Pretoria, South Africa · 28 November 2024 — Gross domestic expenditure on research and development (R&D) in South Africa grew to R28.282 billion in real terms for the 2022/23 fiscal year, marking a 2.1% increase from R27.712 billion in 2021/22, according to the results of the South African R&D Survey released on 28 November 2024 by the Human Sciences Research Council (HSRC).
The survey, conducted by the HSRC's Centre for Science, Technology and Innovation Indicators (CeSTII) on behalf of the Department of Science, Technology and Innovation (DSTI), provides the most authoritative annual assessment of national R&D performance. Despite the growth in absolute expenditure, the proportion of R&D spending to Gross Domestic Product remained unchanged at 0.61% — well below the African Union's 1% of GDP target and the global average of approximately 2%.
Business Sector Leads the Recovery
The most encouraging signal in the survey was the recovery of business sector R&D expenditure, which increased by approximately R950 million — from R13.527 billion in 2021/22 to R14.507 billion in 2022/23. This growth was largely driven by higher spending in the manufacturing and mining industries, according to the survey's statistical report, which disaggregates spending data by standard industrial classification.
"South Africa's economy grew at a comparable 1.9% in 2022, so this is why the ratio of R&D to GDP, a measure of the research intensity of the South African economy, is static. But we are seeing improvements in business R&D expenditure, which should be encouraging for policymakers and investors."
— Dr Nazeem Mustapha, HSRC, who led the research
Nominal expenditure increased across all institutional sectors covered by the survey, including government, higher education institutions, non-profit organisations, and science councils. This broad-based growth suggests that the post-pandemic recovery in R&D spending is not confined to a single sector but is distributed across the national system of innovation.
Funding Sources and Patterns
The survey identified the primary funders of R&D in South Africa for the 2022/23 period:
| Funding Source | Amount (R billion) | Role |
|---|---|---|
| Government | 20.664 | Largest funder; supports science councils, universities, and departmental R&D |
| Business | 11.754 | Funds in-house R&D and contracted research |
| Foreign sources | 7.060 | International collaboration, EU Horizon Europe, bilateral agreements |
The continued significance of foreign funding — at R7.060 billion — highlights South Africa's deep integration into international research networks, particularly through programmes such as the EU's Horizon Europe Africa Initiative and bilateral science cooperation agreements. However, it also underscores the vulnerability of the national R&D system to shifts in international funding priorities.
Researcher Workforce Trends
The survey revealed a concerning trend in researcher numbers. The total headcount of researchers fell from 63,122 in 2021/22 to 61,457 in 2022/23 — a decline of approximately 1,665 researchers, or 2.6%. This reduction occurred even as R&D expenditure grew, suggesting that the remaining workforce is being supported at higher per-capita funding levels, but also raising questions about the pipeline of new researchers entering the system.
On a more positive note, the proportion of female researchers to total researchers increased marginally from 47% in 2021/22 to 47.6% in 2022/23. While the change is modest, it continues a long-term trend toward greater gender representation in South Africa's research workforce, though parity remains elusive.
Context: Reversing the COVID-Era Decline
The 2022/23 results carry particular significance as the first full-year survey data following the COVID-19 pandemic's disruption to R&D activity. Dr Glenda Kruss, Executive Head of CeSTII, framed the findings within this broader trajectory:
"Survey data provide a key signal to policy actors about where the strengths and weaknesses are in the South African national system of innovation. A positive about the results is that we are starting to see a reversal of the drop in R&D spending that we observed in 2019/20, even before the effects of the COVID-19 pandemic on R&D performers were reported."
— Dr Glenda Kruss, Executive Head, CeSTII
The reference to 2019/20 is notable. South Africa's R&D spending had already begun declining before the pandemic, falling from a peak R&D intensity of 0.82% of GDP in 2017/18. The current 0.61% represents a significant erosion from that high point, and the survey data suggest that while the decline has been arrested, a return to previous levels remains distant.
The 1% GDP Challenge
South Africa's 0.61% R&D-to-GDP ratio places it among the higher-performing African nations but well below the African Union's target of 1% of GDP — a commitment reaffirmed in the newly adopted STISA-2034 strategy. The gap between current performance and the target is substantial: reaching 1% would require roughly doubling current R&D expenditure relative to GDP, a challenge that demands sustained policy commitment, private sector engagement, and economic growth that outpaces R&D spending increases.
Implications for Innovation Policy
The survey results arrive at a moment of strategic recalibration for South Africa's innovation system. The Department of Science, Technology and Innovation (formerly the Department of Science and Innovation) has been restructured to strengthen its focus on innovation translation — the process of converting research outputs into commercial products, services, and societal benefits.
The recovery in business R&D is particularly significant in this context. Business sector investment in R&D is typically more closely linked to commercialisation and technology transfer than government or higher education R&D, which tend to focus on fundamental and applied research. The R950 million increase suggests that South African firms are reinvesting in innovation capacity — a necessary precondition for the kind of technology-driven industrialisation that STISA-2034 envisions.
However, the static R&D intensity ratio and the decline in researcher numbers serve as reminders that growth in R&D spending must not only keep pace with but exceed economic growth if South Africa is to build a more research-intensive economy. The survey data provide policymakers with a clear evidence base for the difficult decisions ahead: how to attract more private investment into R&D, how to retain and grow the researcher workforce, and how to ensure that the national system of innovation delivers tangible returns for South African society.
Sources
- HSRC CeSTII, South African R&D Survey 2022/23 Results, Press Release, 28 November 2024 —
- SAnews.gov.za, HSRC survey results show signs of recovery for research and development spending in SA, 29 November 2024 —
- Bizcommunity, South Africa sees boost in R&D spending, 2024 —
- Research Professional News, South Africa's R&D spending stays low as proportion of GDP, November 2025 —
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Institutional Research Desk · Foresight Institute of Research and Translation
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