South Africa’s real spending on research and development (R&D) declined by 1.9% in 2024/25, despite total expenditure rising to R44.2 billion, with falling business investment raising concerns about the country’s ability to sustain innovation and economic growth.
The latest National R&D Survey, released by the Human Sciences Research Council (HSRC) on Thursday, found that R&D spending increased in nominal terms to R44.237 billion. However, after accounting for inflation, expenditure declined, while research spending as a proportion of gross domestic product (GDP) fell from 0.62% in 2023/24 to 0.60%.
The findings suggest that investment in research is not keeping pace with economic activity, highlighting the pressure on South Africa’s research and innovation system.
Business-sector expenditure on R&D fell by R742 million to R14.369 billion, reducing its contribution to total research spending from 34.8% to 32.5%.
According to the HSRC, the decline was driven mainly by lower investment in mining and quarrying, manufacturing and agriculture.
Dr Nazeem Mustapha, the HSRC’s research director and principal investigator of the survey, said the findings showed that while the research system remained resilient, declining business investment was concerning.
“The results show that South Africa’s research system remains resilient, but the decline in business-sector investment is a cause for concern,” Mustapha said.
He added that sustained growth in research and innovation required stronger private-sector participation alongside continued public investment.
The decline in business spending was partly offset by growth in higher education, which remained the country’s largest contributor to R&D expenditure for the sixth consecutive year.
Universities and other higher education institutions increased their spending by R919 million to R16.713 billion, accounting for 37.8% of total expenditure.
The figures highlight the growing importance of higher education institutions in supporting the country’s research capacity as investment from businesses weakens.
Despite the decline in real expenditure, South Africa’s research workforce continued to expand during the year.
The number of people employed in research and development increased by 1 004 to 90 608, while the number of researchers rose to 66 858.
Women accounted for all the net growth in the researcher workforce, 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 largest research hub, accounting for 39.6% of national R&D expenditure, equivalent to R17.538 billion.
The Western Cape followed with 28%, or R12.406 billion, while KwaZulu-Natal accounted for 9%, with expenditure of R3.970 billion.
The HSRC reported increases in research spending in several other provinces, suggesting that research activity was gradually expanding beyond the country’s traditional centres.
Information and communications technology (ICT) recorded the largest increase in expenditure among research fields, rising by R853 million.
The increase points to the growing role of digital technologies in South Africa’s research and innovation landscape.
However, the overall decline in real spending raises questions about whether the country can maintain momentum in research and development without stronger investment from the private sector.
The HSRC said the latest findings highlighted the need to strengthen business participation in research while maintaining gains made by higher education institutions and supporting national research priorities.
The survey presents a mixed picture: South Africa is producing more researchers and sustaining investment in key areas, but total research spending is losing ground relative to inflation and the size of the economy.
