BRINGING KNOWLEDGE TO LIFE

Annual Report 2002/3 Annual Report of the National Research Foundation (NRF)

PO Box 2600 Pretoria 0001

Tel: +27 12 481 4003 Fax: +27 12 481 4134 Email: [email protected] www.nrf.ac.za contents

VISION 1

CORPORATE HIGHLIGHTS 2

CHAIRPERSON’S OVERVIEW 4

PRESIDENT’S STATEMENT 6

BOARD REPORT CORPORATE OVERVIEW 10 Clustering of corporate activities 11 Corporate governance 12 Corporate finance 13 Corporate human resources and transformation 15

PERFORMANCE OVERVIEW OF NRF BUSINESS UNITS 17 Research and Innovation Support Agency (RISA) 18 Project Portfolio (some examples) 28 South African Agency for Science and Technology Advancement (SAASTA) 36 National Research Facilities: 39 Hartebeesthoek Radio Astronomy Observatory (HartRAO) 40 Hermanus Magnetic Observatory (HMO) 43 South African Astronomical Observatory (SAAO) 45 South African Environmental Observation Network (SAEON) 48 South African Institute for Aquatic Biodiversity (SAIAB) 49 iThemba Laboratory for Accelerator Based Sciences (iThemba LABS) 52

KEY PERFORMANCE INDICATOR REPORT 54 NRF approach to KPIs and benchmarks 55

FINANCIAL REPORT 57 Statement of responsibility by the Board of Directors 58 Report of the Auditor-General 60 Income statement 62 Balance sheet 63 Statement of changes in funds 64 Cash flow statement 65 Accounting policies 66 Notes to the annual financial statements 69 board members (as at 31 March 2003)

Professor B D Reddy (Chairperson) Dean of Science: University of Cape Town

Professor S F Coetzee Centre for Leadership Studies: University of Stellenbosch

Mr W W Cooper CEO: Dorbyl Ltd

Professor C A Hamilton Director: Graduate School for Humanities and Social Sciences, University of the Witwatersrand

Dr J L Job Chairman: SAPPI SA

Dr T Mdaka Nuclear Physician

Professor C C Mokadi Vice-Chancellor and Principal: Technikon Witwatersrand

Professor P E Ngoepe Director: Materials Modelling Centre, University of the North

Mr M M Nxumalo Director: Global Industries

Mrs B D Radebe Executive Chairperson: Mmakau Mining

Professor J van Zyl CEO: Sanlam

Professor H W Vilakazi Independent Electoral Commission

Dr K Mokhele NRF President (ex-officio)

4 vision

The NRF aims for

a prosperous South Africa and African continent

steeped in a knowledge culture,

free of widespread diseases and poverty,

and proud contributors to the well-being of humanity.

Fundamental to this vision is quality education, wealth creation and an improvement in the quality of life for all. In modern economies these achievements are dependent on innovation, research and development (ie knowledge creation and utilisation).

The CORPORATE CORE MISSIONS of the NRF are to develop and support: high-quality human resources in aggressively increasing quantities; the generation of high-quality knowledge in prioritised areas that respond to national and continental development needs; the utilisation of knowledge, technology transfer and innovation to ensure tangible benefits to society from the knowledge created; and the provision of state-of-the-art research infrastructure that is so essential to facilitating the development of high-quality human resources and knowledge.

CORPORATE STRATEGIC PRIORITIES include: redressing and ensuring equity in race and gender; adhering to quality; focusing on Africa; internationalising research; positioning the NRF within the National System of Innovation; and transforming the NRF organisationally.

1 corporate highlights for 2002/03

Output of researchers supported by RISA through its Focus Area Programmes equals close to half of the total research output of higher education subsidised by the Department of ON CD Education.

For more information on our highlights, kindly refer to the The NRF’s strategic KPI report on CD. planning process was concluded, and the corporate vision and mission adopted.

The first round of evaluation and rating of researchers in the social sciences and humanities was The launch of the National implemented. Astrophysics and Space Science Programme (NASSP) took place at the University of Cape Town with major input from facilities. An agreement was reached with the Department of Labour to manage the Scarce Skills Fund. 30% There was a 30% increase in the number of researchers supported by RISA, mostly in development programmes.

2 FEST was incorporated within the NRF by Minister Ngubane in December 2002.

Staff development efforts at the National Research Facilities resulted in 24 higher degrees completed, with 7 doctoral and 14 master’s degrees.

The construction of SALT is advancing on time and on schedule with the first The National Research of the 91 mirror segments Facilities increased their installed. support of postgraduate training by 17% to 183. 17%

The official launch Cabinet gave support for of the Coelacanth SA’s bid to host the Square Project took place Kilometre Array (SKA). at Sodwana in April 2002.

The first three President Awardees in social sciences and humanities 3 were identified and honoured.

Research output of the National Research Facilities include 104 refereed ISI-listed publications. 104

3 chairperson’s overview

he past year has seen some significant developments in the research and development landscape in this country, particularly in areas of relevance to the NRF. Chief among these has been the adoption by government of the National Research and Development Strategy (R&D Strategy); this provides the context in which researchers, working with others in industry, government, and agencies such as the NRF, Twill address challenges that are of national importance. The NRF’s own strategic plan is well aligned with the R&D Strategy, and envisages for the organisation a central role in giving substance to the national strategy. Government has in the recent past adopted various other strategies for the achievement of national goals in the areas of economic growth, job creation, and social upliftment. The successful implementation of these strategies depends critically on the close involvement of highly skilled researchers and other professionals, and on the ability to address in an innovative manner the research issues that have a direct impact on these areas. It is in this domain that the NRF together with the higher education sector play a major role.

TRENDS CAUSE CONCERN There are some serious concerns, though, about the country’s readiness to respond to these needs. More particularly, some disturbing trends make clear the magnitude of the challenge facing us all. We have an ageing research community. Around half of the research produced in Prof BD Reddy South Africa may be attributed to researchers who are over 50 years of age; ten years Chairperson: NRF Board ago the proportion was of the order of 30%. In addition, data in the annual report shows that there has been a decline for two consecutive years in the number of rated scientists in the natural sciences and engineering, a phenomenon which can be ascribed largely to ageing. And, to give further emphasis to the nature of this trend, half of our A-rated researchers are 60 years and over in age, and will therefore formally have left the system within the next five years. These worrying trends indicate an inability to ensure replenishment of the community of researchers in sufficient numbers, and of sufficiently high quality, to ensure satisfactory levels of growth in research activity in the country. As it is, within the higher education sector fewer than 15% of approximately 15 000 academic and professional staff can be classified as active researchers.

MAKE RESEARCH ATTRACTIVE Bold and decisive action is required to reverse these adverse trends. In the shorter term it is vital that conditions for the pursuit of research, both fundamental and applied, be made more attractive. For students, and for postdoctoral researchers too, a key factor will be the value of bursaries and fellowships enabling them to pursue a research career.

4 Success in retaining researchers, and in attracting young people into academia and research, will require that the conditions for carrying out scholarly work are improved. “Economic growth, In this regard, an area that requires urgent attention is that of renewal and growth of job creation, and social the equipment base in the country. upliftment depend A further development that will serve as a catalyst to growth in research is the implementation of the system for establishing Centres of Excellence, which has been critically on the close proposed in the national R&D Strategy. involvement of highly The NRF will be calling for the first round of proposals for the establishment of such skilled researchers centres in August 2003, with a view to funding these from 2004 onwards. The amount and other professionals, available for this first round – R24m – is a first step toward the goal expressed in the and on the ability to R&D Strategy of ultimately investing Rl50m in this way. address in an innovative EDUCATION IS THE KEY manner the research In the medium to longer term, by far the biggest challenge lies in the promotion issues that impact on of Mathematics and Science in our schools. It will require further concerted and these areas.” imaginative steps by government, NGOs, and the private sector, working in collaboration, to ensure that we make real progress. Significant in this regard is the decision by government to transfer FEST (now SAASTA) to the NRF, which identifies the NRF as a key participant in the promotion of Science and Mathematics in schools, and also in the process of improving the understanding of the importance of Science and Technology within the broader community. This places a significant responsibility on the shoulders of the NRF. But it is a challenge that the NRF will approach effectively and enthusiastically, working with researchers in higher education, the national facilities, science councils, and others.

APPRECIATION AND ACKNOWLEDGEMENT It is with pleasure that I acknowledge the commitment and diligence shown by the staff members of the NRF, both within the Research and Innovation Support Agency (RISA) and in the National Research Facilities. It is due to their efforts that so much has been achieved, in circumstances that are at times not easy. I would also single out for special mention Dr Khotso Mokhele and his executive team, who in carrying out their responsibilities have displayed decisive and imaginative leadership. To the members of the NRF Board, my indebtedness for the commitment and enthusi- asm that they have displayed in executing their responsibilities. Their combined wisdom, and the generosity with which they have given of their time and expertise, have all contributed in no small measure to the successes of the NRF. Finally, my sincerest thanks and appreciation to Minister BS Ngubane, Minister of Arts, Culture, Science and Technology, for several fruitful interactions and his guidance during my first year as chairperson of the NRF Board.

5 president’s statement

he strategic planning process which commenced soon after the promulgation of the NRF and my appointment as its first President and CEO in July 1999, culminated in a vision and mission for the new organisation which is closely aligned with the Research & Development imperatives of the nation. The strategic plan aims at increasing the impact of the NRF. The Tbusiness plans for the Research and Innovation Support Agency (RISA) and the National Research Facilities of the NRF have therefore been closely aligned to four core missions, thereby enabling the organisation to report more effectively on the collective contributions to achieving corporate goals.

ENTER THE SOUTH AFRICAN AGENCY FOR SCIENCE AND TECHNOLOGY ADVANCEMENT (SAASTA) A major development during the year under review was the request by the Minister of Arts, Culture, Science and Technology that the erstwhile Foundation for Education, Science and Technology (FEST) be incorporated into the NRF. The repositioning of FEST within the NRF necessitated a change of name of the entity from FEST to the South African Agency for Science and Technology Advancement (SAASTA). Having SAASTA within the NRF as from 1 December 2002 also brings major strategic and operational advantages which will strengthen the ability of the NRF to discharge its mandate with even greater effect. The success in achieving the object of the mandate of the NRF is critically dependant on an understanding by, and an acceptance within, the broader society of the importance of science Dr K Mokhele and technology for our nation’s advancement. We intend to maximise the strategic advantage President: NRF of having this entity in the NRF. As such it will also be the logical home for all corporate communications and public relations activities of the NRF. The young and dynamic Mrs Beverley Damonse has been appointed as the first Managing Director of SAASTA.

THE LOSS OF A STELLAR MAN We were all saddened by the sudden and untimely death of Dr Bob Stobie, Managing Director of the SAAO, in May last year. Bob had been leading the SAAO since 1992 and was a major driving force to secure the Southern African Large Telescope (SALT). It was largely his commitment and standing as a scientist which persuaded many foreign institutions to join South Africa in this unique venture. This project is progressing exceptionally well with the construction phase expected to be completed on time in December 2004. It was through Bob’s sense of judgement that the project was able to attract Mr Kobus Meiring, an incredibly competent project manager, for SALT. Without any doubt the Executive Management team of the NRF as well as the Boards of both the NRF and the SALT Foundation (Pty) Ltd have lost one of the most competent, committed and dedicated managers and colleagues.

THE SQUARE KILOMETRE ARRAY FOR THE NORTHERN CAPE PROVINCE? A significant development, which could have a major impact on science in South Africa for many decades to come, is Cabinet’s full support of South Africa’s bid to host the core array of the revolutionary Square Kilometre Array (SKA) radio telescope. Preparation for South Africa’s bid of this US$1 billion mega-science project commenced late in the financial year

6 under guidance of a small and very agile steering committee of representatives of the Department of Science and Technology (DST), NRF, Rhodes University and the Department of Trade and Industry (the dti), with Dr Rob Adam, Director-general of DST, as chair. Dr Bernie Fanaroff, himself a former astronomer of note, was contracted as project manager, and drove the initial bid to a very successful conclusion under an extremely tight schedule. The SKA will enable astronomers to probe the so-called “Dark Ages” – a period from about 300 000 years till one billion years after the big bang – when the early universe was in a gaseous form before the formation of stars and galaxies. The competition to host this facility whose construction is expected to commence in 2010 will be stiff indeed but South Africa would be the ideal site owing to its location, its capabilities and its record of accomplishments. (The success of the SALT project can be counted among these accomplishments). The success of this bid will not only hold scientific benefits for South Africa but will also bring enormous economic and reputational benefits. The decision on the siting of the SKA will be made by the International SKA Steering Committee in 2005.

NICOLSON RETIRES BUT AN ABLE SUCCESSOR STEPS IN Dr George Nicolson, Managing Director of HartRAO, retired at the end of April 2003. George was a key figure in the South African decision to host the SKA radio telescope. The SALT project is progressing We are deeply indebted to George for his significant contributions to the advancement exceptionally well with the of science in South Africa in general, and radio astronomy in particular, over the past construction phase expected 27 years as director of HartRAO. George is credited by many as the person who started to be completed on time in radio astronomy in South Africa when the US National Space Agency (NASA) decided December 2004. See page 46 to stop tracking their deep space probes from the Hartebeesthoek facility. We are for full details. delighted that he has agreed to remain involved in South Africa’s bid for the SKA for the foreseeable future. I am also delighted that George has accepted the offer of a Photograph by Nick Aldridge. position of Astronomer Emeritus at the HartRAO for a five-year period ending in 2008. In this context I would like to welcome Professor Justin Jonas, Head of the Department of Physics and Electronics at Rhodes University, and member of the South African SKA steering committee, as Managing Director of HartRAO from 1 June 2003. Justin will enjoy a joint appointment between the NRF and Rhodes University for a two-year period (2003 to 2005) which is directly linked to the conclusion of the adjudication on the siting of the SKA by the International SKA Steering Committee.

ENHANCING THE EFFECTIVENESS AND EFFICIENCIES IN RISA RISA has also seen some significant changes because of the new research support framework for research funding that was implemented from 2003 onwards. Late in the financial year, a critical review was conducted to assess whether structures and processes implemented were appropriate and allowed RISA to fulfil its role as a value-adding agency efficiently and effectively. What became evident is that RISA has been very inwardly focused over the past year or two and hence neglected in several ways to provide the intellectual leadership and direction required within the National System of Innovation (NSI). This is being addressed very forcefully with a reorientation of RISA, through some reorganisation of its activities and the development of a marketing orientation.

7 The filling of two posts within RISA, which have been vacant for some time, will go a long way in achieving these objectives and I would like to welcome Dr Tessa Marcus and Dr Andrew Kaniki on my executive team. Both have had active research careers and bring with them a wealth of experience in higher education. Tessa, as a social scientist, has taken responsibility for the Focus Area Programmes, whereas Andrew, with his solid background in information sciences, is taking charge of Knowledge Management and Strategy.

KEY ACHIEVEMENTS IN RISA Of the many positive achievements within RISA over the past year, I would like to highlight the following: THRIP has made considerable strides in the past year or so to improve its performance and image. Gone are the days of lengthy delays in announcing the outcomes of funding applications, thanks to a significantly reworked memorandum of agreement with the dti. In addition, a considerably more professional approach in communicating with stakeholders has now paid handsome dividends. The introduction of an award ceremony which was linked to the launch of its previous annual report, in addition to some very attractive features of the annual report, were rewarded with the Gold Quill Award of Excellence for 2002 by the International Association of Business Communicators. This is a singularly significant achievement, given the very tough international competition for this award. The first round of evaluation and rating of individual researchers in the social sciences and humanities was concluded. This process went extremely well, owing to strong support by top scientists within these disciplines, leaders of higher education institutions in South Africa, as well as the commitment and dedication of staff at the Evaluation Centre. We are firm in our resolve to proceed with and improve this process, as we are convinced that it will have as positive an impact on social sciences and humanities scholarship as the introduction of the system almost 20 years ago had for the natural sciences and engineering disciplines. The Innovation Fund, managed on behalf of the Innovation Fund Board of Trustees by way of an agreement, has made considerable advances. Not only was a significant inherited backlog erased, but a new evaluation and selection procedure has shortened the process of selection of projects for funding. Through an international peer review process of the fund and a subsequent strategic planning process, several new initiatives to enhance and facilitate innovation in South Africa have been launched and will be managed by the NRF on behalf of The International Association of Business the Trust. Communicators’ Gold Quill Award of Particularly rewarding is the substantial increase in the number of researchers Excellence was awarded to the that could be supported, particularly in the development programmes of RISA. THRIP 2002 annual report. This suggests that the effort to build research capacity among the previously disadvantaged is now paying off. This is also evident in the 67 staff members (mostly black) in Higher Education Institutions (HEIs) who have completed their research degrees with the aid of staff development grants to their respective supervisors.

8 SOME MAJOR IMPROVEMENTS NEEDED I would also like to draw attention to issues of some concern: The NRF’s responsibility At the end of every financial year, several million rands are returned by researchers is to make South Africa and institutions as unused and then reflect as unspent funds on our books at year end. a winning nation The past year was no exception. It has become imperative that the NRF tighten the management of its resources so that it can anticipate well in advance of the through training highly financial year end, where allocated resources are not being utilised maximally so skilled human resources, that funds can be channelled to other support programmes with burning needs. generating new The steady state (no growth) in the number of students supported by RISA is also knowledge and of concern. Given the prevailing small intake of students with suitable qualifications stimulating innovation in Mathematics and Science in higher education, a demand pull needs to be created to draw students into research in order to meet strategic objectives of both the NRF for social upliftment and the National R&D Strategy. This will be achieved by a significant increase in and international the number and values of the postgraduate bursaries provided by RISA and will competitiveness. therefore require a larger proportion of RISA funds to be allocated for this purpose.

OPPORTUNITIES BECKON Amidst the challenges of scarce human resources and ageing equipment, the NRF finds itself in a unique position of being an important intermediary between the higher education sector and government. Examples are: The National Department of Education The restructuring of higher education allows the NRF to seek new synergies with the Department of Education (DoE), and two initiatives have already commenced: developing a National Mentoring Programme in the higher education sector; developing acceptable criteria and processes for the evaluation of research outputs to measure research productivity linked to the subsequent research subsidies from DoE to HEIs. The Department of Labour An agreement has been reached with the Department of Labour for the NRF to manage the Scarce Skills Fund. The Department of Science and Technology The adoption of the National R&D Strategy by the Cabinet in July 2002 also resulted in the splitting of the erstwhile Department of Arts, Culture, Science and Technology (DACST) into the Department of Arts and Culture (DAC) and the Department of Science and Technology (DST). We expect the NRF to be a major agency for the new DST in implementing the National R&D Strategy. This expectation is based on the strong alignment between the strategic orientation of the NRF that was approved by the Minister of Arts, Culture, Science and Technology in July 2002 and the National R&D Strategy. The vision and mission of the NRF provide direction on the fascinating path of service delivery and discovery that lies ahead for all who are motivated to raise the competitiveness profile of our nation. The NRF has taken the first step …

9 BOARD REPORT corporate overview

Clustering of corporate activities

Corporate governance

Corporate finance

Corporate human resources and transformation

10 NRF operation structure and clustering of activities

NRF BOARD

PRES/CEO NRF CORP SEC

VICE-PRES/MD MD ED ED RISA MD MD MD MD HR FINANCE SAASTA iTHEMBA HartRAO SAIAB SAAO LABS

GM ED ED ED ED ED GM Business & Research Research Knowledge South African Hermanus Innovation Environmental Industry Partnership Fund Development Promotion Management Magnetic Programmes & Support & Support & Strategy Observation Observatory Network

ED: Executive Director MD: Managing Director GM: General Manager Clustering of corporate activities The operations of the NRF fall broadly into three categories: the Agency Function, SAASTA and the National Research Facilities.

The Agency Function Research and innovation support is provided by the following means: Parliamentary Core Grant Funding; Technology and Human Resources for Industry Programme (THRIP); and the Innovation Fund.

Public understanding and appreciation of science are supported by: South African Agency for Science and Technology Advancement (SAASTA).

Corporate support functions are provided by: Human resources; Finance; and Corporate Communications and Public Relations.

In-depth investigations have commenced to obtain economies of scale and greater impact in the performance of the individual business units through the corporatisation of the following activities: IT (standardisation of equipment, purchasing, maintenance, etc); International Science Liaison as enabling function; Corporate Communications and Public Relations within the mandate of SAASTA.

National Research Facilities The Astro/Space/Geo Sciences are served by: South African Astronomical Observatory (SAAO); Southern African Large Telescope (SALT) Foundation (Pty) Ltd; Hartebeesthoek Radio Astronomy Observatory (HartRAO); and Hermanus Magnetic Observatory (HMO).

11 Biodiversity/Conservation are addressed by: South African Institute for Aquatic Biodiversity (SAIAB); and South African Environmental Observation Network (SAEON).

Nuclear Sciences are served by: iThemba Laboratory for Accelerator Based Sciences (iThemba LABS).

Corporate governance The NRF receives its mandate from the National Research Foundation Act, No 23 of 1998, which came into effect on 1 April 1999 and established the NRF as an autonomous statutory body. According to the Act, the object of the NRF is to support and promote research through funding, human resource development and the provision of the necessary research facilities in order to facilitate the creation of knowledge, innovation and development in all fields of science and technology, including indigenous knowledge, and thereby to contribute to the improvement of the quality of life of all the people of the Republic. The NRF Board, appointed by the Minister responsible for Science and Technology, provides strategic direction and monitors the compliance of the NRF with legal and regulatory obligations which govern statutory bodies. The Board appointed an Audit Committee and Remuneration and Human Resources Committee to deal with relevant issues on a regular basis. These committees comprise:

Audit Committee: Remuneration and Human Resources Committee: Dr JL Job (chairperson) Prof PE Ngoepe (chairperson) Prof SF Coetzee Prof CA Hamilton Mrs BD Radebe Prof J van Zyl (resigned 20/01/03) Mr WW Cooper (resigned 20/01/03) Mr M Nxumalo (appointed 20/01/03) Prof J van Zyl (appointed 20/01/03) Prof HW Vilakazi Prof BD Reddy (ex-officio) Prof BD Reddy (ex-officio) Dr K Mokhele (ex-officio) Dr K Mokhele (ex-officio)

In accordance with the Act, the NRF performs an agency function on behalf of its line department, the Department of Science and Technology (DST), as well as for the following functions and government departments: Department of Trade and Industry (the dti) for THRIP; Department of Labour (DoL) for the Scarce Skills Fund; Department of Environmental Affairs and Tourism (DEAT) for marine research; DST for the Science and Technology Agreement Committee (STAC) and through the Innovation Fund Board of Trustees for the Innovation Fund. The relationship between the NRF and departments that choose the NRF as agency is usually managed through Memoranda of Understanding containing specific service level agreements, some of which still have to be put into place. In accordance with, or in addition to, these formal agreements, the following

12 governance structures are in place: A steering committee for the Innovation Fund; the THRIP Board, appointed jointly by the NRF President and the Director-General, the dti; and various advisory boards/committees for the National Research Facilities. The role definitions of all governance structures are reviewed from time to time to streamline operations according to best practice.

Corporate finance The detailed financial results of the NRF are set out in the annual financial statements which appear on pages 62 to 81. During the financial year under review the following amounts were allocated to the NRF from DST to enable the NRF to achieve its objectives:

2003 2002 R’000 R’000 Research and Innovation Support Agency ...... 236 309 225 068 iThemba LABS ...... 63 697 61 357 South African Astronomical Observatory ...... 14 853 13 761 Hartebeesthoek Radio Astronomy Observatory ...... 9 205 8 402 South African Institute for Aquatic Biodiversity ...... 4 151 3 690 Hermanus Magnetic Observatory ...... 3 710 4 000 Foundation for Education, Science and Technology ...... 2 559 – TOTAL (Refer Note 4 to the AFS) ...... 334 484 316 278

The NRF’s total expenditure increased from R475m in 2002 to R606m in 2003, with detail concerning expenditure per facility as follows:

2003 2002 R’000 R’000 Research and Innovation Support Agency ...... 467 788 361 891 iThemba LABS ...... 85 716 74 132 South African Astronomical Observatory ...... 19 720 17 114 Hartebeesthoek Radio Astronomy Observatory ...... 10 218 9 337 South African Institute for Aquatic Biodiversity ...... 9 913 6 855 Hermanus Magnetic Observatory ...... 5 417 5 584 Foundation for Education, Science and Technology ...... 7 455 – TOTAL EXPENDITURE PER INCOME STATEMENT...... 606 227 474 913

Within RISA the increase in programme expenditure is mainly attributable to the increase in Agency grants of 24%, as well as a 17% increase in expenses relating to the operations of the Innovation Fund, which were not included in the previous year.

13 After elimination of these expense increases, the increase in RISA programme expenditure is 4,8%.

The unspent funds for the year was R19,8m (2002: R23,8m) which were made up as follows:

2003 2002 R’000 R’000 Research and Innovation Support Agency ...... 32 587 29 275 iThemba LABS ...... (12 438) (2 809) South African Astronomical Observatory ...... (2 223) (2 041) Hartebeesthoek Radio Astronomy Observatory ...... (506) (759) South African Institute for Aquatic Biodiversity ...... 652 (424) Hermanus Magnetic Observatory ...... 828 598 Foundation for Education, Science and Technology ...... 855 – TOTAL ...... 19 755 23 840

The total accumulated funds of the NRF at the end of the year amounted to R125,5m (2002: R97,1m), which were made up as follows:

2003 2002 R’000 R’000 Accumulated unspent funds ...... 60 138 40 875 Southern African Large Telescope (SALT) funds ...... 58 250 52 500 Contingency funds ...... 5 195 3 465 General capital funds ...... 1 903 273 TOTAL ...... 125 486 97 113

The accumulated unspent funds of R60,1m (2002: R40,9m) were made up as follows:

2003 2002 R’000 R’000 Research and Innovation Support Agency ...... 67 384 40 548 iThemba LABS ...... (10 766) 1 673 South African Astronomical Observatory ...... (3 434) (1 211) Hartebeesthoek Radio Astronomy Observatory ...... (874) (369) South African Institute for Aquatic Biodiversity ...... 288 (364) Hermanus Magnetic Observatory ...... 1 426 598 Foundation for Education, Science and Technology ...... 6 114 – TOTAL ...... 60 138 40 875

14 The accumulated unspent funds of R67,4m of RISA mainly comprise grants and bursaries awarded during the financial year under review, as well as the following expenditure, which will only be accounted for in the financial year ending 31 March 2004:

R’000 Ring-fenced funds: IKS ...... 12 944 STAC ...... 6 478 Key International Science Capacity ...... 4 540 Provisions: Grant Management System ...... 3 000 Business Process Review ...... 670 Grant Appeals ...... 1 500 Pension Fund Conversion ...... 5 000 SAIAB Health and Safety ...... 4 000 Budgeted Deficit for 2004 ...... 8 386 TOTAL ...... 46 518

Also included in the accumulated unspent funds of RISA is the share of the Post Retirement Medical Benefit Provision, amounting to R17,3m, which is distributed to the National Research Facilities.

Acquisitions The NRF holds a 45,49% of the issued shares in the SALT Foundation (Pty) Ltd, an unlisted company. In terms of the SALT Shareholders Agreement, the NRF will have a 34% shareholding in the company once all the partners have purchased their share capital. Details of the investment are included in Note 6 to the annual financial statements. The investment has not been consolidated, nor equity accounted, as the NRF holds only two out of 11 seats on the Board, which controls the SALT Foundation. This results in an effective 18% control. The Foundation for Education, Science and Technology was placed under the management of the NRF from 1 December 2002.

Corporate human resources and transformation The reporting period (2002/03) saw a more focused implementation and consolidation of the longer-term strategic objectives for human resources and transformation. These objectives are to: ensure that the organisation has the right number and quality of people; manage change in the context of the vision, mission and mandate of the organisation in a manner that encourages employee participation and commitment; encourage the delivery of results through outstanding performance by providing a remuneration structure and practices that employees recognise as fair and competitive; and

15 ensure that organisational culture and other practices demonstrate care and concern for the well-being of employees.

The following progress and achievements were obtained in the 2002/03 financial year:

Organisational demographics The overall representation by previously disadvantaged individuals (57%) and females (41,2%) within the organisation has remained stable. However, the NRF will pay more attention to improving these statistics as it strives to become representative of the ON CD national demographics at all levels.

Race and gender representation as at 31 March 2003 Full details of organisational 160 demographics by level, race 150 140 Male and gender appear in the KPI 130 120 Female report which is on CD. 110 100 90 80 70 60 BAR CHART: 40 30 20 10 0 African Coloured Indian White BAR CHART Some 66 new employees joined the organisation in the period under review while a total of 49 terminated employment. Of the 49 terminations, 31 were resignations, eight retirements, nine contracts coming to an end and one dismissal. The overall organisational staff turnover was 7,8% (lower than the national average of 11%), and the recruitment rate was 10,6%. Special mechanisms have been put into place to address the alarming turnover rate in RISA (18%).

Training and development The training and development activity increased significantly in the year under review. More than 1 000 person-days were spent on training employees across all levels of the organisation. Further investments in staff were made through the NRF Education Assistance Scheme designed to encourage staff to improve their qualifications through part-time study. An investment of some R232 000 was made, benefiting 42 staff members pursuing diplomas, first degrees and postgraduate studies. The above initiatives will continue in 2003/04 to ensure that staff have the competencies and skills required to contribute to the objectives and mandate of the NRF. While there are still challenges resulting from the change in the conditions of employment negotiated and agreed with the representative unions, no adverse IR situations were experienced in the year under review. Negotiations on package/salary improvements were conducted and concluded within mandate.

16 BOARD REPORT

ON CD

The detailed KPI report can be found on the CD performance overview of business

units Research and Innovation Support Agency Project Portfolio (some examples)

South African Agency for Science and Technology Advancement

National Research Facilities HartRAO HMO SAAO SAEON SAIAB iThemba LABS

17 The NRF has the following business units: Research and Innovation Support Agency (RISA) South African Agency for Science and Technology Advancement (SAASTA) Hartebeesthoek Radio Astronomy Observatory (HartRAO) Hermanus Magnetic Observatory (HMO) South African Astronomical Observatory (SAAO) South African Environmental Observation Network (SAEON) South African Institute for Aquatic Biodiversity (SAIAB) iThemba Laboratory for Accelerator Based Sciences (iThemba LABS)

Research and Innovation Support Agency (RISA)

The core competency of RISA is the ability to manage research and innovation support. This competency entails, among others: the capacity to continuously assess the state of the nation’s ability to deliver highly skilled human resources and the strategic knowledge required within the National System of Innovation (NSI), and to successfully steer research and innovation promotion in the stakeholder community in accordance with identified needs; the capacity to assess and satisfy the requirements of local and international research and innovation sponsors that wish to invest in South Africa and the rest of the African continent, thereby leveraging funds to complement research and innovation funding available within higher education and industry; appropriate decision-making mechanisms based on the principle of peer review to ensure quality and sound investment of research funds; grant management skills and infrastructure; knowledge management facilities and skills, such as databases, provision of research information, and provision of PR advice and support (currently being developed); local and international networking and cooperation; sound governance structures and procedures; a management approach that is outcomes-based and driven by performance criteria.

RISA approach RISA adopts a three-pronged approach to its operations: Programmes that build human resource capacity and the knowledge base. These programmes are largely funded from the parliamentary core grant, but also include programmes where the NRF has been chosen as agency to address scarce skills, facilitate international research and innovation collaboration, and so forth. Programmes focusing on technology and innovation. These programmes are largely in support of the missions of specific government departments such as DST and the dti. A set of enabling support functions.

Human resource capacity and knowledge development RISA allocates its parliamentary core grant mainly to granting functions built around nine focus areas.

18 These focus areas, each addressing national needs and priorities, are: Unlocking the Future: Advancing and Strengthening Strategic Knowledge; The NRF is the Distinct South African Research Opportunities; agency of choice Conservation and Management of Ecosystems and Biodiversity; in assisting government Economic Growth and International Competitiveness; departments to fulfil Education and the Challenges for Change; their mandates. Indigenous Knowledge Systems (IKS); Information and Communication Technology and the Information Society in South Africa; Socio-political Impact of Globalisation: The Challenge for South Africa; and Sustainable Livelihoods: The Eradication of Poverty.

The focus areas form the landscape for interventions addressing the uniquely South African requirements for human resource development, knowledge generation, research utilisation, technology transfer and innovation, and the provision of research equipment and infrastructure. Interventions include: Institutional Development Programmes to develop research capacity at Technikons and Historically Black Universities; Thuthuka, which offers opportunities for researchers in training, women in research, and the training of black staff (REDIBA); Focus Area Programmes, which provide grants to researchers and grantholder-linked students; Science liaison grants to enable the internationalisation of science; Equipment and mobility grants; and Free-standing scholarships and bursaries to address scarce skills, for example.

Technology and innovation The NRF is the agency of choice in assisting government departments to fulfil their mandates. It has been chosen to facilitate the utilisation of research technology development, technology transfer and innovation through the management of the following two programmes: Technology and Human Resources for Industry Programme (THRIP) THRIP is a dti-funded programme which supports projects addressing the technology and human resources needs of industrial partners on a cost-sharing basis with industry. Its primary purpose is to improve the competitiveness of South Africa. The Innovation Fund (IF) The Innovation Fund, a policy instrument of DST, was created to promote technological innovation; increased networking and cross-sectoral collaboration; as well as the key issues of competitiveness, quality of life, environmental sustainability, and the harnessing of information technology.

19 Enabling functions The granting support functions provide services to all RISA programmes and include functions such as Central Grants Administration and Knowledge Management (including Evaluation, Research Information, Strategic Advice and Information Technology).

RISA achievements RISA made a meaningful impact on all the core missions of the NRF and most of its strategic priorities.

Human resource development ON CD RISA supports human resource development through: grantholder support; The text alongside is student support; extracted from the the development of human resources for industry through THRIP; and more substantive staff development grants. performance information contained on the CD. Grantholders The number of grantholders who received research grants (excluding THRIP) has shown a significant increase of 32% from 1 104 in 2001/02 to 1 457 in 2002/03. This increase is largely due to the growth in the number of black (55%) and women (52%) researchers. Most of this growth was in the development programmes.

Growth in number of supported researchers

1600 2001/2002 1400 2002/2003 1200 1457

1000

800 1104 981

600 847 BAR CHART: 400 476 200 350 321 257 231 0 207 Women Black Development Focus Area Total Programmes Programmes BAR CHART:

These results indicate that the effort by RISA to build capacity among the previously disadvantaged is beginning to show handsome dividends. This 32% growth was achieved with a budget increase of about 9%, implying that the average grant size within the developmental programmes decreased substantially.

Students The total number of students supported decreased marginally by 0,8% from 4 365 in 2001/02 to 4 330 in 2002/03. This decline is the result of fewer students supported at 3rd or 4th year and honours level, while the total number at master’s and doctoral level training remained constant. The number of free-standing bursaries has declined by more than 250, which is in accordance with policy to focus within the Bursary and Fellowship

20 Programme on prestigious scholarships, and to phase out the free-standing bursaries for the social sciences and humanities in favour of grantholder-linked bursaries within these disciplines. This policy led to a 7% increase in the number of grantholder-linked bursaries which led to a 5% increase for grantholder-linked bursaries to R41,0m. The total value of student support, however, declined by 4% (R2,5m) from R65,0m in 2001/02 to R62,4m in 2002/03. This discrepancy can be explained by the low take-up Student support per programme type: of allocated free-standing student support at Higher Education Institutions for which 2001/2002 and 2002/2003 R23,7m was approved, but only R21,0m was claimed. The total number of students supported annually over the past five years is 2500 illustrated by the chart below. The sharp downward trend of the previous year has 2000 2465 levelled off (precipitated by elevating the bursary values for the social sciences and 2174 humanities from former Centre for Science Development (CSD) values to those for the 1500 natural sciences and engineering). Concerted efforts to improving provision of access 1000

to eligible students will have to be made. This, however, will only be achieved by 1184 954 943 a substantive increase in the value and number of bursaries, thereby creating a 500 922

demand pull. Number of students supported 0

Trends in student support 6000 Total 2002/2003 2002/2003 2002/2003 Black 2001/2002 2001/2002 2001/2002 5000 Women Focus Area Programmes

5362 Development grants 4000 Free-standing bursaries 4785 4561 4365 and scholarships 4330 3000 3225 2000 2815 BAR CHART: 2568 2507 2514 2175 2051 1000 2012

0 1998/1999 1999/2000 2000/2001 2001/2002 2002/2003 BAR CHART In areas of scarce skills 520 students were supported for the first time from funding provided by the DoL’s Scarce Skills Fund. Of these students, 180 have already received funds through NRF grantholder-linked bursaries, and their NRF bursary grants were DoL Scarce Skills Fund – level of study topped up to the level of the scarce skills bursaries. Of all these bursaries, 67% were awarded to black students and 42% to women. Students who successfully completed their studies during the year numbered 294. The number of students who participated in THRIP declined for a second consecutive year from the all-time high of 2 504 in 2000/01 to 2 246 in 2002/03. The percentage of black students (36%) has also declined from the high of 38% in 2000/01, and the number of women students has also declined in number but remained 30% of total. These trends are of great concern to THRIP management as active student participation is a prerequisite for funding, and because black PhD Honours and women student participation is one of the priorities of the programme. Master’s Encouraging, though, is the growth in the number of researchers by 48 (6%) to 815. BAR CHART: Of these, 17% were black and 27% were women. (Further information on the performance of THRIP is provided in the Annual Report of THRIP).

21 Staff Development Grants Substantial assistance was again provided to staff members of higher education institutions to improve their qualifications, in the form of staff development grants within the research grants of grantholders. The amount has increased steadily from R1,0m in 2000/01 to R1,2m in 2001/02 to R1,5m in 2002/03. In the year under review, 153 staff members were supported. Of the R1,5m, 69% was claimed by black staff members and 53% by women staff members. It is pleasing to note that 67 staff members who benefited from staff development grants to their supervisors over the past years have completed their studies: 28 completed a master’s degree and 39 a doctorate.

Knowledge generation in prioritised areas The focus area framework for research support enables knowledge generation in areas that respond to societal needs, as well as a framework within which disciplinary-based and multidisciplinary research (both basic and applied) is accommodated. The focus area framework is continually reviewed to strengthen weak disciplines and to provide support for new and strategic research areas. This is particularly critical in a healthy and functional innovation system. Within the Focus Area Programmes there has been a 10% increase in funding (to R87,0m). The number of grantholders has increased by close to 14%, the effect of which has been a small decline in the average grant size. This is bound to change as the policy directive based on the RISA strategy is to provide more substantial grants in the future, albeit to a smaller number of grantholders. Of greater concern is the decline in funding of 21,6% and 31% in the Information and Communication Technology and the Sustainable Livelihoods programmes (see chart on page 23). Special efforts will have to be put into these important focus areas to recover lost ground. There has been a substantial increase in the uptake of ring-fenced funds in the IKS Focus Area Programme. This is largely attributable to students benefiting by the way of grantholder-linked bursaries which increased from 101 in 2001/02 to 248 in 2002/03. Of these students 82,6% were black. Research funded by RISA through its Focus Area Programmes has resulted in 2 620 peer reviewed publications, 273 books and chapters in books, as well as 1 022 conference proceedings. This is close to half the total Department of Education-subsidised research output of higher education.

22 Focus Area Grants: Amounts awarded 30 000

25 000 2001/2002 20 000

25 201 2002/2003

15 000 20 678

10 000 15 706 16 409 16 246 13 546 4 990 5 198 4 923

5 000 4 380 3 409 1 556 8 642 7 427 2 673 7 467 862 5 954 0 Systems for Change Knowledge Indigenous opportunities Distinct South Education and the Challenges and Biodiversity Competitiveness African Research and International Conservation and Economic Growth Strategic Knowledge of Globalisation: The Unlocking the Future: Socio-political impact Sustainable Livelhoods: Society in South Africa The Eradication of Poverty Challenge for South Africa Management of Ecosystems Advancing and Strengthening Technology and the Information Technology Information and Communication With R31,9m, total funding to the social sciences and humanities has remained virtually constant from the previous financial year, but represents a decline of 3% of total grant funding in all RISA programmes. This stagnation after a substantial growth in earlier years is of concern and will require concerted effort to ensure that these disciplines retain their rightful position within the science system of the country.

Funding trends in SSH in R value and as % of total grants

35000

30000

25000 31795 31895

20000 27347

15000 R million 19744 THRIP – Funding (R million) per SIC code 10000 15% 19% 23% 20% 5000

0 1999/2000 2000/2001 2001/2002 2002/2003 BAR CHART

It is now widely acknowledged that THRIP is a total economy programme that serves the technology and human resource development needs of all industrial sectors. The manufacturing sector, however, continues to dominate, and constituted 55,6 % of all the projects funded. The diagrams (on this page and overleaf) illustrate THRIP support according to the Standard Industrial Classification (SIC) code in terms of both funding and Manufacturing Agriculture number of projects supported. Mining Energy and water supply Transport and communication Utilisation of research results, technology transfer and innovation Social and personal services The utilisation of research results, technology transfer and innovation are primarily Others vested in the THRIP and Innovation Fund programmes, although elements of these are also pursued in RISA’s support of International Chairs in Entrepreneurship.

23 Details of the outcomes of THRIP and the Innovation Fund programmes in terms of THRIP – Number of projects per SIC Code technology development and innovation are contained in their respective detailed annual reports. The NRF manages these two funds by way of agreements with the dti and the Innovation Fund Board of Trustees respectively which regulate the management of these funds in accordance with specific performance agreements. Such an agreement is in place with the dti, but a similar agreement still needs to be concluded with the Innovation Fund Trust. Great advances have been made in the management of the Innovation Fund since its transfer to the NRF. All backlogs have been eliminated and calls for proposals and selection procedures were completed for Round 5 and nearly completed for Round 6 Manufacturing during the financial year. In the year under consideration, the Innovation Fund was Agriculture reviewed by an international panel of experts. On the basis of this review and a Mining Energy and water supply subsequent strategic planning process, the scope of the Innovation Fund has expanded Transport and communication Social and personal services considerably. In addition to funding projects in its four priority areas, the Innovation Others Fund Board of Trustees has approved the following new thrusts: Technology Platforms in support of the Technology Missions identified in the National R&D Strategy. This entails longer term support for early stage technology development which has potential for economic benefit; Technology Advancement Programme (TAP): Open call for proposals that fall outside the priority areas but which are at the forefront of technology developments; Initiative for Developing Enterprising Activities (IDEA): To promote entrepreneurship by supporting the innovative ideas of young researchers; The Innovation Fund Commercialisation Office (IFCO): To facilitate the protection of intellectual property, patenting and commercialisation. The design of business processes as well as the call for proposals under the first two new programmes commenced towards the end of the year under review. During 2002/03 RISA supported three International Chairs in Entrepreneurship (ICE): at the Port Elizabeth Technikon/Rhodes University, the University of Natal, and the Technikons Northern Gauteng/Pretoria. International partner universities are Limerick University in Ireland and the University of Twente in the Netherlands. The ICE engaged in various activities to enhance entrepreneurial understanding, culture, initiative and practice. These took the form of courses, research, support for new business development, and networking, and engaged students, academics and non-academics.

Provision of state-of-the-art research equipment and infrastructure Research equipment RISA has over the past years not been in a position to arrest, let alone reverse, the rapidly ageing state of research equipment. Efforts to utilise the existing equipment infrastructure optimally resulted in the introduction of the mobility grant scheme several years ago. Unprecedented demand for support from this scheme to access state-of-the-art equipment, both locally and abroad, necessitated more than a doubling of the resources for this scheme in the financial year.

24 Given the critical state of equipment, RISA made available R4,5m during the Innovation Fund: No of applications received and grants awarded financial year for urgent equipment upgrades and repairs to ensure the serviceability of at least some of the more critical pieces of equipment in higher education. This 300 amount, although awarded, will be taken up in the 2003/04 financial year. A call for 250 proposals elicited a response in excess of R40m which underscores the urgency of 200 a sustainable investment in research equipment. 209 150 As equipment renewal has been recognised as a strategic objective in the National 100 127 R&D Strategy, RISA has embarked on the development of an Equipment Renewal 126 85 Strategy by way of wide stakeholder consultation. It is hoped that this strategy will 50 18 18 16 11 12 provide useful suggestions to DST on how to implement such a renewal strategy 0 once funds become available for this purpose. Round 4 Round 5 Round 6 Apart from the initiatives referred to above, some of the equipment needs are Pre-proposal applications received Full proposal applications received being addressed through other programes of RISA. An amount of R3,3m was Grants awarded spent on equipment through the Institutional Programmes, whereas both THRIP and the Innovation Fund make provision for research equipment purchases within their respective granting categories which could ultimately be available for the benefit of the broader research community. Systems will be put in place to report more fully on the placement of equipment in higher education through these programmes.

Research infrastructure The research information databases maintained by RISA for the benefit of the research community show a steady increase in usage of Nexus, SANSA and SADA. This can be ascribed firstly to the growth of the databases, making them of greater value to a larger community and, secondly, to concerted efforts in marketing this facility among researchers and other potential users. A new database of active researchers, both locally and abroad, has been created within Nexus to assist RISA programme management in the selection of appropriate reviewers for project proposals. This will assist greatly in improving the effectiveness and efficiency of peer review processes.

Internationalisation of research and research capacity Internationalisation of research is one of the strategic priorities of the NRF. Currently, the facilitation of strategic partnerships, collaboration and knowledge networks is a cross-cutting enabling function within RISA, handled by the International Science Liaison unit (ISL). It is foreseen that these activities will be extended to become a corporate service that makes opportunities accessible to the national research community through all the mechanisms entrusted to the NRF. During 2002/03 there was a 9% increase in ISL grants with growth of demand primarily in international conference attendance and within STAC (S&T bilateral agreements managed by the NRF on behalf of DST). The increase is due to the growth in the number of bi-national agreements from 11 in 2000/01 to 14 in 2002/03. Through membership dues to continental and/or international scientific bodies such as CODESRIA, OSSREA, IBRO or ICSU, ISL provides access for South African scientists and postgraduate students to continental bodies, research

25 STAC Allocations (R million) training opportunities, research grants and disciplinary meetings and workshops.

14 In this context, ISL supported 630 national ICSU committee members and other

12 South Africans who are members of international or regional scientific committees

10 to meet their obligations within these important international initiatives.

8

6 Africa interaction R Millions 4 A further strategic priority of ISL is to promote and facilitate research networks

2 and partnerships on the African continent. Grants are therefore primarily directed

0 towards networks which have a tangible “multiplier effect”, which are sustainable and 2000/ 2001/ 2002/ 2001 2002 2003 of strategic importance to the continent. Therefore, it should be noted that of the 29 grants amounting to R622 000, 13 grants benefited over 88 African scientists within networks such as the Animal Traction Network, Society for Conservation Biology in Africa, the African Association of Political Science, SADC Network of Media Researchers, and so forth. An example of the success of these initiatives is the funding of the University of the North proposal to OSSREA’s HIV/AIDS programme for which an amount of US$75 000 over two years was granted.

Adherence to quality In accordance with the principle that quality must drive research and research capacity development, strict peer and panel review procedures were adhered to in all RISA programmes. Within the main funding framework of the Focus Area Programmes, national and international peers were approached to review all 1 143 research proposals submitted for longer term funding from 2003 onwards. Close to 6 000 reviewers’ reports were received. This enhanced the ability of the 41 panels that convened to assist with the selection of the 894 projects which were approved for funding. A review of the process has indicated that the instructions to peer reviewers can be simplified, which should also improve reviewers’ responses and the quality of the reports. During the financial year the Evaluation Centre implemented the first full process of evaluating and rating of scholars in the social sciences and humanities. A total of 395 applications were received, of which 59 could not be processed for a variety of reasons. Thirty-three applications had not been finalised by 31 March 2003, with the outcome of the remaining 303 applications as follows:

A B C P Y L No Rating Total 5 54 160 4 14 5 61 303

Within the natural sciences and engineering 269 applications were received, eight of which could not be accepted for further processing. The outcome of this process resulted in a total of 998 researchers within these disciplines with a valid rating at the end of March 2003. This reflects a decline in the number of rated researchers for the second consecutive year, and is of grave concern to the NRF. It reflects in all likelihood the

26 rapidly ageing profile of the dominant white male academics in higher education, and a A decline in the lack in growth of the number of young active researchers to fill this gap. Should this trend continue, the capacity of higher education to grow the knowledge base – let alone number of rated train the next generation of researchers – will be seriously compromised. researchers for the second consecutive Number of rated researchers year is of concern 1040 to the NRF. 1020

1000

980

960

940

920 1995 1996 1997 1998 1999 2000 2001 2002

Rated black and female researchers in the natural sciences and engineering have only increased marginally (3,2%) from 2001 to 2002. Figures for the social sciences are not much better and only 10 black and 65 female researchers obtained a rating of the 242 rated researchers within these disciplines.

27 Scientific and traditional knowledge make for good neighbours

and, like any scarce resource, is closely protected by those who have it and fiercely coveted by those who do not. In South Africa this is exacerbated by land disputes stemming from forced removals, and the disparity of poor communities living in the shadow of high-return game parks. Inadequate land management has one main casualty: the environment. However, ongoing land reform processes in South Africa raise important Lquestions as to how natural resources should be managed, used and accessed in the communities that are affected. As part of her thesis research with the University of Pretoria, postgraduate student Jennifer L. Jones has focused on the need to assimilate “local” knowledge, attitudes and perceptions of communities regarding land-use decisions, with “expert”, scientific data as mapped by conventional Geographic Information Systems (GIS). This approach is known as Community-Integrated Geographic Information Systems (CIGIS), and is designed to sensitise traditional GIS to the needs of communities and provide new insight into how they perceive and seek to use their space. Traditionally, GIS has been used as a tool for environmental assessment for urban and regional planning. The “expert” knowledge it incorporates comprises measurable (quantitative) data, such as population, environment and infrastructure. Its approach is top-down and elitist, often resulting in the marginalisation of the communities being studied. CIGIS, however, employs a bottom-up or democratic approach by collecting “local” knowledge (qualitative data) from all social strata within a community (community leaders, residents, conservation workers and municipal representatives), Jennifer Jones and Vicente Buque from and engaging them in participatory fact-finding exercises. The Centre for Investigation and Data from both ends of the spectrum are then assimilated into one CIGIS in order to Documentation of Integral Development- relate and explain the quantitative and qualitative forces at work. It not only provides a GIS, Catholic University of Mocambique, frame of reference for equitable and environmentally sound decisions to be reached: a discuss the tapping of ilala palms to platform is created for the articulation of viewpoints at all levels of the decision-making make traditional palm wine, which is process, be they local, regional or global. an important economic, cultural and Jones’ project investigated two rural communities – Sibonisweni and Mbangweni – nutritional product derived from local situated within the greater Maputaland region in northern KwaZulu Natal. Both fall natural resources. under the governance of the Tembe Tribal Authority where land is used communally at mostly subsistence level. The fact that both communities share borders with the Tembe Elephant Park is critically important as the region is a globally recognised centre of endemism. Environmental factors – such as the land’s low agricultural potential –

28 impact directly on social factors, most significantly the communities’ high reliance on natural resources. Research commenced in early 2002 and continued into 2003, with numerous site visits to the area. Using existing data, initial reviews of the Maputaland site were conducted to generate a natural resource inventory. Prevailing political and land management strategies were also taken into account. Original data collection (quantitative and qualitative) by way of in-depth geo-referenced surveys, investigated 170 households in Sibonisweni and 118 in Mbangweni. Using global positioning systems (GPS), a household is given a specific land co-ordinate showing its proximity to a conservation area (the quantitative factor). The attitude of that household towards bush meat (the qualitative factor) would then be examined in order to determine whether it is related to the household’s distance from A resident assists with language a conservation area. Does the attitude of a family living nearby a conservation area translation and interpretation. differ to that of a family living further away? The research methodology further included workshops where locals were asked to Qualitative data interpret their world using aerial photographs, or to participate in mental mapping exercises (drawing maps based on their experience of the land). All data was then suggests that community integrated with new and existing GIS datasets using GIS mapping software, to result in members do not deem a holistic, spatial representation of what driving forces lie behind land-use decisions. the future planning Although additional analysis is still to be done, respondents’ feedback identified water and management of and fuel wood resources (their access to, and the quality thereof) as focal issues. However, less than a third of survey respondents identified potential future scarcity of resources a priority … resources as an issue of concern, despite a rapidly growing population. Only 38% of and that resources in respondents identified the correlation between diminished future resources and conservation areas are increased population. perceived to be “better”. Overall, qualitative data suggests that community members do not deem the future planning and management of resources a priority, the notion being that resources have an inexhaustible supply. In addition, resources in conservation areas are perceived to be “better” and this serves to aggravate ongoing conflicts over issues of land ownership and limited access to parks and the resources they contain. A case in point is the community of Mbangweni, finding itself wedged between Tembe Elephant Park as well as Ndumu Game Reserve. Having fallen prey to forced removals in the 1940s and 1950s, this community is currently involved in land claim disputes with the latter, and has naturally been opposed to any conservation efforts in areas once inhabited by its people. It has been said that good fences make good neighbours. In the context of land disputes, where conservation efforts clash with the perceived rights of a community, a CIGIS study could prove to be the starting point for tackling problems faced by either side, bridging the gap between the powers-that-be and grassroots communities. CIGIS engenders forums for discussion and negotiation where scientific and indigenous knowledge complement each other rather than oppose one another. Understanding Using aerial photographs, residents and knowing one’s neighbour indeed makes it easier to respect his boundaries. provide researchers with the location of resource areas and activities, as well as relate knowledge of historical forced removals from Ndumu Game Reserve.

29 Small in scale, large in impact

Nothing is wasted at Ukulinga, the mall-scale farming is the only lifeline between survival and death for many University of Natal’s reseach farm, where rural communities. It is estimated that there are at least 400 000 small- ideas for sustainable, integrated and scale farmers in South Africa. These are mostly women, each of whom is productive farming systems are hatched responsible for a number of dependants. for small-scale farmers. Sadly, many impoverished communities, and the unemployed, do not regard farming as a means to a better future. Rural men, in particular, do Snot believe that farming is worthy of their efforts. A research project headed by Prof Frits Rijkenberg of the Centre for Rural Development Systems (CERDES) at the University of Natal, aims to change these perceptions. Ukulinga, the University’s research farm, is the incubator for much-needed ideas on sustainable, integrated and productive farming systems for areas under two hectares in size. As most small-scale farmers have precious few resources other than their physical labour and land, these systems optimise these two resources by considering the integrated use of crops, livestock, trees, energy, organic fertilisers and soil amendments in order to increase soil fertility and food production, and reduce soil erosion. In addition, they add value to the produce so as to meet the nutritional needs of the families Photographs courtesy of Farmers Weekly (including those coping with HIV/AIDS), and enable them to sell any surplus produced.

30 The emphasis is on the sustainable use of renewable natural resources and Norman Mkhize, the CERDES agricultural relies heavily on solar energy, recycling of nutrients, maintenance of soil quality, project manager, in the experimental efficient harvesting and use of water, reduction of environmental pollution, and minimal garden that grows solutions for meeting use of fossil fuel and agrochemicals. This is all achieved through the synergy of the nutritional needs of families who rely innovative research contributions and the indigenous knowledge of the communities. on their small patch of land for survival. Experiments look at crop combinations and crop sequences, the livestock type and numbers that can be supported by fodder and waste produced on a small plot, the manure/compost that can be used to fertilise the crops organically, the water that can be harvested, the prevention of soil erosion, the nutritional needs of families, the production and use of bio-gas, and other forms of alternative energy, and the use of trees for fruit, nuts, fodder and fuel production and atmospheric nitrogen fixation. This facility is also being intensively used to inform lecturers and to involve students, ensuring that the graduates from this programme leave with a sound understanding of the challenges of rural development and some of the solutions. For instance, students are taught that the commonly practised cultivation of nutrient-deficient maize on one hectare of home garden does not address family food security. Maize should be bought. Instead, the area should carry manure-producing livestock and be planted with more nutritious vegetables. This programme has sustainable impact on the environment, holds economic and social benefits for the resource-poor families and their communities, and vital significance in re-fashioning small-scale farming systems. CERDES aims to establish pilot Community Centres which will involve three local communities. Universities can marshal expertise over a wide front, so the University of Natal is anxious to ensure that such Centres will assist not only with agriculture, but also with primary and secondary education, health needs, youth programmes, and adult education. The envisaged effect is one of a one-stop upliftment package, a novel approach to integrated rural development in South Africa.

31 Seeds for Africa

Prof Patricia Berjak and Dr Joseph Kioko, onsidering the lush vegetation and vast rural tracts of Africa, it seems with two young pepper-bark plants, incongruous that a solution for plant genetic resources preservation which have been raised from should be a focus of a South African research team. But it is. And not cryopreserved seeds. just species preservation, but pioneering work on seed storage too. Despite the country having among the highest recorded species diversity, little is known about their reproductive biology and even less Cabout appropriate means to conserve the gene pools. While it may seem that plant genetic resources conservation is a mere matter of seed collection and conventional storage, this is far from reality. The work of Professor Patricia Berjak and her team at the University of Natal is concentrated on seeds that do not behave in a predictable (orthodox) manner; that is, on those that are unstorable by conventional means (intermediate or recalcitrant seeds). Examples of non-storable seeds include – among many others – those of avocado, natural rubber, mango, litchi, various oaks and the important local muti tree, the pepper-bark. All recalcitrant seeds are seeds that need to remain wet, and because many start germinating as soon as they are shed, retaining the moisture is essential for their metabolic functions. Slow drying, the normal prerequisite for orthodox seed storage, would obviously kill these seeds.

32 Berjak pioneered a method she named “flash-drying” whereby water is removed as quickly as possible from the embryonic axes after cutting them out of the seeds. The process reduces the dehydration time to a fraction of that taken during slow seed drying which is the period during which lethal damage will occur. The germplasm is then stored in a frozen state, usually in liquid nitrogen – a manipulation called cryostorage. Flash-drying is now routinely used in many other laboratories worldwide. Storage of partially-hydrated living tissue has hitherto been the subject matter of many a science fiction film, but in reality this biotechnological achievement stands to benefit every individual on Earth. In particular, it offers a high-tech solution – in the many cases where the seeds are non-storable by conventional means – to Africa’s challenges of sustainable food production, agro-forestry growth and demand for plant-based traditional medicines. Plants are the basis of any ecosystem one cares to define. However, there is an abysmal lack of knowledge about the reproductive biology of the great majority of indigenous plant species in southern Africa – and particularly, about the production, behaviour and hence ecology, of their seeds. Therefore, Berjak’s research group is characterising seed behaviour of as many local species as possible. Significantly, the International Plant Genetic Resources Institute has estimated that as many as 70% of tropical species produce non-orthodox seeds. Berjak’s research is not only helping fill the considerable information and knowledge gaps, but is making significant inroads towards protecting and conserving South Africa’s plant biodiversity and genetic resources. Ultimately, this research aims to establish cryobanking of plant genetic resources as a national facility, particularly for the broad spectrum of indigenous species not Dr Joseph Kioko measures up to a considered as agricultural commodities. An envisaged linked activity could encompass young pepper-bark tree 18 months cryoconservation for genetically-modified plant material. after it had been planted out in the This research programme has gained international recognition as being among field. This tree too was grown from the most successful – if not the most successful – of its kind worldwide. This is a cryopreserved seed. a consequence of the seminal work of Berjak’s team in characterising the basis of recalcitrant seed behaviour, which provided the foundation for scientific exploration of storage possibilities.

Just what the [traditional] doctor ordered Warburgia salutaris, the pepper-bark tree, is practically extinct because of its popularity among traditional healers as a natural treatment for a wide variety of health problems. Despite the species being protected by law in South Africa, it is still heavily exploited. In Zimbabwe it is recorded as “locally extinct”. This situation is further compounded because its seeds are both non-orthodox and are very susceptible to destructive insects and micro-organisms. Pepper-bark trees can be propagated by cuttings but only from the local genetic base, which is narrow. Dr Joseph Kioko – previously a PhD student with Berjak – successfully froze entire seeds which are soft and small enough to dry rapidly. These seeds can now be cryoconserved for planting programmes … allowing this indigenous resource to be re-established and eventually again harvested, this time sustainably.

33 Bats change their tune to survive

volution has produced many amazing and even bizarre life forms on Earth. Arguably one of the most amazing groups of mammals to have evolved on this planet is bats. Bats are marvels of adaptation and are the only mammals capable of flight. Some of man’s most sophisticated technologies pale in comparison to mechanisms used by bats to pursue their lifestyles. This is especially Etrue when one considers the bat’s highly-developed use of sonar, or echolocation, when hunting prey. Echolocation is more efficient and sensitive than any radar or sonar developed by humans. A cruising bat emits pulses, each pulse being about 10 to 15 thousandths of a second’s duration and different in pitch. When the sound strikes an insect, it bounces off in the form of an echo which the bat in turn uses to home in on its prey. The bat then begins to shorten the length of the pulses to less than a thousandth of a second, increasing their emission rate to 200 sound pulses a second, thereby continuously updating the picture it receives as it nears its prey. Echolocation also allows bats to locate targets of varying sizes, and enables them to tell from the echo if an object is edible or not. Dr David Jacobs, an evolutionary biologist – working in collaboration with colleagues and postgraduate students at the Universities of Cape Town and Stellenbosch – is conducting research that will allow us to understand not only how and when echolocation evolved but also how and when bats as a group originated. This is done by combining genetics with ecological and morphological data. For example, a recent study by one of Jacobs’ PhD students, Cassandra Miller-Butterworth, shows that a species of bat having a wide distribution in South Africa actually consists Dr David Jacobs (centre with bat) taking of three subpopulations that are genetically distinct. This genetic differentiation is a digital photo of the wing of a bat, mediated by habitat and behavioural differences, possibly representing the first assisted by graduate students Corrie example of the process of speciation in a mammal. Schoeman (University of Cape Town) Presently, Jacobs’ research team is focusing on the evolutionary arms race between on the left (with camera) and Benoit bats and their insect prey, particularly moths which are consumed in large quantities. Stedelman (University of Geneva, In this research they are investigating whether bat echolocation co-evolved with moth Switzerland). hearing. One of the hypotheses being tested is the Allotonic Frequency Hypothesis (AFH). The AFH proposes that insectivorous bats, preying on tympanate (hearing) moths capable of hearing the echolocation signals they emit, use echolocation calls outside the range of moth hearing to “outwit” the moths’ early warning systems. Furthermore, it contends that peak frequencies of bat echolocation calls correlate with the proportion of hearing moths in the diets of these bats. An evolutionary arms race between predator and prey species has apparently resulted. Nocturnal insects, including moths, seem to have evolved tympanic ears as a defence mechanism against bat predation, and in so doing have exerted selection pressure on bats to refine their call frequencies so that they fall outside the moth’s auditory range. Photo by Dr Manuel Ruedi (Natural History Museum of Geneva, Switzerland) Predators and prey are therefore involved in a process of co-evolution.

34 Although tympanate moths are 40% more successful at avoiding bat predation than non-tympanate moths, their ears are tuned to the frequencies of the echolocation calls of the most common bats (between 20 and 60 kHz). This raises the possibility that some species of bat are using calls at frequencies outside this range to negate moth hearing. If so, bats with calls outside this range should be able to prey on eared moths. Jacobs’ research has shown that this is indeed the case. Bats that echolo- cate outside this range catch more moths, as reflected by their diet, than bats that echolocate within this range. This suggests that these bats use these echolocation frequencies to circumvent moth hearing. This research can have valuable applications for agriculture because predatory bats using echolocation that Dr David Jacobs, assisted by an cannot be heard by moths can prove to be invaluable for undergraduate student from the USA, natural agricultural pest management. For example, in a study taking a tissue sample for genetic conducted in California in 1999, pear farmers suffered crop analysis from a bat in Costa Rica. losses of less than 5% due to the corn-ear moth when a bat Photo taken by Deedra McClearn colony was situated within 2km. When the bat colony was of the Organization of Tropical Studies. situated over 4km away, crop losses of 60% were reported. Locally, Jacobs and his students are investigating whether Jacobs and his students or not local bats eat two moth pests, namely the codling are investigating (Cydia pomonella) and the false codling moth (Cryptophlebia whether local bats eat leucotreta). These pests cost deciduous and citrus farmers millions of rands annually in crop damage. If it is found that Above: Dr David Jacobs two moth pests, the bats do prey on these pests, artificial bat roosts would be with a bat detector codling and the false erected in an effort to attract bats to farms. listening to bat codling moth. These Considering that there are approximately 1 000 species of echolocation calls pests cost deciduous bats in the world, comprising 25% of all mammalian species in a cave. on Earth, research on bats has been much neglected in the and citrus farmers past. Traditionally, research has been targeted at the more millions of rands “glamorous” species such as elephants, whales and other large annually in crop mammals. Jacobs’ work is changing this, and apart from damage. enriching our knowledge of all mammalian species, his research could prove to be an invaluable tool for future environmentally-friendly strategies for pest-management in the agricultural sector.

35 South African Agency for Science and Technology Advancement (SAASTA) formerly Foundation for Education, Science and Technology (FEST)

FEST was mandated and positioned as an agency of DST to promote public awareness, understanding and engagement of science, engineering and technology in South Africa. This responsibility in offering public programmes, is vast, and entails: Coordinating the various public understanding of science, engineering and technology SAASTA relishes the (PUSET) activities in the country, identifying leverage points and supporting them to their optimum; challenge ahead of Urging and assisting scientists to more effectively communicate with lay audiences; illustrating the essential Demystifying science for people so that they can use science to make informed and beneficial role of decisions and improve their quality of life; science, engineering Encouraging scientific and technological literacy that will promote greater engagement of issues related to science and the usage of technology and technology in the in society; everyday lives of all Generating interest in young people to pursue career opportunities that will ensure South Africans, while the growth of the science and technology skills base in the country; and generating interest in Encouraging more women in the fields of science, engineering and technology. science among young Achievements people. During the year under review FEST offered several successful programmes for young people, the public and decision-makers.

Igniting interest in young people During 2002/2003, FEST was responsible for engaging 9 143 learners in its National Science Olympiad and 13 200 participants in its Afrikaans Olympiad. An ongoing challenge is to broaden the participation base of previously disadvantaged learners in the aforementioned projects. A thrilling addition to the basket of Olympiads was the African Languages Olympiad, a project undertaken in 2002 (in partnership with the Pan South African Language Board and the Department of Arts and Culture), whereby pride and excellence in local languages are fostered. Bringing together young mathematicians from about 11 African countries enabled FEST to use a science event to contribute to regional and continental cooperation. FEST’s role in hosting the 12th Pan African Mathematics Olympiad (PAMO) in April 2002, was one of its most exciting regional integration endeavours yet. The South African team took The Solar Eclipse in December 2002 top honours and walked away with four gold medals and the overall team prize. enabled FEST to promote understanding, National Science and Technology Programme for Young Women 2002 appreciation and excitement around this This DST initiative offers an exciting and interactive programme for girls in grades magnificent scientific phenomenon. 6 – 10, and represented FEST’s key project in inspiring more girls to consider science at school level and as possible careers. About 360 girls from around the country had the opportunity to be engaged with science in a stimulating, dynamic and interactive manner during early December 2002. The programme was held in two host provinces, the Western Cape and KwaZulu-Natal.

36 FEST participated in The National Science, Engineering and Technology (SET) Week which took place in May 2002 and saw thousands of young people exposed to science Science for and technology interactive exhibits and SET organisations. rural communities FEST published its two popular science magazines, Archimedes and EasyScience and When your classroom is an open efforts were raised to market the products to a broader beneficiary base. space under the largest tree, or your In its quest to promote awareness of biotechnology, FEST collaborated with the science laboratory consists of only a International Plant and Genetic Resources Institute (IPGRI) and AfricaBio, to few faded photographs, how foreign coordinate a schools competition that focused on the relationship between the concepts of periodic tables and biotechnology and biodiversity. chemical reactions must be. FEST, in response to a tender by the Department of Environmental Affairs and A new funding programme Tourism, developed resource material for schools in the form of a 20-page booklet at SAASTA, Science for Rural aimed at raising awareness of the issues that were addressed by the World Summit on Communities, provides support Sustainable Development. for projects with a scientific A project partnership with Eskom supported 18 schools which show potential for content that will have an impact increasing the number of successful higher grade learners in mathematics and science on communities. at matric level. These adopted schools were supported with infrastructure, learning In the year under review, this support materials and opportunities to participate in informal science activities. programme has benefited rural communities from the Western Engaging the broader public Cape, villages in the Eastern Cape The Solar Eclipse in December 2002 enabled FEST to promote understanding, and schools and KwaZulu-Natal. appreciation and excitement around this magnificent scientific phenomenon. As an example, The Centre for Countrywide activities were held to celebrate this event. the Improvement of Mathematics, A new funding programme within FEST, Science for Rural Communities, benefited Science and Technology Education rural communities nationwide. Six projects were funded during 2002 in the Western (CIMSTE) at the University of South Province, Eastern Cape, Limpopo Province and KwaZulu-Natal. Africa received funding for one-year SA Science Lens is a photographic competition for professional and amateur distance education courses. The photographers alike. The competition was organised by FEST in collaboration with courses are designed for grades 10 the Mail & Guardian, and attracted numerous entries from around the country. This to 12 educators who teach science successful project will see even broader audience participation in the future. and mathematics in poorly-resourced FEST was privileged to host the 7th International Public Communication of Science rural communities near Hoxani in and Technology (PCST) Conference in Cape Town in December 2002. The conference the Limpopo Province. provided a forum for science communicators from around the world, and placed a Teachers registered for one or more strong emphasis on enriching exchanges between developed and developing countries. of CIMSTE’s four modules – physics, During December 2002, FEST played a pivotal role in the revival of the South African biology, mathematics and chemistry – Science Communication Network (SASCON), a network that and CIMSTE staff ran workshops for serves as a convenient access point and discussion teachers or made classroom visits. forum for local scientists, journalists and science As a result of these workshops, enthusiasts. teachers believed they improved Early in 2003, DST commissioned FEST to their content knowledge and implement its Public Understanding of their teaching approaches. In Biotechnology (PUB) programme. This the sciences, particularly, will run for three years and intends they also improved their ensuring broad public awareness, practical skills. dialogue and debate on the current and

37 future applications and risks of biotechnology. FEST’s Museum of Science and Technology focused on delivering a quality service to its principal client base, namely scholars, educators and the general public. The museum has several general and focused (Indigenous Technology, Innovation SA) exhibits. In addition, it offered travelling exhibitions such as SciQuest (science education) and StarLab (a portable inflatable planetarium) for use by SET organisations or schools around the country. The museum’s outreach programme targets both learners and educators. Towards the end of the financial year, FEST got involved in the public communication component of the Square Kilometre Array project for which South Africa is bidding to host the giant radio telescope.

Partnerships FEST has a well-established relationship with DST in promoting public understanding and engagement of science, and during the period under review managed key projects in DST’s PUSET outreach programme. Some of the entities with whom FEST has built relations are the South African Council for the Blind, the Shuttleworth Foundation, the Federation for Science, Engineering and Technology (FEDSET), several of the Sector Education and Training Authorities (SETAs), Eskom, the British Council, the American Association for the Advancement of Science (AAAS), and the German Technical Cooperation Agency (GTZ). There are ongoing efforts to establish both project and funding partnerships to expand the project offerings within FEST.

Through activities such as SET Week (top) New Challenges and visits by the Fantastic Fish Tank, On 13 December 2002, FEST was deproclaimed under the Cultural Institutions SAASTA managed to motivate learners to Act and placed under the National Research Foundation Act of 1999. The NRF learn more about science and technology. welcomed an additional arm (promotion and communication of science to the public) to its business operations under the name South African Agency for Science and Technology Advancement (SAASTA). The merger represents a strengthening of FEST’s/SAASTA’s position as the key facilitator of science and technology engagement with the public. It is expected that it will play an even greater role in the critical interface between science and society in the future. In order to bring about continuity and promote sustainability of projects, the business unit is encouraging longer term PUSET contracts with DST, and other government departments and SET organisations. SAASTA in its reconstituted form remains committed to high-quality delivery. It will continue to target relevant audiences so that all citizens can engage in science and technology, the science and technology skills base in the country is enhanced, and the quality of life of South African citizens is improved.

38 National Research Facilities

National Research Facilities are regarded as important elements of the research infrastructure of the country. In the past, they were mainly seen as institutions with substantial instrumentation and equipment that required considerable amounts of government resources. Currently, a key operational issue for facilities is access to researchers based entirely on open and transparent competition. This includes the National Research Facilities’ own research staff, except in those areas where research is needed for maintaining or upgrading the facility. Recent developments, however, also The core competency require the creation of multi-locational networks of institutions that collaboratively of the National Research contribute to the provision of an urgently needed research infrastructure and are Facilities is to provide accessible to the research community on a competitive basis. unique research infrastructure and Core competencies The core competency of the National Research Facilities is to provide unique research create multi-locational infrastructure and create multi-locational networks of institutions that collaboratively networks of institutions contribute to making infrastructure accessible to the research community. This main that collaboratively competency has several characteristics: contribute to making having a unique position in South African knowledge production; infrastructure accessible core technologies, research methods, and/or data pools and collections that live up to international standards; to the research critical mass of equipment, skills and users, especially with regard to researchers from community. universities and technikons, but also from Science, Engineering and Technology Institutions (SETIs) and, where appropriate, from industry; alignment with the overall objectives of the NSI, especially with regard to the diffusion of new knowledge; the ability to network and to attract international collaborators to South Africa; and the ability to make the best use of the opportunity for human resource development, especially with regard to efforts being made to get disadvantaged researchers involved.

Clustering of National Research Facilities The facilities are clustered in terms of the area of knowledge production that is being serviced, namely: Astro/Space/Geo sciences Biodiversity/Conservation Nuclear sciences The alignment of this clustering with the important themes identified in South Africa’s National R&D Strategy – the Southern Oceans, Islands and Antarctic; Bio-resources/ sciences; Astronomy and Earth Observation – is evident. In terms of the strategic framework, the National Research Facilities are in a very good position to make an impact on the national research and innovation agenda.

39 Hartebeesthoek Radio Astronomy Observatory (HartRAO)

The major resources provided by HartRAO are: Space Geodesy observing time on the 26m radio telescope; brought down to Earth tracking time on the MOBLAS-6 satellite laser ranging system; When the reality of poverty, hunger the regional network of dual-channel GPS stations; and and disease bear down too heavily professional expertise in the scientific and technical fields associated with on a nation, it is easy to cast one’s the Observatory. eyes downwards. Yet, a multi- disciplinary earth science project, Its key objectives are to: based on space geodetic provide, operate, maintain and develop a research facility of an international standard techniques, will cause people to to meet the needs of a national and international user base in the fields of radio look towards space geodesy for astronomy and space geodesy; down-to-earth solutions. initiate, conduct and support research programmes that address relevant problems in Space geodesy is a branch of contemporary astronomy, astrophysics and space geodesy; applied mathematics which studies collaborate in international projects, especially those where the unique geographic the shape and gravity field of the location of the Observatory offers niche opportunities and advantages; Earth, in a three-dimensional time- extend the user base of the facility, particularly to historically black universities and varying space. Of the three major to other countries in Africa, and to a broader range of the national SET community; space geodetic measuring and techniques in use at HartRAO, the encourage an interest in, and awareness of, science and technology among school Global Positioning System (GPS) learners, tertiary level students and the public through visits to the Observatory and has a significant scientific, social, by organising training workshops for educators. economical and educational impact. GPS is used throughout Achievements the world for a multitude of Continuation of the telescope surface upgrade to extend the wavelength range of the applications, including precision instrument. The surface upgrade, which is done using a technique developed farming, land management, public in-house, exceeds the original specifications by a wide margin. safety, and oceanography. Development of software for single-telescope observing, using the New Control Using GPS, the Space Geodesy Computer System, which is based on an open source computing platform. Programme at HartRAO aims to Ensuring optimal performance of both the astronomical and geodetic programmes at equip each SADC country (there the Observatory. Special effort was devoted to the extension of the regional GPS net- are 14 countries) with at least one work, with the addition of two stations: one in Botswana and one in the Northern Cape. geodetic-quality GPS receiver The GPS stations in Botswana and Zambia are the first GPS stations established in the within the next five years. Two SADC region outside South Africa as part of a programme to establish a SADC-wide stations (Zambia and Botswana) co-ordinate reference frame. This will enable each country to have a reference point have already been installed. for surveying and cartographic purposes that is tied to the International Terrestrial Many of the objectives of the Reference Frame. This will allow modernisation of SADC country maps and improved African Renaissance are dependent use and interpretation of satellite imagery, geographical information systems and land on a reliable and sound geospatial management tools, which are essential for sustainable development. information framework – or Restructuring of the administrative and management structure of the Observatory to Geographic Information System ensure a smooth transition after the retirement of the Director in May 2003. (GIS). Such a framework is Participation in the establishment of the new National Astrophysics and Space Science Programme (NASSP), a combined national honours/master’s programme

40 hosted at the University of Cape Town. The objective of NASSP is to significantly increase the number of postgraduate and, ultimately, PhD students in these fields to essential for the effective spatial satisfy the staffing needs of universities and the National Research Facilities. planning and execution of all land- Use of the 4 December 2002 solar eclipse by the Science Awareness Programme to related projects, be they for promote astronomy through educator workshops, leaflets, web pages, TV advertorials agriculture and land reform pro- and media inserts. grammes, or the development of infrastructure such as roads, rail- Outcomes ways, electricity and water supply. HartRAO is the only facility in Africa providing a broad base for training and skills The fundamental infrastructure development in radio astronomy and related science and technologies. Two recent PhD on which all geospatial information degrees – one in 2001 and the other in 2002 – were awarded by the University of is based is, in turn, a sound geo- Nigeria at Nsukka to two Nigerian postgraduate students whose theses were based on detic reference system. For example, work carried out at HartRAO with studentships provided by the Observatory. many environmental issues Recent and continuing upgrades at HartRAO have positioned the Observatory as a transcend international boundaries principal member of the various international VLBI networks, as well as ensuring that and require cross-border the 26m telescope can continue with competitive single telescope research. management of river catchment HartRAO plays a vital role in preparing South Africa for participation in international basins, spread of diseases, and so projects such as the Square Kilometre Array (SKA), and for the possible hosting of the forth. This requires the integration SKA in South Africa. of trans-national spatial information, In recent years geodetic research has declined significantly in South African which will only be possible if all the universities and HartRAO is the only institution in the region that is actively involved information is standardised on the in space geodesy, which is key to all modern geodetic research. same geodetic reference system. A major outcome of the HartRAO space geodesy programme will be the development It is within this context that the of a SADC co-ordinate reference frame, which will provide continuity across borders HartRAO project aims to establish for the various SADC cartographic agencies. HartRAO is the only institution in the a unified datum throughout the region that has the capacity to actively promote this work. The results will have a SADC region, and be instrumental significant impact on sustainable development and the application of space technology in bringing the benefits of space thereto. geodesy to the SADC region and its people. Research outputs Recent research output is limited because the scientific staff members are heavily involved in the upgrade programme at the Observatory, and because of the development status of the instrumentation. Nevertheless, several new international collaborations and renewed effort of developing ties with local universities and technikons have helped to sustain the publication rate and show promise of facilitating a substantial increase. A significant new astronomical result was the discovery of periodic variations in methanol masers inside dense clouds in which high mass stars are forming. Such behaviour is probably due to the orbiting of a smaller body around the star exciting the masers.

Opportunities In early 2003, Cabinet agreed to support a South African offer to host the Core Array of The GPS antenna at the government the SKA in the Northern Cape. This will have a major impact on the development of building where the Surveyor General of radio astronomy in South Africa over the next few years, and it will be vital for the Zambia has his offices, in Lusaka, Zambia. Observatory to be involved in the South African hosting initiative, as it will present

41 HartRAO and the stakeholder community with exceptional opportunities. This will A major outcome of require that developments at the facility are not carried out in isolation but will need to the HartRAO Space be aligned with development of new technologies being developed for the SKA at Geodesy Programme international level. In particular, the development of new capabilities that have been will be the development under discussion (such as a dedicated pulsar telescope) could be realised with the of a SADC co-ordinate possible construction of the European SKA Consortium (ESKAC) technology demonstrator in the Northern Cape. reference frame, which In several years the NASA MOBLAS-6 satellite laser ranging system will be replaced will have a significant with a highly automated SLR 2000 system. The HartRAO Space Geodesy Programme has impact on sustainable proposed an international project to convert MOBLAS-6 into a lunar laser ranging system development and the (LLR), possibly using the 0,75m telescope at Sutherland, should this become available. This LLR will provide exciting new opportunities for engineering and physics students application of space and will provide data with which major issues in fundamental physics can be addressed. technology thereto.

42 Hermanus Magnetic Observatory (HMO)

The HMO functions as part of the worldwide network of magnetic observatories. Its core function is to monitor and model variations of the Earth’s magnetic field.

Strategic planning As a result of the transfer of the HMO from the CSIR to the NRF during 2001, a strategic planning process was started in March 2002. Particular objectives were to: align the HMO with the National System of Innovation; clearly define the HMO’s international role and obligations as a magnetic observatory; develop strategies for the development of research capacity, high level manpower, and science awareness; The HMO is one of promote the development of science and technology in Africa; only four geomagnetic keep up to date with technological developments and user requirements in order to observatories worldwide continue providing quality-controlled services and carrying out contract-based whose data are used research and development work, in HMO’s traditional core competency areas; and for the computation of identify a flagship project of international scientific importance that will contribute towards the stimulation of research and development and the promotion of science the Dst-index, which awareness in South Africa. serves as a measure This strategic planning process resulted in a much clearer understanding and of magnetic-storm realisation of the importance of the NRF’s core missions with regard to human resources ring-current intensity. development. Whereas the HMO was previously structured into three focus areas with the prime goal of service provision, the shift in emphasis necessitated restructuring into four groups with expanded mandates: A Geomagnetism Group which incorporates research and the training of students on geomagnetism. A Space Physics Group which includes, for example, theoretical and experimental studies of space plasmas. This group will develop working relationships with other space physics groups in order to promote research and the training of students. A Technology Group with the added mandate to assist with the training of electronic engineers at universities and technologists at technikons. A Science Outreach Group was established to develop science awareness programmes for school teachers and pupils, an activity which is new to the HMO but of paramount importance for the development of science in South Africa.

Highlights and successes A highlight for the HMO was the organisation and hosting of the Xth IAGA Workshop on Geomagnetic Observatory Instruments, Data Acquisition and Processing, which was held in Hermanus from 15 – 24 April 2002. This was the first workshop of its kind to be held in Africa and was attended by 40 delegates from 24 countries. It was also the first time that delegates from African countries other than South Africa attended such a workshop. African delegates came from the Democratic Republic of the Congo, Egypt, Ethiopia, Ivory Coast, Morocco and Mozambique.

43 The HMO has made significant progress in developing and implementing its objectives Science Outreach with regard to science outreach. Some of the particular highlights in this area were: at the HMO The setting up of a magnetometer museum and interactive science centre at the HMO; The HMO has made significant Visits by officials from the Western Cape Education Department to discuss how the progress in developing and HMO can assist with science outreach; implementing its objectives with A workshop for high school science teachers at the HMO to learn about the HMO’s regard to science outreach. Some plans for science outreach. of the particular highlights in this Another highlight was that a number of researchers spent sabbatical visits at the HMO direction were the setting up of a for the first time in many years. magnetometer museum and inter- active science centre at the HMO. Some outcomes and impacts The magnetometer museum The HMO is one of only four geomagnetic observatories worldwide whose data are used houses a variety of magnetic field for the computation of the Dst-index, which serves as a measure of magnetic-storm ring- measuring instruments that were current intensity. At present, the HMO sends the required data once a day to the World previously used at the HMO. These Data Centre (WDC) in Kyoto, Japan, where the Dst-index is computed. This index is used, instruments have been set up to among others, for space weather forecasting by the Communications Research Laboratory fully demonstrate their operation. (CRL) in Japan, information which is of critical importance in satellite communications The interactive science centre and for manned space flights. In future, CRL would like to receive the index in near contains a wide range of interactive real-time. As a result, the CRL signed a Memorandum of Understanding with the HMO, exhibits, some of which were in terms of which the HMO will provide higher time resolution data in near real-time to developed at the HMO. These the Kyoto WDC. CRL covered the costs of the necessary instrumentation upgrades. This exhibits are primarily used to agreement will, however, have a much wider impact, since the international space physics develop an understanding of community will in future be able to access the Dst-index in near real-time. geomagnetism and space physics. Learners are afforded an opportunity New opportunities to interact with the exhibits as The HMO took part in recent efforts to establish research collaborations between part of hands-on workshops German and South African geoscientists. These efforts commenced with the Geodynamic coordinated by the HMO. South Africa workshop held in Cape Town in November 2002 and the follow-up System Some of the equipment in the Earth: South Africa Mantle to Environment workshop held in Potsdam, Germany, in science centre was made available March 2003. The HMO and the Magnetotellurics and Geomagnetism Section of the courtesy of the PhysMovan project, GeoForschungsZentrum (GFZ) have agreed on a collaborative project, the main focus of which was run in collaboration with which is to study the rapid decrease of the geomagnetic field in the southern African teams from Universities of region, which potentially could have significant societal impact. A recent report based Columbia and Pittsburg in the on satellite data indicates that a reverse dynamo may be developing below South Africa United States. This project reached and suggests that it could eventually lead to a geomagnetic field reversal similar to the out to a considerable number of last known reversal 780 000 years ago. The main objective of this collaborative project schools in the Overberg/Breede is to study this phenomenon using satellite and ground-based data. River Region. This is an important collaboration which the HMO seeks to sustain and fully exploit for the benefit of South Africa’s schools in particular.

44 South African Astronomical Observatory (SAAO) The SAAO’s primary function is to provide top-class international facilities in Africa for research in astronomy, to perform research, and to educate and inform the community. It maintains a number of telescopes at Sutherland in the Northern Cape, where the The National Southern African Large Telescope (SALT) is being built as a collaborative project Astrophysics and Space between the NRF and several international partners. Science Programme South Africa has a long history Achievements of excellence in astronomy, and The construction of SALT is progressing well, with less than two of the total of five years its geographical position, good remaining. In the past financial year all the major milestones that were planned have climate, and modern infrastructure, been achieved, the most notable being: not least the new Southern African Completion of the telescope structure with its associated drives and controls; Large Telescope (SALT), ensure Completion of the mirror truss; that southern Africa is strategically Completion of the dome and its drives and controls; placed to play a major role in the Completion of all mechanical, electrical and civil aspects of the facility; astronomy of the 21st Century. Delivery of more than half of the mirror segments from its Russian supplier; However, the long-term future Figuring and coating of the first batch of mirrors; will also depend on astronomy’s Installing the first batch of mirrors in the telescope, and starting the alignment process; ability to have a positive impact Assembly and factory testing of the tracker; on social needs and problems, Initial installation of the telescope control system. and in particular to contribute to sustainable development in All of these milestones were achieved on schedule and within budget, and most of this science and technology beyond work was executed by South African contractors. the boundaries of astronomy itself. SALTICAM is the first-light camera for SALT, which was designed by the SAAO and Capacity-building in the sciences who is now also constructing it. During 2002 it is of immediate importance, passed its various design reviews with flying colours not only to ensure that the users and construction is on schedule. The instrument of SALT and other facilities will be tested on the 1,0m telescope at Sutherland do not have to be imported during 2003. from the north, but also to The National Astrophysics and Space Science provide graduates with the broad Programme (NASSP) is a unique collaboration which science skills demanded in a enables students from anywhere in Africa to be taught modern technological society. by South Africa’s top researchers. The lecturers are Many graduates in physical drawn from eight universities and three National sciences leave the university Research Facilities (SAAO, HartRAO and HMO). system at the end of their first The students are based at the University of Cape degree. Poverty is widespread Town, and realistic bursaries – thanks to the Ford even among graduates and their Foundation and NRF – allow them to concentrate on families, and the pressure to their studies. NASSP was an outcome of the NRF’s Honours students participating find a job with real earning power strategic planning exercise for astronomy and space in the NASSP get the inside story can be overwhelming. science initiated in February 2001. The programme on SALT. NASSP was born out of an attempt got under way remarkably rapidly and in its first year by the South African astronomical (2003) 15 honours and six MSc students enrolled. community to address these key

45 Outside view: April 2002 Outside view: April 2003 Inside view: April 2002 Inside view: April 2003

The collateral benefits, which have been an essential component of the vision for SALT issues. The main objective of the since its inception, received a major boost with the appointment of a manager in October joint honours/master’s programme is 2002. The SAAO continued to develop plans to construct a Visitor Centre at Sutherland in to attract bright students, particularly partnership with the local community and the Northern Cape Province. Work during 2003 those from designated groups, focused on a joint tourism development strategy, and on cooperation around issues such as into postgraduate study, to ensure tourism and education capacity-building in the area. In particular, tour opportunities to the that they receive adequate financial Observatory were expanded through the appointment of a new full-time education officer in support during their studies, and Sutherland, and through a joint appointment with the Northern Cape Education Department that their career prospects are of a full-time science teacher at the Sutherland High School. The Observatory worked assured. closely with the local community on issues related to the availability of accommodation for After a lengthy exploratory and the SAAO/SALT in the area, with a view to maximising integration of the SAAO into the planning process, the University of local community. The Observatory was also instrumental in the establishment of a job Cape Town (UCT) won the privilege to creation project to manufacture 1,25 million eclipse viewers for the total solar eclipse on serve as the primary host institution 4 December 2002. This provided a source of income to 40 households in Sutherland. for NASSP. Students complete their honours and coursework master’s Outcomes components at UCT, after which An international conference on stellar magnetic fields, organised mainly by the SAAO, they go on to complete the thesis was held in Mmabatho, at the University of the North West, during November/December component of their programme at 2002. It was attended by over 50 astronomers from all over the world, including the one of the partner institutions. The foremost experts in the field. teaching programme is thoroughly One of the highlights was a contribution by Dr LA Balona from the SAAO. The origin collaborative, with lecturers from of mass outflow from certain types of young star, which are surrounded by discs of all partner institutions involved. hot plasma, has remained a puzzle for many years. Dr Balona’s observations made at The NASSP programme Sutherland, suggest that the outflow originates in a flare on the surface of the star caused addresses a number of national by magnetic reconnection of field lines. A very similar effect, albeit on a much smaller strategic drivers, most particularly scale, is seen in the sun. those associated with raising the Africa’s traditions, legends and stories about the sky will reach a world audience research and postgraduate profile with “Cosmic Africa”, a film which premiered at the Carnegie Institute in Washington of South African institutions, and during January 2003 to huge acclaim. It presents Dr Thebe Medupe’s (now a staff transformation in the physical member at the SAAO) introduction to the universe via traditional Setswana stories in sciences. his rural village outside Mmabatho, and also explores the richness of African traditions On completing their degrees it is and achievements, following Dr Medupe through Mali, Egypt and Namibia as he learns expected that half of the NASSP from the local people and shares with them his perspective as an astronomer.

46 Challenges The future of the SAAO centres on making SALT a first-class international research graduates will go on to study for facility and an icon of the African Renaissance. In 2005 the SALT project team will PhDs. Some will do so within the “hand over” the telescope and the SAAO will run it on behalf of the international universities collaborating in NASSP consortium – the SALT Foundation (Pty) Ltd. During the commissioning phase, while others will be eligible for the which will take place in 2003/04, the various telescope systems will be tested and prestige scholarships being offered put together. The current structure of the SAAO is ill-suited to the “SALT era”, so major by the SALT or HESS partners. restructuring will take place over the coming months. The major challenge for the As SALT and HESS come into use SAAO is to re-prioritise activities and to acquire the essential new resources for the opportunities for real collaborative achieving the vision of SALT as a first-rate research facility, equipped with state-of- PhD training with partner countries the-art instrumentation, so as to have a major impact on the science and education will grow, and maximal use will be system in South Africa. made of these for South African and other African students. Those students who do not continue in research will go into industry or commerce, where problem-solving skills obtained as part of their astrophysics and space science education should serve them well. Astrophysics has proven good preparation for working in fields ranging from stock market forecasting to oil exploration. Those who stay in astrophysics and space science will obtain positions in African universities and research establishments. They would form the nuclei of research groups who will be users of facilities such as SALT and HESS, as well as participants in the broader space science activities currently under discussion in southern Africa. The long-term vision sees the region as a hub for space science in Africa that will include participation in the Square Kilometre Array, as well as links to the International Virtual Observatory.

47 South African Environmental Observation Network (SAEON)

SAEON is a South African observation and research network that provides the understanding, based on long-term information, needed to address environmental issues. The inherent short-term variability of ecosystems and their complexity in terms of their structure and functioning is increased by human activity and requires research and monitoring over longer time scales and larger spatial scales. South Africa’s economy rests heavily on the natural environment being kept in a competitive state and hence SAEON is a crucial development to ensure that environmental needs are addressed. These needs relate to environmental risks, conditions, goods and services, which are South Africa’s key aspects for sustainable development in South Africa. SAEON’s role is to inform government and society of longer term and larger scale economy rests heavily environmental changes. Government requires this information for policy-making and on the natural reporting to international conventions and treaties as a basic human right. Society environment being requires information on significant environmental changes, how they are caused kept in a competitive and might even be mitigated. SAEON will contribute to human capacity-building in the environmental science field state and SAEON is through postgraduate training and education programmes aimed at high school learners. a crucial development to ensure that Strategic planning environmental needs SAEON is advised at both the policy and technical levels. A SAEON Advisory Board, are addressed. consisting of government and industry representatives, was constituted by the NRF President to advise SAEON at the policy level. A larger SAEON Technical Steering Committee was also constituted by the NRF President to advise on scientific and operational issues. The appointment process of both committees included an invitation to stakeholder organisations to nominate appropriate representatives. An appointments committee assessed all nominations and balanced the committees in terms of gender, race, expertise and geographical representation through nomination of representatives of the higher education sector.

Achievements An appointments committee was established and completed its function; A Head of SAEON was appointed and continued with network conceptualisation and promotion; A SAEON Advisory Board and a Technical Steering Committee were appointed; SAEON petitioned successfully for membership of the International Long-Term Ecological Research Network (ILTER); SAEON was instrumental in founding the Environmental Long-Term Observatories of Southern Africa (ELTOSA), the SADC LTER network.

Outcomes and impacts Although there cannot be any direct research outputs in this start-up phase of SAEON, the existence and activities of SAEON stimulate alignment of the larger

48 research community’s thinking and initiatives to the concept of Long-Term Ecological Research (LTER); Through its advisory structures, SAEON has representation in terms of stakeholder organisations, race, gender and geographical area. This means that the full spectrum of stakeholders influence the development of SAEON. SAEON’s membership of international networks raises the status of South African ecology and this leads to increasing regional and international networking opportunities for ecologists and socio-ecologists.

South African Institute for Aquatic Biodiversity (SAIAB)

SAIAB serves as a research hub for aquatic biodiversity in southern Africa by: housing and developing the National Fish Collection and associated resource collections as research tools and sources of aquatic biodiversity data; generating knowledge on aquatic biodiversity through interactive and collaborative scientific research; and disseminating scientific knowledge at all levels in a variety of ways.

Achievements The more significant achievements of SAIAB in 2002/03 were: The Coelacanth Initiating the Coelacanth Programme and conducting two marine expeditions; Programme has Completing the Lesotho Highlands Fisheries Development Project; provided SAIAB with Initiating a project of fisheries training and a fish survey of Swaziland; Initiating a survey of the aquatic biodiversity in the Upper Zambezi River as part an important vehicle of an African Wildlife Foundation Four Corners Transfrontier Natural Resources to function as a Management Area project; facilitating hub for Initiating a collaborative project that employed advanced telemetry technology to marine science in monitor the movements of estuarine game fishes; Transferring the National Fish Collection database to Specify collection management South Africa. software; Conducting an inter-African library document provision and delivery project for the Food and Agricultural Organisation (FAO); Recording a record number of postgraduate students in training through SAIAB; and Attaining the first phase of salary equity for staff.

Outcomes The Coelacanth Programme has provided SAIAB with an important vehicle to function as a facilitating hub for marine science in South Africa. The programme conducted two marine expeditions using the SA research vessel ‘FRS Algoa’ off the south-east coast of Africa. Several South African and international institutions were united in common purpose through the programme and a number of scientific, training and public awareness goals were achieved. Progress was made towards providing vital physical and biological environmental information for a conservation management plan for the South African population of coelacanths. In consequence, Marine and

49 Coastal Management of the Department of Environmental Affairs and Tourism is The Coelacanth reviewing its research commitments to East Coast ecosystems. The programme has Programme been a major instrument in forging a South African-led marine scientific thrust within the context of the New Partnership for Africa’s Development (NEPAD). Mozambique, Tanzania, Comoros and Madagascar have all become partners and formed action committees. The second expedition focused on training and exposing learners from these countries to the excitement of marine sciences. SAIAB is conducting several biodiversity projects in different SADC countries, thus further contributing to a scientific edge to the NEPAD initiative. Biodiversity surveys in Zambia, Zimbabwe, Botswana, Namibia (Four Corners Project), Mozambique (Chimanimani Transboundary Resource Management Area) and Swaziland (fisheries training and survey) all include a training and upliftment component for local participants. These projects are being conducted in response to requests from the host The Coelacanth programme was countries to address noteworthy gaps in scientific knowledge. Consequently, they launched by Minister Dr Ben contribute significantly to increasing local knowledge of aquatic biodiversity. Ngubane in February 2002 and SAIAB is achieving notable success with providing practical solutions to aquatic is a flagship programme for SAIAB conservation problems in southern Africa. In partnership with Ecosun cc, SAIAB has and the NRF. The programme conducted a project on the conservation of the Critically Endangered Maloti Minnow in seeks to promote research and Lesotho. This unique endemic species has declined to only six small populations in the knowledge generation, human face of sustained environmental impacts from alien invasive predators, and the resource capacity, and innovation development of the Lesotho Highlands Water Project. The conservation project is and development in science and pioneering techniques of conservation evaluation and of devising solutions to ensuring technology. It explores “inner the long-term survival of such threatened stream fishes in Africa. space” – the deep oceans, the In partnership with the Norwegian Institute for Nature Research (NINA), SAIAB seabed, its oceanography and has initiated advanced telemetry studies on estuarine fishes in order to provide diversity of life. understanding of the dynamics of their populations. The project will advance Following a preliminary mapping management solutions needed to counter the declining populations of estuarine exercise, the first expedition and coastal fish species in southern Africa. set off in March-April The development of SAIAB collection resources aims to 2002 to explore the improve the scope and accessibility of such resources for canyons off the Greater users. The FAO-library project is a significant outreach St Lucia Wetland Park exercise within the context of SAIAB becoming a in KwaZulu-Natal. This knowledge hub for aquatic biodiversity in Africa. resulted in the first SAIAB’s commitment to training extends to both formal detailed mapping of education programmes (students) as well as to informal underwater canyons training of fieldworkers involved with projects. SAIAB in the area and the researchers supervised 21 postgraduate students in filming and recording 2002/03, reflecting a relatively major contribution of the coelacanth and commitment to skills development and population. knowledge generation. A second expedition SAIAB is presently operating within a five-year in July included strategic development plan. Staff development has progressed to the point of partner countries of meeting equity targets. As part of employment equity, two young black researchers were appointed to the staff. Two staff members also received higher degrees during the year.

50 Scientific performance The general performance record of SAIAB scientists over the past three years reveals an increase in productivity over this period. The number of full-time scientists (or equivalents) at the institute is seven in 2002. In 2002 performance indicators were as follows:

SAIAB: Research outputs 45

40 43 41 35 Refereed scientific 30 publications 31 25 Books, reports and theses 20

21 Conference 20 19 19 15 18 and other presentations 14 10 13 12 12 Postgraduate 5 students 0 2000 2001 2002 BAR CHART: Mozambique and Tanzania in Opportunities the programme through training The need to develop new facilities for housing the National Fish Collection has been and public awareness of marine evident for some time, and a project to install mobile shelving in the collection store science. has been initiated. Off-site storage of the collection has also become an important The expedition opened the consideration to ensure that the required conditions for Occupational Health and German submersible, Jago, (see Safety are met. The development of new collection facilities will provide SAIAB with left and above) to over 400 visiting the opportunity to develop its planned genetic tissue bank and to expand office and scholars, students and educators laboratory space. in Cape Town, Port Elizabeth, East The new National Environmental Management: Biodiversity Bill will provide London, Durban, Richards Bay, opportunities for SAIAB to contribute to the research and planning needs for and Maputo. conserving aquatic ecosystems, species and the control of aquatic alien invasive An exciting public awareness organisms in South Africa. The Bill will also establish a new South African National programme has been conducted Biodiversity Institute which presents an opportunity for SAIAB to establish an through TV programmes, radio active working partnership with this proposed institute. broadcasts, public lectures and numerous media releases. The Coelacanth Programme has integrated physical and biological sciences, harnessed engineering and technology and has built an impressive collaborative network of institutions, scientists, and educators nationally and internationally. It is a fitting scientific thrust for NEPAD.

Coelacanth photographs by SAIAB, James Stapley and Hans Fricke, and Primal Films

51 iThemba Laboratory for Accelerator Based Sciences (iThemba LABS)

iThemba LABS focuses on providing scientifically and medically useful radiation through the acceleration of charged particles using the Separated Sector Cyclotron, There is an international the Van de Graaff Accelerator and other appropriate technologies. iThemba LABS is scarcity of radioisotopes to be the primary centre of expertise in radiation medicine and nuclear science and creating a market into technologies to advance the knowledge and health of the people of Africa. which iThemba LABS’ products have had Strategic objectives The basic skills and facilities at iThemba LABS are in the applied and pure sub-atomic speedy access due sciences and associated technologies. Worldwide, these basic sciences are growing to their quality and strongly. The applications of these sciences to technology are also growing rapidly indeed. innovative nature. For example, there is an international scarcity of radioisotopes creating a market into which iThemba LABS’ products have had speedy access due to their quality and innovative nature. There is also a shortage of the skills and human resources required to satisfy these growing markets and economic requirements. The training programmes Teacher Information at iThemba LABS are essential both for transforming the South African science and Technology Training technology (S&T) workforce and for growing the skills required to build a successful economy in which there are sufficient resources to eradicate poverty. Computer literacy and wider access As a national research facility working within the National System of Innovation it to information can greatly assist is the intention of iThemba LABS to achieve the following strategic objectives: teachers in making maths and Grow the research facilities to increase training, human resource development, science more accessible to young international collaborations (especially with Africa) and the Science and Technology learners. During the year under profile of South Africa. review, iThemba LABS engaged in To spin off economic units that are self-sustaining and benefit from the skills, a pilot project with the Western sciences and technologies developed and available at iThemba LABS. Cape Education Department and To these ends the following should be achieved: the ICDL Foundation to train 20 realise the Major Radiation Medical Centre (MRMC) project; teachers from schools in previously grow radionuclide production into a substantial business; disadvantaged communities. substantially improve training and research outputs; Training included aspects of strengthen beneficial collaborations with the higher education sector; everyday software computing, with forge closer ties with South African and African S&T institutions; subjects covering word-processing, position to have the skills and capacity to respond to the sub-atomic technology spread-sheets, databases, presenta- needs of 2005–2010. For example, in this period fourth-generation synchrotron tion software, operating systems, as radiation sources and accelerator-based free electron lasers may well be needed by well as internet and email. In the the African S&T community to impact advances in chemistry and biology; process teachers could obtain an quickly expand the IT/electronics/instrumentation capacity at iThemba LABS. The internationally recognised computer current capacity barely meets basic needs. Skills and capacity in these disciplines qualification (International are vital to the national interest; Computer Drivers License - ICDL). acquire the capacity to technically and scientifically service university research As the Western Cape Education groups that wish to use international facilities such as CERN, ILL, ESRS, Department had already initiated SESEME, CEBAF Spring 8, and so forth. This servicing activity is one of the key its Khanya project to supply functions of national research laboratories internationally; substantially expand the number of post-doctoral fellowship and research assistant

52 posts to increase opportunities for young South Africans to establish international research reputations.

Performance review Beam availability from the Separated Sector Cyclotron (SSC) reached a record high of approximately 71%. However, this effort was not maximised by all potential users, especially the Proton/Neutron Therapy Programme and Radionuclide Production. The consistency of the beam quality, coupled with its high availability, is a commendable effort given the ageing equipment which is now prone to more frequent technical breakdowns. In contrast, availability of the Van de Graaff Accelerator decreased to less than 50% over the previous year, which has had a marked impact on collaborations, research and post- schools with computer laboratories, graduates within the Materials Research Group that historically had the majority of this programme encouraged researchers/collaborators and postgraduates. The ageing equipment was again the reason for teachers to use technology in the decline in available hours, and a comprehensive maintenance programme is planned for their own methods of teaching. 2003 to reduce technical failures and improve both beam quality and availability on a An important facet of the Khanya consistent basis. project is the use of facilitators at Radionuclide production, although receiving 50% of beam time, was adversely affected each school. Once a computer by an unplanned shutdown of a further two months for essential facilities’ maintenance and laboratory is operational a facilitator upgrade of Radiation Protection Systems. The strong Rand also affected export orders is appointed to the school to teach together with in-transit damages of several relatively large orders. A negative exchange the educators how to use the com- rate difference of R0,6m at the end of the financial year was necessitated by the consistent puters and the educational software performance of the local currency against the US$ during March 2003. Local demand for as a new tool to aid their delivery of short-lived isotopes remains sluggish due mainly to the lack of funds at State hospitals. curriculum. These facilitators are However, demand for long-lived radionuclides remains volatile. trained at iThemba LABS. The Therapy programme lacked a resident oncologist throughout the year while referrals The iThemba LABS Computer from both the Western Cape Teaching Hospitals declined. Recruitment of a Medical Training Centre was chosen Director is a priority. because of its resources which are The Major Radiation Medicine Centre (MRMC) project remained a core initiative within offered readily to the community, iThemba LABS and the revised business plan, which confirmed a financially viable and because iThemba had built up project, was accepted by the NRF Board in March 2003. The focus in 2003/04 will be on a reputation in another project securing project financing and finalising the implementation plan. training teachers from Khayelitsha Good progress has been made on the project to increase SSC beam current intensity by a earlier in the year. factor of at least three. The higher beam current will be available from April 2004. Linked The computer training centre at to this, design work is in progress to upgrade the Radionuclide Production Facilities to iThemba LABS has been upgraded utilise the higher beam current. A vertical target station is the major element of the to accommodate the larger number upgrade and will afford iThemba LABS the opportunity of increasing its product portfolio of educators who were chosen to and thereby market penetration. Outside the MRMC, these projects represent the major attend the training session and new development initiatives within iThemba LABS. is well placed to cope with the The initial reviews of the IAEA-sponsored Robotic Patient Positioning System and interest that has been shown in the SPG system has been extremely positive. This project has provided excellent research this kind of training. material for postgraduate Engineering/Applied Mathematics students. Due to its considerable success, The Science and Technology Awareness Programme continues to grow with previously this programme may well be disadvantaged schools within the precinct of iThemba LABS being targeted. Workshops at implemented in other regions. science expos and festivals were extremely successful with some 2 000 learners attending.

53 BOARD REPORT key performance indicator report ON CD The detailed KPI report appears on CD.

54 NRF approach to KPIs and benchmarks

During 2002/03 the NRF refined the alignment of its corporate core missions and strategic priorities with the Balanced Scorecard reporting framework required from the Science Councils by DST (see table below). The NRF identified the stakeholder/ customer perspective as the category that captures the performance of the NRF (ie outputs and, where available, outcomes and impacts of activities) with regard to all its core missions and strategic priorities within the stakeholder community. The NRF regards the other perspectives – financial/investment, organisational learning, business processes and human resources and transformation – as internal NRF performance areas that support the NRF’s ability to fulfil its mission.

Alignment of the corporate core missions and strategic priorities and the Balanced Scorecard reporting framework for Science Councils Performance Areas Key Performance Indicators Stakeholder/Customer Perspective KPIs linked to the corporate core missions and high level objectives of the NRF and all the corporate strategic priorities with the exception of Organisational Transformation Financials/Investment Perspective KPIs linked specifically to corporate strategic priority Organisational Transformation: financial report Organisational learning KPIs linked to the corporate strategic priority Organisational Transformation: organisational innovation and learning Business processes KPIs linked to corporate strategic priority Organisational Transformation: business processes and procedures Human Resources and Transformation KPIs linked to corporate strategic priority Organisational Transformation: corporate human resources and transformation

Especially with regard to RISA reporting, the outcomes of NRF activities (eg research that was conducted through the funding provided by RISA) are achieved within the ambit of the stakeholder community. As regards the National Research Facilities, which has research as one of its in-house activities, some core missions and strategic priority performance measures (eg knowledge generation) are achieved by the facility itself, and some by members of the stakeholder community, based on the interventions by the facility.

Benchmarks for core missions and strategic priorities Within the National System of Innovation benchmarks are used at a systemic level as indicators of the health of the system. The core missions and strategic priorities of the NRF aim at contributing to improving on the system, and indicators of the success of the interventions of the NRF are therefore aligned to the systemic indicators.

55 The following benchmarks are used for the core missions of the NRF:

Human resource development Number of South Africa’s professional R&D workforce (currently around 30 000 people or seven researchers per 10 000 members of the population – NACI Report, 2002:9); PhDs per million of population graduates in South Africa; The ageing profile of active researchers; Race and gender inequity in the human resource capacity; The secondary school pass rates with university exemptions in science and mathematics and the enrolment in these disciplines at tertiary education institutions; Completion rates in relation to enrolments for both master’s and doctoral degrees; Information on the impact of HIV/AIDS on the current and the potential human resource capacity for research and innovation.

Knowledge generation (research and development in prioritised areas) Institute for Scientific Information (ISI) indexed articles from South Africa, about 0,5% of the global output.

Utilisation of research results, technology transfer and innovation South African-registered patents with the United States Patent Office; Percentage of economic growth attributable to technical progress; High and medium technology exports as a percentage of all exports; South Africa’s score on the Technology Achievement Index (TAI) developed by the United Nations Development Programme as a measure of technology development (eg number of patents, royalties/licences, tertiary science enrolments, internet hosts, and so forth).

Provision of state-of-the-art research equipment infrastructure Equipment renewal; State-of-the-art research equipment acquisition.

56 financial report Statement of Responsibility by the Board of Directors

Report of the Auditor-General

Income statement

Balance sheet

Statement of changes in funds

Cash flow statement

Accounting policies

Notes to the annual financial statements

57 statement of responsibility by the board of directors

he Board is responsible for the preparation, integrity and fair presentation of the annual financial statements of the National Research Foundation (NRF). The Auditor-General is responsible for independently reviewing and reporting on these financial statements to Parliament. The annual financial statements have been audited by the TAuditor-General. The Auditor-General was given unrestricted access to all financial records and related data, including minutes of meetings of the Board of Directors and committees of the Board. The Board believes that all the representations made to the independent auditors during their audit were valid and appropriate. The report of the Auditor-General is presented on page 60. As reported, the NRF is complying with the Public Finance Management Act, 1999 in all material aspects. The annual financial statements for the year ended 31 March 2003 presented on pages 62 to 81 have been prepared in accordance with South African Statements of Generally Accepted Accounting Practice. They are based on appropriate accounting policies which have been consistently applied and which are supported by reasonable and prudent judgements and estimates. The going concern basis has been adopted in preparing the annual financial statements. The Board has no reason to believe that the NRF will not be a going concern in the foreseeable future based on forecasts and available cash resources. The Board is also responsible for the NRF’s system of internal controls. These are designed to provide reasonable but not absolute assurance as to the reliability of the annual financial statements and to adequately safeguard, verify and maintain accountability of assets. These controls are monitored throughout the NRF by management and employees with the necessary segregation of authority and duties. Processes are in place to monitor internal controls, to identify material breakdowns and implement timely corrective action. An internal audit function is in operation to assist members of executive management in the effective discharge of their responsibilities, including compliance with the Public Finance Management Act, 1999. During the financial year under review internal audits were conducted to promote the safeguarding and control of the NRF’s assets, and of the economical and efficient management of the organisation’s resources and the effective performance of its functions. A materiality and significant framework has been developed for reporting losses through criminal conduct and irregular, fruitless and wasteful expenditure, as well as for significant transactions envisaged per section 54(2) of the PFMA that requires ministerial approval. The framework was finalised after consultation with the external

58 auditors and will be formally approved by the NRF Board. The NRF Board endorses, and during the period under review, has applied the Code of Corporate Practices and Conduct as set out in the King II Report, as far as possible. The NRF is unable to comply with some of the sections of the Code of Corporate Practices and Conduct, which are in conflict with the National Research Foundation Act (Act No 23 of 1998). These sections relate to the Board of Directors and associated issues. The NRF has developed and implemented an Employment Equity and Redress Policy. The NRF’s Code of Ethics commits the organisation to the highest standards of behaviour and ethics in dealing with all its stakeholders. By supporting the Code of Corporate Practices and Conduct the NRF Board has recognised the need to conduct the enterprise with integrity and in accordance with South African Generally Accepted Corporate Practices. Audit Committee meetings were held on 30 May 2002, 31 October 2002 and 13 March 2003. The external auditors have free access to the Audit Committee. The Audit Committee meets periodically with management and the external auditors to review the financial statements and accounting policies, the effectiveness of management information and other systems of internal control, the effectiveness of the internal audit, and to discuss the auditors’ findings. The annual financial statements were approved by the Board on 24 June 2003 and are signed on its behalf by:

Prof BD Reddy Dr K Mokhele CHAIRPERSON PRESIDENT

59 report of the auditor-general to the Minister of Arts, Culture, Science and Technology on the financial statements of the National Research Foundation for the year ended 31 March 2003

1. AUDIT ASSIGNMENT The financial statements as set out on pages 62 to 81, as well as the Key Performance Indicators on pages 54 to 56 (of which the full report is available on CD), for the year ended 31 March 2003, have been audited in terms of section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), read with section 3 and 5 of the Auditor–General Act, 1995 (Act No. 12 of 1995) and section 18 of the National Research Foundation Act, 1998 (Act No. 23 of 1998). These financial statements, the maintenance of effective control measures and compliance with relevant laws and regulations, are the responsibility of the accounting authority of the National Research Foundation. My responsibility is to express an opinion on these financial statements and the compliance with relevant laws and regulations, applicable to financial matters, based on the audit.

2. NATURE AND SCOPE The audit was conducted in accordance with Statements of South African Auditing Standards. Those standards require the audit to be planned and performed to obtain reasonable assurance that the financial statements are free of material misstatement.

An audit includes: examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

I believe that the audit provides a reasonable basis for my opinion.

3. AUDIT OPINION In my opinion, the financial statements fairly present, in all material respects, the financial position of the NRF at 31 March 2003 and the results of its operations and cash flows for the year then ended in accordance with Statements of Generally Accepted Accounting Practice and in the manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999).

60 4. EMPHASIS OF MATTER Without qualifying the audit opinion expressed above, attention is drawn to the following matter:

4.1 Audit certificates supporting grant claims – Research and Innovation Support Agency A number of institutions have not submitted audit certificates supporting grant claims for the financial year ended 31 March 2003. The total value of grants for which no audit certificates have been obtained amounts to R8,0m, compared to R18,0m and R8,0m in 2001/2002 and 2000/2001 financial years respectively. Audit certificates relating to the 2001/2002 financial year still outstanding, amount to R65 000. All certificates for the 2000/2001 financial year were subsequently obtained.

5. APPRECIATION The assistance rendered by the staff of the NRF during the audit is sincerely appreciated.

N MANIK for Auditor-General

16 July 2003

61 income statement for the year ended 31 March 2003

Notes 2003 2002 R’000 R’000

Government grants 336 431 290 733 Other income 289 551 208 020 Total income 1 625 982 498 753

Grants and bursaries 1 (396 965) (307 441) Salaries 1 (106 942) (89 585) Other expenses (102 320) (77 887) Net unspent funds for the year 1 19 755 23 840

62 balance sheet as at 31 March 2003

Notes 2003 2002 R’000 R’000

ASSETS Non-current assets 206 334 201 198 Property and equipment 5 131 282 130 360 Investment 6 58 250 52 500 Retirement benefit fund deficit 16 544 18 138 Staff loans 7 258 200

Current assets 435 122 346 539 Inventory 8 1 846 1 600 Grants and bursaries paid in advance 119 317 186 219 Trade and other receivables 9 35 309 17 625 Short-term portion of staff loans 7 765 722 Bank balances and cash 10 277 885 140 373

TOTAL ASSETS 641 456 547 737

FUNDS AND LIABILITIES Funds and reserves 253 625 227 199 Income funds 123 583 96 840 General capital fund 1 903 273 Deferred income 128 139 130 086

Non-current liabilities 134 950 50 469

Trust funds 11 134 950 50 469

Current liabilities 252 881 270 069 Accrued grants and bursaries 198 345 222 900 Grants and bursaries payable 209 244 Trade and other payables 12 23 124 28 561 Provisions 13 31 203 18 364

TOTAL FUNDS AND LIABILITIES 641 456 547 737

63 statement of changes in funds for the year ended 31 March 2003

Accumulated Contingency SALT General Deferred Total *Fund *Fund *Fund Capital Fund Income R’000 R’000 R’000 R’000 R’000 R’000

Balance as at 31 March 2001 17 035 3 480 30 000 273 127 026 177 814 Net unspent funds for the year 23 840 - - - - 23 840 Transfer to SALT fund - - 22 500 - - 22 500 Transfer from contingency fund - (15) - - - (15) Acquisition of fixed assets (Note 4) - - - 12 346 12 346 Allocated to income (Note 4) - - - - (9 286) (9 286) Balance as at 31 March 2002 40 875 3 465 52 500 273 130 086 227 199

Net unspent funds for the year 19 755 - - - - 19 755 Funds transferred from FEST 5 258 1 730 - 1 630 - 8 618 Transfer to SALT fund (5 750) - 5 750 - - - Acquisition of fixed assets (Note 4) - - - - 12 751 12 751 Allocated to income (Note 4) - - - - (14 698) (14 698) Balance as at 31 March 2003 60 138 5 195 58 250 1 903 128 139 253 625

* These balances are included under income funds totalling R123,6m (2002: R96,8m).

64 cash flow statement for the year ended 31 March 2003

Notes 2003 2002 R’000 R’000

Operating activities

Cash receipts from government 334 484 316 278 Cash receipts from other sources 256 352 210 437 Cash paid to grant-holders (354 653) (309 106) Cash paid to suppliers and employees (185 728) (154 642) Cash generated by operations 20 50 455 62 967 Interest received 15 515 12 118 Interest paid (112) (94) Funds transferred from FEST 8 618 – Increase (decrease) in trust funds 84 481 (34 158) Net cash from operating activities 158 957 40 833

Investing activities

Increase in investments (5 750) (22 500) Acquisition of property and equipment (15 750) (12 313) Replacement of property and equipment (1 931) (3 430) Additions to property and equipment (10 986) (8 883) Transferred from FEST (2 833) – Proceeds from sale of property and equipment 156 273 Increase in staff loans (101) (181) Net cash used in investing activities (21 445) (34 721)

Net increase in cash and cash equivalents 137 512 6 112 Cash and cash equivalents at the beginning of the year 140 373 134 261 Cash and cash equivalents at the end of the year 21 277 885 140 373

65 accounting policies for the year ended 31 March 2003

Basis of preparation The annual financial statements are prepared on the historical cost basis and incorporate the following principal accounting policies, which have been consistently applied in all material respects unless stated otherwise. The annual financial statements comply with Statements of Generally Accepted Accounting Practice in all material respects.

Government grants and contributions Government grants and contributions are recognised in the income statement in the period to which the grant or contribution relates. The portion of government grants utilised to acquire non-depreciable property and equipment is transferred to the general capital fund. The portion of government grants utilised to acquire depreciable property and equipment is allocated to income over the periods and in the proportions in which depreciation on those properties and equipment is charged.

Property and equipment and depreciation Property and equipment are shown at cost and, where appropriate, are depreciated on the straight-line basis at rates which are deemed reasonable for the asset to be written off over its estimated useful life. Land is stated at cost and provision is made to recognise any permanent decline in value. All assets costing R1 000 or less, as well as computer software, are written off when purchased. Self-constructed property and equipment are stated at cost, which includes all costs necessarily incurred to bring the assets to the condition and location essential for their intended use. Costs, which include salaries and overhead expenses, have been capitalised as from 1 October 1993. No retrospective adjustments were made as no reasonable estimates of costs incurred prior to 1 October 1993 could be made. The depreciation rates are:

Buildings 2% - 4% Research equipment 2% - 20% Administrative computer equipment 33% Office equipment 20% Office furniture 10% Motor vehicles 20%

Inventories Inventories are valued on the first-in-first-out basis at the lower of cost and net realisable value.

66 Financial instruments Financial assets The NRF’s principal financial assets are bank balances and cash, trade receivables and equity investments. Trade receivables are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Investments, where the NRF is not in a position to exercise significant influence or joint control, are stated at cost less impairment losses recognised, where the investment’s carrying amount exceeds its estimated recoverable amount.

Financial liabilities and equity instruments Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Significant financial liabilities include trade and other payables.

Foreign currency transactions Transactions in foreign currencies are accounted for at the rates of exchange ruling on the date of the transaction. Assets and liabilities in foreign currencies are accounted for at the rates of exchange ruling at the balance sheet date. Exchange differences arising from conversion are recognised in the income statement in the period in which they occur.

Grants and bursaries Grants and bursaries are recognised in the income statement in the period to which the commitments relate.

Retirement benefit costs The cost of providing retirement benefits under the defined benefit plans is determined by using an accrued benefit valuation method. Current service cost is recognised as an expense in the current period. Past service costs, experience adjustments, the effects of changes in actuarial assumptions and the effects of plan amendments in respect of existing employees are recognised as an expense or as income systematically over the expected remaining working lives of those employees. The effects of plan amendments in respect of retired employees, are measured as the present value of the effect of the amended benefits and are recognised as an expense or as income in the period in which the plan amendment is made.

67 accounting policies

for the year ended 31 March 2003

Investments Investments are carried in the balance sheet at cost less any provisions for permanent diminution in value.

Segments All segment revenue and expenses are directly attributable to the segments. Segment assets include all operating assets used by a segment and consist principally of property and equipment, as well as current assets. Segment liabilities include all operating liabilities and consist principally of trade creditors. These assets and liabilities are all directly attributable to the segments. Segment revenue, expenses and results include transfers between business segments and between geographical segments. Such transfers are accounted for at competitive market prices charged to unaffiliated customers for similar goods. These transfers are eliminated on consolidation.

Taxation The NRF is exempt from paying normal taxation.

Provisions Provisions are recognised when the following conditions have been met: The NRF has a present legal or constructive obligation to transfer economic benefits as a result of past events. A reasonable estimate of the obligation can be made.

A present obligation is considered to exist when the NRF has no realistic alternative but to make the transfer of economic benefits. The amount recognised as a provision is the best estimate at the balance sheet date of the expenditure required to settle the obligation. Only expenditure related to the purpose for which the provision is raised is charged against the provision.

68 notes to the annual financial statements for the year ended 31 March 2003

2003 2002 R’000 R’000 1. Net unspent funds for the year Income Government grants (refer Note 4) 336 431 290 733 Contributions 265 584 187 414 Interest received 15 143 11 980 Abnormal income (refer Note 2) – 948 Other income 8 824 7 465 Profit on foreign exchange transactions – 213 Total income 625 982 498 753

Expenditure Audit fees 876 590 Regularity auditing 837 647 Under (over) provision previous year 39 (57) Books and journals 2 045 1 748 Computer requisites 2 191 3 317 Depreciation (refer Note 5) 14 535 9 080 Buildings 1 636 1 408 Research equipment 9 209 4 936 Administrative computer equipment 2 453 1 700 Office furniture and equipment 767 556 Motor vehicles 470 480 Electricity 3 998 3 691 Fees for services 15 796 9 901 Technical 14 807 9 438 Administrative 989 463 Grants and bursaries 396 965 307 441 Interest paid 112 94 Loss on foreign exchange transactions 199 – Loss (profit) on disposal of property and equipment 167 (68) Research equipment 256 – Administrative computer equipment 2 (27) Office furniture and equipment (7) 5 Motor vehicles (84) (46) Printing and stationery 2 853 1 946 Purchases 5 694 3 662 Repairs and maintenance 6 521 6 696 Salaries 106 942 89 585

69 notes to the annual financial statements

for the year ended 31 March 2003

2003 2002 R’000 R’000 Subsistence and travel 11 107 8 807 Telephone, data lines, faxes and postage 2 843 2 427 Uninet data lines 803 778 Post-retirement healthcare benefits 15 443 9 366 Other expenditure 17 521 16 254 Salaries and overheads capitalised (384) (402) Salaries (243) (223) Accommodation costs, insurance (11) (3) Computer requisites (1) (6) Depreciation (30) (33) Printing and stationery – (2) Purchases (92) (133) Telephone, data lines, faxes and postage (7) (2) Total expenditure 606 227 474 913 Net unspent funds for the year 19 755 23 840

2. Abnormal income Insurance claim (refer Note 1) – 948

Abnormal income in the previous year consisted of an insurance claim payout under the NRF’s fidelity insurance policy, relating to fraudulent expenditure incurred on the Masifunde Project as reported in previous years.

3. Board members’ and Executive members’ remuneration Non-executive Board members’ fees 76 81 Executive Board members’ and Executive members’ remuneration 7 360 7 265 Salaries 5 993 5 616 Benefits 1 088 1 079 Bonuses (13th cheque) 279 570 Total 7 436 7 346

4. Government grants Government grants received 334 484 316 278 Transfer to capital reserve – (22 485) Portion of government grants utilised to acquire depreciable property and equipment during the year allocated to deferred income (refer Note 5) (12 947) (12 346) Portion of deferred income recognised in the income statement 14 894 9 286 Government grants (refer Note 1) 336 431 290 733

70 5. Property and equipment Cost Accumulated Carrying depreciation amount R’000 R’000 R’000 2003 Land and buildings 41 557 5 790 35 767 Research equipment 107 517 22 837 84 680 Administrative computer equipment 11 379 5 789 5 590 Office furniture and equipment 5 998 2 575 3 423 Motor vehicles 3 487 1 665 1 822 169 938 38 656 131 282 2002 Land and buildings 39 710 4 154 35 556 Research equipment 100 203 13 666 86 537 Administrative computer equipment 7 402 2 987 4 415 Office furniture and equipment 4 106 1 473 2 633 Motor vehicles 2 391 1 172 1 219 153 812 23 452 130 360

Land and Research Administrative Office furniture Motor Total buildings equipment computer and equipment vehicles equipment R’000 R’000 R’000 R’000 R’000 R’000 Cost At the beginning of the year 39 710 100 203 7 402 4 106 2 391 153 812 Transfers during the year 1 630 - 1 082 1 076 98 3 886 Additions during the year (refer Note 4) 217 7 607 3 208 834 1 081 12 947 Disposals during the year - (293) (313) (18) (83) (707) At the end of the year 41 557 107 517 11 379 5 998 3 487 169 938 Accumulated depreciation At the beginning of the year 4 154 13 666 2 987 1 473 1 172 23 452 Transferred during the year - - 607 348 98 1 053 Depreciation for the year (refer Note 1) 1 636 9 209 2 453 767 470 14 535 Disposals during the year - (38) (258) (13) (75) (384) At the end of the year 5 790 22 837 5 789 2 575 1 665 38 656 Carrying amount 35 767 84 680 5 590 3 423 1 822 131 282

71 notes to the annual financial statements

for the year ended 31 March 2003

2003 2002 R’000 R’000 Land and buildings Portion 1 of the farm Scientia No 627, Pretoria, with buildings thereon 7 057 6 893 At cost on 1 October 1990 6 244 6 244 Improvements – 1991 to 2001 1 751 1 751 Write-off – 2000 (1 186) (1 186) Improvements – 2002 84 84 Improvements – 2003 164 _

Portion 4 of the farm No 996, Blue Downs, Stellenbosch, with buildings thereon 29 796 29 796 At cost on 1 April 1991 39 120 39 120 Improvements – 1992 to 1999 3 123 3 123 Write-off – 2000 (12 447) (12 447)

Portion 6 of the farm Kuilenburg No 96, Sutherland, with buildings thereon 1 603 1 603 At cost on 1 April 1991 2 854 2 854 Improvements – 1994 182 182 Write-off – 1995 to 2000 (1 436) (1 436) Improvements – 2002 3 3

Erf 26423, Observatory, Cape Town, with buildings thereon 1 106 1 106 At cost on 1 April 1991 1 964 1 964 Write-off – 2000 (858) (858)

Leasehold premises 38 38 Improvements – 1994 50 50 Write-off – 2000 (12) (12)

Erf 252, 5365 and 5298, Hermanus, with buildings thereon 327 274 Improvements – 2002 274 274 Improvements – 2003 53 –

Stand No 2859, Pretoria, with buildings thereon 1 630 – At cost on 1 December 2002 1 630 –

Total land and buildings 41 557 39 710

72 2003 2002 R’000 R’000

The land and buildings situated in Pretoria are subject to a pre-emptive right in favour of the CSIR should the NRF decide to sell the property and will revert to the CSIR for no consideration should the NRF be disbanded.

6. Investment Unlisted: SALT Foundation (Pty) Ltd (7 127 410 ordinary shares, 45,49 % shareholding) (2002: 6 573 447 ordinary shares, 50% shareholding): Shares at cost 58 250 52 500

Directors’ valuation of investment 58 250 52 500

7. Staff loans Total staff loans 1 023 922 Short-term portion (765) (722) Long-term portion 258 200

51% of the total staff loans consist of interest-bearing loans, at an average interest rate of 13,5%. The short-term portion of staff loans is repayable within the next 12 months, while the long-term portion is repayable within the next 24 months. Included in total staff loans are loans to executives which are detailed in Note 19.

8. Inventory Consumable stores and maintenance spares 1 846 1 600

9. Trade and other receivables Trade receivables 27 101 12 646 Prepayments 1 553 1 015 Receiver of Revenue – VAT 274 3 Other receivables 6 381 3 961 Total trade and other receivables 35 309 17 625

73 notes to the annual financial statements

for the year ended 31 March 2003

2003 2002 R’000 R’000

The carrying amount of accounts receivable and prepayments is considered to approximate to their fair value. The NRF’s credit risk is primarily attributable to its trade and other receivables.

The amounts presented in the balance sheet are net of allowances for doubtful receivables, estimated by management based on prior experience and the current economic environment.

10. Bank balances and cash Bank balances and cash comprise cash, funds on call and short-term deposits. The carrying amount of these assets approximates their fair value. The NRF has guarantee facilities of R2,0m of which R400 000 has been used in favour of the Lesotho Highlands Development Authority, effective from September 2000. This project was completed in the current year.

11. Trust funds Department of Trade and Industry trust fund Balance at the beginning of the year 50 163 84 452 Contributions received 135 684 133 854 Interest received 6 527 5 730 Repaid to the dti (7 007) (19 022) Grants paid (151 203) (154 851) Balance at the end of the year 34 164 50 163

Von Humboldt trust fund Balance at the beginning of the year 328 326 Interest received 31 25 Grants paid – (23) Balance at the end of the year 359 328

74 2003 2002 R’000 R’000

Innovation Fund trust fund Transferred from DST (16 688) – Contributions received 169 995 – Grants cancelled 10 569 – Interest received 4 105 – Grants paid (66 218) – Expenses paid (1 336) – Balance at the end of the year 100 427 –

Other trust funds – (22) Total trust funds 134 950 50 469

12. Trade and other payables Trade payables 7 073 8 011 Other payables 16 051 20 550 Total trade and other payables 23 124 28 561

The carrying amount of trade and other payables is considered to approximate to their fair value.

13. Provisions Bonus Retirement Leave pay Total provision benefit provision provision R’000 R’000 R’000 R’000 2003 Opening balance 1 374 9 886 7 104 18 364 Charged to income statement (45) – (1 361) (1 406) Additional provision 218 12 499 1 528 14 245 Closing balance 1 547 22 385 7 271 31 203

2002 Opening balance 1 301 3 000 8 170 12 471 Charged to income statement – – (2 358) (2 358) Additional provision 73 6 886 1 292 8 251 Closing balance 1 374 9 886 7 104 18 364

75 notes to the annual financial statements

for the year ended 31 March 2003

2003 2002 R’000 R’000

14. Grants and bursary commitments Grant and bursary commitments for 2003/2004 534 815 150 992

15. Contingent liabilities Litigation claim 2 500 –

These outstanding litigation claims relate to two claims by patients who were treated in 1998 for cancer at iThemba LABS, which are being contested by the NRF’s insurers and is covered by the Professional Indemnity insurance policy.

16. Capital commitments Contracted 5 805 4 491

The capital expenditure will be financed from internal funds.

17. Uncovered foreign currency monetary items There were no significant foreign currency transactions not covered by forward exchange contracts at the end of the year.

18. Retirement benefits Retirement benefits are provided for employees through the National Research Foundation Pension and Provident Funds. The new NRF funds provide guaranteed benefits in line with former funds in respect of former employees of the CSD, the FRD and the JLBSI. Employees who joined from 1 October 1999 and HMO staff who transferred from the CSIR are covered under new defined contribution arrangements of the NRF Pension Fund. All employees contribute to NRF funds, with the exception of those employees who are on fixed-term contracts of a short duration. Staff from FEST currently contribute to the Museums Retirement Fund.

18.1 Benefit structures The revised rules of the Fund have been drafted to accommodate the benefit structures of the various categories’ members. The benefit structures have been included in the rules as follows:

Main rules: These are largely the old Foundation for Research Development Pension Fund rules and stipulate the benefit structure in respect of employees of iThemba LABS, the SAAO, HartRAO and RISA who were employed prior to 1 October 1999.

76 Annexure A This section allows for pensioners who were receiving pensions from the AIPF and transferred, as pensioners, to the FRD Pension Fund in January 1995.

Annexure B This section allows for members who terminated service with the FRD prior to 1 January 1995, became dormant members of the AIPF and then elected to become deferred pensioners of the FRD Pension Fund from 1 January 1995.

Annexure C This section applies to members who were employed by the NRF with effect from 1 October 1999 and HMO employees who transferred from the CSIR with effect from 1 April 2001.

Annexure D: Part 1 This section stipulates the benefit structure applicable to former CSD employees who had elected to remain on a defined benefit basis in the HSRC Pension Fund and transferred to the NRF Pension Fund on 1 April 1999.

Annexure D: Part 2 This section stipulates the benefit structure applicable to former CSD employees who had elected to convert to a defined contribution basis in the HSRC Pension Fund and transferred to the NRF Pension Fund on 1 April 1999.

Annexure E This section applies to employees of the SAIAB who transferred from the Rhodes University Pension Fund to the NRF Pension Fund on 1 April 1999.

18.2 Contribution rates and funding level The contribution rates are in line with the inherited benefit structures as follows: Ex-FRD Pension Fund members (iThemba LABS, the SAAO, HartRAO and RISA) employed from 1 October 1999: 24,2% of pensionable salaries of which members contribute 7,5%. Ex-Rhodes University Pension Fund members (SAIAB) who transferred to the NRF Pension Fund on 1 April 1999: 22,5% of pensionable salaries of which members contribute 7,5%. Ex-HSRC Pension Fund members who transferred to the NRF Pension Fund on 1 April 1999: 21,5%, 23,5% and 27,5% depending on benefit category of which members contribute 7,5%. New NRF employees who joined 1 October 1999: 22,0% of pensionable salaries of which members contribute 7,5%. Included in the unspent funds for the year are expenses in respect of retirement benefit costs of R9,8m (2002: R9,2m).

77 notes to the annual financial statements

for the year ended 31 March 2003

The fund is administered by Alexander Forbes Consultants and Actuaries in terms of the Pension Fund Act No 24 of 1956, as amended. The fund will be actuarially valued at intervals of not more than three years. At inception, it has inherited the deficits of its predecessor funds. The underfunding was mainly from the FRD Pension and Provident Funds and the Associated Institutions Pension Fund. The under-funding from the Rhodes University Pension and Provident Funds has been made good by way of a lump sum payment in the 1999/2000 financial year. The effective date of the last actuarial valuation of the NRF Pension and Provident Funds was 30 September 2002. The actuarial present value of promised retirement benefits as at 30 September 2002 was R87,2m (30 September 2001: R73,5m). The fair value of the plan assets as at 30 September 2002 was R83,5m (30 September 2001: R70,9m). The funds were underfunded by an amount of R3,7m (2001: R2,6m) and the combined funding level was 95,8% as at 30 September 2002 (30 September 2001: 96,5%). The principal actuarial assumptions used in determining the cost of retirement benefits were : The discount rate assumed in determining the actuarial present value of promised benefits reflects the long-term rates at which the obligations are expected to be settled; Plan assets are valued at fair value; Salary increases to the date of termination reflect factors such as inflation and promotion; and Automatic retirement benefit increases are taken into account. The past service costs are expensed over the remaining working lives of employees and the resulting asset amounts to R16,5m (2002: R18,1m).

18.3 Post-retirement healthcare benefits Post-retirement healthcare benefits are provided for retirees. The entitlement of these benefits is usually based on the employee remaining in service up to retirement age and the completion of the minimum service period. The NRF’s liability in this regard amounts to R43,0m (2002: R37,4m).

The principal actuarial assumptions applied in determination of fair values include : CPI inflation 10% p.a. Healthcare cost inflation 13% p.a. Discount rate (net of tax) 15% p.a. Normal retirement age 60 Expected average retirement age 59,5

Included in the unspent funds for the year is a provision of R12,5m (2002: R6,9m) in respect of those liabilities. The NRF has opted to recognise their post-retirement healthcare liability as an expense on a straight line basis over five years. The unprovided for post-retirement healthcare liability at 31 March 2003 is R20,6m (2002: R27,5m). Investigations are under way to find the most appropriate and cost-effective mechanism of managing this liability and providing the necessary benefits to all employees.

78 2003 2002 R’000 R’000

19. Loans to Executives Dr RS Stobie – 83

20. Reconciliation of net unspent funds for the year to cash generated from operations Net unspent funds for the year 19 755 23 840 Adjusted for: Transfer to capital reserve – 22 485 Deferred income (1 947) 3 060 Interest received (15 143) (11 980) Depreciation 14 505 9 047 Total depreciation 14 535 9 080 Depreciation capitalised (30) (33) Interest paid 112 94 Loss (profit) on disposal of property and equipment 167 (68) Operating cash flows before working capital changes 17 449 46 478 Working capital changes 33 006 16 489 Decrease (increase) in retirement benefit fund deficit 1 594 (8 405) (Increase) decrease in inventory (246) 29 Decrease (increase) in grants and bursaries paid in advance 66 902 (137 475) (Increase) decrease in trade and other receivables (18 056) 14 397 (Decrease) increase in accrued grants and bursaries (24 555) 135 638 (Decrease) increase in grants and bursaries payable (35) 172 Increase in trade and other payables and provisions 7 402 12 133 Cash generated from operations 50 455 62 967

21. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and balances with banks and investments in money market instruments. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts:

Funds on call and on deposit 190 001 90 001 Bank balances and cash 87 884 50 372 Cash and cash equivalents 277 885 140 373

79 notes to the annual financial statements

for the year ended 31 March 2003

22. Financial information by segment For management purposes, the NRF is currently organised into the following segments and these segments are the basis on which the NRF reports its primary segment information: Research and Innovation Support Agency: This segment’s main business is to provide for the promotion of research, both basic and applied, and the extension and transfer of knowledge in the various fields of science and technology and indigenous technology. iThemba Laboratory for Accelerator Based Sciences: This National Research Facility provides advanced, viable, multidisciplinary facilities for training, research and services in the fields of nuclear science and radiation medicine for the pride and benefit of all the people of Africa. South African Astronomical Observatory: This National Research Facility performs research in astronomy; provides an international facility in Africa for such research; and educates and informs the community. Hartebeesthoek Radio Astronomy Observatory: This National Research Facility was originally established as the national facility for radio astronomy research in South Africa. Today its primary function is the support of research and training in radio astronomy and space geodesy.

RISA iThemba LABS SAAO HartRAO 2003 2002 2003 2002 2003 2002 2003 2002

Revenue Government grants 237 020 201 647 65 674 59 614 14 581 13 869 9 432 8 464 Contributions 248 960 175 948 6 273 8 744 2 375 678 – – Other income 15 305 13 802 2 013 3 100 837 599 288 96 Total income 501 285 391 397 73 960 71 458 17 793 15 146 9 720 8 560

Net unspent funds (deficit) 32 587 29 275 (12 438) (2 809) (2 223) (2 041) (506) (759)

Property and equipment Additions 1 116 2 451 8 835 7 452 1 300 1 043 442 630 Depreciation (1 809) (1 441) (10 559) (5 680) (1 029) (1 151) (660) (605) Assets 427 757 346 489 114 163 120 620 9 389 9 026 7 063 7 026 Investment 58 250 52 500 – – – – – – Liabilities 350 522 295 379 17 830 9 871 5 599 3 285 2 649 1 880 Number of employees 169 163 260 304 80 78 47 47

80 South African Institute for Aquatic Biodiversity: This National Research Facility is an interactive hub focused on serving the nation through generating, disseminating and applying knowledge to understanding and solving problems on the conservation and wise use of African fishes and aquatic biodiversity. Hermanus Magnetic Observatory: This National Research Facility is part of a worldwide network of magnetic observatories that monitor and model variations of the Earth’s magnetic field. Hermanus Magnetic Observatory was declared a National Research Facility effective from 1 April 2001. The assets and liabilities were taken into the records of the NRF at the abovementioned date at net book value. Foundation for Education, Science and Technology: The Foundation for Education, Science and Technology (FEST) was positioned as an agency of the former Department of Arts, Culture, Science and Technology (DACST), and a determined leader in advancing the public awareness, appreciation and understanding of science, engineering and technology in South Africa. Effective from 1 December 2002, the organisation was deproclaimed under the Cultural Institutions Act, and incorporated into the NRF, with FEST continuing to pursue high-quality delivery in engaging the South African public in science and technology.

SAIAB HMO FEST Total 2003 2002 2003 2002 2003 2003 2002

3 688 3 659 3 478 3 480 2 558 336 431 290 733 4 655 2 007 – 37 3 321 265 584 187 414 344 263 2 748 2 746 2 432 23 967 20 606 8 687 5 929 6 226 6 263 8 311 625 982 498 753

652 (424) 828 598 855 19 755 23 840

708 206 348 564 198 12 947 12 346 (221) (159) (114) (44) (143) (14 535) (9 080) 9 733 10 459 2 586 617 12 515 583 206 495 237 – – – – – 58 250 52 500 7 782 9 624 408 499 3 041 387 831 320 538 30 29 22 15 35 643 636

81 contact information

HOW TO CONTACT THE NRF BUSINESS UNITS:

Research and Innovation Support Agency (RISA) in Pretoria Tel +27-12-481-4000 Fax +27-12-349-1179 www.nrf.ac.za

South African Environmental Observation Network (SAEON) in Pretoria Tel +27-12-481-4147 Fax +27-12-481-4221 www.nrf.ac.za/saeon

South African Agency for Science and Technology Advancement (SAASTA) in Pretoria Tel +27-12-392-9300 Fax +27-12-320-7803 www.saasta.ac.za

Hartebeesthoek Radio Astronomy Observatory (HartRAO) near Krugersdorp Tel +27-12-326-0742 Fax +27-12-326-0756 www.hartrao.ac.za

Hermanus Magnetic Observatory (HMO) in Hermanus Tel +27-28-312-1196 Fax +27-28-312-2039 www.hmo.ac.za

iTHEMBA Laboratory for Accelerator Based Sciences (iThemba LABS) near Somerset West Tel +27-21-843-1000 Fax +27-21-843-3525 www.tlabs.ac.za

South African Astronomical Observatory (SAAO) in Cape Town and at Sutherland Tel +27-21-447-0025 Fax +27-21-447-3639 www.saao.ac.za

South African Institute for Aquatic Biodiversity (SAIAB) in Grahamstown Tel +27-46-603-5800 Fax +27-46-622-2403 www.saiab.ru.ac.za

82 Produced by Words’Worth Publishing 27 11 381-7700 “One way to achieve national excellence is to focus our basic science on areas where we are most likely to succeed because of important national or knowledge advantages. In South Africa, such areas include astronomy, human palaeontology and indigenous knowledge. The key institution, in the context of this strategy for promoting science is the National Research Foundation.”

(extract from the National Research and Development Strategy)