South Africa’s innovation fund, announced by President Cyril Ramaphosa in the 2025 state of the nation address, was a response to the country’s urgent need for inclusive and sustainable economic growth.
Evidence from South Africa shows that public financial support for innovation influences the investment that businesses make in innovation.
The fund will focus on providing venture capital to tech start-ups from higher education institutions. In practice, its activities will complement several programmes that offer different forms of investment for innovation. These include the long-standing research and development tax incentives; the Technology Acquisition and Development Fund; and the SA SME Fund.
