In 2014/2015, Gross Expenditure on R&D (GERD) in South Africa increased 8.1% to ZAR 29.345 billion ($2.24 billion), or ZAR 23.257 billion in constant prices, with the greatest R&D investment coming from the business enterprise sector. As an indicator of R&D intensity (“the total intramural expenditures on R&D performed in the country in a given year relative to GDP”), GERD was 0.77%, up four percentage points from 2013/2014, although R&D expenditure as a percentage of GDP decreased from 2.2% to 1.5% in 2014/2015.

R&D expenditure increased across all sectors (business enterprise, nonprofit, government, science councils and higher education), with the largest increase coming from the business sector, which increased 24.4% to ZAR 1.508 billion in 2015. The manufacturing industry within the business sector represented the second largest R&D expenditure with 33.9% of Business Expenditure on R&D (BERD) totaling ZAR 4.501 billion, an 18.7% increase. Mining followed, with a BERD of 10.1%, down four percentage points from the year before, totaling ZAR 1.340.

The largest source of funding was the government, including higher education and science councils, which accounted for 43.9% of total GERD, or ZAR 12.873 billion. Business represented 41% of GERD, with spending of ZAR 11.981. R&D personnel increased 5.2% to 72,400, with the higher education sector comprising the vast majority of researchers at 44,457.

Biotechnology and nanotechnology R&D represented 5% and 3% of GERD, respectively. The highest R&D spending was for engineering at 19%, with medical and health sciences following closely, representing close to 19% of GERD. Basic research accounted for 7% or ZAR 845.2 million, a 12.7% decrease, while applied research represented 57% or ZAR 7.541 billion, a 23.9% increase.

Source: The Centre for Science, Technology and Innovation Indicators