AFRICAN nations are making bold strides in Research and Development (R&D) investments, driving a shift in the continent’s innovation landscape, according to a recent World Intellectual Property Organization (WIPO) analysis.
The analysis, released on December 18, 2024, highlights how countries are increasingly channelling resources into research and development despite global economic challenges, such as inflation, geopolitical tensions and supply chain disruptions.
“While many economies continue to grapple with the challenge of adequately funding their innovation ecosystems, the latest data carries an uplifting message: the momentum of innovation is alive and thriving across the globe,” the authors explained.
The reported progress in global space is being witnessed in Africa, with countries such as Egypt witnessing a twelve-fold surge in research investment between 2000 and 2023.
According to Ifeyinwa Aniebo, an Associate Professor of Molecular Biology and Genomics at the African Centre of Excellence for Genomics of Infectious Disease (ACEGID), increased investments in R&D can boost sustainable economic development in critical sectors such as health.
“If African countries are to reduce their disease burden and forge a path towards sustainable economic development, they must invest heavily in science and innovation… Research and development in Africa suffer from chronic underinvestment and poor implementation, stifling innovation,” she argued in a 2024 science paper published in the ‘naturemedicine’ journal.
The WIPO data highlights a significant shift, with Egypt emerging as Africa’s leader in absolute R&D spending. Its investments have soared from modest levels in the early 2000s to over US$15 billion by 2023. This remarkable growth, fueled primarily by robust government funding, demonstrates consistent investment momentum since 2007.
“Egypt stands out with an impressive increase, rising from 0.1% of global R&D in 2000 to 0.6% in 2023, a success story to watch closely,” the report noted.
R&D investments in the North African country are being directed to sectors such as renewable energy, agriculture, and space technology. This strategic emphasis has not only enhanced its domestic innovation capabilities but also elevated its standing in the global R&D arena.
Notably, Egypt stands at the 15th spot on the list of the top 15 global R&D spenders in 2023, a list dominated by global economic heavyweights such as China, the US, the EU, and Switzerland, among others.
At the regional level, other top investing countries in R&D include Morocco and Tunisia, which have prioritized R&D in renewable energy and manufacturing, leveraging their strategic locations and strong academic institutions to drive innovation.
Across the continent, conventional R&D investing powerhouses include South Africa, which according to the analysis has displayed steady, albeit slower, growth, reflecting consistent but less dynamic investments.
South Africa’s R&D investments stood at US$4.8 billion in 2023, almost doubling from US$2.56 in 2000, but still far below Egypt, according to WIPO data.
More investments in this space can be expected in the country, with a 2024 strategy report by the National Development Plan highlighting a path to grow investments in this space to 1.5% of the GDP from 0.62% of GDP in 2021/22.
Already, the unique diversification of sectors under focus is bearing fruit, with research centres in emerging sectors such as mining and space tech promising to unlock opportunities for the country and region.
The Council for Scientific and Industrial Research (CSIR), a prominent South African mining hub, has been selected as one of nine global projects under consideration for the Centres of Excellence Network. According to Minerals Council South Africa CEO Mzila Mthenjane, the selection of CSIR is “an exciting prospect for South Africa.”
“What is most exciting for me from a Minerals Council perspective is that we have a partnership with the CSIR on research, development, and innovation through the Mandela Mining Precinct. We see ourselves playing the key role in the Centre of Excellence,” Mthenjane explained to Mining Weekly on the sidelines of the Future Minerals Forum (FMF) held in Riyadh, earlier this month.
Other fast-growing R&D investment hubs on the continent include Rwanda, Kenya, and Cote d’Ivoire, where progressive policies from the government favour allocations in R&D.
The recent passage of the 2022 Startup Bill in Kenya, for instance, is a boost to R&D, promising to unlock private sector investments in this space. The law compels startups to allocate at least 15% of their expenses to research and development (R&D).
Yet, it is not just in Kenya where such a law is being considered. After the African Union (AU) passed its policy framework early last year, urging member states to enact startup bills to drive innovation, a wave of legislative momentum swept across the continent.
Regional trends show Tunisia leading the charge with the introduction of its Startup Act in 2018, followed by Senegal, Nigeria, and Togo. Meanwhile, Côte d’Ivoire, Ghana, South Africa, Rwanda, and Uganda are currently drafting similar legislation. R&D is a big part of these laws.
