Annual Report 2012/2013 Empowering the youth to add value to our South African economy Empowering the youth to add value to our South African economy THRIP provides a platform for the youth to grow their skills through their involvement in technology development projects, for driving the development of knowledge economy in South Africa. Empowering the youth to add value to the Table of Contents South African Definition of raw material economy the basic material from which a product is made Definition ofyouth the qualities of vigour and freshness Acronyms and Abbreviations 4 as associated with being young The THRIP Profile 6 Youth = Raw Material Foreword by the Chairperson of the Advisory Board 7 Report by the Executive Director: ARIC 8 Our youth is the raw material that needs to be Performance Highlights and Featured Projects 12 shaped, educated and mentored, in order to The THRIP Board 32 ensure a brighter future for our South Africa. The Management Committee 34 By taking hands we are Annual Financial Statements 38 stronger as we become united. Annexure 1: List of Projects 64 Acronyms and Abbreviations AMD Acid Mine Drainage MMS Multimedia Messaging Service ARC Agricultural Research Council MRC Medical Research Council ARI Applied Research and Innovation MSc Master’s of Science (university degree) ARIC Applied Research Innovation and Collaboration NRF National Research Foundation ASNG Advanced Sensor Networks Group NSI National System of Innovation BEE Black Economic Empowerment NSTF National Science and Technology Forum CEO Chief Executive Officer PFMA Public Finance Management Act CoE Centre of Excellence PhD Doctorate of Philosophy CoG Conditions of Grant PoE Proof of Expenditure CSIR Council for Scientific and Industrial Research PoP Proof of Payment DAFF Department of Agriculture, Forestry and Fisheries QoS Quality of Service DHET Department of Higher Education and Training RTF Research and Technology Fund DST Department of Science and Technology Seda Small Enterprise Development Agency FABI Forestry and Agricultural Biotechnology Institute SETI Science, Engineering and Technology Institution GPS Global Positioning System SIC Standard Industrial Cluster GRAP Generally Recognised Accounting Practice SMME Small, Medium and Micro Enterprise HEI Higher Education Institution SPII Support Programme for Industrial Innovation HICD Human and Institutional Capacity Development the dti The Department of Trade and Industry ICT Information Communication and Technology THRIP Technology and Human Resources for Industry Programme IPAP Industrial Policy Action Plan TIA Technology Innovation Agency KPI Key Performance Indicator TUT Tshwane University of Technology MAC Medium Access Control UFH University of Fort Hare ManCo Management Committee UKZN University of KwaZulu-Natal MCDM Multi-Criteria Decision Model 4 Dr Rob Davies Mr Lionel October Dr Albert van Jaarsveld, Minister of Trade and Industry Director-General, Department CEO of the National Research of Trade and Industry Foundation THRIP is a unique instrument of Given its unique design for developing THRIP remains the main instrument government contributing to demand- high level skills linked to industry-relevant within the NRF that strengthens our side skills for industrial development and research, development and innovation, linkage with business and industry, increasing investment in innovation and one of the radical improvements we are maximising the chances that the research technology, as expressed in IPAP III, as looking for from this programme, as part we support, platforms we provide and well as strengthening industry-academia of empowering the youth, is to significantly students we fund, find their way in one collaboration to stimulate universities’ ramp-up the number of students involved way or another into the marketplace to contribution to a knowledge economy, as and funded through its research projects. improve employment opportunities within recognised in the work done through the this rapidly transforming knowledge Human Resources Development Council economy, and quality of life. of South Africa. Empowering the youth to add value to our South African economy 5 THRIP Profile For almost two decades, THRIP has been at the forefront of competitiveness in the global knowledge economy. On a cost- leveraging world-class partnerships that spur innovation, create sharing basis with industry, THRIP fosters collaboration in science, a globally competitive industry and empower people to pursue a engineering and technology research to help Government create meaningful future. long-term associations that can resolve technology challenges and boost the economy, as well as provide high-level education and skills Created as a government-private sector partnership in 1992, THRIP’s training to improve the technological proficiency of our people. mandate is to address industry’s need for advanced technologies and support research in which skills are developed and from which THRIP’s strategic goals for the period under review were to: competent scientists will emerge. • Support technological research to develop a competitive South THRIP is funded by the Department of Trade and Industry (the African industry, dti) and administered by the National Research Foundation (NRF). • Support research that develops skilled human resources for An advisory Board of representatives from industry, Government, industry, higher education, labour and the science councils, guides its activities • Support research that contributes to socio-economic and monitors its performance. development and upliftment for all South Africans, and • Facilitate collaboration in applied research between industry The programme’s activities are aligned with those of the dti and and academia. NRF to support job creation, Small, Medium and Micro Enterprise (SMME) development and the emergence of black entrepreneurs, The statistics that THRIP report annually are short-term indicators and to identify the synergies that will increase South Africa’s of performance against its strategic long-term goals. 6 Foreword by the Chairperson of the Advisory Board As an Advisory Board comprising a majority of relatively new We feel privileged to be an Advisory Board seeing out the current members, this was a year whose early stage was characterised by THRIP Strategic Plan and being central to the development of settling in and learning some of the norms and standards for the the next one that will guide this programme over the next five Mrs Natasha Davies programme. I thank THRIP management for their support in getting years starting in 2014/15. This provides us with the opportunity Board Chairperson us through this. to inject into the programme for the longer term, elements that will assist the programme in overcoming the strangle in some of its While we acknowledge the extraordinary achievements of the key performance areas, including budget growth, which it has been programme and the new approaches being rolled-out to improve experiencing over the past few years, as well as to align it better with performance of the programme, we are concerned about the failure relevant developments in the policy landscape and internationally. of THRIP to achieve more than half of its targets, two years in a row. On deeper assessment and engagement on this problem, our I would like to thank Board members for their contributions during interpretation was that the programme is not necessarily applying the meetings, sometimes characterised by robust debates and appropriate rationale in setting the targets and that it may be setting exchanges, and the Director-General of the dti and CEO of the too many targets in any one year. We are pleased that management has NRF for providing us as stakeholders the platform to influence this taken cognisance of this and has set more realistic targets for the next programme which occupies a critical space in the National System cycle and have committed to rationalise on the number of KPIs against of Innovation. which targets are to be set. We are also pleased that management has been receptive to constructive criticism on the THRIP Impacts Report and has undertaken to review its production. We look forward to the new product, particularly as key stakeholders have come to expect an Mrs Natasha Davies Impacts Report (or something similar) from THRIP. Advisory Board Chairperson Empowering the youth to add value to our South African economy 7 Foreword by the Executive Director: ARIC Ever since its inception, THRIP has been working on trying to grant by the grant holder and institution, and is an obligatory step. achieve an expenditure level of 100% of its budget. Achieving In the earlier years of the programme and with less rigid control Dr Rocky Skeef this is not easy since release of funds by THRIP is triggered by the and enforcement measures in sourcing PoEs at the time, the level Executive Director: Applied Research Innovation and Collaboration (ARIC) industry partners first paying their promised contribution against of outstanding PoEs kept on growing from year-to-year to a point which the programme had set aside a matching amount. Over the where this value peaked at around R192 million. This was clearly last few years various strategies and tactics have been used to try unacceptable and a decision was taken and strategy put in place to to reach this target and the programme had been progressively put an end to any further growth of this value and to actively source getting closer to the mark. For 2012/13 THRIP managed