South Africa’s gross domestic expenditure on research and development (R&D) grew to 28.28 billion rands (approximately $1.57 billion) in the 2022/2023 fiscal year, marking a 2.1% increase from 27.71 billion rands in the previous period. However, the proportion of R&D expenditure relative to the country’s gross domestic product (GDP) remained unchanged at 0.61%, underscoring the persistent challenge of intensifying research activity within the broader economic framework.
The findings, detailed in the annual South African R&D Survey conducted by the Human Sciences Research Council (HSRC), reflect mixed outcomes for the country’s research landscape. While the increase in expenditure offers a measure of progress, the static ratio suggests that the pace of investment is struggling to outstrip the broader economic growth rate. “South Africa’s economy grew at a comparable 1.9% in 2022, which is why the ratio of R&D to GDP, a measure of the research intensity of the South African economy, is static,” explained Nazeem Mustapha, lead researcher of the survey.
The survey, prepared by the HSRC’s Centre for Science, Technology and Innovation Indicators (CeSTII) for the Department of Science, Technology and Innovation, provides critical insights into the allocation of R&D resources across various sectors. The business sector was the largest contributor to the increased spending, with its expenditure rising by almost 1 billion rands, from 13.53 billion rands in 2021/2022 to 14.51 billion rands in 2022/2023. The manufacturing and mining industries accounted for much of this growth, reflecting their sustained importance within the national economy.
R&D spending also increased nominally across other institutional sectors, including government, higher education, non-profit organisations, and science councils. Key funding sources during the period were government, businesses, and foreign contributors, highlighting the multifaceted nature of investment in South Africa’s research landscape.
Despite the uptick in financial investment, challenges remain. The country’s researcher headcount fell from 63,122 in 2021/2022 to 61,457 in 2022/2023, even as the proportion of women researchers rose slightly from 47% to 47.6%. Glenda Kruss, Executive Head of CeSTII, remarked that the results point to a slow but perceptible recovery in R&D spending, reversing declines observed during 2019/2020, which were exacerbated by the COVID-19 pandemic.
The HSRC, Africa’s largest research institute focused on social sciences and humanities, continues to underscore the importance of the survey as a policy tool. By illuminating trends in R&D expenditure, it offers a lens through which South Africa’s policymakers, businesses, and investors can assess the nation’s capacity to foster innovation and drive economic growth.
