PRESENTATION TO PRESENTATION TO THE PORTFOLIO COMMITTEE FOR THE PORTFOLIO COMMITTEE FOR

TRADE & INDUSTRY AND THETRADE & INDUSTRY AND THE SELECT COMMITTEE FOR SELECT COMMITTEE FOR

ECONOMIC AND FOREIGN AFFAIRSECONOMIC AND FOREIGN AFFAIRS

7 March 2001

Neo Moikangoa and Adi Paterson

CSIR Executive Management Board

Your Technology Partner

Our MandateOur Mandate

Constituted as a Science Council by an Act of Parliament:

“In the national interest, the CSIR, through directed and multi-disciplinary research and technological innovation, should foster industrial and scientific

development, either by itself, or in partnership with public or private sector institutions, to contribute to

the improvement of the quality of life of the people in South Africa”.

Our VisionOur Vision

To be the best in technology, leadership & partnering,

and - through our people - to fight poverty,

build global competitiveness

and make an enduring difference

in people’s lives.

Our MissionOur Mission

As a uniquely South African organisation,

the CSIR is committed to innovation.

We exist to support sustainable development and economic growth in the context of national priorities and global

challenges. We create value for our clients, partners and stakeholders by providing technology solutions and

information, establishing ventures and licensing intellectual property.

CSIR: Facts & FiguresCSIR: Facts & Figures Annual turnover of over R771 million per annum. Approaching external funding of 60%. Staff complement of 2 539 including over 692 post-graduate qualified

(PhD/MSc), 1076 graduates and over 422 Technikon-qualified staff. Eight major operating Business Units, active in fields ranging from

aeronautics, bio/chemical technologies, materials, mining, information and communications, clothing and textiles, manufacturing, through to housing, transport, food processing and the environment.

Major laboratories in Pretoria, Johannesburg, Cape Town, Stellenbosch, Port Elizabeth and Durban, with representation in all provinces.

Approximately 150 000 visitors per year, including clients, international visitors, stakeholders, students, scholars and suppliers.

More than 7 000 clients are served each year. Internationally, we:

have cooperation agreements with major overseas R&D organisations and companies;

have grown our international contract income by over 20% per annum in the last three financial years;

are currently working with 18 African countries.

Selection of CSIR Initiatives, Projects and Contracts in AfricaSelection of CSIR Initiatives, Projects and Contracts in Africa

Sierra Leone Offshore diamond exploration support services

Gabon Environmental impact assessments Offshore exploration support services

Namibia Wave Analysis Offshore of Oranjemund - Shell Exploration and Production Namibia B.V. Luderitz Waterfront Development Wave Monitoring Services - Cape Point Elizabeth Monitoring in Namibia Environmental impact assessments Facilitation of National Environmental Strategy DevelopmentInshore diamond mining decision support

Ghana Commercialization of Ghana CSIR

Madagascar Environmental evaluation Natural resource management studies

Mauritius Small Medium Enterprise Project for Small & Medium Industries Development Organization Environmenta; surveys & evaluations Techno-economic studies in textiles industry

Seychelles and Comores Environmental impact assessments

Democratic Republic of Congo Natural resource management studies Infrastructure development strategies

Kenya Mombassa marine surveys Marine equipment supply Effluent management studies

Lesotho Maloti-Drakensberg Transfontier Conservation Water Waste Management Land Cover Changes Radio & TV Plan & Measurements Settlements Ponds

Malawi Roads contracts SADC Food Sector studies Natural resource management studies

Botswana SADC Y2K Audit Phase Investigation into Factors Affecting the Performance of the Water Demineralization Plant at BCL Limited Review of SADC Programme of Action

Zambia Environmental Impact Assessment (EIA) Study in Victoria Falls Effluent and water quality management Sorghum beer brewing support Construction industry initiative Environmental management advice

Mozambique Mozal Public Meeting User Needs Assessment for the Establishment of a GIS Unit in the National Directorate for Forestry & Wildlife Mozal Environmental Management Plan Environmental Impact Assessment for a Natural Gas Pipeline to the Bazaruto Archipelago Maputo Corridor Strategic environmental assessment SADC Transport Sector studies

Zimbabwe Power Relation Study - Natural Resources Case Studies Water Demand Management Study Water Vision 2025 Vision Statement for Global Water Partnership Training re: EIAs and for timber operators Environmental management studies Mine backfill design Textile company improvement evaluation

Swaziland Strategic environmental assessments Natural resource management studies Effluent & emission management studies Usutu Pulp Mill Clinic

North African Arab States Investment analysis re reconstruction and development initiatives

Tunisia IT studies in Tourism

Angola Environmental impact assessments Offshore exploration support services ESSO Block 24 Angola Drdilling EIA ESSO Exploration Block 15 Fina Oil & gas West Africa B.V.

Tanzania Research Collaboration Project Waste Management Ngorongoro Crater Overload Management System

Core Funding

Reporting and Funding StructureReporting and Funding Structure

Parliament(Shareholder)

CSIR Board

Minister of Trade and Industry

DTIDTI

CSIR Executive Management Board

CSIR Strategic Initiatives

CSIR Strategic Initiatives

CSIR Business

Units

CSIR Business

Units

DACSTDACST

DTI/CSIR Bilateral

Innovation Fund

Key Projects

Competence Building

Relevance and Impact

SERAInnovation HubAIDCNational Imperatives……

Ventures/Equity Partnerships

Contract Income

Royalties

The CSIR BoardThe CSIR Board

Mr Roger Jardine(Chairman of the Board)Chief ExecutiveKagiso Media

Mr Kymus GinwalaNorthern Research & Engineering CorporationMassachusetts, USA

Dr Dhiro GihwalaDean: Faculty of SciencePeninsula Technikon

Dr Zav RustomjeeSpecial Advisor to the MinisterDept. of Trade & Industry

Mr Eugene van AsExecutive Chairman Sappi Ltd

Prof. Anton EberhardHead: Energy and Development Studies ProgrammeUniversity of Cape Town

Ms Nobusi ShikwaneGroup Executive : Customer ServicesMTN

Dr Nthoana Tau-MzamaneDeputy Director-General: Science & TechnologyDept. of Arts, Culture, Science & Technology

Ms Joan JoffeGroup ExecutiveCorporate Affairs Vodacom

Ms Anne LetsebeDeputy Director-General & Head of Cabinet OfficeOffice of the Presidency

CSIR-Specific Extract from a Memorandum Prepared CSIR-Specific Extract from a Memorandum Prepared for Cabinet on the DACST-led Review of Science for Cabinet on the DACST-led Review of Science

System (June 1998)System (June 1998)

“The CSIR provides technological solutions to support sustainable development and economic growth. According to the review panel the CSIR’s core competencies reside in materials, manufacturing and information technologies. In addition, CSIR has acquired outstanding skills in the management of projects within and across the divisions. CSIR has shown a real commitment to transformation and the adoption of national priorities. In short, CSIR is a true national asset.”

CSIR-Specific Extract from a Memorandum Prepared for CSIR-Specific Extract from a Memorandum Prepared for Cabinet on the DACST-led Review of Science System, & Cabinet on the DACST-led Review of Science System, &

Recommendations therefore (June 1998) (cont.)Recommendations therefore (June 1998) (cont.)

Challenges which remain include, inter alia:

to move to the cutting edge in the strategic technologies of the future, in particular information technology, biotechnology and advanced manufacturing

developing new mechanisms to promote the transfer of technologies from CSIR to the appropriate industrial sectors (e.g. holding of equity by CSIR in operating companies based on CSIR technologies, or the application of venture capital instruments)

continuing the cultivation of a comprehensive market-orientated culture

developing a comprehensive set of international alliances placing more emphasis on long-term strategic research than it

currently does, with close collaboration with industry to set the goals in this respect, together with close collaboration with the tertiary education sector

CSIR Qualifications DistributionCSIR Qualifications DistributionTotal staff: 2539 (January 2001)

CSIR Parliamentary Grant & External IncomeCSIR Parliamentary Grant & External Income

FC=Forecast, B=Budget, P=Plan

0

50

100

150

200

250

300

350

400

450

500

550

600

Ran

d (

Mil

lio

ns)

90 91 92 93 94 95 97 98 99 2000 2001FC

2002B

2003P

2004P

Financial Year

Parliamentary Grant Core Funding Parliamentary Grant Projects Innovation Fund External Income

• Nominal rands

0

50

100

150

200

250

300

350

400

450

500

88 90 92 94 96 98 2000 2002Budget

Rest of Africa/International

Defence/Security

Public sectorPrivate sector

Sources of External Contract IncomeSources of External Contract Income

Financial Year(to end March)

Ran

d (

Mill

ion

s)

• Nominal rands

CSIR’s Accountability to GovernmentCSIR’s Accountability to Government

Input ProcessesReview ProcessesOutputs

(Appendix)

CSIR Government Department Interactions 2000CSIR Government Department Interactions 2000/2001/2001

Department of Arts, Culture, Science and Technology

Department of Agriculture

Department of Communication

Department of Environmental Affairs and Tourism

Department of Health

Department of Housing

Department of Land Affairs

Department of Public Works

Department of Trade and Industry

Department of Transport

Department of Water Affairs and Forestry

Department of Social Development

Mine Safety Research

National Roads Agency

Eastern Cape Free State Gauteng KwaZulu-Natal Mpumalanga North West Northern Cape Northern Province Western Cape

CSIR Investment of Core Funding in CSIR Investment of Core Funding in Core CompetenciesCore Competencies

Core Competency CSIR Investment into Core Competencies (%)

1999/2000 2000/2001 2001/2002

Technological Core Competencies (Total)

84 85 85

Manufacturing/Materials 34 31.5 31

Information Technology 19 21.5 22.5

Environmental 12 11.5 10.5

Biosciences/Biotechnology 5 9.5 11

Infrastructure 14 11 10

Operational/Organisational Core Competencies (Total)

16 15 15

COTII and the Acceleration of Growth COTII and the Acceleration of Growth Employment and InvestmentEmployment and Investment

Cabinets’ integrated action plan to accelerate Growth Employment and Investment was presented to the Council of Trade and Industry Institutions (COTII) at its recent meeting.

The plan is viewed as a relevant and important framework for the alignment of efforts to support the three goals it explicitly refers to.

CSIR is presently reviewing the plan to optimise its contribution to national goals.

Integrated Framework Integrated Framework (Extract from Accelerated Growth Employment & Investment)(Extract from Accelerated Growth Employment & Investment)

Supply-side Support Infrastructure

Technology

Human Resource Development

Access to Finance

Focused interventions by national, provincial and local government

Increasing Competitiveness

Energy

Transport

Telecommunications

Growth Sectors Export Sectors

Tourism

Agriculture

Information & communication technologies

Cultural industries

Key Performance Areas Growth

Employment

SMMEs

BEE

Competitiveness

The The CSIRCSIR/DTI Bilateral/DTI Bilateral Purpose The Institutional Framework for Cooperation aims at aligning and enhancing interaction between the CSIR and DTI in support of national priorities.

Areas of cooperation The CSIR and the DTI have identified and agreed upon a number of medium-term objectives, which will be implemented within the institutional co-operation framework to contribute to the African Renaissance. These objectives are summarized as follows:

Science and technology contributions to the development of industrial technology policy

Raising awareness in industry of the role of technological innovation and knowledge management in improving the competitiveness of the economy

Building national, regional and international alliances and partnerships to strengthen core competences and develop new competences.

Development of SMMEs

Promotion of black economic empowerment

Facilitation of access to technology by women through implementation of the Technology for Women in Business (TWIB) project

The The CSIRCSIR/DTI Bilateral (cont.)/DTI Bilateral (cont.)

Contributions to rural development initiatives through technological solutions and capabilities within the framework of the Integrated Rural Development Strategy

Developing and enhancing links with academic research institutions aimed at creation of centres of excellence in specific technology areas

Encouragement of the creation of scientific and technological knowledge, between R&D institutions, academic research institutions, especially historically disadvantaged academic institutions, and private enterprise

Development of the SADC region

Customer needs assessment and satisfaction through the use of industry technical advisory committees and virtual research networks and laboratories 

National National ImperativesImperatives

HIV/AIDS

Crime Prevention

Job Creation (inc. SMME’s)

Sustainable Rural Development

NHRD

Urban Renewal

Regional Integration

(DACST/NACI REQUIREMENTS FOR EFFECTIVE DELIVERY)

THANK YOUTHANK YOU

Q & AQ & A

CSIR’s Accountability to GovernmentCSIR’s Accountability to Government(Input Processes)(Input Processes)

Budget Development Process (April-June)(DACST)

Annual – formal CSIR submission (approved by DTI) Medium term expenditure framework (approved by DTI) Assist DACST with materials for presentations to State Expenditure

Budget Allocation Process (October-December)

Documentation to NACI NACI: Visits to Science Councils (Review process) NACI recommends macro – allocation to the Minister of Arts, Culture, Science &

Technology NACI: 3 year recommendation to of Minister Arts, Culture, Science & Technology Macro-budget allocation DACSTDTICSIR

DTI/CSIR Bilateral targets specific projects

Budget Approval Process

CSIR Budget Process (starts November) Draft budget and business plan discussed with DTI (early February) CSIR Board (late February) Finalisation with DTI (March) Budget approval by Minister (late March)

Appendix 1

CSIR’s Accountability to GovernmentCSIR’s Accountability to Government(Input(Input/Review/Review Processes) (Cont.) Processes) (Cont.)

Relationship to Parliament

Parliamentary Officer Attendance of portfolio committee meetings on request Attend budget speeches on key budgets Support Parliamentary exhibitions/focus areas Assist with commentary on proposed legislation Respond (on behalf of DACST) to Parliamentary questions Provide inputs to public hearings on policy issues Annual input to T&I Portfolio Committee

Appendix 1

CSIR’s Accountability to GovernmentCSIR’s Accountability to Government(Output Processes)(Output Processes)

DTI Processes

Compliance with Treasury regulations Compliance with Public Finance Management Act

Annual Report

Compliance with PFMA Accepted by Auditor General Accepted by CSIR Board Meeting (June) Presented and discussed with DTI (June) Presented to Parliament by Minister of Trade and Industry

Reports to DACST and NACI

Finalisation of performance indicators (KPI) Implementation of KPI’s (in current business plan) Financing and Reporting Framework (DACST) Four – Five Year Reviews

Science Council Reviews (1997) System-wide Review (1998)

Cabinet Level Inputs

Cabinet Memorandum – Science Council Review (1998) Annual Budget acceptance by Cabinet

Appendix 1