ICT Leads South Africa's R&D Spending Rise

ICT research spending grew by R853 million in 2024/25 even as South Africa's overall R&D expenditure declined 1.9% in real terms.

Updated on Nov. 5, 2026 in Software

ICT Leads South Africa's R&D Spending Rise

Live Poll

Should South Africa increase public and private spending on research and development?

The ICT sector recorded the largest increase in research and development expenditure in South Africa in 2024/25, rising to R5.7 billion, or 12.9% of total spending. Overall real R&D expenditure fell 1.9% year-on-year, from R28.6 billion to R28.1 billion.

Why it matters

The national R&D intensity fell to 0.60% of GDP from 0.62%, moving further from the country's long-standing target of 1.5%. The shift shows business-sector research weakening while ICT and higher education take a larger share of spending.

ICT R&D spending reached R5.7 billion in 2024/25, or 12.9% of total gross expenditure on research and development, adding R853 million year-on-year. Total gross domestic expenditure on R&D rose to R44.2 billion, but real spending fell 1.9%, and the extraction does not explain how much of the ICT gain reflects software-specific investment.

The players

Naledi Pandor

Former South African science and technology minister who announced the 1.5% of GDP R&D target for 2019.

Human Sciences Research Council

South African public research council that conducts the national R&D survey through its Centre for Science, Technology and Innovation Indicators.

The details

The figures come from the National Survey of Research and Experimental Development Statistical Report 2024/25, conducted by the Centre for Science, Technology and Innovation Indicators at the Human Sciences Research Council for the Department of Science, Technology and Innovation with Statistics South Africa. Business-sector R&D fell by R742 million to R14.4 billion, cutting its share of total spending from 34.8% to 32.5%, while higher education rose by R919 million to R16.7 billion and government remained the largest funder at R22.2 billion (50.1%).

2014: Science minister Naledi Pandor announced a new target of 1.5% of GDP for R&D by 2019.
2008: The original target of 1% of GDP for R&D was due to be reached.
2019: The interim 1.5% of GDP R&D target was due.
2023/24: Real R&D expenditure stood at R28.6 billion, or 0.62% of GDP.
2024/25: ICT R&D rose by R853 million while overall real R&D declined 1.9%.

Roadmap

South Africa set a target of 1.5% of GDP for research and development spending, first announced by Naledi Pandor in 2014 for achievement by 2019. Spending has since fallen to 0.60% of GDP in 2024/25, with ICT gaining ground while business-sector investment weakened.

Software developers and ICT firms in South Africa may see more research funding flowing into their field, while the wider decline in business R&D could affect the pace of new product development. The extraction does not confirm how these shifts will change tool availability or pricing for users.

The takeaway

Growth in ICT research spending shows where South Africa's R&D money is moving, even as overall investment and the business share shrink. Readers tracking the country's technology sector should watch whether this trend holds in future survey years.