While South Africa’s overall expenditure on research and development (R&D)continues to stagnate, the ICT sector recorded the largest increase in R&D expenditure in 2024/25.
This is according to the latest annual National Survey of Research and Experimental Development Statistical Report 2024/25, commonly referred as the R&D survey.
The survey classifies ICT as information, computer and communication technologies, and is listed with medical and health sciences, social sciences, engineering and material sciences.
ICT R&D spending in 2024/25 reached R5.7 billion (12.9%). This signals expenditure in the field rose by R853 million, underscoring the growing importance of digital technologies in South Africa’s research and innovation landscape, it says.
The country’s gross domestic expenditure on research and development (GERD) increased to R44.2 billion in 2024/25, based on the national R&D survey.
However, the survey found real R&D expenditure declined by 1.9% year-on-year, from R28.6 billion in 2023/24 to R28.1 billion in 2024/25.
The level of R&D expenditure compared to the level of gross domestic product (GDP) went down to 0.60% in 2024/25 from the 0.62% recorded in 2023/24.
The findings suggest that, despite continued investment in research, growth in R&D spending has not kept pace with economic activity, highlighting persistent pressures on the country’s innovation system, notes the survey.
The latest figures show business sector R&D expenditure fell by R742 million to R14.4 billion, reducing its share of total GERD from 34.8% to 32.5%. The decline in business R&D expenditure occurred against a backdrop of weak business confidence and investment conditions.
Conversely,higher education recorded the largest nominal increase in R&D expenditure and became the main contributor to growth in South Africa’s R&D spending, increasing expenditure by R919 million to R16.7 billion.
The sector accounted for 37.8% of total GERD, maintaining its position as the country’s largest R&D performer for the sixth consecutive year, highlights the survey.
“The results show that South Africa’s research system remains resilient, but the decline in business sector investment is a cause for concern,” comments Dr Nazeem Mustapha, Human Sciences Research Councilresearch director and the R&D survey’s principal investigator.
“Sustained growth in research and innovation requires stronger participation from the private sector alongside continued public investment.”
South Africa’s Department of Science, Technology and Innovation (DSTI) is responsible for driving science, technology and innovation − and thus R&D − in the country.
The R&D survey is carried out on behalf of the DSTI with the support of Statistics South Africa. It is conducted by the Centre for Science, Technology and Innovation Indicators, which is based at the Human Sciences Research Council.
It covers sectors that perform R&D in South Africa; namely business enterprise, government, higher education, not-for-profit (NPO) institutions and science councils, measuring the size, growth and composition of R&D in terms of expenditure, funding and personnel.
The survey is published a year after it has been compiled, reflecting actual expenditure rather than projections.
According to the survey, government remained the largest source of R&D funding in 2024/25 at R22.2 billion (50.1%), followed by business at R12 billion (27.2%) and foreign sources at R8.4 billion (18.9%).
Foreign funding increased by R245 million. However, foreign funding for higher education R&D rose by R663 million and NPO R&D by R274 million, while business R&D fell by R715 million.
In addition, applied research remained the most prevalent type of R&D, accounting for 49.6% (R22 billion) of GERD in 2024/25. On the other hand, basic research contributed 28.7% (R12.7 billion), while experimental development accounted for 21.7% (R9.6 billion).
“The composition was broadly unchanged from 2023/24, although expenditure increased in nominal terms across all three types.”
More than two decades ago, South Africa’s target for R&D was set at 1% of GDP by 2008, but the global financial crisis saw all economies tighten their belts. In 2014, former science and technology minister Dr Naledi Pandor announced a new target: 1.5% by 2019.
The goalposts were shifted to 1.5% of GDP by 2030, as envisaged in the National Development Plan, but the country looks unlikely to reach that threshold.
Notable findings in the survey show growth in South Africa’s research workforce in 2024/25, with the number of R&D personnel increasing by 1 004 to 90 608 and the number of researchers rising to 66 858.
Women drove all net growth in the researcher workforce during the year, it notes.
Male researcher headcount declined by 110, while the number of female researchers increased by 581 to 32 219. As a result, women represented 48.2% of all researchers in 2024/25, up by 0.5 percentage points from 2023/24 and continuing the upward trend in gender representation.
At provincial R&D spending level, Gauteng was in the lead, while the Western Cape continued gaining.
Gauteng reinforced its position as the country’s R&D hub, with 39.6% of expenditure (R17.5 billion). The Western Cape continued its steady growth in national R&D activity at 28% (R12.4 billion), followed by KwaZulu-Natal, which contributed 9% (R3.9 billion).
The largest nominal increases were recorded in the Eastern Cape (R487 million), while Mpumalanga (R335 million) and the Northern Cape declined by R360 million and R274 million, respectively.
“Increases in R&D spending were evident in several other provinces, highlighting a gradual broadening of research investment beyond the traditional centres of activity.”
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