PRESENTATION TO THE PORTFOLIO COMMITTEE FOR TRADE

1
PRESENTATION TO THE PORTFOLIO COMMITTEE FOR
TRADE INDUSTRY AND THE SELECT COMMITTEE FOR
ECONOMIC AND FOREIGN AFFAIRS

• 7 March 2001
• Neo Moikangoa and Adi Paterson
• CSIR Executive Management Board

Your Technology Partner
2
Our 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.

3
Our 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 peoples lives.

4
Our 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.

5
CSIR 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
  RD 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.

6
Selection of CSIR Initiatives, Projects and
Contracts in Africa

• 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

• North African Arab States
• Investment analysis re reconstruction and
  development initiatives

• Tunisia
• IT studies in Tourism

• Democratic Republic of Congo
• Natural resource management studies
• Infrastructure development strategies

• Kenya
• Mombassa marine surveys
• Marine equipment supply
• Effluent management studies

• Sierra Leone
• Offshore diamond exploration support services

• Ghana
• Commercialization of Ghana CSIR

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

• Gabon
• Environmental impact assessments
• Offshore exploration support services

• Tanzania
• Research Collaboration Project
• Waste Management Ngorongoro Crater
• Overload Management System

• 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.

• Malawi
• Roads contracts
• SADC Food Sector studies
• Natural resource management studies

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

• Seychelles and Comores
• Environmental impact assessments

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

• 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
  Development
• Inshore diamond mining decision support

• Madagascar
• Environmental evaluation
• Natural resource management studies

• 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

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

• 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

7
Reporting and Funding Structure
Parliament (Shareholder)
Minister of Trade and Industry
CSIR Board
CSIR Executive Management Board
DTI/CSIR Bilateral
DACST
Ventures/Equity Partnerships Contract
Income Royalties
CSIR Strategic Initiatives
CSIR Business Units
DTI
Core Funding
Innovation Fund
SERA Innovation Hub AIDC National Imperatives
Key Projects
Competence Building
Relevance and Impact
8
The CSIR Board
Mr Roger Jardine (Chairman of the Board) Chief
Executive Kagiso Media
Mr Kymus Ginwala Northern Research Engineering
Corporation Massachusetts, USA
Ms Nobusi Shikwane Group Executive Customer
Services MTN
Prof. Anton Eberhard Head Energy and Development
Studies Programme University of Cape Town
Dr Nthoana Tau-Mzamane Deputy Director-General
Science Technology Dept. of Arts, Culture,
Science Technology
Ms Joan Joffe Group Executive Corporate Affairs
Vodacom
Dr Dhiro Gihwala Dean Faculty of
Science Peninsula Technikon
Mr Eugene van As Executive Chairman Sappi Ltd
Ms Anne Letsebe Deputy Director-General Head of
Cabinet Office Office of the Presidency
Dr Zav Rustomjee Special Advisor to the
Minister Dept. of Trade Industry
9
CSIR-Specific Extract from a Memorandum Prepared
for Cabinet on the DACST-led Review of Science
System (June 1998)

• The CSIR provides technological solutions to
  support sustainable development and economic
  growth. According to the review panel the CSIRs
  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.

10
CSIR-Specific Extract from a Memorandum Prepared
for Cabinet on the DACST-led Review of Science
System, 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

11
CSIR Qualifications Distribution
Total staff 2539 (January 2001)
12
CSIR Parliamentary Grant External Income

• Nominal rands

FCForecast, BBudget, PPlan
13
Sources of External Contract Income
Rand (Millions)
Financial Year (to end March)

• Nominal rands

14
CSIRs Accountability to Government

• Input Processes
• Review Processes
• Outputs
• (Appendix)

15
CSIR Government Department Interactions 2000/2001
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
16
CSIR Investment of Core Funding in Core
Competencies
Core Competency CSIR Investment into Core Competencies () CSIR Investment into Core Competencies () CSIR Investment into Core Competencies ()
Core Competency 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
17
COTII and the Acceleration of Growth Employment
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.
18
Integrated Framework (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 Focused interventions by national, provincial and local government
Growth Sectors Export Sectors Tourism Agriculture Information communication technologies Cultural industries Focused interventions by national, provincial and local government
Key Performance Areas Growth Employment SMMEs BEE Competitiveness Focused interventions by national, provincial and local government
19
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-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

20
The CSIR/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
• RD 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
•  

21
National Imperatives
(DACST/NACI REQUIREMENTS FOR EFFECTIVE DELIVERY)

• HIV/AIDS
• Crime Prevention
• Job Creation (inc. SMMEs)
• Sustainable Rural Development
• NHRD
• Urban Renewal
• Regional Integration

22
THANK YOU

• Q A

23
CSIRs Accountability to Government(Input
Processes)
Appendix 1

• 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 DACST?DTI?CSIR
• DTI/CSIR Bilateral targets specific projects
• Budget Approval Process
• CSIR Budget Process (starts November)

24
CSIRs Accountability to Government(Input/Review
Processes) (Cont.)
Appendix 1

• 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 TI Portfolio Committee

25
CSIRs Accountability to Government(Output
Processes)
Appendix 1

• 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 KPIs (in current business
  plan)
• Financing and Reporting Framework (DACST)
• Four Five Year Reviews