3.6: Venture Capital

The Venture Capital Fund is a joint initiative between the Department of Trade and Industry, and the Council for Scientific and Industrial Research (CSIR). It aims to provide early-stage capital; and to a lesser extent, expansion capital, for technology- based SMME’s; and management support for investee companies.

Technology Transfer centre (TTC)

The TTC is to be established by the CSIR as an agent to provide the following services to South African industries:

• Negotiating and drafting assistance agreements related to technology transfers
• Technology-transfer training
• Technology evaluation, assessment and selection services related to technology transfer
• Technology advisory services
• Match-making between technology sellers and buyers, and appropriate financial institutions
• If required, direct and/or indirect financial assistance for technology-transfer activities.

Incubators

A technology business incubator is a facility that provides a variety of services under controlled conditions to create an environment favourable for developing, nurturing and accelerating growth of new technology-based companies. The support services provided include physical space, business development and technical services.

Through a partnership between the Department of Trade and Industry, the Department of Science and Technology, and the EU, the Godisa Trust was formed to consolidate technology incubators covering different sectors, e.g. furniture, stainless steel and biotechnology. A venture capital fund in support of the incubators’ tenants was being established in 2004/05. The Department directly funds four incubators

Workplace Challenge programme

This supply-side Programme of the Department of Trade and Industry (Administered by the National Productivity Institute), assists enterprises and industries to improve their productivity and competitiveness. The Programme focuses on improving workplace collaboration, adopting world-class manufacturing and practices, and disseminating best practices.

The focus of the Programme has been on the manufacturing and processing sectors. South Africa has developed an established and diversified manufacturing base that has demonstrated resilience and the potential to compete in a global economy. The manufacturing sector provides a locus for stimulating the growth of other activities, such as services, and achieving specific outcomes, such as value addition, employment creation and economic empowerment this Manufacturing platform of manufacturing presents an opportunity to significantly accelerate growth and development.

Key Functions of the department include:

• Supporting increased investment in the manufacturing sector
• Enhancing the establishment of new manufacturing entities
• Supporting new sustainable and profitable manufacturing entities.

Some of the key aspects of the Government’s IMS (Integrated Manufacturing Strategy) involves the following:

• Improving market access for South African products in key markets
• Promoting beneficiation and value addition so that value is added to the many natural resources already present in the country
• Finding ways to harness the skills and expertise in South Africa so that they can be sold to other countries.

The IMS identifies the need to capture local knowledge. It encourages big corporations and large companies to make greater use of small businesses, as well as promoting greater integration between the different sectors of the economy so that they add value to each other. The IMS also promotes BEE, small business development, increased use of ICT, job creation, and a more equitable geographic spread of investment and economic activities.