SA’s research and development spending grows modestly amid economic challenges

Friday, October 31, 2025

Despite economic challenges, South Africa maintained its research activity relative to economic growth, with universities taking the lead and foreign partners deepening their support in 2023/24.

The latest South African National Survey of Research and Experimental Development (R&D Survey) reveals that nominal Gross Domestic Expenditure on Research and Development (GERD) was R43.413 billion. 

In 2015 prices, this represents a modest year-on-year increase of 1.3% to R28.621 billion in 2023/24. 

By contrast, the Human Sciences Research Council (HSRC) said the gross domestic product (GDP) growth stood at just 0.8% over the same period.

“Inflation-adjusted R&D growth is below nominal increases. With a flat R&D/GDP ratio of 0.62%, South Africa’s innovation investment is just keeping pace with economic expansion,” said Dr Nazeem Mustapha, HSRC Research Director and the R&D Survey’s principal investigator.

Growth by sectors 

The higher education sector showed the strongest growth in R&D expenditure in 2023/24, buoyed by strong growth in researchers.

“Our universities are not only producing world-class science but also building the skills pipeline for the future,” Mustapha noted.

Government remained the single largest overall funder of R&D, providing R21.847 billion in nominal terms (50.3% of total expenditure). 

Business enterprises contributed R12.033 billion (27.7%) in R&D funding, while foreign sources reached R8.106 billion (18.7%). 

Although foreign funding grew at a slower pace than in 2022/23, business and higher education institutions recorded double-digit increases from international sources.

Shifts in research fields and sectors

The business sector continued to channel most of its R&D spend into financial and business services, which accounted for nearly half (45.8%) of all business R&D spending. 

Manufacturing, though down slightly, remained the second-largest contributor at 29.9% of business expenditure on R&D, led by industries such as chemicals, pharmaceuticals, rubber and plastics. Mining and quarrying placed third, with 10.5%.

The mix between near-term applied solutions and longer-term foundational research is vital for both competitiveness and scientific advancement.

Across research activity categories, applied research dominated, representing 49.5% of all R&D expenditure. 

The HSRC said businesses were the biggest spenders on applied research, investing R9.059 billion. Higher education, in turn, led in basic research, contributing R8.278 billion – around two-thirds of the national total.

Gauteng reinforced its position as the country’s R&D hub, with 40.2% of expenditure (R17.446 billion). 

The Western Cape expanded to a 10-year high of 27.9% (R12.100 billion), followed by KwaZulu-Natal contributing 10.0% to R&D activity nationwide.

According to the HSRC, the research field that South Africa focuses on mainly is the medical and health sciences, with R10.578 billion worth of R&D expenditure in 2023/24. 

The R&D expenditure on social sciences was R6.855 billion. Engineering sciences grew strongly to R5.760 billion, overtaking information and communication technology (ICT), which declined for a second consecutive year to R4.835 billion. 

Biotechnology rose to R3.650 billion, while nanotechnology slipped slightly to R1.342 billion.

Women researchers grow their contribution

The survey notes a gradual increase in the share of women researchers, rising from 47.6% to 47.7%. 

While progress is modest this year, it continues an upward trajectory in gender representation.

Click https://hsrc.ac.za/wp-content/uploads/2025/10/RD_StatisticalReport2023-24_FINAL.pdf to access the results of the 2023/24 statistical report of the R&D Survey. – SAnews.gov.za