Investment and development is improving the lives and industry of South Africans
Mail & Guardian reporter
From the explosive power of deep-level gold mining to the intricacies of drug development and vaccine research, investment and development in South Africa’s economy continues.
International chill winds may upset the financial markets, but investors are still putting money into local researchers. They are being aided and abetted by the Department of Trade and Industry through Thrip the Technology and Human Resources for Industry Programme.
Thrip provides funding, but also assists the creation of private partnership links between research institutions such as universities, and business. The success of the initiative is seen by its growth over the past five years. Thrip’s budget was just over R10-million in its inaugural financial year, 1995/1996, of which just over half was allocated. For 2000/2001 more than 98% of the R137,5-million budget was allocated.
A recurring theme occurs when speaking to researchers who get Thrip funding. They talk about the manoeuvrability it gives them to push the boundaries of their research just a little more, how Thrip encourages industry partnerships and give resources that may otherwise have stayed much longed for, but out of reach. And how it encourages students to continue in their fields of study, since there is the hope of being able to do research.
In the past financial year 414 projects were approved for Thrip funding, compared to a total of 455 submitted. The total amount allocated, R137,5-million, was 37% more than the previous year. Dr Khotso Mokehele, president of the National Research Foundation that manages Thrip for the Department of Trade and Industry, projects that the programme will grow by at least 16% in the next financial year. And more than R400-million of research will be leveraged from the Thrip financial contribution.
An important component of Thrip is skills transfer, especially to black and female students and researchers. One intention is to direct funding to projects with a minimum of five students, at least two of whom are black or female. Just over R67-million was allocated to such programmes.
The number of female students has more than doubled in the past five years.
The largest chunk of Thrip funding, more than R108-million, was for projects with multiple-industry partners, an encouraging sign of the development of private-public partnerships.
Similarly, there is a drive to help small-, medium- and micro-enterprises. There has been a six-fold increase in such businesses taking part in Thrip, another vital transfer of skills and knowledge to an element of the economy crucial for development and job creation.
As would be expected from a programme designed to boost the whole economy, Thrip-funded projects span the spectrum of research. They include many agricultural projects, industrial development, pollution control and mining.
The largest chunk of funding went to programmes classified as manufacturing. More than half of participa-ting projects fitted into this category. This was followed by agriculture, mining, electricity, water and gas supplies, and then storage, transport and communications. Medical research is also significant, a reflection of international acknowledgement that South Africa’s medical system and researchers are of the highest standards.
Much research is aimed at conditions that are particularly important for the country studies into combating tuberculosis, HIV and liver cancer in black Africans, for example.
The importance of training people to work in industry, as well as to do research, is highlighted by the Centres of Excellence programme. Launched with Telkom in 1997, there are now 12 members in institutions around the country. Universities get cash for facilities they may otherwise be unable to afford, students get both research and work experience, and the communications parastatal gets technical assistance and manages to reduce costs. Students in this programme are employed by Telkom for the duration of their studies.
The development of South Africa has been hampered by its past, the distortion of resources, poor education at all levels and the effects of its isolation from most of the rest of the world. Confronted with a global economy South Africa has to grow and adapt quickly, not only to survive but also to thrive.
As Dawid Mostert, chairperson of the Thrip board says: “Innovation equals competitiveness. Without it, we cannot compete globally, and cannot have economic growth … By funding innovation that yields tangible results, we put participants in a position to improve quality of their products, services and people. Each will help our nation’s climb in the world-competitiveness ranking.”
It might be less dramatic than the surges and falls of the stock exchange, but the investments being put into research and partnerships in South Africa will hopefully be more consistent and positive for the country than the swift flow of international “hot money”.
It may also change the perceptions of foreign investors, as well as improve the lives and industry of South Africans themselves.