South Africa’s R&D intensity declines as business investment weakens - Inside Politics

By Lebone Rodah Mosima

South Africa’s real research and development (R&D) expenditure declined by 1.9% in 2024/25, pushing R&D intensity down from 0.62% to 0.60% of gross domestic product (GDP), as business-sector investment weakened, according to the latest National R&D Survey released by the Human Sciences Research Council (HSRC).

The HSRC said on Thursday that gross domestic expenditure on research and development (GERD) increased to R44.237 billion in 2024/25. However, spending growth failed to keep pace with economic activity, resulting in a decline in R&D intensity.

In October 2025, the HSRC reported that real R&D expenditure had grown by 1.3% in 2023/24, while R&D intensity remained at 0.62% of GDP.

Nazeem Mustapha, HSRC research director and principal investigator of the R&D survey, said the findings showed that South Africa’s research system remained resilient, but declining business-sector investment was a cause for concern.

“Sustained growth in research and innovation requires stronger participation from the private sector alongside continued public investment,” Mustapha said.

Business-sector R&D expenditure fell by R742 million to R14.369 billion, reducing its share of total GERD from 34.8% to 32.5%.

The HSRC attributed the decline primarily to lower investment in mining and quarrying, manufacturing and agriculture.

Higher education was the largest contributor to growth in R&D spending, increasing its expenditure by R919 million to R16.713 billion.

The sector accounted for 37.8% of total GERD, maintaining its position as the country’s largest R&D performer for the sixth consecutive year, the HSRC said.

The survey also found that South Africa’s research workforce continued to grow in 2024/25.

The number of R&D personnel increased by 1,004 to 90,608, while the number of researchers rose to 66,858.

Women accounted for all net growth in the researcher workforce during the year, with the number of female researchers increasing by 581 to 32,219.

Women represented 48.2% of all researchers, indicating continued progress towards gender parity in the national research system.

Gauteng remained the country’s leading R&D hub, accounting for 39.6% of national expenditure, or R17.538 billion.

The Western Cape accounted for 28% of expenditure, amounting to R12.406 billion, followed by KwaZulu-Natal with 9%, or R3.970 billion.

The HSRC said increased R&D spending in several other provinces pointed to a gradual expansion of research investment beyond the country’s traditional centres of activity.

Among research fields, information and communications technology (ICT) recorded the largest increase in expenditure, rising by R853 million.

The HSRC said this underscored the growing importance of digital technologies in South Africa’s research and innovation landscape.

Overall, the 2024/25 survey presents a mixed picture of the country’s research system, with growth in higher education and the research workforce offset by declining real expenditure and weaker business-sector investment.

The HSRC said the findings highlighted the need to strengthen private-sector participation in research and innovation while sustaining gains in higher education and advancing national research priorities.