Prof Colin Dyer: Director: Institute for Commercial Forestry Research (ICFR),
Ms Sally Upfold, Institute for Commercial Forestry Research (ICFR) co-host of this symposium,
Prof Mike Wingfield: current president of the International Union of Forest Research Organisations (IUFRO); co-host of this symposium,
Mr Trevor Abraham, Secretary General of the 14th World Forestry Congress 2015,
Ms Tiina Vähänen: associate secretary general for the World Forestry Congress, of the Food and Agricultural Organisation (FAO).
Mr Michael Peter: Executive Director: Forestry South Africa (FSA),
Local and international researchers’ industry and government officials.

South Africa is fortunate to boast excellence in a large number of cutting-edge science and technology domains. I would like to outline for you the five priority areas –or "grand challenges" –identified in South Africa’s Ten Year Innovation Plan –adopted in 2008.

The grand challenges relate to, one, our investment in bio-sciences for public health and food security; two, better understanding and mitigating the impact of global change; three, achieving energy security; four, optimally exploiting the potential of space science and technology; and five, using science and technology to fight poverty and exclusion in our society in transition.

With regard to the bio-sciences, South African scientists have for years been at the forefront of the fight against infectious diseases such as HIV-Aids, malaria and tuberculosis. Internationally acclaimed work underway includes the development of a malaria drug, an HIV-Aids vaccine and a microbicide gel to prevent HIV-Aids infection. Our goal is now to ensure our scientific excellence will translate into the development of South Africa’s own pharmaceutical industry, which will create jobs.

In the area of global change, South African scientists are making critical contributions to global work, for example, by the International Panel on Climate Change. Whether it is in the field of protecting biodiversity, or the development of more efficient management systems for natural resources, such as water, South African scientists count among the best.

Our collective global ability to understand what is happening to our planet would be much the poorer without South Africa’s contributions to many international observation systems. We are also well placed to optimally leverage the opportunities of the so-called green economy, with exciting plans for example in the field of waste research and innovation.

Energy security is high on the world’s political, economic and environmental, but also scientific agenda. For South Africa, our undisputed flagship success story is our hydrogen and fuel cell programme.

We have developed novel metal catalysts for fuel cells from the platinum group of metals, with exciting opportunities for commercialisation. It is an excellent example of the beneficiation of our raw materials through science and technology. We are expanding our work in the renewable energy field, especially solar, and are well placed to become an important player in the lucrative lithium-ion battery market –as a result of smart investments.

With regard to space science, the South African National Space Agency (SANSA) is continuing its impressive progress with plans well advanced for the construction of a new South African satellite. South Africa is recognised as a space nation, but more pertinently as a nation successful investing in space science to improve the quality of living of its citizen. This is, for example, achieved through making data and information products obtained from space platforms available to improve decision-making in managing disasters.

Last, South African programmes to lift people out of poverty especially in remote rural areas through science- and technology-based interventions have attracted huge international interest from respected partners, such as the Bill and Melinda Gates Foundation.

South Africa is now at the forefront of innovative programmes to provide decent sanitation service delivery to impoverished communities. Our CSIR’s “wireless mesh network”, which brings Internet connectivity to rural areas, is narrowing the digital divide and enables micro enterprise development in poverty-stricken areas.

Forestry R&D is part of our into our bio-economy strategy. The term “bio-economy” encompasses biotechnological activities in the agriculture, health and industry/environment sectors. Within the South African context, these may include, but are not limited to, technological and non-technological exploitation of natural resources such as animals, plant biodiversity, micro-organisms and minerals to improve human health, address food security and consequently contribute to economic growth and improved quality of life.

The forestry sector in South Africa is a substantial employer, both in its growing and processing components. In its growing component the forestry sector employs around 165 900 workers and provides a livelihood to 652 000 people living in rural areas. In its processing component - the pulp and paper industry, saw milling, the timber board, the mining timber industries - many fewer people are employed.

The forestry sector (forest and forest products) contributed approximately 1.2% to GDP and the value of sales in 2013 from primary processing plants was recorded as R20.7 billion.

R&D is important for the forestry sector - there are new technologies that are mitigating the effects of pests, disease, and climate change. Yet investment in forestry R&D is complex and diverse, comprising funding streams from both the private and public sectors - internal forestry firm R&D capacity, research institutes, HEIs and science councils.

There has been a decline in public sector funding for forestry research since a high point in the 1980s. Since then, most of the investment in forestry research has been by the private sector. But in recent years private sector funding for collaborative research has stalled.

Policy support for forestry R&D can be found in both long and short term government policy documents - from the National Development Plan to the New Growth Path to the Agricultural Policy Action Plan. In the DST the bio-economy is one of our five grand challenges. As part of this grand challenge there has been much support for forestry R&D. I'll give you two examples.

The first is a university programme. For the last 8 years the DST has funded the Forest Molecular Genetics Programme at the University of Pretoria.

The programme has evolved into a multifaceted tree breeding platform - an investment in the development of a renewable, woody biomass based bio-economy in South Africa. Key industry partners are SAPPI and Mondi but other industry and grower’s associations are also represented.

The second is a public-private partnership. The Industry Innovation Partnership initiative was established in 2013. Initially, R500 million was allocated for the implementation of the programme over the 2013 MTEF period. The DST reserved R166 million for the development of the Sector Innovation Fund programme as part of the broader initiative.

The main objective of the Sector Innovation Fund programme is to create an environment in which government can partner with industry to co-fund research, development and innovation (RDI) in key strategic sectors of the economy. It is aimed primarily at incentivising private sector investments in RDI; and at addressing broadly the challenges around the economic competitiveness of a particular sector.

The DST has established Sector Innovation Funds with nine industry associations representing mineral processing, horticulture (post-harvest), citrus, sugar milling, wine, forestry, paper manufacturing, aquaculture and boat manufacturing sectors.

The forestry Sector Innovation Fund, “Future Plantation Forests for the South African Bio-economy” is implemented and coordinated by Forestry South Africa (FSA), and DST will invest R25 million over 3.5 years. It is expected that at least about R20m will be contributed by industry, as a direct cash contribution.

The ten RDI projects that will be supported by this SIF will address a number of challenges facing the industry. These include tree breeding, pesticide and disease management, use of spatial technologies and site sustainability.

The Forest Enterprise Simulator project will address this latter challenge, by focusing on providing tools and measures to test the viability of forestry operations before investments are made and to manage the efficiency and production from available forestry land. This was necessitated by the need for profitability and enterprise sustainability of medium growers as well as new entrants into the industry.

The aim of the “Forestry Enterprise Simulator” project is to provide a tool with which the feasibility and profitability of forestry enterprises and the efficiency of value chains can be tested through value chain simulations.

The simulator will encompass the whole value chain (research, nurseries, silvicuture, harvesting and transport) to the point of sale of the end product and is based on the premise that profitability is dictated by income and costs and that income is a function of market price and volume.

The “Future Plantation Forests for the South African Bio-economy” Sector Innovation Fund commenced in 2014/15 and to date supports 3 PhD, 3 MSc and 1 Honours student. It is expected that a further 7 MSc students will be supported during the 2016/17 year. It is expected that the projects will also result in a number of knowledge and innovation products.

In addition, the DST has also established a Sector Innovation Fund in the pulp and paper industry, with the Paper Manufacturers’ Association of SA (PAMSA). The DST investment into to this “Biotechnology Research Initiatives” Sector Innovation Fund is R9 million over 3 years.

It is anticipated that the Sector Innovation Fund will support at least 1 PhD and 2 MSc students. This number will increase once PAMSA has selected the projects it will fund in the coming two years.

In closing, let me remind you about the R&D tax incentive. The objective of the tax incentive is to promote private-sector R&D investment in South Africa. The tax incentive, a deduction of 150% on R&D expenditure, is available to companies of any size in all industries.

We hope to see domestic companies competing for global markets in important technology sectors and also improving ways in which they collaborate with international partners to discover new knowledge.