South Africa’s Research Spending Holds Steady Amid Economic Strain in 2023/24

South Africa has managed to sustain its research and innovation output despite sluggish economic growth, reaffirming the resilience of the nation's scientific and academic sectors. The latest National Survey of Research and Experimental Development (R&D Survey), conducted by the Human Sciences Research Council (HSRC), paints a picture of stability, modest progress, and steady collaboration in the country's research landscape for the 2023/24 financial year.

Research Keeps Pace with Economic Growth

According to the HSRC report, Gross Domestic Expenditure on Research and Development (GERD) stood at R43.413 billion in nominal terms during 2023/24. Adjusted to constant 2015 prices, this equates to R28.621 billion, marking a modest 1.3% real increase from the previous year.

While overall GDP grew by just 0.8% during the same period, the findings suggest that research investment has at least kept pace with economic expansion, even as inflation pressures limited real-term growth.

HSRC Research Director and principal investigator Dr Nazeem Mustapha noted that the R&D-to-GDP ratio remained flat at 0.62%, signaling steady but constrained innovation investment.

"Inflation-adjusted R&D growth is below nominal increases. With a flat R&D/GDP ratio, South Africa's innovation investment is just keeping pace with economic expansion," Mustapha said.

Universities Drive Research Momentum

The higher education sector emerged as the engine of R&D growth in 2023/24, fuelled by expanding research capacity, international partnerships, and a growing pool of postgraduate researchers.

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

Government remained the largest funder of research, contributing R21.847 billion, which represents 50.3% of total expenditure. The business sector followed with R12.033 billion (27.7%), while foreign partners provided R8.106 billion (18.7%) — an indication of continued international confidence in South African science.

Although foreign funding grew more slowly than in 2022/23, both business and higher education institutions recorded double-digit increases from international sources, reflecting the country's expanding global research footprint.

Business and Industry Research Shifts

The survey revealed key shifts in sectoral research activity, with business R&D expenditure remaining concentrated in financial and business services, accounting for 45.8% of all business research spending.

The manufacturing sector, led by chemicals, pharmaceuticals, and plastics, contributed 29.9%, maintaining its strong industrial presence. Mining and quarrying, though smaller in scale, remained a vital research driver with 10.5% of business R&D expenditure.

Across all categories, applied research dominated — making up 49.5% of total R&D spending. Businesses were the leading contributors in this category, investing R9.059 billion, while universities led in basic research, spending R8.278 billion, which represents roughly two-thirds of the national total in that area.

Provincial Leaders in R&D

Gauteng continued to anchor South Africa's innovation ecosystem, accounting for 40.2% (R17.446 billion) of total research expenditure. The Western Cape achieved a ten-year high of 27.9% (R12.1 billion), reflecting the province's thriving academic institutions and growing technology sectors. KwaZulu-Natal contributed 10%, consolidating its role as a rising regional research hub.

Focus Areas: Health, Engineering, and Biotechnology

The medical and health sciences remained the largest field of investment, with R10.578 billion in expenditure. This continued focus underscores South Africa's strong research base in public health, pharmaceuticals, and epidemiology — areas that have expanded significantly post-pandemic.

The social sciences followed with R6.855 billion, highlighting ongoing work on inequality, education, and development policy. Engineering sciences recorded robust growth, climbing to R5.760 billion, surpassing information and communication technology (ICT), which declined for the second year running to R4.835 billion.

Biotechnology showed impressive progress with R3.650 billion in expenditure, signalling growing investment in genetic research, agricultural innovation, and bio-manufacturing. Meanwhile, nanotechnology slipped slightly to R1.342 billion, suggesting a need for renewed investment to maintain competitiveness in advanced materials science.

Gender Representation in Research

Encouragingly, the HSRC reported a continued rise in the proportion of women researchers, which edged up from 47.6% to 47.7%. While the annual increase is modest, the long-term upward trend reflects growing gender equity in science and research careers.

A Steady Path Forward for Innovation

Despite the headwinds of limited fiscal space and global uncertainty, South Africa's research sector remains resilient. The steady R&D investment relative to GDP highlights the country's commitment to knowledge-based growth, underpinned by strong universities, active government support, and enduring international partnerships.

The HSRC emphasised that the balance between applied innovation for near-term challenges and basic research for long-term advancement remains crucial for maintaining scientific competitiveness.

For a detailed breakdown of national and sectoral R&D data, the full statistical report is available on the HSRC website: R&D Statistical Report 2023/24 (PDF).