DSI's 2023/24 budget focuses on exploiting STI to create job opportunities and on renewable energy

Media Statement 

26 May 2023

DSI's 2023/24 budget focuses on exploiting STI to create job opportunities and on renewable energy 

The Department of Science and Innovation (DSI) has tabled its R10,9 billion budget for 2023/24, which is up from R9,1 billion in the last financial year. Presenting the budget in Parliament on 23 May 2023, the Minister of Higher Education, Science and Innovation, Dr Blade Nzimande, said that the DSI would continue to build a capable state and contribute to South Africa's economic recovery through the Science, Technology and Innovation (STI) Decadal Plan and its STI budget coordination mechanism.  

The budget vote was tabled under theme, "Using science, technology and innovation to grow our country and together resolve its challenges".

Minister  Nzimande announced that, as part of the government's commitment to fast-track economic recovery, the implementation of the Innovation Fund would be scaled up in order to support the early development and expansion stages of technology-based South African firms.

"We also remain resolute to increase gross domestic investment in research and development as a percentage of gross domestic product, with the aim of achieving the National Development Plan's target of 1,5%," said the Minister.

As the country grapples with energy security and the government's commitment to transition from a carbon-intensive to a carbon-neutral economy, the Department will continue rolling out the Hydrogen Society Roadmap. 

"Through the CoalCO2-X project, we have supported a carbon capture and utilisation technology, which captures carbon dioxide from flue gas and then converts it into a fertilizer salt using ammonia," said the Minister.

The technology was successfully demonstrated at a cement plant in Limpopo in January this year.  

The Department has invested about R50 million in the CoalCO2-X project, which has allowed local small, medium and micro-enterprises (SMMEs) to put in place partnerships to demonstrate the potential of flue gas conversion technology at the plant.  

In respect of renewable energy, the Department is finalising its masterplan for the establishment of a national solar research facility that will support the development, commercialisation and deployment of solar-based technologies for application in both the solar power and fuel sectors.  

Given the pressure of finite natural resources and sensitivity to global warming risks, one of the DSI's main focus areas is to develop a circular economy STI roadmap.  

The White Paper describes the circular economy as moving away from the current "take, make and dispose" approach to a focus on restoration and regeneration. It sees the circular economy, underpinned by a transition to renewable energy sources and system-wide innovation, as able to "redefine products and services to reduce waste and negative impacts".

For a developing nation, a circular economy is crucial. It can help to reduce reliance on increasingly scarce resources, increase disposable income for individuals, enhance utility and convenience, and improve living conditions and health.

The Department has already launched a new Circular Economy Demonstration Fund, which will be implemented by its entity the Council for Scientific and Industrial Research (CSIR).

The DSI is very involved in health innovation, particularly in the critical areas of medical devices and diagnostics, active pharmaceutical ingredients, and supporting health needs through a vaccine research, development and manufacturing strategy.

It will continue to support the development of the local mRNA vaccine technology transfer hub. The aim of the hub is to diversify vaccine manufacturing and specifically accelerate vaccine production in Africa through a consortium led by the World Health Organization and comprising the Medicines Patent Pool, Biovac, Afrigen Biologics and Vaccines, the DSI, the South African Medical Research Council, a network of universities and the Africa Centres for Disease Control and Prevention.  

The Deputy Minister of Higher Education, Science and Innovation, Buti Manamela, told Parliament that the Department remains committed to keeping human capital development remains at the heart of all its programmes.

"Part of ensuring we have the requisite number of scientists, researchers and innovators is by deliberately producing a critical mass of young black and women scientists and researchers. To this end, in 2021/22, a total of 5 643 honours and master's students, and 2 527 PhD students were supported," said Manamela.

The Deputy Minister believes that the target of awarding 12 000 PhD bursaries in the 2019-2024 Medium-Term Expenditure Framework (MTEF) is realistic, with 7 253 PhD students already having been supported.

"In a budget debate that is likely to shun good news, it may be important to note that, by the end of June 2022, we had supported 17 211 master's and honours students, 7 000 short of the 24 000 target that we committed to at the beginning of this MTEF," he added.

Manamela added that support for STI as a catalyst for youth entrepreneurship would continue.

"We have positioned our department as an anchor to support the use of science, technology and innovation for youth entrepreneurship. Our lead in research, development, and innovation of the Cannabis Industrialisation Master Plan is one of the initiatives that seeks to achieve this," he said.

The DSI and the CSIR, in partnership with the Department of Small Business Development and the Gauteng Department of Agriculture and Rural Development, supported product development in 20 SMMEs in the previous financial year.  

Through the youth skills development programme CoachLab, the DSI enabled 59 indigenous knowledge holders from 40 SMMEs to graduate.  In the 2023/24 financial year the focus would be on high-end medicinal products.

The Deputy Minister also lauded the Department's indigenous knowledge programme, which seeks to protect and promote the country's indigenous knowledge systems.  To date, approximately 300 students have graduated in this field, and there are plans to increase the number of universities offering this qualification.

"We will continue to ensure that indigenous technologies in mining and astronomy are promoted within our communities, including a smart village pilot in Nyandeni, Eastern Cape, through a project that earned recognition from UNESCO earlier this year," the Deputy Minister said.

Issued by the Department of Science and Innovation.

For more information contact Taslima.Viljoen@dst.gov.za.