
workforce.
(bb) R12, 5 million.
(cc) 75 permanent jobs and six interns.
Development Programme 2(aa) Ultrasonic Broken Rail Detector (UBRD) System. The UBRD system
was co-developed by CSIR and Armscor's Institute for Maritime
Technology using public funds from CSIR, Transnet Freight Rail (TFR)
and DST. This world-first technology system helps prevent derailment of
heavy freight trains by detecting broken railway lines in real-time and
alerting the TFR control centre. The system currently protects 860 km of
the Sishen-Saldanha iron ore export line and is installed on critical
sections (bridges & tunnels) of the coal export line. The system will soon
be licensed to a South African company for local manufacturing and
international business development.
(bb) R1.75 million.
(cc) Approximately 40 to 70 jobs are projected to be created. The number of
jobs created will depend on the success of international sales and could
be in high technology manufacturing, marketing, sales and distribution.
Development Programme 3(aa) Umbiflow. Umbiflow is a medical ultrasound system that operates off a
standard computer, and conducts an assessment of the blood flow
between mother and child whilst in the womb. It uses this information to
assess if the fetus is likely to be receiving insufficient nutrition for growth
and allows medical staff to intervene. The intention is to reduce the high
still birth rate experienced in developing nations and, by permitting the
measurement to be done at clinic level, to reduce unnecessary referral of
mothers to higher levels of care. The system is currently in a clinical trial
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in Gauteng, Tshwane district and will be licensed to an SMME in the
medical sector during 2016-17.
(bb) R7 million.
(cc) approximately five to eight permanent jobs are projected to be created.
Development Programme 4(aa) Micro-Enterprise Media Engine (MEME) Platform. This is an ultra-low
cost scalable mobile Internet Television platform that enables media
production SMMEs to own the means of global (export) distribution while
retaining the Intellectual Property rights to their content. The platform
was developed at the CSIR. It is globally competitive in its ability to
distribute live television with integrated social media interaction to even
the remotest rural areas of emerging economies on mobile devices
without any break-up of the stream (no video buffering). The technique is
patented in China, Russia, Nigeria, East and Southern Africa, USA and
UK. The intention is create the opportunity to build a new emerging
economy-to-emerging economy (E2E) mobile television industry that will
draw the media talent of South African youth exiting film schools into a
growing local media SMME space by widening the audience reach and
negating the cost of traditional television broadcasting infrastructure
requirements (satellite, etc.). It is currently licensed to five SMMEs to
pilot for one (1) year before it will be opened to the entire South African
media industry in 2017. It is further being integrated into the curriculum of
a local film school.
(bb) R11.1 million. (EU-General Budget Support).
(cc) Four film school students, four full-time media employees, seven full-time
technology employees plus approximately 25 jobs/workers across the five
pilot SMMEs, during the pilot period.
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Development Programme 5(aa) Establishment of a cashmere fibre industry in the Eastern Cape
(EC). The CSIR has developed a cashmere processing know-how to
produce yarns and would like to commercialize the results of their
research. The venture involves training farmers on how to harvest
cashmere fibre, and the establishment of a production facility that will
process the harvested cashmere fibre in readiness for manufacture of
garments. With the assistance of the Jobs Fund funding, the initial
objective of the project was to establish a cashmere fibre industry in the
country, in particular the Eastern Cape. The key objectives of the project,
as supported by the Jobs Fund include:
To empower traditional goat farmers by generating income from
under coat down fibre that grows on traditional goats during winter;
Train the goat owners on how to harvest the cashmere fibre;
Establish the production facilities (cleaning and processing of
cashmere fibre), thus creating permanent jobs;
Establish a market for the cashmere fibre; and
Establishment of the foundation for full economic beneficiation of
indigenous goats found in the province.
(bb) R7 million was allocated from October 2013 until March 2016.
R400 000.00 allocated for the 2016-17 financial year.
(cc) Four jobs are projected.
Development Programme 6(aa) Enterprise Creation for Development (ECD). A CSIR implementation
business area with a development mandate, which assists both the public
and private sectors to implement enterprise development activities. These
activities include opportunity identification, opportunity assessment and
packaging, enterprise support programmes, and capacity building for
local economic development (LED). Industry sectors targeted include
manufacturing, agro-processing, green economy, ICT and built
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environment. ECD focuses on the application of technology to address
underdevelopment. In the previous year, ECD was involved in the
development and support of 10 pilot projects and 12 enterprises.
Feasibility studies for four incubator programmes were undertaken.
ECD was involved in conducting feasibility studies and developing
business plans for 2 industrial parks, eight (8) agri-parks, and one
(1) agro-processing hub. In addition, the business area was involved
in the establishment of a Business Processing Outsourcing Park.
In terms of technology transfer, 21 mature technologies and four (4)
new technologies were transferred.
(bb) ECD activities are funded by national, provincial and local government,
international agencies, private corporate social investment initiatives, and
foundations, on a project-by-project basis.
(cc) The number of jobs that will be created or retained by enterprises as a
result of the CSIR’s intervention during the 2016-17, is unknown at this
stage.
Development Programme 7(aa) Technology Localisation Programme (TLP) (implemented by the
Technology Localisation Implementation Unit {TLIU}). The TLP is aimed
at increasing South Africa’s domestic productive capacity. The
programme provides funding and technology support to enable more local
firms to supply goods to state-owned entities (SOEs). The support
assists individual firms and targeted sectors to get access to technology
resulting in increased capability, competitiveness and new processes or
products.
(bb) R105 million invested since 2011.
(cc) the impact of the programme since its inception is as follows:
147 firms have benefited from the Technology Assistance Packages
(TAPs) with 20 of them landing contracts to the value of R162m.
250 students have benefited from internship opportunities offered
through this programme with 45% getting permanent jobs.
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TAPs resulted in the local production of twenty items which were
previously imported.
187 jobs were created due to the implementation of Technology
Assistance Packages (TAPs).
Development Programme 8(aa) The Photonics Prototyping Facility (PPF). The Photonics Prototyping
Facility (PPF), hosted at the CSIR National Laser Centre, provides the
necessary infrastructure, skills and networks needed to facilitate the
development of prototypes that are well-aligned to market-needs for the
realisation of Photonics-based products and devices. It will also develop
expertise (amongst PPF staff, students and interns) in the area of
prototyping, product development and stakeholder engagement.
Ultimately this will lead to new Photonics products that will be used to
improve the competitiveness of the existing industry and for new and
emerging industries to be formed resulting in job creation.
(bb) To-date the following funds have been secured:
R 11.4 million (DST- High End Infrastructure (HEI))
R 9 million (DST- Industrial Innovation Partnership Fund (IIPF))
R 13.4 million (CSIR)
(cc) One permanent, full-time position for an operations manager and
approximately four positions for interns. As the programme gains
traction, additional jobs will be created by interns being placed in industry,
employment of new interns and the creation of new jobs in existing
industries or SMMEs via new product offerings.
Development Programme 9(aa) Defence Transformative Enterprise Development (DEFTED)
Programme. The Department of Defence (DOD) runs the DEFTED
programme through the CSIR. The aim of the project is to address the
defence industry transformation challenges through the development of
black industrialists in the defence industry. The DEFTED program will
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support the defence sector black industrialists and entrepreneurs with
technical Human Capital Development (HCD), Technology Development
(TD) and Enterprise Development (ED).
(bb) R50.4 million has been budgeted for the 2016-17 financial year.
(cc) 30 jobs.
TECHNOLOGY INNOVATION AGENCY (TIA)
1. (b)(i) Yes.
(ii) No.
Development Programme 1(aa) AgriViro (Pty) Ltd. Development of novel biological control technologies
for the control of pests in economically important horticultural crops.
(bb) R1, 175,729.00
(cc) five.
Development Programme 2(aa) NemaBio (Pty) Ltd. Development of entomophathogenic nematodes as
biological control agents for the control of pest in horticultural crops.
(bb) R86,5429.00
(cc) one.
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Development Programme 3(aa) Beonics (Pty) Ltd. Development of poultry feed additive and
nutraceutical as an antibiotic replacement alternative from honry propolis
(bb) R 4,620,000.00
(cc) 0 - Project at a technology development stage.
Development Programme 4(aa) Enzyme Technologies (Pty) Ltd. Enzyme technologies is implementing
a project to extract bromelain enzyme from waste pineapple stumps, for
animal health pharmaceutical application. It is in our Bio-pharmaceutical
& pharmaceutical focus area/ programme
(bb) R 2,887,560.00
(cc) 0 - Project at a technology development stage.
Development Programme 5(aa) GR Active. TIA funds the University of Pretoria to develop an extraction
process for a bioactive that will be produced from a plant that is
indigenous to South Africa. The bioactive will be produced in a
manufacturing facility that will be established in Mamelodi, Tshwane. It is
anticipated that a Cooperative will be established by the Mamelodi based
Mothong Trust, which will be responsible for production. Mothong Trust is
part of the GR Active consortium. The project is in the Complementary
Medicine & IKS Focus Area/ programme. IKS stands for Indigenous
Knowledge Systems.
(bb) R 6,935,515.00
(cc) one.
Development Programme 6(aa) BioDx (Pty) Ltd. BioDx (Pty) Ltd has developed a process for production
of an environmentally sustainable biocide for industrial as well as
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cosmetics application. The project is at commercialization stage and is
focussed on demonstrating the technology at client facilities for potential
uptake. It is in the complementary medicine & IKS focus area/
programme.
(bb) R 1,269,896.00
(cc) seven.
Development Programme 7(aa) CPT Pharma (Pty) Ltd. CPT Pharma (Pty) Ltd is currently establishing a
pilot plant for development and improvement of generic processes for 4
active pharmaceutical ingredients for human health and animal health
applications. It is in Bio-Pharmaceuticals & Pharmaceuticals focus area/
programme.
(bb) R 1,086,000.00
(cc) one.
Development Programme 8(aa) Afriplex (Pty) Ltd. Afriplex is developing a complementary medicine for
the treatment of prostate cancer. The complementary medicine is
extracted from a plant that is indigenous to South Africa and has been
used for generations by local communities. The project is in the
Complementary Medicine & IKS focus area/ programme.
(bb) R 2,455,393.00
(cc) 0 - Project at a technology development stage.
Development Programme 9(aa) Altis Biologics (Pty) Ltd. Altis is developing a product that is extracted
from porcine bone for the treatment of bone fractures. Although the
active ingredient is a biological product, the product is classified as a
medical device due to delivery mechanism. The project is therefore in the
Medical Devices & Diagnostics focus area/ programme. The project is in
the Complementary Medicine & IKS focus area/ programme.
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(bb) R 2,455,393.00
(cc) 0 - Project at a technology development stage.
Development Programme 10(aa) Settec. System for monitoring early settling of solids in slurry pipes.
(bb) R 316,178.75
(cc) one.
Development Programme 11(aa) Green Iron Technology. Processing of waste iron ore for application in steel
industry.
(bb) R 900,000.00
(cc) Four.
Development Programme 12(aa) Zargun. Zargun Separation of Zirconium isotopes for the nuclear sector.
(bb) R 6,301,739.00
(cc) Three.
Development Programme 13(aa) CMTI Consulting. Development of ultra low bed mining equipment.
(bb) R 5,989,734.33
(cc) Four.
Development Programme 14(aa) Arc Aqua. Development of the core technology improvement of the
software for remote reporting, high voltage power supply system, turbine
generator and development of additional applications to the core
technology, industrial overhead, end of hose and integrated unit.
(bb) R 2,900,000.00
(cc) 0 - Project at a technology development stage.
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Development Programme 15(aa) Rubber Nano. To develop a production ready "ZR6" additive for use in
the OEM tyre manufacturing industry.
(bb) R 660,000.00
(cc) 0 - Project at a technology development stage.
Development Programme 16(aa) Fibrelux. Fibrelux is a wool diameter measuring device for the wool
farming industry.
(bb) R 560,000.00
(cc) 10.
Development Programme 17(aa) Welcore. Weldcore is a novel sampling technique developed by NMMU.
This technique allows for the removal of representative core sample in
situ from safety critical structures as well as repair of the weld site using
an innovative welding technique FTSW.
(bb) R 11,000,000.00
(cc) 10.
Development Programme 18(aa) mLab Mobile Apps Support. The programme has been developed to
stimulate the emergence of mobile apps based innovation business.
Often these businesses that are created by young people with tertiary
education qualifications but are not in employment, education or training
systems. It is a feeder platform for significant innovation projects that can
be funded through the TIA technology development fund.
(bb) R 2,500,000.00
(cc) 30.
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Development Programme 19(aa) Balancell (Pty) Ltd. Balancell is a technology business specialising in
battery management electronics for medium to large scale batteries of all
chemistries. Its battery management systems provide insight into the
stored energy of a battery pack and improve its reliability and efficiency.
(bb) R 2,000,000.00
(cc) 0 - Project at a technology development stage.
Development Programme 20(aa) Impact Free Water (Pty) Ltd. The project use Wave Energy Reverse
Osmosis technology for desalination of seawater to produce bottled
drinking water and electricity.
(bb) R 500,000.00
(cc) 0 - Project at a technology development stage.
Development Programme 21(aa) DST has established the Technology Station Programme (TSP) aiming at
offering technology based support to SMME. The programme is managed
by TIA and hosted by Universities of technologies. The technology
Stations provide access to specialist knowledge and equipment. There
are currently 18 stations with national footprint and are sector focused as
follows:
Manufacturing Cluster
TUT: Electronics & Electrical Engineering, including ICT
VUT: Product Prototyping, materials, processing technologies
NMMU: Mechanical System Technologies & Automotive
components;
DUT: Fibrous Reinforced & Molded Plastics
CUT: Rapid Prototyping & Product Development
CPUT: Adaptronics
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UJ: Light Metals Casting & Foundry technology
TUT: TDM (IAT) Transfer, Training & Adv Manufacturing
SUN: TDM (IAT) design, analysis & Adv Manufacturing
WSU (IAT): Design, Tooling, Dies, Mould making
Agro-Processing, Chemical, Other Cluster
CPUT: Agro Food Processing
UL: Agrifood Processing
TUT: Chemistry & Chemical engineering
NMMU: Petrochemicals, Bio-downstream chemicals
MUT: Chemistry & Chemical Engineering
UJ: Process, Energy, Environments
VUT: Panel-beating, spray-painting
CPUT: Clothing and Textile Technologies
(bb) In the financial year 2016/17
TIA budget allocation R34,511 million
Additional grant from DST R37,739 million Additional grant from DST to scale up the TSP R33 million
(cc) The impact of the programme for the financial year 2015/16 is as follows:
A total of 103 interns participated in the interns Programme
A total of 10 interns have received employment
2154 SMMEs received technology based support from the programme
27 knowledge innovation products supported through the stations
support activities, and 58 product/prototype developed
20 full functional prototypes completed and 33 youth funded projects
currently at various TS for support with products designs, CAD/CAM
and quality improvements