Business Leaders

Distinguished Guests

Ladies and Gentlemen

Modern biotechnology holds definite promise if we want to ensure sustainable development, food security, wealth creation and to improve the quality of life of our people.

Social upliftment programmes cannot be achieved overnight since they entail changing life cycles, the transfer of new and complex technologies to large groups of people, adaptation and innovation delivery that need to be undertaken within a sound bio-safety regime.

The National Biotechnology Strategy reached its fourth birthday in February this year, and we are beginning to reap the fruits of the decisions made nearly five years ago. We now have a dramatically improved infrastructure for biotechnology innovation in South Africa.

The institutional capacity building in the form of the BRICS, the National Bioinformatics Network, and the Public Understanding of Biotechnology Programme have changed the funding, research and human capital landscape.

Through these institutions, we have invested nearly R450 million in biotechnology innovation, business creation, smart technology transfer and new research platforms such as bioinformatics, functional genomics, and bio-fermentation.

In the process, we have either created new companies or invested in related companies to ensure the realisation of a range of outcomes. These include new product development, inward technology transfer, specialised services and essential health requirements. BEE participation is actively promoted and has become the established norm in such investments.

Today’s occasion is yet another example of showing that the partnership between government and business is growing apace. BioPAD, one of our BRICs, is co-investing with Sekunjalo and Bioclones in the Swiss company, Solidago AG, to form a new company, Ribotech Pty Ltd. This new company is expected to transfer new technology from Switzerland to South Africa. The intention is to create the capacity for production, marketing and distribution of a pharmaceutical factor, G-CSF.

We understand that this factor, a cancer-treating compound to be used in conjunction with chemotherapy and bone-marrow transplants, has a very significant global market. And this investment is expected to create employment for more than 100 people.

The Department of Science and Technology applauds the commitment of Sekunjalo and BioPAD in their joint commitment to the development of the biotechnology sector in the country. Their partnership has resulted in a South African biotechnology company that has an opportunity to engage with and participate in the global biotech industry.

Biotechnology in South Africa is still in its infancy. We need to follow through with current investments, and expand our scope to ensure that we not only concentrate on creating jobs and wealth, but also focus on the important health problems which impede the development of South Africa and the continent.

If this technology is to be acceptable and applicable in Africa, we need to ensure that the capacity to develop modern biotechnology solutions is relevant to Africa. South Africa is making every effort to develop new partnerships and approaches to the diseases that burden our people. Platforms such as the South African Malaria Initiative (SAMI) and the South African Aids Vaccine Initiative (SAAVI) have been created to find solutions to such health challenges.

South Africa has established mutually beneficial collaborative partnerships and agreements with other countries with regard to the development of Biotechnology. The India-Brazil-South Africa (IBSA) trilateral agreement aims to tackle several issues including HIV and AIDS and TB. We are also eagerly awaiting the announcement of the host country for the third component of the International Centre for Genetic Engineering and Biotechnology (ICGEB), for which South Africa has received support from various sectors of our society.

Ladies and gentlemen, although we are beginning to see the light at the end of a tunnel, major challenges still remain. Biotechnology firms are fiercely competitive, have seen more ups and downs in the past decade, and are often vulnerable to product failures and financial risks.

The high risk and the high investment nature of the biotechnology industry, coupled with its intellectual property orientation, generally act as strong barriers to entry for newcomers.

These are some of the factors that have resulted in only 53 South African biotechnology patent applications being received between 2001 and last year. This is of concern in a country where IP generated within its borders may not be commercialised locally, but may be licensed abroad with limited benefit to the local economy.

Companies that do not understand their obligations in this regard will face increased pressure in the future to conform to global and local good practice, in relation to publicly funded intellectual property that is commercialised.

By 2008, we intend to achieve the interim target of 1% of GDP investment in research and development. The business community, our partners in achieving this target, should become more aware of South Africa’s biotechnology assets as a vehicle for strategic innovation investment.

Sekunjalo has established a leadership position, and we hope that businesses will emulate their commitment, energy and drive. We applaud the confidence shown by Solidago AG in our country. Good partnerships are the basis for mutual success.

We are, therefore, pleased to announce the successful completion of a Licence and Technology Agreement that has been signed between Bioclones and Solidago AG. This, in part, depended on the investment by Biopad into Ribotech. The aim is to manufacture locally a modern biotech product for world markets.

I wish you success in your venture and hope that this will greatly contribute towards the growth of the South African bio-economy.

I thank you.