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a day ago
- Business
- IOL News
South Africa's Innovation Fund pilot phase shows promise amid challenges
THE Department of Science, Technology and Innovation recently briefed Parliament on the results of its five-year Innovation Fund pilot phase, revealing that 96 startups had been supported since 2020. Image: AI Ron THE Department of Science, Technology and Innovation (DSTI) recently briefed Parliament on the results of its five-year Innovation Fund pilot phase, revealing that 96 startups had been supported since 2020 — but with glaring disparities in provincial representation and private-sector hesitancy threatening its scalability. Acting director-general Gugulethu Zwane, leading the DSTI delegation, framed the Innovation Fund as a response to the White Paper on Science, Technology, and Innovation, implemented through the Decadal Plan. Mlungisi Cele, the newly appointed director-general and former chief executive of the National Advisory Council on Innovation (Naci), emphasised the Fund's role in commercialising innovation. 'The Fund includes interventions aligned with the Decadal Plan's objectives, with measurable indicators to track progress,' he said. Konanani Rashamuse, DSTI chief technocrat, detailed the 'Fund on Funds' (FOFs) model, where government seed capital attracts private investment. To date, R265 million in public funds has leveraged R1.3 billion — a fivefold multiplier effect. Three FOFs have been established, including the High Impact Seed Fund and the Public Investment Corporation Technology Development Fund. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ However, Cele admitted that South Africa lagged behind Nigeria, Kenya, and Rwanda in venture capital activity. 'One of our goals is to scale up and position South Africa as a leader,' he said. MPs grilled the DSTI on stark inequities. Gauteng and the Western Cape account for 80% of funded startups, leaving other provinces underserved. The MK Party's Thembinkosi Mjadu demanded action: 'What measures will ensure equal geographic distribution?' Rashamuse pointed to the DSTI/EPF Tech Fund Venture Building Programme, targeting underrepresented regions, but conceded more work was needed. Gender transformation remains another hurdle. 'The venture capital industry lacks enough first-time female innovators,' Rashamuse acknowledged. Cele highlighted the Women in Technology and Innovation Programme, launched in March 2025, as a step forward. Rashamuse admitted high failure rates are inherent in venture capital but argued even a 10% success rate could yield a significant impact. 'We need a large enough pipeline to sustain failures while ensuring the successes create social impact,' he said. A major concern is private-sector engagement. Cele cited 'risk aversion' and 'lack of policy certainty' as barriers. Rashamuse added that stronger data transparency could rebuild trust. 'We must position the Fund as an attractive investment for the private sector,' he said. Meanwhile, budget constraints loom. Cele revealed Minister Blade Nzimande is lobbying Treasury for increased funding, noting South Africa's innovation budget pales in comparison to global peers. Despite challenges, Rashamuse showcased standout startups: Stone Three: AI-driven mining tech operated from Cape Town but deployed globally. AI-driven mining tech operated from Cape Town but deployed globally. Artisan Biomed: Precision medicine using DNA-based diagnostics for African patients. Precision medicine using DNA-based diagnostics for African patients. LignOrganic: Waste-reducing biomass solutions from macadamia nut shells. Looking ahead, DSTI plans to: Scale the Fund and assess the pilot phase independently. Boost youth and female participation through targeted programmes. Develop a digital dashboard for monitoring. Host the SA Tech Challenge 2025 in Cape Town to spur innovation. Chairperson Tsakani Shiviti from the ANC stressed the need for a 'coherent system' bridging grassroots entrepreneurship to commercial markets. 'We must close the gap between development and local product accessibility,' she said. The ANC's Vusumuzi Nkosi pushed for metrics tracking long-term social impact, while the DA's Natasha Mazzone called for expert-backed responses in future briefings. As the meeting adjourned, the message was clear: The Innovation Fund has potential, but without equitable distribution, private-sector buy-in, and sustainable funding, its promise may remain unfulfilled.
Zawya
24-04-2025
- Business
- Zawya
Circular economy takes centre stage with new eco-friendly housing initiative in South Africa
Construction waste is finding new life in the form of eco-friendly building blocks used for low-cost RDP housing. This innovation is part of the Department of Science, Technology and Innovation's (DSTI) Circular Economy Demonstration Fund, which supports circular economy projects yet to reach large-scale impact in South Africa. This milestone was marked on 11 April 2025 by the Council for Scientific and Industrial Research (CSIR), which partnered with Use-It Waste Beneficiation NPC and Key Bricks to demonstrate the prototype. The DSTI deputy director-general for socio-economic innovation partnerships, Dr Mmboneni Muofhe and CSIR executive manager: hosted programmes, Bongani Memela, presided over the ribbon-cutting ceremony for the newly built demonstration house. From waste to walls: The manufacturing process Guests were hosted on site by the CSIR project manager, Aubrey Muswema; CSIR senior researcher in sustainability economics and waste, Belinda Putterill; and managing director of Use-it and Matt Olivier, chief executive officer for Key Bricks. Those attending the site visit were guided through the process of manufacturing the innovative building blocks, starting from the crushing of waste glass and building rubble, to the finished block, and finally the low-cost housing structure. The site visit provided attendees with behind-the-scenes insights into Key Bricks' operations, material mix ratios, design of structures and equipment used to produce the interlocking block. Circular economy in action Use-It and Key Bricks both shared their journey on taking steps to become green in their operations and working closely with the CSIR to test and refine the product ideas by adopting circular economy principles. The green block contains 70% recycled waste content, including crushed waste glass, construction and demolition waste. The block itself is 100% recyclable. What also sets the interlocking block apart is its design, allowing for the building to be easily constructed with limited building experience, and if needed, the structure can be later deconstructed and the blocks reused at another location. The block is designed to interlock like Lego blocks, requiring no cement between layers. Each block features internal hollows, which, when stacked, create channels for the installation of electrical and water pipes, reducing the need to cut grooves (also known as 'chasing'), ensuring that the blocks remain intact. The blocks came from the need to find local markets for waste glass and building rubble in KwaZulu-Natal. "It's not viable to transport waste glass from KwaZulu-Natal to Gauteng for recycling, the margins on this are just too slim, resulting in a lot of this waste remaining uncollected and impacting the environment," said Putterill. Source: Supplied Business and community impact "We needed to find ways to use glass locally in KwaZulu-Natal.' Cities, towns and villages across the country are also plagued with the illegal dumping of building rubble in open spaces. These blocks use crushed waste glass and construction and demolition waste, thereby reducing the need for conventional virgin materials. "Not only is building with this innovative block cost-effective, but it also saves construction time and requires minimal labour and building experience. "The top structure was put up by relatively unskilled labour from the foundation stage to the roof within seven days – this is only possible because of the interlocking nature of the faceted blocks. "By using waste as a resource, this interlocking block can unlock new business opportunities in the construction industry. Local businesses and value chains can benefit from the potential to generate additional revenue streams. "It also has the potential to accelerate social relief efforts by addressing the country's housing backlog, while helping to keep our cities, towns and villages clean,' says Muswema. The block-making machine has been demonstrated to the private sector, municipal officials, housing-sector representatives and other SMMEs in the building sector. Deputy director-general at the DSTI, Dr Mmboneni Muofhe, said: "The work that has been done by all partners to date is commendable in demonstrating the principles of 'reduce, re-use, recycle', which in turn compels us to rethink the potential of everything that we use daily. "South Africans have been practising circular economy principles for years, but they did not necessarily label these practices as such. The creativity and innovative mindset to repurpose single-use materials has always been there and simply needed to be unlocked systemically and collaboratively. "The green brick is a testament to how collaboration among multiple actors, such as a science council, small enterprises and government, can deliver a product with social, economic, and environmental benefits. We remain open to the possibility of more partners collaborating with us to demonstrate and scale circular innovations." Unlocking SA's circular economy potential "The circular economy holds enormous potential for South Africa," says Professor Linda Godfrey., CSIR principal researcher and manager of Circular Innovation South Africa (CISA). CISA is tasked by the DSTI to identify and support innovative circular economy demonstration projects through the recently launched Circular Economy Demonstration Fund. 'The circular economy studies published by the CSIR highlight that while the circular economy is not new to South Africa, we have not achieved the scale for meaningful impact. The Circular Economy Demonstration Fund aims to partner universities and science councils with the private sector, to help business and industry demonstrate, de-risk and scale circular innovations, and in so doing, unlock much-needed socio-economic opportunities,' concluded Godfrey. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
