7 March 200 1 Neo Moikangoa and Adi Paterson CSIR Executive Management Board

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 people’s lives.

4. Our Mission As a uniquely South African organisation, the CSIR is committed to innovation. We exist to support sustainable development and economic growthin the context of national priorities and global challenges.We create value for our clients, partners and stakeholders byproviding 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 R&D 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 Ms Joan Joffe Group Executive Corporate Affairs Vodacom Dr Nthoana Tau-Mzamane Deputy Director-General: Science& Technology Dept. of Arts, Culture, Science & Technology Dr Dhiro Gihwala Dean: Faculty of Science Peninsula Technikon Ms Anne Letsebe Deputy Director-General & Head ofCabinet Office Office of the Presidency Mr Eugene van As Executive Chairman Sappi Ltd 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 CSIR’s 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 FC=Forecast, B=Budget, P=Plan

13. Sources of External Contract Income Rand (Millions) Financial Year (to end March) • Nominal rands

14. CSIR’s Accountability to Government • Input Processes • Review Processes • Outputs (Appendix)

15. CSIR Government Department Interactions 2000/2001

16. CSIR Investment of Core Funding in Core Competencies

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)

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 • Promotion of black economic empowerment • Facilitation of access to technology by women through implementation of the Technology for Women in Business (TWIB) project

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 R&D 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. SMME’s) • Sustainable Rural Development • NHRD • Urban Renewal • Regional Integration

22. THANK YOU Q & A

23. Appendix 1 CSIR’s Accountability to Government(Input Processes) 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) • Draft budget and business plan discussed with DTI (early February) • CSIR Board (late February) • Finalisation with DTI (March) • Budget approval by Minister (late March)

24. Appendix 1 CSIR’s Accountability to Government(Input/Review Processes) (Cont.) 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 T&I Portfolio Committee

25. Appendix 1 CSIR’s Accountability to Government(Output Processes) 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 KPI’s (in current business plan) • Financing and Reporting Framework (DACST) • Four – Five Year Reviews • Science Council Reviews (1997) • System-wide Review (1998) Cabinet Level Inputs • Cabinet Memorandum – Science Council Review (1998) • Annual Budget acceptance by Cabinet