[ Home ] [ Speeches & statements ]

24 March 2009

Chief Executive Officer of Nuclear Energy Corporation of South Africa (NECSA), Dr. Rob Adam
Managing Director of Pelchem, Mr Benji Steynberg
Incumbents of Fluorochemical research chairs, Professors Daresh Ramjugernath of the University of KwaZulu-Natal and Philip Crouse of the University of Pretoria
Department of Trade and Industry officials
Distinguished guests
Ladies and gentlemen

The establishment of the Fluorochemicals Expansion Initiative and Fluorochemicals Centre of Competence are being supported as part of the advanced manufacturing technology strategy. It is hoped this will result in the beneficiation of a wide range of downstream products from South Africa's abundant resources of fluorspar. Ultimately, we look forward to the creation of new business ventures and firms that will support economic growth and development in South Africa.

Although South Africa has the third largest reserves of fluorspar in the world, we are currently beneficiating less than five percent of our fluorspar exports into higher value fluorochemical products. The challenge for the key role players of the centre of competence is to assist in significantly changing this ratio over the next five to 10 years.

Notwithstanding the current economic downturn, my department is committed to stepping up strategic investments in research, development, and innovation activities that support the twin objectives of growing our economy and improving the quality of life for our people. However, within the constrained fiscal environment, there will be consistent pressure on us to show a high social return for the innovation investments that we make. I am confident that the team responsible for this initiative are ready for the challenge, and I can assure you that the Department of Science and Technology will provide whatever support it can.

In launching the initiative, it is useful to reflect on where we're coming from. It is not possible to talk about the South African chemical industry without mentioning Sasol. As you are aware, Sasol's first research and development was in making the Fischer-Tropsch processes commercially viable. Sasol is now an innovation-focused, major global supplier, with ongoing investment beyond the shores of South Africa. This is what the Fluorochemicals Expansion Initiative (FEI) should aspire to.

The chemicals sector remains a key growth area for South Africa and, as global economies recover, the demand for chemicals will increase. The current downturn provides a strategic opportunity for South Africa to grow this sector.
But this will require the alignment of strategies and active support from a range of government departments. I believe the current close working relationships in respect of the FEI will grow from strength to strength.

One of my department's priorities is to address the need to grow high level human capital rapidly in a range of areas. For example, in 2005, the department intervened to preserve the high level fluorine chemistry skills that existed within the Nuclear Energy Corporation of South Africa (NECSA) at the time. The department made R20 million available to address that challenge, and we congratulate NECSA on the progress made in fluorine chemistry research.

This support was made available because after assessment, it was realised that South Africa had the ability to expand its fluorochemical industry by a factor of 10 over the next nine years, which is in excess of R1 billion, by building a world class, high value add, fluorine-based industry, with fine chemical synthesis as a downstream industry. The vision was to develop an industry that extended beyond Phelindaba and its area of focus. We are closer to this dream with the progress made in terms of clustering a range of halogen-based industries in the Richard's Bay area. Such developments are required if we wish to be global players.

However, we are all aware of the challenge of attracting students, and retaining skills and experience to enable our country to compete globally in research. Of concern to us is that in the 2006/07 financial year, there were less than two researchers for every 1 000 members of the workforce, as compared with eight in Australia, and 11 in Japan. I congratulate and thank the leadership team for ensuring that human capital development is prioritised within the initiative.

The South African Research Chairs Initiative (SARCHI) is managed by the National Research Foundation. It is geared towards the development of high-level human capital to support key areas of competency in South Africa. We remain committed to the goal of establishing 210 chairs by 2010, and are increasingly championing the initiation of research and innovation chairs to reinforce other initiatives.

In this regard, the Fluorochemicals Expansion Initiative led the way. During the initial stages of strategising on how to achieve the goal of developing a major new industrial sector, a gap was identified with regard to the level of intensive research taking place at South African universities on fluorine chemistry.

In response, the Department of Science and technology and NECSA jointly engaged with universities to use the newly developed research chairs instrument. These engagements resulted in the establishment of two competitive chairs for Fluorochemicals. I look forward to seeing the first group of students mentored under these chairs going on to support our industrial development ambitions. The close involvement of two research chairs in the FEI is a very encouraging development, and we thank them for being here today.

Ensuring that the close link between the research chairs and the Fluorochemicals Expansion Initiative remains is vital for success. The research work undertaken by the researchers must support the overall research programme of the centre of competence. However, it is even more important to ensure that the human capital developed under the SARCHI umbrella remains in South Africa and becomes gainfully employed in projects that will emerge as a result of the efforts of the centre of competence.

The close association between this centre of competence and the Research Chairs Initiative is an example that we hope will guide other such partnerships.

We need to address the innovation chasm between knowledge generators and the market, which has resulted in the loss of innovative and high potential technologies that could have been developed and commercialised for the economic benefit of South Africa. My department is putting systems in place to deal with the innovation chasm challenge.

One of the strides already made in this regard relates to the establishment of the Technology Innovation Agency, which is planned to start operating later this year. This agency will house and manage the centres of competence programme, and will be providing integrated support and guidance to the fluorochemicals Centre of Competence to ensure it is able to deliver in terms of creating new businesses and jobs, and in positively affecting our balance of payments.

The journey from a centre of competence to a fully-fledged industry in South Africa requires close co-operation and interaction across the value chain.
I therefore want to acknowledge the presence of officials from the Department of Trade and Industry, which continues to partner with my department in supporting this initiative by offering strategic and financial support.

Allow me, in closing, to once again congratulate NECSA for spearheading this initiative. I hope the dream of establishing a halogen hub in South Africa will be realised.

Thank you for your attention.

Issued by: Department of Science and Technology
24 March 2009
Source: Department of Science and Technology (http://www.dst.gov.za/)