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 Biotechnology in the New South Africa
By
Zenda M. Ofir
 
 
 
Keywords:  South Africa; Policies/Programmes; Public institute.
Correct citation: Ofir, Z.M. (1994), "Biotechnology in the New South-Africa." Biotechnology and Development Monitor, No. 20, p. 14-15.

After many years of isolation, South Africa's next few years will be crucial to bring about social change and ensure a successful economic transition as the country rejoins global markets. Biotechnology is expected to play a substantial role in sustaining this process and might also provide new ways of collaboration with neighbouring countries.

Years of isolation and sanctions during the period of apartheid forced the South African economy to be as self­sufficient as possible. A large part of the GDP was spent on building a strong military capacity and developing capabilities in areas such as electronics and energy. The domestic economy was protected from international competition and consisted mainly of large, in many cases state­subsidized, corporations.
Small business development and entrepreneurship was not particularly encouraged. Companies in South Africa had to follow a conservative route in the development of technology­based processes and products due to forced limitations in export opportunities especially to First World countries. On the other hand, most ores and some raw materials were exported in bulk as these, unlike the products of benefication, were exempted from sanctions. Furthermore, in recent years, due to a crisis in government spending, cuts in expenditure brought about stagnation and regression in many sectors of the economy.

Biotechnology neglected
In contrast to the chemical and military sectors, biotechnology was not considered important for the survival of South Africa during the apartheid era. There were no government incentives for the development of biotechnology companies, very little venture capital and no co­ordinated policy and strategy to ensure that biotechnology research and development was stimulated. Support for biotechnology was fragmented between various government departments and science councils according to their own priorities and programmes. In 1981, a study indicated that there was not one centre with a critical mass of researchers to get a significant molecular biology research programme off the ground. Only two universities offered specialist degree courses while no institution awarded technical diplomas in biotechnology. Three registered companies were using recombinant DNA techniques, while traditional biotechnology was more actively pursued. A number of industries, university departments and research institutes were working in fermentation and enzyme technology, the production of vaccines and antibodies, aspects of waste treatment and the molecular biological improvement of micro­organisms. Agricultural biotechnology was neglected, except for some basic studies in plant improvement in, amongst others, maize, vegetables, ornamental flowers, deciduous fruits and cereal cultivars. Tissue culture techniques were used in an effort to mass propagate plant material.

New interest
During the eighties efforts were made to develop expertise in molecular biology at a number of academic institutions and government research institutes. The Foundation for Research Development (FRD) established a biotechnology and molecular biology training programme. Additionally, new research centres were founded in, for example, molecular and cell biology, microbial genetics and minerals biotechnology by the FRD and the Medical Research Council (MRC), the Agricultural Research Council (ARC), the Council for Scientific and Industrial Research (CSIR) and the Council for Minerals Technology (Mintek).
Various government departments also established their own centres to develop modern molecular genetics in agriculture, which is one of the most important sectors in the country. The South African Committee for Genetic Experimentation (SAGENE), constituted in 1978, was responsible for encouraging research in all aspects of recombinant DNA, providing guidelines, approving and classifying research centres and projects and arranging training courses to update scientists on new techniques. In 1989 the Committee was reconstituted with revised terms of reference. It now has the mandate to act as the national advisory body on the environmental release of genetically modified organisms, but it has no power of enforcement.

Research activities
Currently, South Africa has a sizeable number of research groups using biotechnology in a variety of areas. In 1992, approximately 30 companies (of which one third are dedicated biotechnology firms), 55 academic centres and 26 government institutes and departments carried out biotechnology­related research. The companies make use of a wide variety of biotechnological methods and work mainly in the field of plant biotechnology.
Yet the impact of biotechnology in South Africa, especially recombinant DNA work, still has to be felt, as the commercial application of genetic engineering is still exceptional. The most recent survey estimated that the national spending on agricultural and industrial biotechnology R&D in 1991/1992 was US$ 25.7 million, of which US$ 8 million was spent on recombinant DNA research. Biotechnology research is directed towards different areas:
Agriculture and horticulture. There is a great variety of agricultural production in South Africa and the sector employs 10 per cent of the country's economically active population. Current projects in agricultural biotechnology are mainly aimed at improving disease, herbicide and insect resistance, the isolation of toxins, plant propagation and the production of new cultivars. Especially tissue culture is widely used, while work on genetic engineering remains limited. In terms of world competitiveness in agricultural biotechnology, South Africa lags behind in general, but is competitive in certain areas. An ARC research institute recently received approval for field trials for the first transgenic strawberry developed by introducing a gene encoding resistance to a herbicide into a commercially important strawberry cultivar. One of the largest biotechnology R&D companies is involved in microbiological fermentation to produce lysine and other amino acids and is in the process of erecting a plant with an expected capability of 2,000­14,000 tonnes of lysine per year.
Food and beverages. In the beverages industry, yeast breeding and fermentation are the two areas where biotechnology R&D is being conducted. For example, a process was developed though which mageu (a traditional brew made of porridge) is fermented on a commercial scale. A long life culture and mageu with a long shell life were produced. Research on the genetic manipulation of yeasts is done in some academic centres in collaboration with several industries. Most companies in the food sector consider biotechnology, especially recombinant DNA, to be outside the scope of their activities given the country's small markets and limited resources. However, in some fields, such as the sugar, fermentation and flavour industries, biotechnological processes are used. 
Mining and minerals. Much research is conducted in the area of biomining. The Biox process for the biotechnological extraction of gold from arsenopyrite ores was developed in South Africa. The company General Mining, Metals and Materials Ltd (Genmin, South Africa), has the licensing of the oxidation technology worldwide. In 1986, the first full­scale plant based on this technology was commissioned at the Fairview mine. Since then other full­scale production plants have been constructed by Genmin in Brazil, Ghana and Australia. The technology has the advantage of being less energy consuming and more environmentally friendly than previously used processes. Current research is aimed at improving the process still further and developing techniques for rapid recovery of biological activity following power failures or accidents. 
Chemical, pharmaceutical and medical sectors. Biotechnological applications focus mainly on chemicals for field crops, horticulture and animal use, and pharmaceuticals for human and animal health. Research is conducted in the area of bioherbicides and biopesticides. 
The potential of pharmaceutical biotechnology has not yet been realized. Most products are imported by multinational companies for distribution in South Africa. Therefore, the recently unveiled National Health Plan of the new government targets the development of a strong pharmaceutical industry. Areas of interest include new drug delivery systems and gene therapy. An interesting focus is the development of slow drug delivery systems for diseases such as bilharzia, malaria and tuberculosis for rural communities. 
Research in the medical field was recently stimulated by an investment of US$ 10 million by Glaxo (UK), in collaboration with the MRC, in molecular biology research on tuberculosis at a number of South African research centres. 
The environment. Pollution is a major problem in South Africa, due to, amongst others, the use of high sulphur­containing coal and mining activities. Areas of investigation include enzymes for waste treatment, biofiltration, land restoration and land reclamation, landfill gas, bioremediation, the treatment of leachates, the cleaning up of water resources and effluent and the development of agents to replace environmentally unfriendly chemicals used in many industrial processes.

Developments
The declining performance of the South African economy during recent years has to be turned into an economic success which could be used to help fund the top priority of the new government of national unity, the Reconstruction and Development Programme (RDP). The RDP is an integrated strategy for growth and development to rebuild the country and to remove the legacies of apartheid. Its main aim is to reduce poverty, which affects around 17 million people in South Africa. It spans different ministries and is a framework for actions such as the provision of a million houses over five years, 2.5 million jobs and ten years of basic, high­quality education. Ministers have to define five­year strategies linked to the RDP. This means that government efforts and expenditure will be directed towards new priorities, such as meeting basic needs, developing human resources, especially from the previously neglected communities, and building the economy. 
The government has created a new Ministry of Arts, Culture, Science and Technology. As its structure and mandate are still being determined and the constitution and role of the science councils are revised, it is not yet clear what its policies, priorities and strategies will be.
The new government has expressed a keen interest in developing small and medium­sized enterprises, which could stimulate the development of biotechnology companies if adequate venture capital and other incentives are made available. The current economic climate and affirmative action policies to redress past imbalances are stimulating many newly qualified scientists to become entrepreneurs. Several institutions and organizations provide venture capital for new businesses, although the scale is not yet adequate. 
Furthermore, the first South African Biotechnology Conference, held in 1993 and attended by 400 delegates, brought together for the first time biotechnologists working in many different areas of biotechnology. Another recent development is the establishment of an inter­departmental working group with the task to draft legislation to cover the use and release of genetically modified organisms.
Also from the private sector new initiatives were formed. In 1990, the Industrial Biotechnology Association (IBA) of South Africa was established by a number of companies, aiming at the increase of awareness of biotechnology in industry, educational and government institutes and among the general public, and to lobby the government for support.
Recent studies estimate the South African market for biotechnology R&D services at US$ 3.5 million in 1991. The expected short term real growth for the biotechnology R&D market is 9.1 per cent for 1994 and 6.9 per cent annually for the period 1994­1998.

International co­operation
Current commercial prospects for locally developed products with a biotechnology input still centre on the South African market. Only to a limited extent, given the country's past isolation, are foreign markets addressed. A 1992 survey indicated that 66 per cent of national companies involved in biotechnology have links with multinational companies, one­third of them being their subsidiaries. These national companies mostly import products or technology. Nearly 60 per cent of academic research groups collaborate with groups in other countries, mainly in Europe and the USA. International investment is still very limited, but interest in South African biotechnology has already been expressed by a number of international institutes and companies who view its biodiversity and prominent position in terms of expertise and infrastructure in Africa as an advantage. 
It is expected that South Africa will play a major role in the development of human resources in biotechnology elsewhere in Africa, directed towards the empowerment of African scientists on the continent to serve the needs of their own countries. Already postgraduate students from different African countries are starting to participate in research projects. A recent initiative in this respect is the All­African Tissue Culture Workshop, organized by the FRD and the ARC and supported by the United Nations Educational, Scientific and Cultural Organization (UNESCO), which brought together scientists from five African countries.
Niche areas for collaboration would include research on developing countries' diseases such as tuberculosis, the protection of the environment and the biodiversity in Southern Africa, as well as their optimal use, and the development of processes and products that are of great value to developing countries, such as extending the lifespan of food produce for areas where transportation is undeveloped.
Zenda M. Ofir (FRD, South Africa)

Sources
FDR (1992), Biotechnology in South Africa. Pretoria: FDR.

The Reconstruction and Development Programme of the ANC (1994). Johannesburg: Unanyano Publications.

O. W. Porzesky et al (1982), Biotechnology in the Republic of South Africa. Report of the ad hoc Biotechnology Task Group.

Personal communication with E. Senior, University of Natal, S.A., and D. Rawlings, University of Cape Town, S.A.



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