Why fund a research ‘Chair’ Christoph Schmocker Stellenbosch University 7 September 2012Copyright Advancement Academy1

Copyright Advancement Academy 1

Why fund a research ‘Chair’

Christoph SchmockerStellenbosch University

7 September 2012

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By the end of the session we will

• understand, why funding a ‘Chair’ is attractive

• for the University

• for the researcher

• for a Company!

17 September 2012 Copyright Advancement Academy

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Defining a Research Chair

• A Chair will → conduct and supervise research→ mentor young academics→ foster cross–disciplinary relationships→ facilitate research and training.

• A Chair includes→ A team of 10 – 15 people→ lead by a senior researcher (Professor)→ supported by 2 – 3 Post Doctoral Students (PhD)→ train 10 – 12 post-graduate students→ who all do research on a sub-topic of the ‘Chair’

• i.e. ‘Chair for African Financial Markets’


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Research Chair Needs

• Clear Vision Increased African economic growththrough an improved mathematical and analytical understanding of African financial markets.

• Part of a dynamic academic environment→ SU’s Department of Mathematical Sciences→ offer Honours program in Math. Finance→ Department has strong links with AIMS→ for which it hosts masters + doctoral students→ from all over Africa

• A long term commitment→ Have a 5 – 10 years plan→ Available funding of EUR 440’000 p.a.→ Possibility to work trans-disciplinary


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Key Company Roles to target


National Branch

Global Company

HR

Marketing

Products & Services

Client’s offering

Regional Strategy

Global Strategy

Corporate Foundation

- Global offering- Local insight

CEO- Growth strategy- Develop new markets

- Profound knowledge- Attractive cost structures

- Recruit well educated staff- Attract them at an early stage

- Support company’s brand- Commitments for society

- New platforms- Acquire new clients

Research Partner

- Strong brand- Stakeholders

BEE relevant ?

Exec. Board

COO

Sales

Region Head

Recruitment

Director

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Donor’s Pyramid


R 1 – 5 millionGrant Foundations & Trusts;

Global Corporate Donors

>R 10 mil.Governments

R 100'000 - 1 millionHigh Net Worth Individuals; National Corporate Donors;

Embassies;

R 12’000 – 99’999Major Donors;

income generations

R 12’000 – 99’999Major Donors;

income generations

• EUR 420’ – 500’000 p.a.• Over 5 to 10 years• Define research together• Exchange experts• Career plan for academics

R 5 – 9.9 millionDevelopment Agencies;

Research Funds

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Why a Company may invest in a Chair

1. Company’s plan to explore new markets→ Sub-Saharan Africa→ Your country?

2. Company’s need to explore new services→ i.e. analyse new methods for investments in Africa→ i.e. new mathematical & financial thinking

3. Company seeks innovations→ Unique Selling Proposition→ Set new standards

4. Soft factors→ A new Regional (Marketing) Head→ Get access to qualified staff in your country


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Invest in ‘African Financial Markets Chair’

• Global Level→ Investment appetite gets global → BRICKS countries offer higher returns

• African Level→ No Global Bank offers fundamental data on Africa→ Only recently significant progress has been made in the mathematical investigation of trading and risk management in African markets

• Country Level (South Africa)→ Start analysis in Africa’s strongest economy→ Commodities, agriculture and retail are key

• Resources Level→ SU is one of top research Universities in Africa→ SU produces 50 African Mathematics Master Students yearly


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Analysis of whom?

• Mining→ Anglo American, Anglo Platinum, Kumba Iron

• Telecommunication→ MTN, Vodacom, Telkom

• Retail→ Shoprite, Pick ‘n Pay, Massmart

• Insurance→ Sanlam, Discovery, Outsurance

• Renewable Energy→ ?


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Summary of key points


1. Strategic partnership

2. Define ‘Chair’ package

3. Analyse Company’s needs

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Questions?


Documents

Why fund a research ‘Chair’ Christoph Schmocker Stellenbosch University 7 September 2012Copyright Advancement Academy1