Department of Science and Innovation 2020/21 Annual Performance Plan, with Minister and Deputy

Higher Education, Science and Innovation

15 May 2020
Chairperson: Mr P Mapulane (ANC)
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Meeting Summary

Video: PC on Higher Education, & SC on Education, Technology, Sports, Arts & Culture 15 May 2020

Annual Performance Plan (APP) of Government Departments & Entities 20/2021

The Minister said there have been deep budgetary allocations which had to happen because of the Corona virus. This affects the functioning of many entities falling under the Department, because it means the Department did not get the budgetary allocations it first imagined.  The budget has definitely been affected. The Department has since had to reprioritise which posts are going to be attended to first.

On funding Covid 19, the Department has already reprioritised R319 million towards supporting the fight. This is ongoing. The bulk of the money went to repurposing some of its entities to aid the tests being done nationwide.

One of its entities in Cape Town is preparing to possibly manufacture the vaccine, if found. This is to enable it to manufacture the vaccine for the rest of the continent. The Department has also been involved with the World Health Organisation (WHO) on a trial of prophylaxes being developed for frontline workers.

The Department identified communication and awareness of the science as a problem, resulting in a decline in the number of postgraduate students pursuing higher learning in the field. A number of programmes which will focus on reaching grassroots level and reaching marginalised, vulnerable, communities were outlined to remedy this. One of the entities under it is South African Agency for Science and Technology Advancement (SAASTA), which has a programme running for public engagement. A communication and public awareness plan has just been finalised to publicise the Science.

Currently the Department is funding around ten percent of the number of postgraduate students. The rest are funded by the money transferred directly into the universities. The Department is working on a new policy for funding these postgraduate students. This policy is looking at full funding for postgraduate students which means, even though there will be fewer students funded, the funding will cover those students fully to finish their studies. There is also an understanding about funding needed for students in the missing middle. This will hopefully address issues of class and race.

Meeting report

The Committee read apologies for Prof B Bozzoli (DA) and Mr S Lehihi (EFF, North West).

Minister of Higher Education, Science, and Innovation, Dr Blade Nzimande, gave an overview of the presentation. He thanked everyone for the opportunity and thanked everyone present at the meeting, Members of the Portfolio Committee, Deputy Minister Buti Manamela, officials, his advisers, and members of the media.

The Minister said the meeting is happening under the gradual move from lockdown level five to four, and under the management of the Corona virus and the lockdown. There is still a need to exercise precaution under the guidance of the National Command Council (NCC) and Cabinet. Despite the discussion of the Strategic Plan and the Annual Performance Plan (APP) at this meeting, it is important to note the Department has played a pivotal role in the fight against Covid 19.

There are a number of matters the Department is involved in to support the fight against the virus. Virtually all its Science Councils played a very important role, from the Council of Scientific and Industrial Research (CSIR) to the National Research Foundation (NRF), the Space Agency and the Human Sciences Research Council (HSRC). All are contributing one way or the other.

Countries doing better to handle the spread of the virus followed a multi-disciplinary approach in science. There must be an overarching group representing the different disciplines of science as needed, to curb the spread of the virus.

As much as the medical biosciences are leading the fight against the virus, the role of the other bodies cannot be underestimated. This includes the social sciences. He cited the example of the HSRC, doing commendable work in administering surveys around the virus. These bodies are working to see if current drugs used for Tuberculosis, HIV/AIDS, and other diseases can be repurposed to fight the virus. This along with the development of test kit results are going be revealed the following week.

It is important to note the Department is involved in the fight against Covid 19. There may be a need to revise some of these plans, which have already started to bring some immediate responses through reprioritisation of some resources.

Science indicates Covid 19 is going to be around for a couple of years, or at least until a vaccine is found. Even then, the effects of Covid 19 will still be felt in the economy. The Department is in talks with Treasury for the possibility of a revised budget.

One of the important reasons for this revision is the White Paper approved by Parliament in March 2019, and of course the creation of the new Ministry. The creation of the new Ministry is quite an important development because it marks a paradigm shift. It marks a shift from the Department of Higher Education to include Science and Innovation. It is not just a change in name. It marks a paradigm shift that is in line with the three stages of science and innovation between 2012 and 2030.

The First Phase in this period was focusing on intensifying research and development. The Second Phase, which the Department reached, is laying the foundation for intensified productivity where innovation between business, science and the social sector must be more pervasive. The Third Phase, the Department has just entered, is to consolidate the gains from Phase Two. This must be done with greater emphasis on innovation, improved productivity, a more intensive pursuit of a knowledge economy, and a better exploration of comparative and competitive advantages in an integrated continent. The White paper’s approval in 2019 signalled the start of this Third Phase. The country’s ability to respond to pandemics like Covid 19 is dependent on an innovation driven economy. State response will not be enough if it does not focus on innovation.

For the 2019 - 2024 Medium Term Strategic Plan the Department has elevated Priority One and Priority Three. This does not mean the other three priorities are neglected. There is a need for a new economy, even more so now. As per the President, there is a need for a new economy which does not only serve the minority. There is also a need to change the country’s human resources. The Minister said Science as it stands is exclusionary.

It cannot be that the vast majority of people in the country do not have a say in the field of Science in South Africa. This is why the Department has a grassroots programme meant to reach every segment of the country, be it, black, poor, or women.  The emphasis is on historically disadvantaged institutions, some of which are based in rural areas. Yes, the government accounts to Parliament, this is important. As much as other Members will not like it, it will be sad if all the Portfolio Committee was reduced to was simply oversight mechanisms. The government also wants ideas, suggestions and proposals. If innovation is found everywhere then it can also be found in Portfolio Committees. He handed over to the Director General of the Department of Science and Technology (DST), Dr Phil Mjwara to complete the presentation.

DSI Strategic Plan 2020-2025 and APP 2020/21

The Department’s DG said the mandate for the Department is internationalisation and regional integration through knowledge generation and knowledge utilisation for inclusive social development. All this can be achieved through Infrastructure and human capital development. This knowledge can be transferred into society through high tech Small, Medium and Micro Enterprises (SMMEs).

In 1995-2005, the development of Science and Innovation policy in democratic South Africa was mainly through the White Paper, along with a number of strategies employed at that time, such as the National Research and Development Strategy and the Biotechnology Strategy. The main purpose then was to develop a National System of Innovation serving the interests of South Africa.

In 2005-2018 the government moved from a Biotechnology Strategy to a Bioeconomy Strategy. The Department deepened the architecture for getting research into the marketplace through the Intellectual Property Rights Act, and the development of the Technology Innovation Agency (TIA). There was a review requested by the Minister to look at current strategies used by the Department. The White Paper was approved in March of 2019. The Department is also finalising its Higher Education Science Technology and Innovation Institutional review. It hopes these documents will be finished by June/July.  

Findings of the Centre for Research on Evaluation, Science, and Technology (CREST), and the State of the Research Enterprise, showed an increase in government spending on research and development from 36% in 2001 to 45% in 2015. Research output shows 3668 articles published in the year 2000 to 15 550 publications in 2015. Authors under the age of 40 accounted for 3% in 2005. The number increased to 18% in 2016. There was a decline in the contribution of the business sector to expenditure on research and development. In 2001 it stood at 56%, in 2016 the number went to 39%. Investments in research and development remain low. Gross Expenditure on Research and Development (GERD) averaged at 0.8% for the past 15 years. The research capacity in the country is too small. There are too few trained full time equivalent researchers.

There are a number of sectors the Department made contributions to between 2015 and 2020. These are:

  •  Agriculture and Agro-processing,
  • Energy (hydro, lithium, ion, battery, solar),
  • Green Economy,
  • Health,
  • Manufacturing,
  • Mining and Mineral Beneficiation,
  • Space and Water Waste, and
  • the Circular Economy.

The Department still faces a number of sector challenges:

  • There are limited resources for technology deployment,
  • lack of coordination across the public sector,
  • limited private sector participation (particularly from entrepreneurs).
  • There is a lack of technology commercialisation skills at universities and science councils,
  • limited infrastructure to support technology deployment,
  • development and acquisition of technology is quite costly,
  • there is limited support for start-ups, and
  • there are legislative barriers.

The Department identified Priority Two. This relates to Economic Transformation and Job Creation. There are no direct commitments on good jobs created and sustained. This is because commitments are not finalised. Regarding investing for accelerated inclusive growth, the Department continues to finalise the Skills Priority Plan. It is set to be done by 2020, led by Department of Higher Education and Training (DHET), and supported by DSI.

Regarding industrialisation, localisation, and exports, the Department is in talks with the Department of Trade and Industry for the finalisation of masterplans developed for all national priority sectors by the end of 2021.

Under Priority Three:

  • Education, Skills and Health,
  • the Department expanded access to Public Service Sector Education & Training Authority (PSETA) opportunities.
  • There is an expanded number PhD students awarded bursaries.
  • There is also an increased number of pipeline postgraduate students awarded bursaries by the National Research Foundation (NRF).
  • To further this, there is also an improved efficiency and success of the PSETA system, and
  • an improved quality of PSETA provisioning.

The Department is working with the Department of Trade, Industry, and Competition, through a set of priority sectors. These are:

  • Industrial, Gas Chemicals ,and
  • Plastics and Renewable Green Economy,
  • Agriculture and Agro-processing,
  • Mining, Minerals and Beneficiation, and
  • Ocean economy.

The outcomes expected from this are:

  •  transformed, inclusive, responsive and coherent National System of Innovation (NSI),
  • human capabilities and skills for the economy and for development,
  • increased knowledge generation and innovation output,
  • knowledge utilisation for economic development in revitalising existing industries, and
  • stimulating research and development led industrial development.

As mentioned by the Minister, entities like the NRF, CSIR, TIA, HSRC, the Academy of Science of South Africa, the South African National Space Agency, the National Advisory Council, and the South African Council for Natural and Scientific Professions, will all play a pivotal role in ensuring these outcomes are supported.

On the APP there are 52 output performance indicators with annual targets to support the adopted 22 outcome indicators. Infrastructure through the Square Kilometre Array (SKA), was supposed to be up for extension but the novel virus put a halt to this.

In implementing Outcome One, the Department wants to finalise the plan defining critical missions which will be attended to between 2020-2030. The Department wants to modernise sectors of the economy such as manufacturing, agriculture, and mining, to ensure these sectors are competitive and contribute to higher GDP growth. It will also support grassroots innovators and new entrants into the economy through targeted Research, Development, and Innovation (RDI) instruments.

To implement Outcome Two the Department wants to expand on the spatial, institutional, demographic, and transdisciplinary transformation agenda in all its strategic science focus areas. The goal is to improve female representation in the scientific workforce and gender imbalance in the National Security Agency (NSA). It supports more than 13 300 Honours, Masters and PhD students. It also supports the development of critical high-end skills in selected technology areas, such as:

  •  the bioeconomy,
  • space science and technology,
  • energy,
  • intellectual property management,
  • nanotechnology,
  • robotics,
  • phonotics, and
  • areas of technology convergence are important in building a knowledge society.

To implement Outcome Three the Department will measure and track the number of outputs commercialised as a result of support designated areas. There will also be an expansion on the rollout of the South African National Research Network toTechnical and Vocational Education and Training (TVETs) and increased availability broadband capacity to 5800 Gbps. There is also a push to increase South Africa’s productivity and its world share of publications towards the1% of global output. This will be done through fast tracking interventions aimed at PhD qualifications among non-PhD qualified staff, and through interventions to improve the publishing rate of academics at Historically Disadvantaged Institutions (HDIs) to research outputs per capita.

Discussion

Ms J Mananiso (ANC) asked which programmes were affected by redirecting funds from the Department to the National Lockdown Fund. She said nothing in the presentation responded to gender-based violence.

Mr M Bara (DA, Gauteng) asked:

  • If the Department looked at strategies to improve the decline in funding from the business sector for research development?
  • An area to look at is incentivising the business sector, so innovative ideas of benefit to the country are rewarded.
  • He asked to what extent the Department is going to the grassroots level to entice learners to be interested in science and innovation.
  • Lastly, he said he does not think the country understands what the Department is doing. He asked if any initiatives are used to make people aware of its goals, for example, the Department of Human Settlements attempt to build alternative housing, not from brick and mortar, which was not seen as proper housing.

Mr W Letsie (ANC) referred to the budget cuts on the funds meant to support university students, being around R19 million. He wanted to know the impact of these cuts on the current APP. He asked the Minister how these bursaries are awarded, if it is awarded on a competitive basis. He asked what percentage of students were funded through the Department, to get a clear picture of the impact the funding has on students.

Mr P Keetse (EFF) said :

  • he wants to deal with the effectiveness of the Department and asked his question broadly from 2015 to the current period.
  • He said there are reports coming in that Madagascar allegedly developed a cure for Covid 19, and asked the Department if it could give a directive on the safety of the remedies and possibly look at ways of acquiring it.
  • He looked at service delivery on the part of the Department, saying there are people in Hamanskraal, places like Sasolburg, and other regions in Limpopo with no clean drinking water. He asked what the Department has done about this.
  • In terms of research and development, he said people cannot be blamed for not knowing the initiatives taken if there are no public awareness campaigns about it. It seems like the Department is not capitalising on its innovation through commercialisation.

Mr B Nodada (DA) asked the Minister :

  • which programmes were created to establish the ministerial level Science, Technology, and Information (STI ) Committee.
  • He said he saw an increase in budget on Programme Two, and wanted to know what portion of it was allocated to robotics, indigenous knowledge, and systems. He wanted to know where this particular work was taking place.
  • Thirdly, as cyber security and research, science and technology is now joined with higher education, there are a number of entities experiencing issues with cyber security. He asked if any work was done to curb this.
  • Under Programme One, he asked what the effects of the decrease in the number of people attracted to the field are.

Mr S Ngcobo (IFP) said the Minister asked for ideas from the Committee, to then filter down into the Department. He has been in other committee’s and this Committee is quite robust. This Committee in fact forwards ideas which probably do not filter into the Department. It is very clear there must be changes in the economy post Covid 19. There is nothing said about this. This must be done as time waits for no one.

Mr B Yabo (ANC) asked what the Department’s transversal plans are to make sure the curve is flattened.  He gave an example of SASSA grant payments, noting although it might not be the Department’s competency, innovation calls on the Department to bring forward innovative ideas. He asked what the Department will do to protect the vulnerable, particularly the elderly. He also asked what the policy framework on peer to peer funding was, and how much headway the Department made in this regard. Lastly, he asked about the Department’s relations with the private sector, specifically which vehicles will be used to commercialise innovation.

Ms S Luthuli (EFF) apologised for possibly repeating some of the questions posed by the Members as she had bad reception and could not hear them. She said some of the Department and its entities funds were allocated to the Covid 19 fund. In light of this she asked how much was reallocated and from which entities was this money coming from.

She said the national lockdown also affected the Department and some of its entities. Considering this, what measures are put in place to make sure work is on schedule?

The Chairperson also asked a question regarding the TIA board. His question was about its interim chairperson residing in Australia. Whenever there is a meeting he comes to South Africa at the expense of the Department. This matter was raised last year and was not attended to. It was raised again this year and must still be addressed. There are many capable people serving in that Board who can act in this position. There is an issue with the CEO, before she was the interim CEO. She was a member serving on the Board, who resigned to bid for the position. Her bid was unsuccessful and she re-joined the Board again, where she eventually became the interim CEO. This does not align with ethical standards. It has almost been a year now, this must be dealt with. The Chairperson also asked what the Department is doing to help universities get ahead in robotics so the country has a fighting chance in the fourth industrial revolution.

Ms N Mkhatshwa (ANC) emphasised three important things in the Department’s efforts going forward:

  • She welcomed this matter for being added under Outcome One, but said the Department must not speak of it on a surface level. The Department must look into its entities, not only executive levels but also the Science and Innovation sector.
  • Secondly, she said the Department presented a very interesting Indigenous Knowledge and Systems Act the previous year which set out there will be nine centres across the nine provinces. She wanted to know what the Department was doing to make sure this is happening efficiently.
  • Finally, when it comes to international collaborations, she said it is important for South Africa not only to support these collaborations, but also to be at the forefront of it, to the point where South Africa hosts it.

The Chairperson handed the floor to the DG to answer questions:

On funding Covid 19, the DG said the Chief Financial Officer can answer the specifics. The Department has already reprioritised R319 million towards supporting the fight. This is ongoing. The bulk of the money went to repurposing some of its entities to aid the tests being done nationwide. The Department can advise how many tests were done to date, if asked to.

One of its entities in Cape Town is preparing to possibly manufacture the vaccine, if found. This is to enable it to manufacture the vaccine for the rest of the continent. The Department has also been involved with the World Health Organisation (WHO) on a trial of prophylaxes being developed for frontline workers. T

The Medical Research Council and other entities are working on the impact of the virus on people living with other diseases like HIV/AIDS. This is work done in the therapeutics area. The other project happening is at the Council for Scientific and Industrial Research (CSIR). CSIR is collecting data and pooling together the investment made over a period of time by the National System of Innovation, both for investigating the epidemiology of the disease and the other investments for centres of excellence to model the epidemic over time.

The Department is doing work with the Human Sciences Institute for Human and Social Sciences. It is looking at perception survey. This means it is investigating if society knows the effect of the pandemic and the challenges on vulnerable and marginalised societies. These are the specific areas guiding the decision making under Covid 19.

The Department identified communication and awareness of the Science as a problem, and amended the National Research Foundation Act to include science engagement. One of the entities under it is South African Agency for Science and Technology Advancement (SASTA), which has a programme running for public engagement. A communication and public awareness plan has just been finalised to publicise the Science.

Currently the Department is funding around ten percent of the number of postgraduate students. The rest are funded by the money transferred directly into the universities. The Department is working on a new policy for funding postgraduate students. This policy is looking at full funding for postgraduate students which means, even though there will be fewer students funded, the funding will cover those students fully to finish their studies. There is also an understanding about funding needed for students in the missing middle. This will hopefully address issues of class and race.

The biggest issue for finalising the decade plan implementation is finalising grand plan challenges. This is work which needs cooperation with other government departments.

The Chief Financial Officer (CFO) of DSI, Ms Pretty Makukule, replied on the financial implications of the challenges and programmes run by the Department:

So far, the Department has identified R324 million to be redirected for Covid 19. As the DG said, this figure will definitely increase as the programmes are ongoing. Some programmes/interventions may need more money as new interventions are identified. R107 million will go to Programme One for procuring protective equipment for health staff.

R103 million is going to Programme Two: research and clinical trials.

R35 million for Programme Three:  international collaborations.

Finally, R185 million is redirected to Programme Five to support the work some of the technologies the CSIR is doing.

Speaking on budget cuts, she said, the reason for the decline in budget was a once off payment towards refurbishing a 1920s building. This money was not included in the 2020/21 budget. There will also be an impact on the APPs tabled in Parliament.

The Chairperson asked the CFO to give the Committee details of these funds reallocation.

DDG: Corporate Services and Institutional Planning and Support, Ms Nombuyiselo Mokoena, spoke on the impact of the cuts. She said the budget has definitely been affected. The Department has since had to reprioritise which posts are going to be attended to first.

The Minister made some final remarks on the questions asked:

He started with the issue of research and development in the private sector, saying it is a very important matter. It is not just the private sector, it is also State-Owned Entities (SOEs). If one looks at the birth of Sasol, albeit being under apartheid government at the time, entities like Transnet and Passenger Rail Agency of South Africa (Prasa) should be leading in modern rail technology. The Innovation Fund was established, which can catalyse research in the private sector jointly with the public sector.

Speaking on communication, the Minister said he agrees with the sentiments made by the Committee. He was also surprised by some of the work being done by the Department before he joined it. Part of the problem he thinks, is there are not enough science journalist in South Africa. This is one of the problems he has already identified among those already mentioned by the DG.

He reiterated that the National Research Foundation (NRF) is the main funding mechanism for postgraduate students in South Africa. When it comes to competitiveness, it is competitive, and rightfully so. There is no institution which will take someone who does not have at least 60%. This is also a Treasury issue by the way. There has to be collaborative effort to increase postgraduate funding in the country.

The Minister advised the Committee to read a report published in December 2019 by the National Advisory Council on Innovation. The report had nine priorities. One aspect is its emphasis on nutrition security instead of food security, because nutrition matters the most, not just the amount of food available. This is one of the great things happening in Cuba, which can account for the amount of nutrition each citizen has. If the Committee wants more on this report the Department is more than willing to come and present on it.

Finally, on TIA, the problem is sorted. Someone was recognised to take the position in the interim. It was mainly a logistical problem on the part of the Department. He said he would have liked to talk more on TIA but because of time he will not be able to. He will do a comprehensive review of TIA as a whole. This is why he is not willing to permanently hire a Chief Executive Officer (CEO) or a Chairperson. On the question of robotics, he said it is artificial intelligence in general which must be broadened. Robotics fall under this, and so it is definitely part of government’s plan.

The meeting was adjourned.

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