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2018/19 First Quarter Performance Report

1 April – 30 June 2018

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Table of Contents

1. INTRODUCTION..........................................................................................................82. DST FIRST QUARTER PERFORMANCE OVERVIEW.......................................10

PROGRAMME 1: ADMINISTRATION...................................................................13PROGRAMME 2: TECHNOLOGY INNOVATION.................................................19PROGRAMME 3: INTERNATIONAL COOPERATION AND RESOURCES.........32PROGRAMME 4: RESEARCH DEVELOPMENT AND SUPPORT.......................38PROGRAMME 5: SOCIO-ECONOMIC INNOVATION PARTNERSHIPS.............45

3. FINANCIAL PERSPECTIVE.............................................................................53

Donor funding............................................................................................................61

APPROVAL...........................................................................................................62

List of Tables

TABLE 1: PROGRAMME 1 ADMINISTRATION 1......................................................................17

TABLE 2: PROGRAMME 2 – TECHNOLOGY INNOVATION....................................................29

TABLE 3: PROGRAMME 3 – INTERNATIONAL COOPERATION AND RESOURCES........35TABLE 4: PROGRAMME 4 – RESEARCH DEVELOPMENT AND SUPPORT.......................42TABLE 5: PROGRAMME 5 – SOCIO-ECONOMIC INNOVATION PARTNERSHIPS............48Table 6: DST MAJOR ITEM CATEGORIES.................................................................................54Table 7: Analysis of financial performance – Donor funding.......................................................61

List of Figures

Figure 1: The overall 2018/19 DST’s first quarter performance................................10Figure 2: The DST first quarter performance per Programme...................................11Figure 3: DST budget split among the five Programmes..........................................53Figure 4: Distribution of DST budget among the four major item categories.............55Figure 5: DST First quarter financial performance (including parliamentary grants). 56Figure 6: DST First quarter financial performance (excluding parliamentary grants) 57Figure 7: Year-on-year financial performance analysis (2018/19 and 2017/18)........58Figure 8: Financial performance per Programme (including parliamentary grants). .59Figure 9: Financial performance per Programme (excluding parliamentary grants). 60

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LIST OF ABBREVIATIONS

ACCESS Applied Centre for Climatic and Earth System Science South African

AGSA Auditor-General of South Africa

AISA Africa Institute of South Africa

AMCOST African Ministerial Conference on Science and Technology

APP Annual Performance Plan

ASSaf Academy of Science of South Africa

AU African Union

BFG Bioinformatics and Functional Genomics

CEO Chief Executive Officer

CESTII Centre for Science, Technology and Innovation indicators

CIPC Companies and Intellectual Property Commission

CRDP Comprehensive Rural Development Programme

CSIR Council for Scientific and Industrial Research

CTR Centre for Translational Research

DBE Department of Basic Education

DIRCO Department of International Relations and Cooperation

DPME Department of Planning, Monitoring and Evaluation

DST Department of Science and Technology

DTI Department of Trade and Industry

ECOCEP Economic Modelling for Climate Energy Policy

EDCTP European and Developing Countries Clinical Trials Partnerships

EE&DSM Energy Efficiency and Demand Side Management

EGP Eucalyptus Genome Platform

EIAP Emerging Industries Action Plan

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ENE Estimates of National Expenditure

ERA Emerging Research Areas

ERM Enterprise Risk Management

ESASTUP European South African Science and Technology Advancement Programme

ESOF EuroScience Open Forum

EU European Union

Exco Executive Committee

FACTS Follow on African Consortium for Tenofovir Studies

FEI Flourochemicals Expansion Initiative

FP7 Framework Programme – 7

GCSSRP Global Change, Society and Sustainability Research Programme

GDP Gross Domestic Product

HCD Human Capacity Development

HELP Herschel Extragalactic Legacy Programme

HLPD High Level Policy Dialogue

HPC High Performance Computing

HSSIWG Human and Social Science Infrastructure Working Group

HySA Hydrogen South Africa

IAA Internal Audit Activity

IATs Institute of Advanced Tooling

ICASA Independent Communications Authority of South Africa

ICR International Cooperation and Resources

ICSU International Council for Science

ICT Information and Communication Technology

ICT4E Information and Communication Technology of Basic Education

IDEWS Infectious Diseases Early Warning Systems

IISA International Institute for Applied Systems Analysis

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IK Indigenous Knowledge

IKS Indigenous Knowledge Systems

iIKSSA Indigenous Knowledge Systems of South Africa trust

IP Intellectual Property

IR International Resources

ISA Information System Architecture

ISI Institute for Scientific Information

IT Information Technology

ITEC International Travel and Education Cooperation

IU Implementation Unit

MCA Multilateral Cooperation and Africa

MEA Membrane Electrode Assembly

MH Metal Hydride

MoU Memorandum of Understanding

MPFP MultiPurpose Fluorination Pilot Plant

MTEF Medium-Term Expenditure Framework

NACI National Advisory Council on Innovation

NAM Non-Aligned Movement

NECSA Nuclear Energy Corporation South Africa

NEP National Equipment Programme

NF National Facilities

NICIS National Integrated CyberInfrastrucure System

NIPMO National Intellectual Property Management Office

NNEP National Nanotechnology Equipment Programme

NRDS National Research and Development Strategy

NRF National Research Foundation

NSI National System of Innovation

NSW National Science Week

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NT National Treasury

NWISET National Women in Science , Engineering and Technology

NYS National Youth Service

OECD Organisation for Economic Cooperation and Development

OTT Office of Technology Transfer

PCT Patent Cooperation Treaty

PHI Post Harvest Innovation

PPGME Policy, Planning, Governance, Monitoring and Evaluation

PPP Public Participation Programme

RE Renewable Energy

R&D Research and Development

RDI Research, development and innovation

RDS Research, development and support

S&T Science and Technology

SA-YSSP Southern African-Young Scientists Summer Program

SACNASP South African Council for Natural Scientific Profession

SADC South African Development Community

SAEON South African Environmental Observation Network

SAMCOST Southern African Ministerial Conference on Science and Technology

SANSA South African National Space Agency

SANWATCE Southern African Network of Water Centres of Excellence

SARChi South African Research Chairs Initiatives

SARIR South African Research Infrastructure Roadmap

SASSCAL Southern African Science Service Centre for Climate Change and Adaptive Land Management

SEP Socio-Economic innovation Partnership

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SETI Science, Engineering and Technology Innovation

SIF Sector Innovation Fund

SKA Square Kilometer Array

SKA/AVN SKA and African Very Long Baseline Interferometry Network

SKARAB SKA Reconfigurable Architecture Boards

SLA Service Level Agreement

STEPSA Spatial Temporal Evidence for Planning South Africa

STI Science, Technology and Innovation

STISA Science, Technology and Innovation for South Africa

TDGs Technology Development Grants

TIA Technology Innovation Agency

TIPS Trade and Industrial Policy Strategy

TISC Technology And Innovation Support Centre

TLIU Technology Localization Implementing Unit

TMP Technology Matchmaking Project

UNESCO United Nations Educational, Scientific and Cultural Organization

USAID United States Agency for International Development

WIPO World Intellectual Property Organisation

WISA Women in Science Awards

WRC Water Research Council

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1. INTRODUCTION

The Department of Science and Technology (DST) derives its mandate from the

1996 White Paper on Science and Technology. The DST is the custodial coordinator

for the development of the National System of Innovation (NSI) and 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 into a

knowledge-based economy, in which the production and dissemination of knowledge

will lead to economic benefits and enrich all fields of human endeavour. In this

regard, the measure of success will be the level to which science and technology

play a driving role in enhancing productivity, economic growth and socio-economic

development. The framework of the TYIP will be used in the medium and long-term

to guide the achievement of the strategic goals of the DST, which are –

A responsive, coordinated and efficient National System of Innovation;

Increased knowledge generation;

Human capital development;

Using knowledge for economic development; and

Knowledge utilisation for inclusive development.

Treasury Regulation 5.3.1 requires the accounting officer to establish procedures for

quarterly reporting to the executive authority to facilitate effective performance

monitoring, evaluation and corrective action.

Procedures for quarterly reporting have been established through the August 2011

National Treasury Guidelines, "Preparation of Quarterly Performance Reports

Guidelines", in line with the Presidency's outcomes-based approach. Both the

National Treasury and the DST's "Performance Information Policy and Procedure

Manual" (PIPPM) require that, where there are deviations between planned and

actual performance, reasons for the deviations must be provided.

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This first quarter review presents progress made from 1 April to 30 June 2018,

including the challenges and issues confronting DST Programmes in their pursuit of

the 2018/19 financial year targets as outlined in the Annual Performance Plan (APP).

This review also provides details of the financial transactions of the DST as at 30

June 2018.

The overall progress of performance is based on the three classification categories.

The legend keys below explain the overall progress as per DST performance

indicators:

Not Achieved No target due Achieved

Note that the colour code is referring to the quarterly targets and these exclude the

ones which were not planned for.

Red – Not achieved that the target has not be achieved within the planned

timeframes; major remedial action and urgent interventions are required.

Green – No target due and no major action is needed since there are no

planned targets within the planned timeframes.

Blue – the quarterly target is achieved within the planned timeframes.

2. DST FIRST QUARTER PERFORMANCE OVERVIEW

Figure 1 below illustrates the performance of the DST from April to June 2018

after having integrated all the latest amendments by the Programmes with

regard to the finalisation of evidence which was initially outstanding.

During the period under review, the total number of planned output targets was

22. The Department achieved 86% of the planned output targets and 14% of

the planned output targets were not achieved.

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Figure 1: The overall 2018/19 DST’s first quarter performance

Figure 2 below illustrates the performance of the Department per Programme

during the first quarter. The DST planned to achieve a total number of 22

output targets for the 2018/19 financial year. Performance is based on all five

programmes.

Programme 1 achieved 100% of its targets;



Programme 4 achieved 100% of its targets; and

Programme 5 achieved 70% of its targets and 30% of the planned targets

were not achieved.

Figure 2: The DST first quarter performance per Programme

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PROGRAMME 1: ADMINISTRATION

The purpose of the Programme is to conduct the overall management and

administration of the Department; to ensure that organisations funded by the

Department comply with good corporate governance standards and that their

activities are aligned with the strategic focus of the NSI and monitor and evaluate the

performance of the science councils.

The Programme consists of the following subprogrammes:

(a) The Ministry and Office of the Director-General: support the Minister,

Deputy Minister and the Director-General (DG) by providing effective and

efficient professional and executive support. The subprogramme is

responsible for the development of systems and mechanisms for handling

Parliamentary questions and replies, Cabinet matters, correspondence,

submissions and memoranda. It also coordinates activities within the

Department to assist in steering the NSI towards the development of a

knowledge-intensive economy with higher productivity levels.

(b) Enterprise Risk Management (ERM): ensures that a risk management

culture is embedded effectively and efficiently within the Department, by

creating risk management awareness, and elevating risk management to a

strategic level in the Department in order to improve the DST’s risk maturity

level. The component’s secondary role is to ensure that countering fraud is

made an integral part of the strategy, operations and administration in the

Department (i.e. to promote a fraud risk management culture in the DST).

(c) Policy, Planning, Governance, Monitoring and Evaluation (PPGME): supports the DST leadership in steering the NSI.

(d) Internal Audit Activity (IAA): performs internal appraisal activities to improve

the effectiveness of control and governance processes to help the Department

achieve its strategic, operational, and financial and compliance objectives.

(e) Human Resources (HR): ensures that the Department is able to (i) provide a

professional service through accurate, consistent and best employment

practices in all its activities, which are aimed at supporting the achievement of

the DST’s strategic and operational objectives; (ii) attract and retain

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employees who share the same organisational vision; (iii) champion change

and transition, with a view to being a catalyst in the transition of people and

the organisation to embrace and implement change; (iv) set performance

standards and manage performance against them; and (v) promote an

environment that supports the personal and career development of all

employees so that they can reach their full potential and contribute better to

the achievement of the Department’s strategic objectives, and (f) instill a

culture of service excellence.

(f) Finance ensures effective, efficient and economic utilisation of financial

resources in line with financial prescripts through the development and

effective implementation of financial systems, policies, frameworks and

procedures. This includes budget planning and expenditure monitoring; and

the management of procurement, acquisition, logistics, assets, and financial

transactions.

(g) Information System and Knowledge Management: is responsible for the

delivery of services that support the Department’s strategic plan and individual

units’ objectives through the effective use of information technology. Its

purpose is to align the Information Technology (IT) strategy with the business

strategy to ensure that the Department achieves optimum use of its

resources.

(h) Science Communication: is responsible for ensuring effective communication

between the Department and its key stakeholders and creating awareness of

the Department’s key objectives and activities. The subprogramme raises the

profile of the work done by the Programmes in line with the vision and mission

of the Department. It also facilitates the preparation of information that the

Minister and the Deputy Minister communicate externally.

(i) Legal Services: is responsible for providing effective and efficient legal

services to the Department in order to ensure that the interests of the

Department are protected against any legal risk. The subprogramme ensures

that the Department complies with relevant legislation and takes a proactive

approach to deal with matters that have the potential to give rise to conflict or

legal challenges.

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Highlights of the Quarter

In terms of Section 40 (1) and (3) of the PFMA and chapter 18 (18.3) of the National

Treasury Regulations directive, the DST submitted its 2017/18 annual report to the

AGSA by 31 May 2018. The DST annual report was used to report on the financial

position of the Department, its performance against predetermined objectives and

overall governance. One of the important oversight functions of Parliament is to

consider auditees’ annual reports on Departments to perform this oversight function,

they need assurance from the AGSA that the information in the annual report of the

Department is credible. To this end, the DST’s annual report will include AGSA’s

report, which provides assurance on the credibility of the financial statements and

the annual performance report, as well as on the auditee’s compliance with

legislation. This audit outcomes will be reported in the second quarter of the financial

year.

Each financial year, the Department is committed to maintaining the highest

standards of corporate governance, which are fundamental to the management of

public finances and scarce resources. The Department continued working hard to

ensure that all its corporate governance plans are reviewed to meet the

requirements of the financial year. During the period under review, the 2018/19 DST

Annual Performance Plan was presented at the Portfolio Committee of Science and

Technology for oversight. Other frameworks approved which are the main pillars of

the Department's corporate governance arrangements include the 2018/19 financial

year Internal Audit coverage plan and three-year rolling plan.

In the reporting period, the Department also approved the following key enterprise

risk management documents, based on the recommendation of the Department’s

Enterprise Risk Management Committee: The 2018/19 Strategic Risk Profile, the

2018/19 risk profiles for all Programmes of the Department, The 2018/19 Fraud Risk

Profile, the Enterprise Risk Management Implementation Plan for the 2018/19

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financial year, the Business Continuity Implementation Plan for the 2018/19 financial

year; and, the Fraud Prevention and Detection Plan for the 2018/19 financial year.

The Department views Enterprise Risk Management (ERM) as imperative for the

successful delivery of its mandate. The Department believes that identifying,

understanding and managing risks in an enterprise-wide context will ensure

accountability and sustainability and that ERM will direct the Department to address

possible negative events in a proactive and timely manner while exploiting

opportunities presented by future uncertainties.

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TABLE 1: PROGRAMME 1 ADMINISTRATION 1 Strategic statement: To coordinate the identification, formulation and implementation of strategic initiatives and ensure that the priorities of the DST and its entities are aligned to national priorities

Annual target: DST public entities’ 2019/20 annual performance and annual reports plans approved by the Minister by 31 March 2019Performance indicator: DST public entities’ strategic and annual performance plans approved by the Minister and shareholder compacts signed by the Minister and chairpersons of the boards

1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

No target No target due No target due None None

Strategic statement : To develop and maintain good corporate governance systems for the Department and its entities

Annual target: 1 combined assurance annual report on the status of combined assurance presented to the Risk and Audit Committees by 31 March 2019

Performance indicator: Combined assurance annual report on the status of combined assurance presented to the Risk and Audit Committees



Strategic statement: To provide strategic communication for the DST and its entities through marketing, media and branding initiatives, and the Science Engagement

Annual target: 24 media articles written to raise the DST’s public profile by 31 March 2019

Performance indicator: Number of media articles written to raise the DST’s public profile


4 media articles written to raise the

DST’s public profile

16 media articles were written to

raise the DST’s public profile

Achieved External stakeholders within the

NSI were invited to produce

articles to profile the work of the

DST and its entities

None

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Annual target: 10 public participation programmes held by 31 March 2019

Performance indicator: Number of public participation programmes held


2 public participation programmes

held

2 public participation programmes

held

Achieved None

Strategic statement : To ensure effective and efficient financial and procurement services

Annual target: Unqualified audit (clean audit) opinion with no financial matters in the audit report

Performance indicator: Unqualified audit (clean audit) opinion with no financial matters in the audit report


No target. No target due No target due None None

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PROGRAMME 2: TECHNOLOGY INNOVATION

The purpose of the Programme is to drive strategic research, development and

innovation (RDI) in space science and technology, energy, the bioeconomy, and the

emerging and converging areas of nanotechnology, robotics, photonics and

indigenous knowledge systems (IKS), and to promote the realisation of commercial

products, processes and services from these RDI initiatives. In addition, through the

implementation of enabling policies and interventions along the entire innovation

value chain, to promote the protection and utilisation of IP, technology transfer and

technology commercialisation.

The Programme provides policy leadership in the DST's long-term cross-cutting RDI

initiatives through four chief directorates.

Bioinnovation Chief Directorate leads the DST’s implementation of the National

Bioeconomy Strategy, with its prime focus on the socio-economic outcomes and the

strengthening of research and innovation competencies that form the strategic base

of the bio-based NSI, rather than the mere development of technologies.

Hydrogen and Energy Chief Directorate develops a portfolio of technologies to

contribute towards resolving the energy security challenge, to increase local mineral

beneficiation, and to facilitate South Africa’s transition towards a knowledge-driven

economy. In line with the NDP, the MTSF and the Nine-Point Plan, the chief

directorate seeks to facilitate the achievement of economic development and social

equity by including locally developed cleaner energy technology solutions in South

Africa’s energy system.

Space Science and Technology Chief Directorate supports the creation of an

environment conducive to the implementation of the Space Science and Technology

Grand Challenge, the National Space Strategy and SAEOS, as well as addressing

the development of space technologies, innovative solutions and human capital to

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respond to national priorities and boost socio-economic growth. The chief directorate

is also focusing on the development of human capital through targeted programmes

in the thematic areas of earth observation and satellite engineering; navigation and

positioning; space science and exploration; and satellite communication. The

satellite technology platforms and infrastructure in space S&T will play an important

role in decision-making processes in both the public and private sectors.

Innovation Priorities and InstrumentsThe Chief Directorate supports and strengthens the innovation policy package (and

related interventions) aimed at creating and sustaining an enabling environment for

innovation, technology development, and commercialisation of publicly funded

Research and Development (R&D) initiatives. In performing this function, IPI

supports the identification, development, creation and support of policy and

institutional structures that facilitate technology development and its progression into

national and international markets. The chief directorate also focuses on the

conceptualisation, piloting and monitoring and evaluation of innovation policy

instruments, such as those centred on the Department’s Commercialisation

Framework. It is further supporting the development and implementation of emerging

and converging technologies that have the potential to influence and affect social

and economic development positively, in areas such as synthetic biology, structural

biology, systems biology and functional genomics, nanotechnology, photonics and

robotics.

National Intellectual Property Management Office (NIPMO) is the national

implementing agency for the Intellectual Property Rights from Publicly Financed

Research and Development Act (IPR-PFRD Act) which was promulgated on 22

December 2008 and came into effect on 2 August 2010. The long title of the IPR-

PFRD Act reads “To provide for more effective utilisation of intellectual property

emanating from publicly financed research and development; to establish the

National Intellectual Property Management Office and the Intellectual Property Fund;

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to provide for the establishment of offices of technology transfer at institutions; and to

provide for matters connected therewith:


In the realisation of the Technology Innovation mandate, the following can be

commended as highlights.

Increased knowledge generationThe collaborative agreement entered into between the DST, the South African

Medical Research Council (SAMRC) and Novartis in 2017, resulted in some positive

spin-offs during the first quarter of 2018/19 reporting period:

In the reporting period approximately 70 Zebrafish were transferred from Novartis

to the University of Cape Town, to be used in cardiovascular research. Two PhD

students from the University of Cape Town (UCT) is being trained in the use of

the Zebrafish technology;

Five South African students are included in the next generation scientist

programme of Novartis ; and

The next steps involve the exploring of the possibilities to transfer the technology

also to the University of Limpopo and the University of Zululand.

The Bio-innovation Chief Director and Director: Industry and Environment

participated and presented at the Global Bio-economy Summit, in Berlin, Germany.

The Summit provided an extremely useful forum for gathering information on bio-

economy developments worldwide, developments that are useful in steering the

South African bio-economy.

Review the state of nanotechnology research development and innovation (RDI) in

South Africa:

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The National Nanotechnology Strategy, launched by the Department of Science and

Technology (DST) in 2006, was developed to coordinate and expand existing

nanotechnology and nanoscience research in South Africa.

Since the launch of the Strategy, a wide range of activities in this field has emerged

across the universities, science councils and, to a lesser extent, the private sector in

the country. Furthermore, a number of initiatives and funding streams have helped to

shape the research development and innovation (RD&I) agenda, some of which

have arisen from the provisions of the Strategy and the associated Research Plan.

These include the Nanotechnology Flagships Projects, the Nanotechnology Public

Engagement Programme, the SARChI initiative, the establishment of the

Nanotechnology Innovation Centres (NICs), and funding provided through the

National Nanotechnology Equipment Programme (NNEP), which was subsumed into

the National Equipment Programme (NEP). The DST commissioned a study in 2017

to review the state of nanotechnology research development and innovation (RD&I)

in South Africa, to determine the extent to which the overall objectives of the

Strategy are being met.

The study consisted of two parts. The first was a detailed analysis of the

nanotechnology landscape across South Africa from 2006 to 2017, while the second

was a review of the NICs. The study presents the achievements to date, measured

in terms of a wide range of metrics, and some of the challenges to nanotechnology

RD&I in South Africa. It also seeks to identify the interventions necessary to help

overcome the challenges and capitalise on the opportunities. IPI held a stakeholder

workshop on 26 June 2018 where the results of the Nanotechnology Landscape

Study were presented to representatives from universities, science councils, public

entities, government departments, and the private sector.

The findings were well received by the community. A presentation on the study with

recommendations is to be tabled to EXCO on 30 August 2018. DST-SARIMA

Excellence Awards in R&I Management: SARIMA has anchored itself as a key role

player within the regional system of research and innovation, championing efforts to

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grow and strengthen capacity, as well as provide thought leadership, on research

and innovation (R&I) management.

These management capabilities are critical to supporting the research endeavours,

and realisation of sustainable innovations from such research, to address societal

needs. The DST has partnered with SARIMA over nearly two decades to set the

groundwork for:

increased awareness of R&I management in the region;

greater participation and stronger R&I networks in SADC member states;

strengthening institutional capabilities;

strengthening of the existing regional base of R&I practitioners; as well as,

encouraging and supporting new entrants into the field of R&I management.

The DST is a continued supporter and sponsor of the DST-SARIMA Excellence

Awards since the initiative started in 2014, having supported 16 individual awards

and 4 organisational awards across various categories. The DST-SARIMA

Excellence Awards were made during a ceremony at the 2018 SARIMA Conference

Dinner on the 31 May 2018. These awards aim to acknowledge and celebrate those

individuals and organisations that have excelled in the fields of R&I research and

innovation management in the SADC region. The awards are for the year 2017.

There are four award categories:

Distinguished contribution: Recognises individuals who have made

distinguished contributions to the Research Management or Innovation

Management profession over a period of time.;

Professional Excellence: Recognises individuals who have been in the

Research Management or Innovation Management profession for seven

years or less, but have made an increasing contribution to their organisation

and the R&I Management community over that time.;

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Early Career Excellence: Recognises individuals who are newcomers to the

Research Management or Innovation Management profession. Nominees

must have less than five years’ experience in any of the core elements that

make up a Research Management or Innovation Management function

whether they were in a formal organisational office or not.; and

Organisational Excellence: These awards recognise organisations that have

fulfilled three main criteria: (i) They have made a significant impact in

building, encouraging and championing research or innovation within their

organisation over many years; (ii) They have developed and implemented

initiatives and specific interventions during the period under review (2017);

(iii) They have shared their knowledge of best practice within the R&I

Management community or had an impact on the R&I Management

community beyond their own organisation.

Knowledge utilisation for economic development

During the period under review, 150 new actionable disclosures were received from

institutions showing an increase already in comparison to where we were at the

same time last year at 108. This is encouraging as it shows that institutions are

taking more technologies onto their portfolios and hence increasing the publicly

financed technology pipeline. In addition, the first quarter saw the successful hosting

of the second World Intellectual Property Organisation – NIPMO Intellectual Property

(IP) Innovation Workshop. The workshop was held in Johannesburg where 55

individuals were trained in all aspects of IP and its interface with innovation. During

the first quarter, HySA Infrastructure had sales of Liquid Organic Hydrogen Carrier

(LOHC) to a local company while HySA Systems sold a 1 KW high-temperature fuel

cell stack to a Chinese company. The products which were sold were identified in

the HySA independent assessment as products which were ready for the market.

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These sales create a platform for validation of technological outputs from the CoCs

and opportunities for industrial upscaling. The DST provided five regulatory

recommendations towards the Executive Council (GMO Act) GMO permit

applications, 100% of the applications were considered. The IK-Based Technology

Innovation Unit organised workshops for the handing over of initiatives that are ready

for commercialisation to line departments, e.g. the Departments of Trade and

Industry (DTI); and Small Business Development (DSBD); and Rural and Land

Affairs (DRLA), and Agriculture, Forestry and Fisheries (DAFF). This was done in

collaboration with agencies reporting to these departments, e.g. South African

Bureau of Standards, EgoliBio, The Innovation Hub, Small Enterprise Development

Agency, Companies and Intellectual Property Commission and the Agricultural

Research Council.

Centre of Competence Study: In a developing nation such as South Africa the

importance of research and development (R&D) to support economic development,

job creation and human capital development are essential. In response to a review

by the Organisation for Economic Cooperation and Development (OECD) in 2007 of

South Africa’s research, development, and innovation (RDI) landscape, the

Department of Science and Technology (DST) developed the 2010 Centre of

Competence (CoC) Framework. While the Framework is a response to the findings

of the OECD report, it is also a mechanism to reinforce South Africa’s RDI landscape

to help overcome the innovation chasm or valley of death—i.e., the space between

research and commercialisation. Subsequent studies have reviewed the DST CoC

Framework, providing valuable insight for its improvement.

An important finding articulated the DST’s need to perceive how, and under what

circumstances, the industry can be assisted in collaborative efforts to drive or not to

drive CoCs. To this effect, the DST (through the CSIR) requested Frost & Sullivan to

develop an understanding of this challenge. The key objective of this study is to

enable the DST to grasp the needs of industry participants in driving industry-led

collaborations.

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Frost & Sullivan will provide an analysis and evaluation of the efficacy, sustainability

and needs of CoCs and CoC-type structures, and identify synergy in the triple helix

partnerships. This study was initiated in April 2018.

DST Commercialisation Project Management System (CPMS): In 2015 the DST

drafted its Commercialisation Framework. The Framework articulated various

practices/procedures for the DST to further develop the capacity to implement a

more formalised mechanism whereby technologies that are funded by the DST are

identified for possible commercialisation. Following the approval of the Framework

by the DST EXCO, IPI was tasked with the development of a set of protocols to

guide and support the implementation of the Framework.

This work has been completed and has resulted in the Commercialisation Project

Management System (CPMS) – an implementation toolkit that is aimed at supporting

the Department in making funding decisions with a higher possibility of commercial

success. A training workshop was held for DST staff on the 17 May 2018. This

workshop was intended to better equip the DST staff to create opportunities for

facilitating funding decisions in support of technology commercialisation. The second

workshop for stakeholders from across the National System of innovation is planned

for early October 2018: -

to introduce the CPMS, and its supporting documents and,

to provide practical guidance on the implementation of the CPMS,

Knowledge utilisation for inclusive development

The use of renewable hydrogen and fuel cell technology to produce electricity has

been demonstrated at Poelano Secondary school near Ventersdorp. The 2.5kW

HySA developed fuel cell system, with renewable hydrogen production and storage

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on site, was launched by the Minister of Science and Technology on 13 April 2018,

and is now a reliable source of power for the rural school.

Estimates indicate that in excess of 5 000 schools and clinics across the country do

not have access or have limited access to reliable electricity. Within the rural

schools, the 2.5 kW fuel cell system will be capable of powering the lights in

classrooms and some computers. In April 2018 Minister Kubayi-Ngubane launched

a 2.5 kW fuel cell system at Poelano Secondary School in Northwest Province. The

commercialisation of new IK-based technologies as part of inclusive development is

essential for the country’s socio-economic advancement. Subsequent to the

completion of the Limpopo (Tooseng) agro-processing facility for Moringa project,

the Sedikong cooperative from Tooseng community has started negotiations with

Future Life (private sector) for joint commercialisation of their products.

NIPMO led a South African delegation to Ahmerabad, India, for a workshop on

“Intellectual Property Rights (IPR) Systems for grassroots innovators”. The

workshop was attended by individuals from the following organisations/

institutions/departments: NIPMO (2), DST (1), TIA (1) Walter Sisulu University (1),

University of Fort Hare (1) and University of Venda (1). The training was broader

than IPR and instead concentrated on commercialising technologies relevant to

individuals at the grassroots level, and for technologies developed by grassroots

innovators.

Programme 2, through its membership of the board of the National Health

Laboratory Services (NHLS) initiated the planning for the Pathred Innovation

Summit, to take place from 1 to -3 July 2018. This is the first step in developing an

innovation plan for the organisation, which provides diagnostic services to 80% of

the South African population (i.e. the public sector). Technology transfer initiatives

for four new communities (Eastern Cape and North West) have commenced for the

I-Brand Health Infusions led by the University of Free State. Commercialisation

formulation workshops for Tiger Brands are ongoing.

27

A new Moringa extraction company, GreeneX has been registered through WITS

Enterprise Business School. Greenex is currently incubated at the Innovation Hub.

Phedisanang Cooperative has been replaced by a new small, micro and medium

enterprise, Phedisanang Technologies (Pty) Ltd. Furthermore, construction of

propagation and pre-processing facilities led by the ARC are ongoing for five

Honeybush SMMEs in the Eastern and Western Cape.

28

TABLE 2: PROGRAMME 2 – TECHNOLOGY INNOVATION

Strategic statement: To facilitate and resource investments in space science, energy, bioinnovation, nanotechnology, robotics, photonics, IKS, IP management, technology transfer and technology commercialisation

Annual target: 21 instruments funded in support of knowledge utilisation by 31 March 2019

Performance indicator: Number of instruments funded in5 support of knowledge utilisation



Annual target: 149 knowledge outputs generated by 31 March 2019

Performance indicator: Number of knowledge outputs generated



Annual target: 5 strategic policy directives in designated areas in support of economic sectors by 31 March 2019

Performance indicator: Number of strategic policy directives in designated areas in support of economic sectors



Annual target: 100% of regulatory recommendations made to the GMO Executive Council through DAFF to support decision making by 31 March 2019Performance indicator: Percentage of regulatory recommendations made to the Executive Council through DAFF to support decision-making


100% of regulatory recommendations made to the GMO Executive Council through DAFF to support decision making

5 requests were received and 5 recommendations were made to the Executive Council. Thus 100% was achieved

Achieved

29

Annual target: 2 decision-support interventions maintained by 31 March 2019

Performance indicator: Number of decision-support interventions developed or maintained



Strategic statement: To oversee, monitor and regulate key policy initiatives, including institutions/agencies and support interventions in the key strategic areas of space science, energy, bioinnovation, nanotechnology, robotics, photonicsAnnual target: 220 new disclosures reported by publicly funded institutions by 31 March 2019

Performance indicator: Number of new disclosures reported by publicly funded institutions


100 new disclosures reported by publicly funded institutions

150 new disclosures were received from publicly funded institutions by 30 June 2018

Achieved The institutions received more disclosures than anticipated. Quarter 1 is however only a milestone target towards an annual target

Strategic statement: To coordinate and support high-end and skills development in the strategic and emerging S&T areas of space science, energy, bioinnovation, nanotechnology, robotics, photonics, synthetic biology, structural biology, systems biology and functional genomics (collectively the South African Biodesign Initiative), IP management, technology transfer and technology commercialisationAnnual target: 340 postgraduate students (master’s and doctoral) funded in designated areas by 31 March 2019

Performance indicator: Number of postgraduate students (master’s and doctoral) funded in designated areas



Annual target: 240 trainees attending training initiatives in designated areas by 31 March 2019

Performance indicator: Number of trainees attending training initiatives in designated areas



Strategic statement: To support, promote, and advocate for the development and translation of scientific R&D outputs into commercial

30

products, processes and services that will contribute towards economic growth and a better quality of lifeAnnual target: 6 knowledge application products developed in designated areas by 31 March 2019

Performance indicator: Number of knowledge application products funded in designated areas



Annual target: 3 commercial outputs in designated areas by 31 March 2019

Performance indicator: Number of commercial outputs in designated areas



31

PROGRAMME 3: INTERNATIONAL COOPERATION AND RESOURCES

The Purpose of the programme is 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. International Cooperation and

Resources (ICR) also support South African foreign policy through science

diplomacy. The Programme has three chief directorates.

International Resources works to increase the flow of international resources into

the country by creating conditions for access to international STI skills and global

projects.

Multilateral Cooperation and Africa advances and facilitates South Africa’s

participation in strategic African bilateral agreements and multilateral organisations

on STI, so as to strengthen the NSI and to achieve shared economic and social

development in the region and on the continent.

Overseas Bilateral Cooperation promotes and facilitates collaborative activities

and leverages resources in support of the NSI from countries outside Africa, with a

specific focus on developing a knowledge-driven economy.


The DST participated in the SA-Canada Binational Consultation Meeting in Ottawa

led by DIRCO to review progress on current programmes and agreed on a new

action plan, including the signing of an MOU for S&T policy dialogues. Preparation

for the Chinese State visit, under the leadership of DIRCO, started during the

reporting period and specific reference to the Joint Research Centres, Young,

Science exchange Programme, Science Park and the strengthening of S&T bilateral

cooperation was high on the agenda. The DST supported the S&T Portfolio

32

Committee to visit South Korea and Japan in order to learn about these science

systems, benchmark and identify opportunities for South Africa. South Africa hosted

the BRICS Young Scientist Forum and meetings with S&T Ministers of India and

China were held to recommit on the bilateral cooperation and note progress of

ongoing cooperation.

The DST hosted the SA- Brazil seminar on start-ups with the purpose of sharing

expertise and challenges both countries face in establishing start-ups. The Open

Science workshop in partnership with Programme 4 and the European Commission

took place during the reporting period. The Limpopo Research Forum meeting was

targeted to promote Horizon 2020 and other DST funding instruments. The Director-

General participated in the Annual Science Business Framework Conference held in

Brussels and made use of the opportunity to engage with the European Commission

on the the future partnership between SA and the EU. In addition, he promoted the

Science Forum South Africa (SFSA) and to market SA's Science, Technology and

Innovation (STI) capacities to the European stakeholders.

The Programme was successful in securing an amount of R100m over 3 years from

the European Union (EU) General Budget Support (GBS) programme in support of

the Green Economy for Development in partnership with the Environmental Services

and Technologies Directorate within Programme 5. The DST was requested to

represented South Africa at the International Meeting on Triangular Cooperation

hosted by the Organisation for Economic Cooperation and Development’s (OECD)

Development Cooperation Directorate, which focused on sharing experiences,

scaling-up triangular cooperation to multi-stakeholder partnerships, South-South

cooperation and ongoing work at the Global Partnership Initiative on effective

triangular cooperation.

The DST formed part of a panel that reviewed and discussed the newly developed

OECD Toolkit for Identifying, Monitoring and Evaluating the Value-added of

Triangular Cooperation. In partnership with Programme 5, Hitachi, the Water

33

Research Commission (WRC) and the South African Institution of Civil Engineering

(SAICE), six candidates were selected to participate in the DST-Hitachi Scholarship

for South African Engineers for two months on-the-job training in Japan in Water and

Sanitation Treatment and Technologies.

The DST hosted the Joint meeting of SADC Ministers for Education and Training and

Science, Technology and Innovation as the current Chair of SADC. Twelve (12)

Member States, as well as the African Union, NEPAD, UNESCO, ILO, RUFORUM,

African Academy of Sciences and SARUA attended the meeting. Substantial support

towards the approved SADC Women in Science, Engineering and Technology

Organisation (WISETO) was garnered and will be signed by all countries. Prof

Nthabiseng Ogude was elected as Vice President of the Pan African University

Council and Prof Ahmed Dhai was appointed to the UNESCO Bio-ethics Committee.

Similarly, Dr Albert van Jaarsveld was appointed as new Director-General of IIASA,

South Africa was elected as a consortium partner within the Africa-Europe

Coordination and the Support Action on Renewable Energy. The continuous

promotion of South African science and scientific capability has increasingly

improved the international profile of South Africa and therefore more South African

are identified for leadership positions globally.

34

TABLE 3: PROGRAMME 3 – INTERNATIONAL COOPERATION AND RESOURCES

Strategic statement: To secure international funds to complement South Africa’s national investments in STI, including resources for DST initiatives requiring external investments

Annual target: R440m in international funds directly invested in research, innovation and STI HCD programmes as well as research infrastructure investments in South Africa as part of cooperation initiatives implemented by the DST by 31 March 2019

Performance indicator: Amount (expressed in Rand millions) of international funds directly invested in research, innovation and STI HCD programmes as well as research infrastructure investments in South Africa as part of cooperation initiatives implemented by the DST


No target No target due No target due

Annual target: R280m invested by international partners in their own organisations and initiatives but targeted at cooperation in research, innovation and STI HCD with South African partners as part of cooperation initiatives implemented by the DST by 31 March 2019Performance indicator: Amount (expressed in rand million) of funds invested by international partners in their own organisations and initiatives but targeted at cooperation in research, innovation and STI HCD with South African partners as part of cooperation initiatives implemented by the DST1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken


Strategic statement: To access international knowledge, capacities and resources, to enhance South Africa’s national STI capabilities, and to contribute to the attainment of the DST’s targets for human capital development, especially for international PhD trainingAnnual target: 650 South African students participating in international training programmes offering a postgraduate qualification as part of cooperation initiatives facilitated by the DST by 31 March 2019Performance indicator: Number of South African students accepted into international training programmes offering a postgraduate qualification as part of cooperation initiatives facilitated by the DST1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken


Annual target: 550 international partner organisations (i.e. legal entities) collaborating with South African partners within the formalised framework of collaborative research, innovation or STI HCD projects counted as part of cooperation initiatives facilitated by the DST by 31 March 2019Performance indicator: Number of international partner organisations (i.e. legal entities) collaborating with South African partners within the formalised framework of collaborative research, innovation or STI HCD projects counted as part of cooperation initiatives facilitated by the DST 1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

35

10 international partner organisations (i.e. legal entities) collaborating with South African partners within the formalised framework of collaborative research, innovation or STI HCD projects counted as part of cooperation initiatives facilitated by the DST

64 international partner organisations (i.e. legal entities) collaborating with South African partners within the framework of formalised collaborative research, innovation or STI human capital development projects as part of cooperation initiatives

Achieved Information from an international partner became available earlier than expected

None

Annual target: 25 dedicated international technical exchanges to build or reinforce South Africa’s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners and facilitated by the DST by 31 March 2019Performance indicator: Number of dedicated international technical exchanges such as workshops, seminars or training programmes to reinforce South Africa’s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners and facilitated by the DST 1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

3 dedicated international technical exchanges to build or reinforce South Africa’s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners and facilitated by the DST

8 dedicated international technical exchanges such as workshops, seminars or training programmes to build or reinforce South Africa’s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners

Achieved The overachievement was as a result of increased activities with multilateral partners, which resulted in a higher number than anticipated being recorded

None

Strategic statement: To strengthen cooperation in STI in Africa, to build capacities and support initiatives of the SADC and AU, for the advancement of both South Africa and Africa’s growth and development agendaAnnual target: 80 research, innovation and STI HCD cooperation projects co-funded or supported in kind by the DST and at least one other African partner by 31 March 2019Performance indicator: Number of research, innovation and STI HCD cooperation projects, co-funded or supported in kind by the DST and at least one other African partner1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken


Annual target: R90m in international funds directly invested in African regional and continental research, innovation, STI HCD or research infrastructure programmes as a result of DST facilitation by 31 March 2019Performance indicator: Amount (expressed in rand millions) of international funds directly invested in African regional and continental research,

36

innovation, STI HCD or research infrastructure programmes as a result of DST facilitation1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken


Annual target: 17 AU or SADC STI initiatives, including programmes, projects or governance frameworks, endorsed at AU or SADC ministerial level supported (financially or in kind) by the DST by 31 March 2019Performance indicator: Number of AU or SADC STI initiatives, including programmes, projects or governance frameworks, endorsed at AU or SADC ministerial level supported (financially or in kind) by the DST 1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

4 AU or SADC STI initiatives, including programmes, projects or governance frameworks, endorsed at AU or SADC ministerial level supported (financially or in kind) by the DST

7 AU or SADC STI initiatives, including programmes, project or governance frameworks, endorsed at AU or SADC ministerial level supported (financially or in kind) by the DST

Achieved The extensive work done during the SADC Chairmanship and the opportunity resulted in increased numbers of projects

Strategic statement: To maximise South Africa’s strategic interests in international cooperation in STI, in support of South Africa’s foreign policy objectives, and international trade and investment partnerships, creating a better South Africa, and contributing to a better and safer Africa in a better worldAnnual target: 4 formally recorded decisions made in intergovernmental STI forums, such as multilateral organisations, with a direct bearing on resource allocation to support priorities of government’s Programme of Action following specific DST intervention by 31 March 2019Performance indicator: Number of formally recorded decisions made in intergovernmental STI forums, such as multilateral organisations, with a direct bearing on resource allocation to support priorities of government’s Programme of Action following specific DST intervention1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

No target No target due for the quarter No target due None None

Annual target: 4 leadership positions occupied by South Africa in international STI governance structures relevant to influencing resource allocation to support priorities of government’s Programme of Action following specific DST intervention by 31 March 2019Performance indicator: Number of leadership positions occupied by South Africa in international STI governance structures relevant to influencing resource allocation to support priorities of government’s Programme of Action following specific DST intervention1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken


37

PROGRAMME 4: RESEARCH DEVELOPMENT AND SUPPORT

The purpose of the Programme is to 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 of research infrastructure and relevant research support, in pursuit of

South Africa’s transition to a knowledge economy. The Programme has four chief

directorates.

The Human Capital and Science Promotion focuses on developing and

renewing science, engineering and technology human capital to promote

knowledge generation, protection and exploitation, and to develop science

platforms that exploit South Africa's geographical advantages. The Chief

Directorate also promotes science, technology, engineering, mathematics and

innovation literacy and awareness. Funding is provided to the NRF for

programmes to develop research and human capital.

Basic Sciences and Infrastructure facilitates the strategic implementation of

research and innovation equipment and infrastructure to promote knowledge

production in areas of national priority and to sustain R&D-led innovation. The

Chief Directorate also promotes development and strengthening of basic or

foundational sciences, such as physics, chemistry, biological and life sciences,

geographic and geological sciences, and the human and social sciences.

Science Missions promotes the development of research, the production of

scientific knowledge, and human capital development within science areas in

which South Africa enjoys a geographic advantage. These areas include the

dynamics of climate change and its impact on earth systems, Antarctic and

marine research, palaeosciences, and indigenous knowledge systems.

Astronomy supports the development of astronomical sciences around a multi-

wavelength research strategy and provides strategic guidance and support to

relevant astronomy institutions in the implementation of DST astronomy

38

programmes. Of particular relevance are the MeerKAT, the African Very Long

Baseline Interferometry Network (AVN) project, and the Square Kilometre Array

(SKA) projects.


The following highlights against the DST strategic outcome-oriented goals are worth

mentioning.

Building a responsive, coordinated, and efficient NSIThe National Research Foundation (NRF) Act, Act 23 of 1998 is being amended to

include, in the NRF mandate, the functions of supporting and promoting public

awareness of, and engagement, with science; and to codify the Minister’s powers on

determination of: (i) national research and funding policy, and (ii) national research

facilities as well as the withdrawal of such determination; and declaration of research

institutions which can be funded through the NRF. The NRF Amendment Bill has

been passed by the National Assembly and sent to the NCOP for concurrence.

The Department of Science and Technology embarked on the NCOP process on the

IK Bill public hearings. In total, the Committee held 36 public hearings in all nine

provinces during the months of May and June 2018. Prior to the public hearing, the

Department briefed all nine provincial legislatures. In addition, the department

provided technical support in 32 of the 36 hearings in the provinces.

The Department also embarked on a public awareness campaign prior to the public

hearings, with a specific focus on communities.

39

Increasing knowledge generation

Student Cluster Competition (2018): The South African Center for High-Performance

Computing Student Cluster Competition team received an overall third position

during the 2018 International Student Cluster Competition held in Germany, in June

2018. China won first and Singapore second place. In this competition, students

have to demonstrate their own innovative computer systems and are judged on the

ability of their design to adhere to strict power constraints and high-performance

benchmarks. e-Science Masters Programme: The delivery of the e-Science Masters

coursework is progressing well with the enrolled 30 students, with the first-semester

course modules being examined in June. Provisional titles and supervisors of the

research projects for each of the 30 students were finalised.

Collaboration between the SKA and NICIS: The CSIR-NICIS and NRF SKA-

(SARAO) Memorandum of Agreement (MoA) was finalised and signed during quarter

1, and the draft national strategy for research big data was submitted to the DST for

consideration and input.

Human Capital DevelopmentOn 10 May, the Programme hosted a Lindau Nobel Laureate pre-departure meeting.

The meeting served to prepare six (6) postgraduate students who had been selected

to attend a weeklong meeting with Nobel Laureates winners in the fields of

Physiology and Medicine. All the selected South African students are women. The

meeting took place from 24 to 29 June 2018 in Germany.

The launch of the MeerLICHTThe MeerLICHT telescope was successfully launched on 25 May 2018. The event

was attended by a number of international stakeholders whose institutions are

collaborating with South Africa in the project. The launch of the telescope highlights

the importance and success of international collaborations in Astronomy. The

telescope is a collaboration amongst research institutions of the Netherlands, South

Africa and the United Kingdom. The MeerLICHT will complement the MeerKAT by

40

following up on MeerKAT observations but in the optical spectrum. This facility will

add an unprecedented and innovative dimension to the observing mode of the

MeerKAT telescope, and will open up the regime of simultaneous, ‘round-the-clock’

radio and optical observations of astrophysical transients. The launch of the

instrument was a key milestone in Multiwavelength astronomy development.

41

TABLE 4: PROGRAMME 4 – RESEARCH DEVELOPMENT AND SUPPORT

Strategic statement: To contribute to the development of representative, high-level human capital able to pursue locally relevant, globally competitive research and innovation activitiesAnnual target: Not less than 3 100 PhD students awarded an annual bursary as reflected in the reports from the NRF and relevant entities by 31 March 2019

Performance indicator: Total number of PhD students awarded bursaries annually as reflected in the reports from the NRF and relevant entities1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

Not less than 1 500 PhD students awarded an annual bursary as reflected in the reports from NRF and relevant entities

2 235 PhD students awarded an annual bursary as reflected in the reports from NRF and relevant entities

Achieved The quarterly performance cannot be predicted or managed within closer margins because it depends on the pool of applicants, which cannot be predicted perfectly

None

Annual target: Not less than 10 800 pipeline postgraduate students awarded an annual bursary as reflected in the reports from the NRF and relevant entities by 31 March 2019Performance indicator: Total number pipeline postgraduate students awarded bursaries annually as reflected in the reports from the NRF and relevant entities1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

Not less than 5 400 pipeline postgraduate students (BTech and honours, and masters students) awarded an annual bursary

6 010 pipeline postgraduate students (BTech and honours, and masters students) awarded an annual bursary


The NRF will target offering more student bursaries in the second quarter after receiving contract funding from the DST

Annual target: 790 graduates and students placed in DST-funded work preparation programmes in SETI institutions by 31 March 2019

Performance indicator: Total number of graduates and students placed in DST-funded work preparation programmes in SETI institutions


350 graduates and students placed in DST-funded work preparation programmes in SETI

676 graduates and students placed in DST-funded work preparation programmes in SETI

Achieved Most positions to workplace preparation programmes are allocated at the beginning of the financial year, and the

None

42

Institutions Institutions pool of applicants was stronger than anticipated

Strategic statement: To ensure availability of and access to internationally comparable research and innovation infrastructure in order to generate new knowledge and train new researchersAnnual target: 30 annual research infrastructure grants awarded as per award letters by 31 March 2019

Performance indicator: Number of research infrastructure grants awarded annually per award letters



Annual target: 3 400 Gbps total available broadband capacity provided by SANReN by 31 March 2019

Performance indicator: Total available broadband capacity provided by SANReN per annum



Strategic statement: To support and promote research that develops basic sciences through the production of new knowledge and relevant training opportunitiesAnnual target: Not less than 4 500 researchers awarded an annual research grant through NRF-managed programmes as reflected by the NRF project reports by 31 March 2019Performance indicator: Total number of researchers awarded research grants annually through NRF-managed programmes as reflected in the NRF project reports1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

Not less than 2 000 researchers awarded an annual research grant through NRF-managedprogrammes

2 219 researchers awarded an annual research grant through NRF-managed programmes


None

Annual target: Not less than 7 000 research articles published by NRF-funded researchers and cited in the Thomson Reuters Web of Science Citation Database as reflected in the NRF project reports by 31 March 2019Performance indicator: Number of research articles published by NRF-funded researchers and cited in the Thomson Reuters Web of Science Citation Database as reflected in the NRF project reports1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

43

No target To be reported in quarter 4 No target due None None

Strategic statement: To strategically develop priority science areas in which South Africa enjoys a competitive advantage, by promoting internationally competitive research and training activities and outputsAnnual target: 64 Ultra High Frequency Science Mode Receivers installed on Meer-KAT by 31 March 2019

Performance indicator: Number of Ultra High Frequency (UHF) science modes receivers installed on MeerKAT



Annual target: Second biennial report on the state of climate change S&T in South Africa submitted to Cabinet by 31 March 2019

Performance indicator: Number of biennial reports on the state of climate change S&T in South Africa approved by Cabinet



Strategic statement: To promote public engagement on science, technology and innovation

Annual target: Not less than 2.1 million participants (learners and members of the public) in science awareness and engagement programmes annually as reflected in the project reports of the NRF and other service providers by 31 March 2019Performance indicator: Number of participants in science awareness and engagement programmes annually as reflected in project reports of the NRF and other service providers1st Quarter target as per APP 1st Quarter actual output Status Reason for variance Actions taken

Grant funding awarded to organisations implementing the initiatives by 30 June 2018

Grants have been awarded to 82 organisers of Science engagement activities

Achieved None None

44

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. This programme has the following four Chief

Directorates:

Technology Localisation Beneficiation and Advanced Manufacturing advance strategic medium and long-term sustainable economic growth and

sector development priorities as well as government service delivery.

Sector Innovation and Green Economy provides policy, strategy and

direction-setting support for the R&D-led growth of strategic sectors of the

economy and to enhance science and technology capacity to support a

transition to a green economy.

Innovation for Inclusive Development supports the experimentation of S&T-

based innovations for tackling poverty including the creation of sustainable job

and wealth opportunities, building sustainable human settlements, and

enhancing the delivery of basic services.

Science and Technology Investment leads and supports the development of

indicators and instruments for measuring and monitoring investments in S&T

and the performance of the NSI, and ways of strengthening the NSI and

innovation policy.

45


Innovation for Inclusive Development

In using evidence, knowledge and learning to inform and influence how science and

technology may be used to achieve inclusive development, the DST participated in

strategic engagements on human capital development for a capable and innovative

state. These engagements included a conversation with the higher education sector

in the design and delivery of human settlements postgraduate education. The DST

was also featured in the South African Local Government Association’s innovation

publication (in.know.vation) and the publication emphasized the DST-SALGA

partnership in programmes to enable and support innovation in local government. A

DST designed and funded an initiative to advance leveraging ICT in agriculture was

recognized through an award for relevance and innovation at the national agriculture

extension services advisory forum.

In advancing an interdisciplinary approach to addressing development challenges,

the DST hosted a seminar on the 14th of June 2018 on “the water-energy nexus and

the application of green technologies”. This seminar was attended by different

stakeholders of the national system of innovation including representatives from

government, higher education, research institutions and socioeconomic development

practitioners. These discussions were also aligned to respond to the Sustainable

Development Goals 6 (water and sanitation) and 7 (affordable and clean energy).

Furthermore, drawing on experiences from designing and implementing

development cooperation based programmes, the DST participated in a United

Nations panel at the Development Cooperation Forum high-level biennial meeting.

46

Science and Technology Investment

The SADC Regional Report on Investment in Research and Development (R&D) As part of South Africa’s Chairship of the Southern African Development Community

(SADC), the DST led the SADC Regional Expert Group on Science, Technology and

Innovation (STI) Indicators in the drafting of the first SADC Regional Report on

Investment in Research and Development (R&D). This report tracks the SADC

against the R&D investment target of 1% of GDP. The Joint SADC Ministers Meeting

on Education and Training and Science, Technology and Innovation (ET-STI) on 18-

22 June 2018, Zimbali, Republic of South Africa, noted the draft report and

recommended that a final such report be produced by October 2018. Leading to the

drafting of report, and as per decisions of SADC ministerial meeting of 2017, the

abovementioned expert group was established in April 2018 and a regional STI

Indicators Framework adopted. South Africa was elected to chair the expert group

for a period of three years. The Framework identifies a minimum set of key indicators

that each member country must be able to report on in tracking progress at a

regional level.

TABLE 5: PROGRAMME 5 – SOCIO-ECONOMIC INNOVATION PARTNERSHIPS

Strategic statement: Through knowledge, evidence and learning, to inform and influence how S&T can be used to achieve inclusive development

Annual target : 6 knowledge products on innovation for inclusive development published by 31 March 2019

Performance indicator: Number of knowledge products on innovation for inclusive development published


1 knowledge product on innovation for inclusive development published between 1 April 2018 and 30 June 2018

1 policy brief (PB) was published on the DST website by 30 June 2018

Achieved None None

Annual target : 10 decision-support systems maintained and improved by 31 March 2019

Performance indicator: Number of decision-support interventions introduced and maintained


Annual work plan approved for at

least 2 decision-support systems

between 1 April 2018 and 30 June

2018

Work plans were approved for at

least 3 decision-support systems

Achieved Work plans for the financial year

were finalized through one

process

Annual target: 9 learning interventions (seminars, lectures, learning forums and policy dialog) generated 31 March 2019

Performance indicator: Number of learning interventions (seminars, briefs, policy papers) generated

48


1 learning intervention generated between 1 April and 30 June 2018

1 learning intervention was generated between 1 April and

30 June 2018

Achieved None None

Strategic statement: To identify, grow and sustain niche high-potential STI capabilities for sustainable development and the greening of society and the economy

Annual target: 90 unique honours, master’s and doctoral students fully funded or co-funded in designated niche areas that support the green economy and sustainable development by 31 March 2019

Performance indicator: Number of unique honours, master’s and doctoral students fully funded or co-funded in designated niche areas


50 unique honours, masters and

doctoral students fully funded or co-

funded between 1 April 2018 and 30

June 2018

52 unique honours, masters and

doctoral students were fully

funded or co-funded between 1

April 2018 and 30 June 2018

Achieved At the time of finalising the performance targets in February the decision on the split of the SIF and IIP students between SO2 and SO3 had not been finalised. Thus, we did not have an indication of the students to be funded in the current financial year. Due to this reason, we are now supporting more students than we had projected at the time of finalising the APP.

None

Annual target: 4 knowledge and innovation products (for example, patents, prototypes, demonstrators, methodologies, and technology transfer packages) added to the sustainable development IP portfolio between 1 April 2018 and 31 March 2019

Performance indicator: Number of knowledge and innovation products (for example, patents, prototypes, technology demonstrators, methodologies, and technology transfer packages) added to the sustainable development IP portfolio



49

Strategic statement: To identify, grow and sustain niche high-potential STI capabilities that- improve the competitiveness of existing industries with growth potential in aerospace, advanced manufacturing, chemicals, advanced

metals, mining, ICTs, industry innovation programme (include sector innovation funds); and

facilitate the development of R&D-led new targeted industries

Annual target: 242 master’s and doctoral students fully funded or co-funded in designated niche areas (advanced manufacturing, aerospace, chemicals, mining, advanced metals, ICTs, Industry Innovation Programme and the sector innovation fund) by 31 March 2019

Performance indicator: Number of high-level research graduates (master’s and doctoral students) fully funded or co-funded in designated niche areas (advanced manufacturing, aerospace, chemicals, mining, advanced metals, ICTs, Industry Innovation Programme and the sector innovation fund)


200 masters and doctoral students fully funded or co-funded in designated niche areas (advanced manufacturing, aerospace, chemicals, mining, advanced metals, ICTs, Industry Innovation Programme and the sector innovation fund)

173 master’s and doctoral

students fully funded or co-funded

in designated niche areas

(advanced manufacturing,

aerospace, chemicals, mining,

advanced metals, ICTs and SIFs)

Not Achieved The number of 33 students funded are still being validated.

The Department has

requested the

implementation agency to

provide validated data

before 31 October 2018.

Annual target: 126 interns fully funded or co-funded in R&D related to design, manufacturing and product development by 31 March 2019

Performance indicator: Number of interns fully funded or co-funded in R&D related to design, manufacturing and product development


126 interns fully funded or co-funded in R&D related to design, manufacturing and product development

130 interns fully funded or co-

funded in R&D related to design,

manufacturing and product

development

Achieved The co-funded students cannot

be predicted ahead due to

unavailability of the firms/entities

involved in providing work

None

50

experience to the learners

Annual target: 26 knowledge and innovation products (for example, patents, prototypes, technology demonstrators or technology transfer packages) added to the industrial development IP portfolio by 31 March 2019

Performance indicator: Number of knowledge and innovation products added to the IP portfolio through fully funded or co-funded research initiatives


At least 1 knowledge or innovation product added to the industrial development IP portfolio between 1 April 2018 and 30 June 2018

Zero (0) Not Achieved In the process of improving

declaring, listing and registering

the IP products

Continue to improve the

validation and the

monitoring of the reported

IP products

Annual target: 9 instruments funded in support of increased localisation, competitiveness and R&D-led industry development by 31 March 2019

Performance indicator: Number of instruments funded in support of increased localisation, competitiveness and R&D-led industry development in aerospace, advanced manufacturing, chemicals, mining, advanced metals and ICTs


Annual work plans or contract

approved for 6 support instruments

Annual work plans or contract

approved for 8 support

instruments

Achieved The overachievement is due to

annual work plans or contracts

being multiyear contracts

resulting in them still being valid

in Q1 of the financial year

None

Strategic statement: To strengthen provincial and rural innovation and production systems through analysis and catalytic interventions

Annual target: 8 innovation-support interventions funded or co-funded that strengthen provincial or rural innovation systems by 31 March 2019

Performance indicator: Number of innovation-support interventions funded or co-funded that strengthen provincial or rural innovation systems


Annual work plan approved for at Work plans for 3 interventions to Achieved None None

51

least 3 innovation support interventions between 1 April 2018 and 30 June 2018

support rural innovation systems were finalised and approved between 1 April 2018 and 30 June 2018

Strategic statement: To enhance understanding and analysis that support improvements in the functioning and performance of the NSI

Annual target: 6 statistical reports and policy briefs approved by Exco for publication and/or submitted to Cabinet between 1 April 2018 and 31 March 2019

Performance indicator: Number statistical reports and policy briefs approved by Exco for publication and/ or submission to Cabinet



Strategic statement: To introduce and manage interventions and incentive programmes that increase the level of private sector investment in scientific or technological R&D

Annual target: Preapproval decisions provided within 90 days from date of receipt on 80% of applications for the R&D tax incentive received between 1 January 2018And 31 December 2018

Performance indicator: Turnaround time for providing preapproval decisions on applications for the R&D tax incentive


Preapproval decisionsprovided within 90 dayson 80% of applications receivedbetween 1 January2018 and 31 March 2018

Of the 45 applications received between 1 January 2018 and 31 March 2018, 10 (or 22%) received decisions within 90 days. In total, of the 45 applications received between 1 January 2018 and 31 March 2018, 30 (66%) were adjudicated and 14 (31%)

Not Achieved Available capacity was used to clear the pre-2018 applications. Briefings were required for the Minister on the R&D tax incentive processes

66 applications were provided with decisions during Quarter 1 of 2018/19, and of that number, 52 were pre-2018 applications. Briefings were completed for the Minister on the

52

received preapproval decisions. R&D tax incentive processes

3. FINANCIAL PERSPECTIVE

3.1 Voted funds:

3.1.1 The budget for 2018/19 financial year

The adjusted budget of the DST in the 2018/19 financial year is R7.790 billion – of

which 92.1% is allocated as transfer payments and 7.9% to administrative activities

of the Department. Figure 3 below analyses the distribution of allocations among the

programmes.

Figure 3: DST budget split among the five Programmes

Programme 1R383,802

(4.9%) Programme 2R1,131,723

(14.5%)

Programme 3R136,399

(1.8%)

Programme 4R4,360,304

(56%)

Programme 5R1,778,260

(22.8%)

The bulk (93.3%) of the DST budget is allocated to three core Programmes of the

Department (i.e. Programmes 2, 4 and 5). Programme 3 commands 1.8% of the total

54

adjusted budget. The division according to the major items is detailed in Table 6

below.

Table 6: DST MAJOR ITEM CATEGORIES

R' thousands

Programme 1 174 032 183 290 14 286 12 194 383 802 Programme 2 49 317 22 550 1 059 856 1 131 723 Programme 3 50 352 18 572 67 475 136 399 Programme 4 36 211 16 354 4 307 739 4 360 304 Programme 5 42 968 9 659 1 725 633 1 778 260

352 880 250 425 7 174 989 12 194 7 790 488

Goods and Services

Transfer Payments

TOTAL Compensation of Employees

Capital Assets

As depicted in Table 6 above and Figure 4 below, the cost driver of the DST is

transfer payments. 92.1% of the DST budget is paid out as transfer payments to

public institutions and other DST policy implementing partners. 38.1% of the transfer

payments are paid out as parliamentary grants to six DST-managed public

institutions – namely: the Academy of Science of South Africa (ASSAf), the Council

for Scientific and Industrial Research (CSIR), the Human Sciences Research Council

(HSRC), the National Research Foundation (NRF), the South African National Space

Agency (SANSA) and the Technology Innovation Agency (TIA). The remaining

61.9% is payments for various projects which are managed through contracts.

55

Figure 4: Distribution of DST budget among the four major item categories

(expressed in R'000)

Compensation of Employees R352,880

(4.5%)

Goods and Services R250,425

(3.2%)

Transfer PaymentsR7,174,989

(92.1%)

Capital AssetsR12,194 (0.16%)

Expenditure

4. Expenditure

The DST projected to spend R1, 777 billion or 22.8% of its total adjusted budget by

the end of the first quarter of the 2018/19 financial year. However R2, 120 billion or

27.2% was spent for the period under review, resulting in a deviation of R342, 6

million or 19.3 % of the projected expenditure as shown in Figure 5 below.

56

Figure 5: DST First quarter financial performance (including parliamentary grants)

R 'thousands

Budget Planned Actual Deviation (1000 000) -

1000 000 2000 000 3000 000 4000 000 5000 000 6000 000 7000 000 8000 000 9000 000 Budget

R7,790,488

Planned expenditure R1,777,432

or22.8% of Budget

Actualexpenditure

R2,120,075 or27.2% of Budget

Deviation(R342,643)

or(-19.3%) of

planned expenditure

Another analysis was made on the same variables shown above, but this time the

analysis excluded the parliamentary grants – allocations to ASSAf, CSIR, HSRC,

NRF, TIA and SANSA. According to the aforesaid analysis the DST spent R1, 345

billion or 26.6% of the total budget up to the end of the first quarter of 2018/19

financial year, against the projected expenditure of R1, 003 billion or 19.8% of its

total budget excluding the parliamentary grants. That resulted in a variance amounts

to R342.6 million or 34.2% of the projected expenditure. The details are depicted in

Figure 6 below.

57

Figure 6: DST First quarter financial performance (excluding parliamentary grants)

Budget Planned expenditure Actual expenditure Deviation (1000 000)

-

1000 000

2000 000

3000 000

4000 000

5000 000

6000 000 Budget5,058,403

Planned expenditure R1,003,044 or

19.8% of the Budget

Actualexpenditure

R1,345,687 or26.6% of Budget

Deviation(R342,643) or

(-34.2%) of planned ex-penditure

R 'thousands

Figure 7 below illustrates the year-on-year comparison of the first quarter’s financial

performance for 2018/19 and 2017/18 financial years. The deviation in the 2018/19

financial year is 52.8 percentage points lower than that of the 2017/18 financial year.

58

Figure 7: Year-on-year financial performance analysis (2018/19 and 2017/18)

R’thousands

Budget Planned expenditure Actual expenditure Deviation (1000 000)

-

1000 000

2000 000

3000 000

4000 000

5000 000

6000 000

7000 000

8000 000

9000 000

779

0 48

8

177

7 43

2

212

0 07

5

(342

643

)

755

7 22

9

210

4 64

7

139

8 95

6

705

691

1st Quarter 2018/19 fy 1st Quarter 2017/18 fy

Figure 8 below gives a further breakdown of the first quarter expenditure per

Programme. According to the analysis below, programmes recorded deviations as

follows: Administration 27%; Technology Innovation 34.5%; International

Cooperation and Resources 21.7%; Research Development and Support 58.5% and

Socio-Economic Innovation Partnerships 15.9%.

59

Figure 8: Financial performance per Programme (including parliamentary grants)

Programme 1 Programme 2 Programme 3 Programme 4 Programme 5

(1000 000)

(500 000)

-

500 000

1000 000

1500 000

2000 000

96

763

256

252

21

256

920

719

482

442

70

652

167

789

16

643

145

9 14

5

405

846

26

111

88

463

4 6

13

(538

426

)

76

596

Planned expenditure Actual expenditure Deviation

Figure 9 below gives a further breakdown of the first quarter expenditure per

Programme excluding parliamentary grants. The deviations from the projected

expenditure range between 78.2% and 85.3%.

60

Figure 9: Financial performance per Programme (excluding parliamentary grants)

R’ thousands

Programme 1 Programme 2 Programme 3 Programme 4 Programme 5

(1000 000)

(500 000)

-

500 000

1000 000

1500 000

96

763

107

127

21

256

688

114

89

784

70

652

18

664

16

643

122

6 54

0

13

188

26

111

88

463

4 6

13

(538

426

)

76

596

Planned expenditure Actual expenditure Variance

Donor fundingThe actual spending on donor funding amounts to R 14 188 505 for the period

ending 30 June 2018. The report on donor funding focuses only on projects for

which funds were requested and/or expended. An overspending of 313 000 is for

payment of salaries it will reverse once the salary request is done. A breakdown of

donor funding is given below.

Table 7: Analysis of financial performance – Donor funding

Donor Project Name ProgrammeFunds Requested

Actual spending as at 30 June 2018 Balance

Amount %

Euro

pean

Uni

on

CAAST-Net Plus

International Cooperation & Resources - 198 - -198

Euro

pean

Uni

on

EASASTAP Plus International Cooperation & Resources - 115 - -115

Finl

and

Biofisa II Technology Innovation 14 176 14 176 100% -

TOTAL 14 176 14 489 102% -313

APPROVAL

This is to confirm that the Executive Committee (EXCO) of the Department of

Science and Technology discussed the Department's performance report for the first

quarter of the 2018/19 financial year at its meeting held on the…10 th… of September

2018 and that Exco made inputs on the contents of the report which reflects the

DST's performance for the period covered in the report.

……………………………………………

PHIL MJWARA

DIRECTOR-GENERAL

DATE:

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