CSIR Presentation to Portfolio Committee Trade and Industry

1. CSIR PRESENTATION TO THE PORTFOLIO COMMITTEE TRADE and INDUSTRY29 MAY 2002Dr Anthos YannakouExecutive Vice PresidentCSIR Business Development

2. CSIR 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”. (Extract from CSIR Act)

3. Reporting and Funding Structure Parliament (=100% Shareholder) Minister of Trade and Industry(Proxy) CSIR Board CSIR Executive Management Board COTII DTI/CSIR Bilateral DACST (Science Budget) Ventures/Equity Partnerships Contract Income Royalties CSIR Strategic Business Units/Initiatives DTI Core Funding Innovation Fund BU’s Innovation Hub AIDC National Imperatives Key Projects Relevance and Impact Competence Building

4. Bio/Chemtek Boutek Defencetek Environmentek icomtek M&Mtek Miningtek Transportek Crosscutting initiatives: sustainable development, SMMEs, sport, NPDC, RRC, energy, Innovation Hub, AIDC CSIR Business Units

5. Needs of CSIR stakeholders: CSIR Board (good governance, mandate, national priorities) Government: DACST, DTI (contribution to NSI and policy, organisational efficacy and effectiveness) Auditor General (PFMA) Regular reporting Performance Measures

6. CSIR to evolve to Knowledge Intensive Technology Organisation Develop value-added and knowledge-intensive offerings Locally relevant and internationally competitive Priority is South Africa, also emphasis on region and continent (Africa Renaissance, NePAD) CSIR

7. Customer feedback monitored continuously External: Customer Satisfaction Index (every two years) and ad hoc surveys Internal: Moment of Truth Measures: Service delivery, relationship management, technology management, contract management, value for money Reviews or benchmarks of each business unit or cross-cutting initiative every three years Customer relationships

13. CSIR INVESTMENT OF CORE FUNDING IN CORE COMPETENCES

14. INVESTMENT OF CSIR PARLIAMENTARY GRANT IN TECHNOLOGICAL CORE COMPETENCES, INDICATED PER CORE ACTIVITY (Investment priority is indicated using a scale of 1-5 (5 indicating the highest priority of investment)

15. Micro-encapsulation Polymer coating of UV, light, O2 and heat sensitive materials, e.g. vaccines Environmentally friendly process CSIR and IDC establish Ellipsoid (Pty) Ltd, exclusive licensee Bio-incubator South African start-up ventures in biotechnology Aim: support 20 tenants, employ 60 people Funded through DACST Godisa Programme Increasing the Number & Opportunities to Grow & Expand the SMME Sector

16. Food technology projects Two new EC (INCO-DEV DGXII) funded research projects New drying technique for high quality shelf-stable fruits Technology for high-quality fermented products from cassava, soybean, palm oil Collaboration of six European and five African partners in total (excluding CSIR) Development of SMMEs Increasing the Number & Opportunities to Grow & Expand the SMME Sector

17. Indigenous foods commercialisation Provincial Indigenous Food Fairs Identify products for commercialisation Foster job creation and empowerment of women in sustainable SMMEs Wild silk spinning Silk from Mopani worms Ganyesa Dikwena Trust (NW) & partners Communities gather cocoons, spinning by CSIR, communities weave material, trust sells products Providing Opportunities for Economic Empowerment of Historically Disadvantaged Individuals

18. Essential oils Cultivation and processing of crops with high essential oil content Geranium, spearmint, peppermint, chamomile Northern Province (e.g. Giyani), Mpumalanga (e.g. Ermelo Tholuwaye womens clubs), Western Cape (e.g. Pacaltsdorp) Providing Opportunities for Economic Empowerment of Historically Disadvantaged Individuals

19. Accessibility for people with disabilities Cooperative DFID project: India, Malawi, Mozambique, Mexico, South Africa Guidelines for planners on low-cost methods to improve accessibility Northern province Arts and Crafts projects Minceka traditional: handbags, scarves Ngove Leathery and beadwork Tawanani Textiles: lino blocks to print on fabrics Reducing Levels of Inequality and Poverty in South Africa

20. Creating safer living environments Manuals to improve local level crime prevention Facilitation of people-driven environmental crime prevention Space observation Image of Southern Africa: high resolution of 1.8m Two students obtained MSc in remote sensing Global space industry contracts with Boeing Satellite Systems (Spaceway Satellite Tracking Station), Lockheed Martin (ground support for NASA), Eutelsat (satellite monitoring) Contributing to the Competitiveness of South African Enterprises

21. Innovative air cooler Cooling critical for mine worker safety In-stope air cooler developed Features: increased cooler duty:mass ratio, more compact design Zinc alloy for automotive applications Limits to alloys for under-bonnet components i.t.o. increased operating temperatures Development of more creep-resistant zinc alloy Involves network of local and international partners Contributing to the Competitiveness of South African Enterprises

22. Combating illegal vehicle trafficking Used by Southern African Regional Police Chiefs Cooperation Organisation (12 member countries) Standardisation of Vehicle Clearance certificates to reduce international vehicle theft Environmental Impact Assessment for Mozal EIAs as part of Phases 1 and 2 of aluminium smelter and port terminal developments Public consultations, impact on regional economy, emissions, storm water release, traffic, noise, dredging operations, etc Contributing to Economic Development of Africa and specifically SADC

23. Integrated freight and logistics database Iflo: web-based integrated freight and logistics product Contains freight information, forecasts, logistical tools, decision support Increasing Economic Growth and Number of Sustainable Economic Opportunities available to all South Africans

24. Product development portal National Product Development Centre Assistance to local product developers and inventors Contains information on development process of new products Contains password protected collaboration platform Increasing Economic Growth and Number of Sustainable Economic Opportunities available to all South Africans

25. Thank-you For additional information please contact: Dr Anthos Yannakou Executive Vice President CSIR Business Development Tel. +27 12 841 3225/6 Fax. +27 12 841 3670 E-mail. Ayannako@csir.co.za

26. Additional slides for information

27. CSIR: Facts & Figures • Annual turnover of over R810 million per annum • Approaching external funding of 60% • Staff complement of 2 583 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, representation in all provinces

28. 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. CSIR: Facts & Figures (cont)

29. International public funds benchmark

30. The CSIR/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-termobjectives, 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 technologypolicy • Raising awareness in industry of the role of technological innovation andknowledge management in improving the competitiveness of the economy

31. Areas of cooperation 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 throughimplementation of theTechnology for Women in Business (TWIB project The CSIR/DTI Bilateral (cont.)

32. DTI/CSIR Institutional Framework for CooperationCSIR/DTI Bilateral Approved Projects

33. DTI/CSIR Institutional Framework for CooperationCSIR/DTI Bilateral Approved Projects

34. CSI (Nov 1999): “The CSIR is a unique institution and recognised as such. It has important strengths and vast potential. It commands much goodwill from its clients” Survey of past & potential clients (2001/02): CSIR is relevant and technically competent; service delivery, relationship and contract management need attention MOT (2000-2002): “On Brief, On Budget, On Time and Quality” measures have increased Customer feedback

35. Reviews or benchmarks of each business unit or cross-cutting initiative every three years 2000: Building and Construction Technology; Water, Environment and Forestry Technology, International Business activities; Metrology 2001: Transport Technology, Satellite Applications Centre 2002 planned: Defencetek, CSIR (SETI) Reviews

37. Sustainable construction in developing countries Agenda 21 for Sustainable Construction in Developing Countries (International Council for Research and Innovation project) Identified barriers to sustainable construction and actions for government, research, NGOs and private sector Contributing to the Competitiveness of South African Enterprises

38. Empowerment of mine workers through IT Software streamlines data capturing done by frontline supervisor Applications in faster management decisions and better communication for effective hazard control Utilizes PDA and web Contributing to the Competitiveness of South African Enterprises

39. Solutions to waste problems CSIR Centre for Integrated Waste Management projects Green Buildings for Africa Programme Malawi: immunisation waste management Product development from hemp, building rubble, road construction materials wastes Ethanol and biofuel from food and agricultural waste UNESCO: impact of industrial waste in receiving environments in Swaziland Increasing the Number & Opportunities to Grow & Expand the SMME Sector

40. Contributing to the Economic Development of Africa and Specifically the SADC • CSIR is involved in at least 18 African countries, including SADC; many projects in environmental, food, ICT and mining sectors, • Projects funded under SADC Regional S&T project, involving, Botswana, Namibia, Lesotho, Tanzania, Malawi, Swaziland, Zimbabwe, Zambia

41. Increasing Economic Growth and the Number of Sustainable Economic Opportunities Available to All South Africans • SAFARI 2000: CSIR, University of the Witwatersrand, NASA and University of Virginia study of southern Africa’s ecosystems, air quality and land use to understand the sustainability of the region’s sensitive and pressured ecosystems, • Satour and CSIR joint venture: integrated tourism package on CD (VEZA) to plan tours, package products and market tourism in the country; and • I-port: unique transportation support product to provide a focused, well-researched public transport database.

42. CSIR’s NEPAD Involvement INFRASTRUCTURE – Transportek, Environmentek and Boutek NEPAD are conducting an audit of Africa’s infrastructure, assessing development methodologies, and providing mechanisms for strengthening the African science and technology competence to develop the infrastructural base. PEACE & SECURITY – CSIR Defencetek is leading a process to harness CSIR competences to contribute to Africa’s Peace, Security and Reconstruction processes. MANUFACTURING – With Africa’s recovery heavily resting on value addition and the beneficiation of Africa’s natural resources. CSIR is helping to develop products and services for export, and provide the necessary infrastructural base, including ICT. ICT – CSIR is interacting with all key players responsible for the leadership and management of the NEPAD ICT process including the e-Africa commission.

43. CSIR Involvement in the World Summit on Sustainable Development CSIR has identified the following areas for involvement in WSSD: • Assisting SA National Departments to meet SA obligations (DFA, DEAT, DACST), • Involvement in the scientific components of the Summit, • Showcasing CSIR at the summit; and • Assisting other stakeholders prepare input for the Summit (e.g. SACOB, DANCED).

44. R&D expenditure decreased on average from 0.61% of turnover in 1997 to 0.42% in 2001 Outsourcing of R&D on average increased from 7% in 1997 to 26% in 2001. 69% use offshore resources and of these 42% indicated that use of offshore resources will increase in the future  81% respondents indicated knowledge of government initiatives such as THRIP and SPII Prediction was that R&D spending would remain at constant levels in the coming 3 to 5 years Private Company R&D Spend