Reply:

1. (a) The Department of Science and Technology (DST) prefers to utilise the entities in the innovation and science system to execute specific interventions. In this instance the DST does not have its own development programme for SMMEs:

(i) No

(ii) No

(aa)

(bb)

(cc)

1. (b) Entities responses are provided in the table below:

Entity	(i)	(ii)	(aa)	(bb)	(cc)
Academy of Science of South Africa (ASSAf)	No	No	The running of development programmes does not fall within the mandate of ASSAf.	N/A	N/A
Human Sciences Research Council (HSRC)	No	No	The running of development programmes does not fall within the mandate of HSRC.	N/A	N/A
National Research Foundation (NRF)	Yes	No	Square Kilometre Array (SKA) South Africa, a business unit of the NRF and NMC Civils have partnered with Absa in an Enterprise and Supply chain Development (ESD) initiative to develop small and medium enterprises (SMEs) in the Northern Cape. This programme will enable qualifying SMEs to obtain funding from Absa so that they can provide services and goods to NMC Civils in the 80km road project.	Approximately R34,5 million	There are potentially 34 Companies in Northern Cape to benefit from this initiative assuming they meet the criteria.
South African National Space Agency (SANSA)	Yes	No	The satellite development programme that is currently being pursued by SANSA, under the support of the Department of Science and Technology, has an industry development and localisation initiative in it. As part of the satellite development programme all contracts established include an element of industry development and localization. To this end, there are four small businesses currently being sub-contracted as part of the broader satellite development programme.	To date the satellite programme has invested R 5 944 687 with the said four small businesses.	Small businesses account for indirect jobs. 46 direct technical jobs and 7 support staff at Denel Spaceteq. Skills development for 7 students with a target of over 20 students by the end of the programme.
Council for Scientific and Industrial Research	See Annexure A
Technology Innovation Agency

 

Annexure A

COUNCIL FOR SCIENTIFIC INDUSTRIAL AND RESEACH (CSIR)

1. (b)(i) Yes

(ii) No

Development Programme 1

(aa) The Bio-manufacturing Industry Development Centre (BIDC). The BIDC supports SMMEs through the prototyping and scale-up phases of product development, assists them to do market acceptance testing and to launch products in the market. The companies remain the sole owners of their innovations and retain absolute control over their future in terms of value add and partnerships. The BIDC helps to lower the cost and barriers that inhibit innovative enterprises from translating their inventions into market-ready products.

The BIDC’s support for SMMEs is through the development of bio-based manufacturing processes and products. Enterprises that are incubated at the BIDC have access to ready-to-use bio-manufacturing facilities, support in research and development laboratories as well as access to experts in the fields of agro-processing and bio-processing product development and scale-up.

Currently the BIDC is supporting 19 enterprises of which 16 are owned by black entrepreneurs, including 10 black women-owned enterprises. To date, 33 products with applications in the cosmetics, nutrition and biotechnology industries have been developed and transferred to the enterprises. The programme has resulted in 105 permanent jobs being created, the majority of which are within the enterprises and their value chains, while an additional 165 temporary jobs have also been created. At least 54 interns have received training in the BIDC vocational learning programme in order to provide the bio-manufacturing sector with a skilled workforce.

(bb) R12, 5 million.

(cc) 75 permanent jobs and six interns.

Development Programme 2

(aa) Ultrasonic Broken Rail Detector (UBRD) System. The UBRD system was co-developed by CSIR and Armscor's Institute for Maritime Technology using public funds from CSIR, Transnet Freight Rail (TFR) and DST. This world-first technology system helps prevent derailment of heavy freight trains by detecting broken railway lines in real-time and alerting the TFR control centre. The system currently protects 860 km of the Sishen-Saldanha iron ore export line and is installed on critical sections (bridges & tunnels) of the coal export line. The system will soon be licensed to a South African company for local manufacturing and international business development.

(bb) R1.75 million.

(cc) Approximately 40 to 70 jobs are projected to be created. The number of jobs created will depend on the success of international sales and could be in high technology manufacturing, marketing, sales and distribution.

Development Programme 3

(aa) Umbiflow. Umbiflow is a medical ultrasound system that operates off a standard computer, and conducts an assessment of the blood flow between mother and child whilst in the womb. It uses this information to assess if the fetus is likely to be receiving insufficient nutrition for growth and allows medical staff to intervene. The intention is to reduce the high still birth rate experienced in developing nations and, by permitting the measurement to be done at clinic level, to reduce unnecessary referral of mothers to higher levels of care. The system is currently in a clinical trial in Gauteng, Tshwane district and will be licensed to an SMME in the medical sector during 2016-17.

(bb) R7 million.

(cc) approximately five to eight permanent jobs are projected to be created.

Development Programme 4

(aa) Micro-Enterprise Media Engine (MEME) Platform. This is an ultra-low cost scalable mobile Internet Television platform that enables media production SMMEs to own the means of global (export) distribution while retaining the Intellectual Property rights to their content. The platform was developed at the CSIR. It is globally competitive in its ability to distribute live television with integrated social media interaction to even the remotest rural areas of emerging economies on mobile devices without any break-up of the stream (no video buffering). The technique is patented in China, Russia, Nigeria, East and Southern Africa, USA and UK. The intention is create the opportunity to build a new emerging economy-to-emerging economy (E2E) mobile television industry that will draw the media talent of South African youth exiting film schools into a growing local media SMME space by widening the audience reach and negating the cost of traditional television broadcasting infrastructure requirements (satellite, etc.). It is currently licensed to five SMMEs to pilot for one (1) year before it will be opened to the entire South African media industry in 2017. It is further being integrated into the curriculum of a local film school.

(bb) R11.1 million. (EU-General Budget Support).

(cc) Four film school students, four full-time media employees, seven full-time technology employees plus approximately 25 jobs/workers across the five pilot SMMEs, during the pilot period.

Development Programme 5

(aa) Establishment of a cashmere fibre industry in the Eastern Cape (EC). The CSIR has developed a cashmere processing know-how to produce yarns and would like to commercialize the results of their research. The venture involves training farmers on how to harvest cashmere fibre, and the establishment of a production facility that will process the harvested cashmere fibre in readiness for manufacture of garments. With the assistance of the Jobs Fund funding, the initial objective of the project was to establish a cashmere fibre industry in the country, in particular the Eastern Cape. The key objectives of the project, as supported by the Jobs Fund include:

• To empower traditional goat farmers by generating income from under coat down fibre that grows on traditional goats during winter;
• Train the goat owners on how to harvest the cashmere fibre;
• Establish the production facilities (cleaning and processing of cashmere fibre), thus creating permanent jobs;
• Establish a market for the cashmere fibre; and
• Establishment of the foundation for full economic beneficiation of indigenous goats found in the province.

(bb) R7 million was allocated from October 2013 until March 2016. R400 000.00 allocated for the 2016-17 financial year.

(cc) Four jobs are projected.

Development Programme 6

(aa) Enterprise Creation for Development (ECD). A CSIR implementation business area with a development mandate, which assists both the public and private sectors to implement enterprise development activities. These activities include opportunity identification, opportunity assessment and packaging, enterprise support programmes, and capacity building for local economic development (LED). Industry sectors targeted include manufacturing, agro-processing, green economy, ICT and built environment. ECD focuses on the application of technology to address underdevelopment. In the previous year, ECD was involved in the development and support of 10 pilot projects and 12 enterprises.

• Feasibility studies for four incubator programmes were undertaken.
• ECD was involved in conducting feasibility studies and developing business plans for 2 industrial parks, eight (8) agri-parks, and one (1) agro-processing hub. In addition, the business area was involved in the establishment of a Business Processing Outsourcing Park.
• In terms of technology transfer, 21 mature technologies and four (4) new technologies were transferred.

(bb) ECD activities are funded by national, provincial and local government, international agencies, private corporate social investment initiatives, and foundations, on a project-by-project basis.

(cc) The number of jobs that will be created or retained by enterprises as a result of the CSIR’s intervention during the 2016-17, is unknown at this stage.

Development Programme 7

(aa) Technology Localisation Programme (TLP) (implemented by the Technology Localisation Implementation Unit {TLIU}). The TLP is aimed at increasing South Africa’s domestic productive capacity. The programme provides funding and technology support to enable more local firms to supply goods to state-owned entities (SOEs). The support assists individual firms and targeted sectors to get access to technology resulting in increased capability, competitiveness and new processes or products.

(bb) R105 million invested since 2011.

(cc) the impact of the programme since its inception is as follows:

• 147 firms have benefited from the Technology Assistance Packages (TAPs) with 20 of them landing contracts to the value of R162m.
• 250 students have benefited from internship opportunities offered through this programme with 45% getting permanent jobs.
• TAPs resulted in the local production of twenty items which were previously imported.
• 187 jobs were created due to the implementation of Technology Assistance Packages (TAPs).

Development Programme 8

(aa) The Photonics Prototyping Facility (PPF). The Photonics Prototyping Facility (PPF), hosted at the CSIR National Laser Centre, provides the necessary infrastructure, skills and networks needed to facilitate the development of prototypes that are well-aligned to market-needs for the realisation of Photonics-based products and devices. It will also develop expertise (amongst PPF staff, students and interns) in the area of prototyping, product development and stakeholder engagement. Ultimately this will lead to new Photonics products that will be used to improve the competitiveness of the existing industry and for new and emerging industries to be formed resulting in job creation.

(bb) To-date the following funds have been secured:

R 11.4 million (DST- High End Infrastructure (HEI))

R 9 million (DST- Industrial Innovation Partnership Fund (IIPF))

R 13.4 million (CSIR)

(cc) One permanent, full-time position for an operations manager and approximately four positions for interns. As the programme gains traction, additional jobs will be created by interns being placed in industry, employment of new interns and the creation of new jobs in existing industries or SMMEs via new product offerings.

Development Programme 9

(aa) Defence Transformative Enterprise Development (DEFTED) Programme. The Department of Defence (DOD) runs the DEFTED programme through the CSIR. The aim of the project is to address the defence industry transformation challenges through the development of black industrialists in the defence industry. The DEFTED program will support the defence sector black industrialists and entrepreneurs with technical Human Capital Development (HCD), Technology Development (TD) and Enterprise Development (ED).

(bb) R50.4 million has been budgeted for the 2016-17 financial year.

(cc) 30 jobs.

TECHNOLOGY INNOVATION AGENCY (TIA)

1. (b)(i) Yes.

(ii) No.

Development Programme 1

(aa) AgriViro (Pty) Ltd. Development of novel biological control technologies for the control of pests in economically important horticultural crops.

(bb) R1, 175,729.00

(cc) five.

Development Programme 2

(aa) NemaBio (Pty) Ltd. Development of entomophathogenic nematodes as biological control agents for the control of pest in horticultural crops.

(bb) R86,5429.00

(cc) one.

Development Programme 3

(aa) Beonics (Pty) Ltd. Development of poultry feed additive and nutraceutical as an antibiotic replacement alternative from honry propolis

(bb) R 4,620,000.00

(cc) 0 - Project at a technology development stage.

Development Programme 4

(aa) Enzyme Technologies (Pty) Ltd. Enzyme technologies is implementing a project to extract bromelain enzyme from waste pineapple stumps, for animal health pharmaceutical application. It is in our Bio-pharmaceutical & pharmaceutical focus area/ programme

(bb) R 2,887,560.00

(cc) 0 - Project at a technology development stage.

Development Programme 5

(aa) GR Active. TIA funds the University of Pretoria to develop an extraction process for a bioactive that will be produced from a plant that is indigenous to South Africa. The bioactive will be produced in a manufacturing facility that will be established in Mamelodi, Tshwane. It is anticipated that a Cooperative will be established by the Mamelodi based Mothong Trust, which will be responsible for production. Mothong Trust is part of the GR Active consortium. The project is in the Complementary Medicine & IKS Focus Area/ programme. IKS stands for Indigenous Knowledge Systems.

(bb) R 6,935,515.00

(cc) one.

Development Programme 6

(aa) BioDx (Pty) Ltd. BioDx (Pty) Ltd has developed a process for production of an environmentally sustainable biocide for industrial as well as cosmetics application. The project is at commercialization stage and is focussed on demonstrating the technology at client facilities for potential uptake. It is in the complementary medicine & IKS focus area/ programme.

(bb) R 1,269,896.00

(cc) seven.

 

Development Programme 7

(aa) CPT Pharma (Pty) Ltd. CPT Pharma (Pty) Ltd is currently establishing a pilot plant for development and improvement of generic processes for 4 active pharmaceutical ingredients for human health and animal health applications. It is in Bio-Pharmaceuticals & Pharmaceuticals focus area/ programme.

(bb) R 1,086,000.00

(cc) one.

Development Programme 8

(aa) Afriplex (Pty) Ltd. Afriplex is developing a complementary medicine for the treatment of prostate cancer. The complementary medicine is extracted from a plant that is indigenous to South Africa and has been used for generations by local communities. The project is in the Complementary Medicine & IKS focus area/ programme.

(bb) R 2,455,393.00

(cc) 0 - Project at a technology development stage.

Development Programme 9

(aa) Altis Biologics (Pty) Ltd. Altis is developing a product that is extracted from porcine bone for the treatment of bone fractures. Although the active ingredient is a biological product, the product is classified as a medical device due to delivery mechanism. The project is therefore in the Medical Devices & Diagnostics focus area/ programme. The project is in the Complementary Medicine & IKS focus area/ programme.

(bb) R 2,455,393.00

(cc) 0 - Project at a technology development stage.

Development Programme 10

(aa) Settec. System for monitoring early settling of solids in slurry pipes.

(bb) R 316,178.75

(cc) one.

Development Programme 11

(aa) Green Iron Technology. Processing of waste iron ore for application in steel industry.

(bb) R 900,000.00

(cc) Four.

Development Programme 12

(aa) Zargun. Zargun Separation of Zirconium isotopes for the nuclear sector.

(bb) R 6,301,739.00

(cc) Three.

Development Programme 13

(aa) CMTI Consulting. Development of ultra low bed mining equipment.

(bb) R 5,989,734.33

(cc) Four.

Development Programme 14

(aa) Arc Aqua. Development of the core technology improvement of the software for remote reporting, high voltage power supply system, turbine generator and development of additional applications to the core technology, industrial overhead, end of hose and integrated unit.

(bb) R 2,900,000.00

(cc) 0 - Project at a technology development stage.

Development Programme 15

(aa) Rubber Nano. To develop a production ready "ZR6" additive for use in the OEM tyre manufacturing industry.

(bb) R 660,000.00

(cc) 0 - Project at a technology development stage.

Development Programme 16

(aa) Fibrelux. Fibrelux is a wool diameter measuring device for the wool farming industry.

(bb) R 560,000.00

(cc) 10.

Development Programme 17

(aa) Welcore. Weldcore is a novel sampling technique developed by NMMU. This technique allows for the removal of representative core sample in situ from safety critical structures as well as repair of the weld site using an innovative welding technique FTSW.

(bb) R 11,000,000.00

(cc) 10.

Development Programme 18

(aa) mLab Mobile Apps Support. The programme has been developed to stimulate the emergence of mobile apps based innovation business. Often these businesses that are created by young people with tertiary education qualifications but are not in employment, education or training systems. It is a feeder platform for significant innovation projects that can be funded through the TIA technology development fund.

(bb) R 2,500,000.00

(cc) 30.

Development Programme 19

(aa) Balancell (Pty) Ltd. Balancell is a technology business specialising in battery management electronics for medium to large scale batteries of all chemistries. Its battery management systems provide insight into the stored energy of a battery pack and improve its reliability and efficiency.

(bb) R 2,000,000.00

(cc) 0 - Project at a technology development stage.

Development Programme 20

(aa) Impact Free Water (Pty) Ltd. The project use Wave Energy Reverse Osmosis technology for desalination of seawater to produce bottled drinking water and electricity.

(bb) R 500,000.00

(cc) 0 - Project at a technology development stage.

Development Programme 21

(aa) DST has established the Technology Station Programme (TSP) aiming at offering technology based support to SMME. The programme is managed by TIA and hosted by Universities of technologies. The technology Stations provide access to specialist knowledge and equipment. There are currently 18 stations with national footprint and are sector focused as follows:

Manufacturing Cluster

• TUT: Electronics & Electrical Engineering, including ICT
• VUT: Product Prototyping, materials, processing technologies
• NMMU: Mechanical System Technologies & Automotive components;
• DUT: Fibrous Reinforced & Molded Plastics
• CUT: Rapid Prototyping & Product Development
• CPUT: Adaptronics
• UJ: Light Metals Casting & Foundry technology
• TUT: TDM (IAT) Transfer, Training & Adv Manufacturing
• SUN: TDM (IAT) design, analysis & Adv Manufacturing
• WSU (IAT): Design, Tooling, Dies, Mould making

Agro-Processing, Chemical, Other Cluster

• CPUT: Agro Food Processing
• UL: Agrifood Processing
• TUT: Chemistry & Chemical engineering
• NMMU: Petrochemicals, Bio-downstream chemicals
• MUT: Chemistry & Chemical Engineering
• UJ: Process, Energy, Environments
• VUT: Panel-beating, spray-painting
• CPUT: Clothing and Textile Technologies

(bb) In the financial year 2016/17

• TIA budget allocation R34,511 million
• Additional grant from DST R37,739 million
• Additional grant from DST to scale up the TSP R33 million

(cc) The impact of the programme for the financial year 2015/16 is as follows:

• A total of 103 interns participated in the interns Programme
• A total of 10 interns have received employment
• 2154 SMMEs received technology based support from the programme
• 27 knowledge innovation products supported through the stations support activities, and 58 product/prototype developed
• 20 full functional prototypes completed and 33 youth funded projects currently at various TS for support with products designs, CAD/CAM and quality improvements