In 2016–17, South Africa’s gross domestic expenditure on R&D (GERD) totaled ZAR 35.7 billion ($2.4 billion), an increase of 10.4%. As a percentage of GDP, GERD grew two basis points to 0.82% Although GERD is increasing, year over year, GERD is slowing down in real terms, now 1.5 percentage points lower than in 2015–16 at 3.5%.

The higher education sector accounted for the fastest increase in overall GERD, growing 18.0% to ZAR 11.7 billion ($797 million), while the business sector’s R&D spending increased 7.0% to ZAR 14.8 billion ($1.0 million). Government expenditure on R&D moderately increased 4.2% to ZAR 2.1 billion ($142.5 million) and nonprofit spending spiked 14.3%, totaling ZAR 1.0 billion ($69.6 million).

While most industries’ R&D expenditures are on the rise, R&D spending for manufacturing and mining has been continuing its steady decline. The category of natural sciences, technologies and engineering had a solid 13.7% increase in R&D spending, with ZAR 4.42 billion ($306.6 million) spent in 2016–17. Energy resources R&D surged over 200%, jumping from ZAR 178.4 million ($12.2 million) to ZAR 556.1 million ($38.0 million), while mineral resources R&D expenditure dropped a hefty 24.5% to ZAR 1.3 billion ($90.0 million). Biotechnology R&D spending dropped 0.7 of a percentage point to represent 5% of GERD at ZAR 1.8 billion ($122.3 million), while nanotechnology R&D expenditure similarly fell 0.3 of a percentage point to account for 2% at ZAR 853.1 million ($58.4 million).

Geographically, most R&D activities continue to take place in Gauteng, while R&D spending is rising in the Western and Eastern Cape. While the business and government sectors comprise the vast majority of R&D expenditures, foreign funding has also increased, representing 12% of GERD in 2016–17 at ZAR 4.2 billion ($285.4 million). Applied research accounted for 48% of GERD, while basic and experimental research represented 27% and 26%, respectively.

Source: Department of Science and Technology, Republic of South Africa