Supporting Young Tech Entrepreneurs: The Higher Education Innovation Fund

3 min read

The collaboration between the Department of Science and Innovation (DSI) and the United Nations Development Programme (UNDP) has resulted in the introduction of the Higher Education Innovation Fund. This fund has been designed to provide support to students in higher education institutions who are looking to pursue careers as innovators and technology entrepreneurs.

During the launch event in Pretoria, Dr Blade Nzimande, the Minister of Higher Education, Science and Innovation, emphasised the fund’s role in facilitating entrepreneurship, ideation, design thinking, business model development, validation and development of technology entrepreneurship, as well as providing support for commercialisation, market access, IP protection, and scaling up. Its primary objective is to address the existing gaps in tools and programs available for innovation and technology entrepreneurship across the country.

The Minister also highlighted the necessity for a well-coordinated, integrated, and responsive innovation-entrepreneurship ecosystem to support student innovators and technology entrepreneurship in higher education. The fund will offer training and up-skilling opportunities for student technology entrepreneurs, assisting them in developing and commercialising innovative products and sustaining technology enterprises.

This initiative has been prompted by the growing concerns surrounding youth unemployment, inequality, and poverty in South Africa. Statistics South Africa (Stats SA) has reported a worrying trend of increasing unemployment rates among graduates. The fund is envisioned as a beacon of hope to tackle these challenges and promote the growth of the knowledge economy.

The establishment of the fund began with the signing of a Memorandum of Understanding between the Department of Science and Innovation and UNDP in 2021. This aligns with the 2019 White Paper on Science, Technology, and Innovation, which recognises the issue of high youth unemployment in the country. The Minister has affirmed the commitment to transformation and inclusion, particularly regarding demographic, institutional, and geographical transformation of the National System of Innovation.

As a lead partner in this initiative, the Technology Innovation Agency (TIA) has recently joined as a co-funder and potential implementer of certain programs. The Minister has also announced plans to expand the Higher Education Innovation Fund to R1 billion and has invited private sector companies and other funding institutions to contribute.

The introduction of the Higher Education Innovation Fund is anticipated to have a positive impact on the development of student innovators and technology entrepreneurs, while also addressing the challenges of skills development and youth unemployment in South Africa. This fund has the potential to be a game changer and to make a significant difference in the lives of young technology entrepreneurs.