South Africa Eyes 'Twin Strategy' to Bridge Research Commercialization Gap

South Africa is pursuing a new funding model to ensure scientific breakthroughs move from the laboratory into the commercial market. During the 19th Pujiang Innovation Forum in Shanghai, held from September 11-14, 2026, government officials called for a strategic shift to prevent promising technologies from failing due to a lack of late-stage investment.

Mlungisi Cele, Director-General of South Africa's Department of Science, Technology and Innovation, proposed a "twin strategy" to address the "valley of death." This term describes the precarious transition where research projects struggle to enter the economy because they lack the funding required for testing, refinement, and manufacturing. The proposed solution involves a dual approach: increasing direct government investment while simultaneously attracting capital from local businesses and private companies.

The Push for Self-Reliance

While South Africa maintains strong research capabilities within its science councils and universities, it lacks a robust mechanism to transition these discoveries into viable products. Private investors are often reluctant to fund technologies that have not yet proven their commercial viability, leaving a critical void in the development cycle. To counter this, Cele argued that the state must be "fearless" and prepared to invest in high-risk initiatives that are strategically important to the nation.

This drive toward self-reliance is partly a response to the volatility of international partnerships. Cele specifically cited the previous withdrawal of U.S. funding for HIV and other disease research as a cautionary example of the risks associated with over-reliance on a single foreign partner. He noted that current geopolitics demonstrate that no country can depend on a single source for its essential technologies.

Strategic Implications

Improving the commercialization of research is being framed as both an economic priority and a matter of national sovereignty. By reducing dependence on external funding, South Africa aims to secure its ability to solve local social challenges and dictate its own technological trajectory. To this end, the Minister of Science, Technology and Innovation is currently developing a coordinated Science, Technology, and Innovation (STI) agenda designed to increase national autonomy.

Looking Ahead

South Africa is using China's model of integrating scientific research, industrial development, and private investment as a reference point, though officials emphasized that the final framework will be tailored to the South African economy. China has reaffirmed its commitment to strengthening cooperation in science and technology with South Africa following the forum. The success of the initiative now depends on the government's ability to coordinate this new risk-sharing partnership with the private sector.