Pretoria - President Jacob Zuma has welcomed the 30 million pound pledge by the European Union to support innovation for poverty alleviation in South Africa.
Zuma and his delegation concluded the SA-EU summit in Brussels, Belgium, on Tuesday.
The challenges of poverty, unemployment and inequality that South Africa is dealing with, require such continued support from the EU. It's not clear how the funding would be used or what kind of projects were likely to benefit.
Speaking at the end of the Conference on the European Union's Innovation for Poverty Alleviation programme with South Africa, Zuma said while South Africa probably has done well compared to other African countries to alleviate poverty, it remained a huge task.
"New challenges and threats continue to arise as the world changes. The current global economic slowdown has resulted in a global increase in unemployment," he said.
He said the changes in the climate and environment, the emergence of new technologies, and changes in political and economic relations and systems created both challenges and opportunities.
"It is no surprise, therefore, that innovation was identified by both the EU and South Africa as central to finding solutions to such changes."
Cabinet recently endorsed a National Development Plan (NDP) that provides a framework for action between now and 2030.
The NDP identified the quality of education, skills development, and innovation as three of the key requirements for sustainable and successful long-term development.
Zuma told the gathering in Brussels that sharpening South Africa's innovative edge will be achieved through continued involvement in global scientific and technological advancement.
This meant greater investment in research and development, better use of existing resources, and more nimble institutions to enhance the cooperation between public science and technology institutions and the private sector.
Innovation was needed in the areas of health, the development of sustainable human settlements, and the development of appropriate social and economic infrastructure.
"We have made significant strides in the provision of water and sanitation services but we still have challenges in reaching marginalised and difficult to reach rural communities. These challenges present new opportunities for innovation," Zuma said.
The EU, which accounts for more than 26% of South Africa's trade with the rest of the world, remains a key trading partner for the country.
Total trade between SA and EU showed an increased trajectory during the period 2007 - 2011, except for a sharp decline in 2009. This decline can largely be attributed to the economic crisis during that period, which adversely affected developing countries, according to Trade and Industry Minister Rob Davies.
