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2015 - 2063 SADC INDUSTRIALIZATION STRATEGY AND ROADMAP Approved by Summit in Harare on 29 April 2015

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Page 1: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

2015 - 2063

SADC INDUSTRIALIZATION STRATEGY AND ROADMAP

Approved by Summit in Harare on 29 April 2015

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TABLE OF CONTENTS TABLE OF CONTENTS .......................................................................................................................................... i

ACRONYMS ............................................................................................................................................................... iii

FOREWORD FROM THE SADC CHAIRPERSON .......................................................................................... v

FROM THE EXECUTIVE SECRETARY ................................................................................................................ vii

ACKNOWLEDGEMENTS .................................................................................................................................... .ix

1. INTRODUCTION ......................................................................................................................................... ..1

2. STRATEGIC OBJECTIVES, GUIDING PRINCIPLES AND CORE PILLARS OF THE STRATEGY

..3

2.1 Strategic Goals .............................................................................................................................................. 3

2.2 Essential Elements for Industrialization ............................................................................................ 4

2.3 Three core pillars of the Industrialization Strategy ....................................................................... 5

3. STRATEGIC INTERVENTIONS ................................................................................................................. 7

3.1 Macroeconomic Framework .............................................................................................................. 7

3.2 Revitalizing Regional Integration ........................................................................................................ 7

3.3 Removing Binding Constraints ........................................................................................................... 9

3.4 Industrial Development ...................................................................................................................... 13

3.5 Potential Growth Paths ........................................................................................................................ 14

3.6 A Compact for Industrialization - The Role of the State and Engaging the Private Sector . 17

3.7 Mainstreaming Gender and Youth Issues ........................................................................................ 19

3.8 Strengthening Small and Medium Scale Enterprises ...................................................................... 20

3.9 Enhancing Competitiveness ................................................................................................................ 21

3.10 Ensuring Environmental Sustainability (Green and Blue Economy) ........................................... 22

3.11 Growth Scenarios and Timelines ............................................................................................................ 23

3.12 Investment Planning .............................................................................................................................. 24

3.13 Mobilizing Financial Resources for the Industrialization Strategy .............................................. 24

4. CO-ORDINATION, IMPLEMENTATION AND MONITORING ..................................................... 27

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5. CONCLUSIONS ............................................................................................................................................. 28

THE ROADMAP ...................................................................................................................................................... 29

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ACRONYMS

AGOA Africa Growth and Opportunity Act

AIDA The Plan of Action for Accelerated Industrial Development

AMV African Mining Vision

AU African Union

AUC African Union Commission

ASM Artisanal and Small-Scale Mining

BIAT Boosting Intra-African Trade Initiative

CCBG Committee of Central Bank Governors

CFTA Continental Free Trade Area

COMESA Common Market for Eastern and Southern Africa

EAC East African Community

ECCAS Economic Community of Central African States

EU European Union

EPA Economic Partnership Agreements

FDI Foreign Direct Investment

FTA Free Trade Area

GVC Global Value Chains

GDP Gross Domestic Product

ICT Information and Communication Technologies

IDPF SADC Industrial Development Policy Framework

IMF International Monetary Fund

IOC Indian Ocean Commission

IUMP SADC Industrial Upgrading and Modernization Programme

LDCs Least Developed Countries

MVA Manufacturing Value Added

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OECD Organization for Economic Corporation and Development

PIDA Programme for Infrastructure Development

PPP Public-Private Partnership

RISDP SADC Regional Indicative Strategic Development Plan

R&D Research and Development

RVC Regional Value Chains

SADC Southern African Development Community

SACU Southern African Customs Union

SEZ Special Economic Zones

SMEs Small and Medium Enterprises

SQAM Standardization, Quality Assurance, Accreditation and Metrology

STEM Science, Technology, Engineering and Mathematics

SWOT Strengths, Weaknesses, Opportunity and Threats Analysis

TFP Total Factor Productivity

TFTA Tripartite Free Trade Area

TIVA Trade in Value Added

TRIPS Agreement on Trade Related Aspects of Intellectual Property Rights

UNCTAD United Nations Conference on Trade and Development

UNECA United Nations Economic Commission for Africa

UNIDO United Nations Industrial Development Organization

VAX Ratio Ratio of Value-Added Exports to total Exports

WTO World Trade Organization

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FOREWORD FROM THE SADC CHAIRPERSON In August 2014, SADC Heads of State and Government considered and endorsed the Summit Theme: “SADC Strategy for Economic Transformation: Leveraging the Region’s Diverse Resources for Sustainable Economic and Social Development through Beneficiation and Value Addition”. The Theme reflects the urgent need for the region to leverage its abundant and diverse resources, especially in agriculture and mining, to accelerate industrialization through beneficiation and value addition. To operationalize the Theme in the SADC regional integration agenda, Summit resolved to develop a SADC Industrialization Strategy and Roadmap. I am pleased to present the SADC Industrialization Strategy and Roadmap, 2015-2063, which was approved by the Extra-Ordinary Summit in Harare, Zimbabwe, in April 2015. This is a historic achievement we should build on and use to transform our economies, to enhance economic growth, and create empowerment. Despite persistent efforts to boost trade within the region through the SADC Free Trade Area, the value of intra-SADC trade has remained very low, at only 17% of total SADC trade. Exports from the region are dominated by unprocessed or minimally processed products mainly from the agricultural and mineral sectors, thus providing very low value returns. Such low level of intra-regional trade clearly shows that the great emphasis placed on tariff elimination, has not brought about the intended socio-economic development, nor the enhancement of quality of life and the well-being of our people. To address this challenge, we have agreed to act collectively, as a Region, to implement effective strategies that boost the productive capacity of our industries, develop infrastructure that leverages industrialization and promotes technological advancement. While SADC is endowed with abundant and diverse natural resources, our productive sectors do not practice value addition. In agriculture, SADC countries continue to export unprocessed agricultural produce, earning approximately 10% of the potential value of the products. The Industrialization Strategy aims at reversing this trend, in order to achieve self-sustaining development for our countries. This can be achieved through value addition to our products which in turn would increase returns from the export of our natural resources. In this context, we need to forge a strong partnership between Governments and the private sector. Since one of the major challenges that has retarded implementation of existing programmes on industrialization is inadequate funding, it is important for the SADC region to consider innovative

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ways of financing industrialization. This includes urgently formalising and operationalizing the Regional Development Fund, promoting public-private-partnerships, and ensuring that the private sector plays a pivotal role in the implementation of the Strategy. Our engagement with International Cooperating Partners should be guided by our Strategy and Roadmap 2015-2063, so as to complement SADC initiatives on industrialization. I would like to commend all who contributed to the development of the Industrialization Strategy and Roadmap including SADC Member States, the Secretariat and International Cooperating Partners.

President of the Republic of Zimbabwe and SADC Chairperson

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FROM THE EXECUTIVE SECRETARY The SADC Industrialization Strategy and Roadmap 2015 - 2063 is the first of its kind. It has a long term perspective, and is aligned to national, regional, continental and international dimensions. The Strategy recognizes that for trade liberalization to contribute to sustainable and equitable development, and thus to poverty reduction, it must be complimented by the requisite capacities to produce, and to trade effectively and efficiently. The primary orientation of the Strategy is the importance of technological and economic transformation of the SADC region through industrialization, modernization, skills development, science and technology, financial strengthening and deeper regional integration. The Strategy is anchored on three pillars namely; industrialization as champion of economic and technological transformation; competitiveness as an active process to move from comparative advantage to competitive advantage; and regional integration and geography as the context for industrial development and economic prosperity. The Strategy’s long term vision is aligned to the African Union Agenda 2063, covering the period 2015-2063. During this period, SADC economies seek to overcome their development constraints, and progressively move from factor-driven; to investment-driven, then to efficiency-driven; and ultimately to the high growth trajectory driven by knowledge, innovation and business sophistication. It is envisioned that by 2063, the SADC region will be fully transformed and will be an important player in the continental and global landscape, premised on the three growth phases: (a) Phase I: covers 2015 to 2020. This period constitutes a period of active frontloading of the

Industrial Development and Market Integration and related infrastructure and services support to industrialization, with interventions to strengthen integration and competitiveness. During this phase, SADC countries should target per capita income growth of about 6 percent annually to achieve the lower income band of the factor-driven stage of US$ 2000.

(b) Phase II: covers the period 2021 to 2050, will focus on diversification and enhancement of

productivity and competitiveness. During this period, SADC aims to achieve the targeted GDP per capita of US$ 9000 by 2050 and a per capita growth rate of 8 per cent annually from 2020 onwards.

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(c) Phase III: covers 2051 – 2063, during which SADC economies would move into the innovation-driven stage, characterized by advanced technologies and increased business sophistication. To achieve that status, GDP per capita would need to rise from US$ 9000 in 2050 to US$ 17000 by 2063, with an annual income growth of about 5 per cent.

On behalf of the SADC Secretariat, I wish to express our gratitude to SADC Heads of State and Government, under the Chairmanship of H.E. Robert Gabriel Mugabe, for their vision and leadership, and commend and thank all stakeholders who contributed to this noble course.

Dr. Stergomena L. Tax EXECUTIVE SECRETARY

 

 

 

 

 

 

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ACKNOWLEDGEMENTS First and foremost, our special gratitude goes to the SADC Heads of State and Government, under the chairmanship of His Excellency, Robert Gabriel Mugabe, President of the Republic of Zimbabwe, for their vision and leadership in the formulation of the Strategy. We also highly appreciate the support provided by Member States throughout the process of developing the Strategy. Recognition also goes to Professor Samuel Mwita Wangwe, the Chief Executive Officer, Research on Poverty Alleviation (REPOA) Tanzania, and Dr. Angelo Mondlane, Director, Policy Planning and Resource Mobilization for their critical role in developing the concept paper that stimulated decisive engagement on the development of the SADC Industrialization Strategy during the 34th Victoria Falls August 2014 Summit. The development of the SADC Industrialization Strategy and Roadmap 2015-2063 was an inclusive process involving SADC Member States, Strategic Partners, notably, the United Nations Economic Commission for Africa (UNECA), World Bank, United Nations Industrial Development Organization (UNIDO) and GIZ; the private sector and non-state actors. Fifteen national reports on industrial policies, strategies and programmes, as well as priorities of SADC Member States informed the Industrialization Strategy and Roadmap. Special recognition goes to UNECA, under the leadership of Dr. Carlos Lopes, Executive Secretary, supported by Prof. Said Adejumobi, Director, Sub-Regional Office for Southern Africa. The development of this Strategy and Roadmap would not have been possible without strategic financial support from UNECA. Appreciation should also go to SADC staff for their dedication and effective coordination which enabled the preparation of the Strategy in record time. Membership of the core team of the Secretariat included Dr. Stergomena L. Tax, the Executive Secretary of SADC who provided outstanding oversight, supported by Dr. Thembinkosi Mhlongo, Deputy Executive Secretary - Regional Integration, and Ms Boitumelo Sendy Gofhamodimo, Director for Trade, Industry, Finance and Investment, who was responsible for coordinating the assignment. Other members of the Team include Dr Angelo Mondlane, Director, Policy Planning and Resource Mobilization, Mr. Remigious Makumbe, Director, Infrastructure and Services, Mr. Stephen Sianga, Director for Social Human Development and Special Programmes, and Mrs Margaret Nyirenda, Director, Food, Agriculture and Natural Resources. We are equally indebted to the team of three Regional Experts, availed by UNECA namely, Dr. Yousif Suliman-Team Leader, Professor Anthony Hawkins and Seth Akweshie, members of the team, who were responsible for putting together the Strategy and Roadmap. Their work was complemented by that of the following national experts: António Henriques da Silva, Malekantwa Mmapatsi, Tshikuku Kabeya, Peete Molapo, Richard Rakotoniaina, Dr Hudson Mtegha, Mrinalsing Ramhit, Dr Peter Coughlin, Errolice Tjipura, the late Kamalandua Winnie Sibongile, Dr Moses Tekere, Allan Kilindo, Professor Samuel Mwita Wangwe, William S. Mbuta, Dr Eli Mtetwa and Saul Levin and Sithembiso Mtanga from Trade and Industrial Policy Strategies (TIPS). We are equally grateful for the support provided by the following officers: Gainmore Zanamwe, Jabulani Mthethwa, Alisoa Vololoniaina, Martin Muchero, Dick Kamuganga, Paul Kalenga, Kirsten Focken and Kuena Molapo. Useful comments were also received from staff in various divisions of the Secretariat

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INTRODUCTION The primary orientation of the strategy is the necessity for the structural transformation of the SADC region by way of industrialization, modernization, upgrading and closer regional integration. ….but the strategic thrust must shift from reliance on resources and low cost labour to increased investment and enhanced productivity of both labour and capital.

The SADC Industrialization Strategy and Roadmap is formulated in the context of existing national and regional policies and specifically the August 2014 Summit at Victoria Falls, Zimbabwe, which was held under the theme: “SADC Strategy for Economic Transformation: Leveraging the Region’s Diverse Resources for Sustainable Economic and Social Development through Beneficiation and Value Addition”. Summit directed that industrialization takes centre stage in SADC’s regional integration Agenda. To this end, Summit mandated the Ministerial Task Force on Regional Economic Integration to develop a strategy and roadmap for industrialization of the Region.

Within this context, Summit also “requested the Committee of Ministers of Trade, assisted by the Secretariat, to review Priority A in the draft Revised Regional Indicative Strategic Development Plan (RISDP), 2015-2020, particularly the sequencing of targeted outputs on Industrial Development and Trade Liberalisation in order to ensure that, at the current stage of integration in SADC, industrialization is prioritized”. Council also directed the Secretariat to finalise the revised RISDP by frontloading industrialization in its implementation plan and to mainstream the theme in the revised RISDP.

The Strategy is premised on the conviction that regional integration will promote industrialization. It recognizes that industrial policy and implementation will be largely undertaken at the national level and that its success depends on forging a compact for industry consisting of the government, the private sector, civil society, labour and the development partners.

The SADC Industrialization Strategy and Roadmap seeks to engender a major economic and technological transformation at the national and regional levels within the context of deeper regional integration. It also aims at accelerating the growth momentum and enhancing the comparative and competitive advantage of the economies of the region. This entails the pursuit of a focussed programme for the accumulation and deployment of knowledge, modern physical assets and human capital, particularly the youth as well as other capabilities. A transformed economy has greater promise for substantially raising living standards, generating employment, alleviating poverty and mitigating external shocks. The Strategy is designed as a modernization scheme, and is predicated on maximum exploitation of comparative advantage and creating enduring conditions for competitive advantage at enterprise level. The latter thrust requires earnest efforts aimed at enhancing technological setups and readiness, changes in the way of doing business, scaling-up productive capacity and enhancing economic interlinkages to unlock regional potential in general. Sustainability of the process would thus require turning the economies into knowledge-based and competitive structures. Such efforts, while requiring quality changes in a wide range of policies and actions, indeed recognize, and build on, the efforts already made nationally and regionally. The Regional Strategy is driven by national development strategies, visions and plans and primarily by the SADC Treaty, the RISDP, SADC protocols and specifically by the Industrial Development Policy Framework (IDPF). It is also informed by African Union’s Accelerated Industrial Development of Africa and Agenda 2063.

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Given the initial development conditions in the majority of SADC countries, the transformation drive should effectively target higher levels of growth and deeper structural change. This requires deliberate and induced interventions to enhance factor accumulation (labour, capital and technology) to substantially raise total and factor productivity. This implies the (direct or induced) shift of resources to more dynamic higher productivity uses, which fundamentally means manufacturing, broadly defined to include agro-processing and minerals beneficiation as well as some development and business enabling services. In the 21st century, SADC economies can no longer rely on rich resources or low-cost labour as a platform for industrialization and modernization. The strategic thrust must shift from factor accumulation growth – employing more labour and investing more capital – to total factor productivity, which is the efficiency with which resources are deployed in the production process. Catching up is dependent on narrowing productivity gaps, both between sectors within SADC economies and with more advanced economies, necessitating a focus on advanced skills and state-of-the-art technologies. The fact that 60 per cent of world trade is in intermediate products strengthens the case for value-addition in SADC economies and value-chain participation. Industrial policy must be crafted within the context of a country’s competitive advantage, including future or nascent advantage. The essence of transformation is diversification via upgrading and climbing the technology ladder. Successful industrialization will be achieved not just by doing things better – though that is a key factor – but also by doing different things, implying industrialization is achieved through diversification. The primary orientation of the Strategy is the necessity for the structural transformation of the SADC region by way of industrialization, modernization, upgrading and closer regional integration. Industrialization should be seen as a long-term process of structural transformation and enhanced competitiveness of the entire SADC region. The SADC region is in catch-up mode and needs to run faster than other emerging economies to converge with upper middle-income and high-income countries.

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1. STRATEGIC OBJECTIVES, GUIDING PRINCIPLES AND CORE PILLARS OF THE STRATEGY

2.1 Strategic Goals Strategic goals are both qualitative and quantitative.

(a) Quantitative

The Strategy envisages substantial quantitative shifts in industrial structure, manufacturing, production, exports, particularly those in the medium- and high-technology categories, while doubling industrial employment.

The quantitative goals and growth targets are aspirational in the context of long-term transformation of the SADC economy and creating the knowledge economy of the future. They are also informed by the strategic desirability of converging SADC economies as a group and within the context of the continental development agenda 2063. They are also guided by the historical performance and the potentialities associated with the transformational programme incorporated in the Strategy. The quantitative goals include the following:

(i) To lift the regional growth rate of real GDP from 4 percent annually (since 2000) to a minimum of 7 percent a year.

(ii) To double the share of manufacturing value added (MVA) in GDP to 30 percent by 2030 and to 40 percent by 2050, including the share of industry-related services.

(iii) To increase the share of medium-and-high-technology production in total MVA from less than 15 percent at present to 30 percent by 2030 and 50 percent by 2050.

(iv) To increase manufactured exports to at least 50 percent of total exports by 2030 from less than 20 percent at present.

(v) To build market share in the global market for the export of intermediate products to East Asian levels of around 60 per cent of total manufactured exports.

(vi) To increase the share of industrial employment to 40 percent of total employment by 2030.

(b) Qualitative

The Strategy is transformational in terms of socio-economic transformation nationally and regionally.

The qualitative goals seek to:

(i) Achieve a major socio-economic transformation at the national and regional levels.

(ii) Accelerate the growth momentum and enhance the comparative and competitive advantage of the economies of the region.

(iii) Diversify and broaden the industrial base and interdependences.

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(iv) Enhance the productive capacity, productivity and competitiveness of SADC economies.

(v) Provide a framework for technological and industrial catch-up, export diversification, natural resources beneficiation, enhanced value-addition and increased regional trade and employment generation.

(vi) Develop viable regional value chains capable of interacting with global value chains and identify areas where the SADC region can have the greatest success in capturing high opportunities based on present and future strengths and capabilities.

(vii) Build a collaborative but challenging strategic partnership between governments, the private sector, the civil society and the development partners as a compact for industrialization.

(viii) Ultimately, build firm and enduring foundations for a modernized SADC economy.

2.2 Essential Elements for Industrialization

The SADC Industrialization Strategy emphasises the following fourteen (14) essential elements/prerequisites for industrialization:

(i) Industrialization is a key for transformation and strengthening inter-industrial links.

(ii) Factor productivity as a fundamental metric of development and transformation processes.

(iii) Technological upgrading and innovation as enablers and creators of employment and competitiveness.

(iv) Geography and natural resources as crucial factors in establishing national and regional economic clusters to support diversification and interlinkages.

(v) The recognition of possible impact of the emerging global technological evolutions on trade patterns.

(vi) The crucial role of the government as a developmental agent in perceiving, developing, promoting and implementing industrial development and creating the requisite environments.

(vii) The importance of establishing a compact for industrialization and development, consisting of the government, private sector, civil society, development partners and prospective investors.

(viii) The central role of the private sector as the driver of industrialization and in particular the contribution of small, medium enterprises (SMEs) to employment growth and national development.

(ix) The acceleration of the tempo of SADC’s integration programme and promoting the complementarities of national and regional efforts on industrial development issues and leveraging the positive aspects of the various regional and global agreements of which SADC is party.

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(x) Creation of a stable macroeconomic environment and strong microeconomic foundations for the development and growth of the private sector and promotion of regional economic interdependence.

(xi) The critical importance of coordination and interfacing of the industrial development efforts nationally and regionally - to ensure maximization of gains and avoidance of harmful competition.

(xii) The importance of ensuring environmental and social sustainability, taking into consideration envisaged impacts of industrialization on climate change and the adoption of technologies and modalities that enhance resource efficiency and reduced waste.

(xiii) The importance of accelerating empowerment of youth and women to enable them to participate fully in economic development.

(xiv) The recognition of the role of ICT as an enabler as well as a catalyst to industrialization and the need for mainstreaming ICT in the socio-economic transformation process.

2.3 Three core pillars of the Industrialization Strategy

The Strategy is anchored on three pillars:

(i) Industrialization as champion of economic and technological transformation.

(ii) Competitiveness (at the firm/industry, country and regional level) as an active process to move from comparative advantage to competitive advantage.

(iii) Regional integration and geography as the context for industrial development and

economic prosperity. The long-term transformation of the SADC economies requires focused qualitative and quantitative shifts in industrial structure, its enabling environment and the interdependence with other sectors to maximize the direct and indirect value addition in the industrial sector broadly defined to include related support services. In so doing, industrialization will need to be situated within the global dynamics of competitiveness, quality of products as well as flexibility to respond to internal and external demand dynamics. The positive spill-overs from industrialization will stimulate employment and substantially raise income levels. A sustainable industrial sector of the future should be resilient and with high propensity for continuous modernization.

SADC countries are equally challenged to substantially enhance their competitiveness to supplement their inherited comparative advantage in natural resource-based production and exports. Action should therefore target the competitiveness of firms as well as the economies at large.

Deeper regional integration reinforced by industrialization and enhanced competitiveness should provide the context for the region’s development. Enabling the productive and distribution capacities of the process will help remove structural impediments and enhance factor productivity.

The pillars are interdependent: Each is uniquely important, but only when they are pursued together will they satisfy the requirement of maximum effectiveness (Figure 1).

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Regional  Integration  

• Strategies • Resources • Constituency

Figure 1: Transformational Interdependences

 

Structural  Transformation  

Capacity  building/  Political  will  

Capacity  building/  Political            will  

 

• Policies • Technology • Modernization • Standards • Skills • Investments • Institutions • Innovation  

• Policies • Technology • Modernization • Standards • Skills • Investments • Institutions • Innovation

 

Competitiveness  

• Firm level • National • Regional • Global

 Economic  

Transformation  Catching  Up  

Industrialization  

• Policies • Investments • Capabilities

-­‐ Institutions -­‐ Technology -­‐ Innovation

• Policies • Investments • Capabilities

-­‐ Institutions -­‐ Technology -­‐ Innovation

 

Enablers Enablers

Capacity  building/  Political            will  

 

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3. STRATEGIC INTERVENTIONS The strategic interventions cascade down from those influencing economic growth to those specific for accelerated industrial growth and the reversal of de-industrialization. In this context, while taking on board the strategic goals, particular attention is given to front-loading industrialization within the framework of regional integration. Major strategic actions will need to be reinforced in order to achieve the overarching objectives of the Industrialization Strategy. These will include strategic policies and prioritization of policy interventions.

3.1 Macroeconomic Framework SADC countries should target macroeconomic stability within a developmental state with a specific focus on inclusive growth, economic diversification, enhanced competitiveness and deeper regional integration.

SADC countries need to establish and maintain a stable and conducive macroeconomic environment to enhance growth and support regional integration industrialization and competitiveness. To this end, in addition to the macroeconomic convergence efforts of the Committee of Central Bank Governors (CCBG), SADC countries should use macro-economic policies to foster accelerated industrialization within a developmental state. Appropriate integration and industrial enhancement policies should strike a balance between achieving development goals within a regime of fiscal and monetary prudence. In particular, there should be close consultation between ministries responsible for trade and industry and the relevant fiscal and monetary authorities on the use of macro-economic instruments to facilitate accelerated industrial development. This would require greater fiscal discipline and enhanced capacity for timely implementation of the development programmes. Pacing and sequencing of the policies should be seen as part of the greater transformation of the region and evolution of its societies throughout the long term growth paths of the SADC region through to the year 2063, where it will converge with the continental developmental targets.

The input of the private sector and other stakeholders should be taken into account in the process of macroeconomic policy formulation. The policy should envisage a greater role for this sector in shouldering its share in the cost of development endeavours. An enhanced role for the sector, coupled with deepening capital markets, would greatly enhance opportunities for joint national-foreign partnerships and create growth dynamics that would contribute to the widening of the tax base.

(i) The macroeconomic framework should focus on catalyzing the transformation of production, ensuring the attainment of elevated levels of competitiveness and meeting the macroeconomic convergence requirements for the region as a whole;

(ii) To ensure sustainability, the developmental macroeconomic policy regime should aim at achieving:

• inclusive quality growth;

• economic diversification and competitiveness;

• deeper regional integration; and

• macroeconomic policy convergence.

3.2 Revitalizing Regional Integration Frontloading industrialization will be promoted by the implementation of a conscious strategy of developmental regionalism – sequencing trade liberalisation alongside policy actions to build productive capacity, primarily in the private sector.

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Regional integration is one of the three cornerstones of the SADC Industrialization Strategy. Deeper regional integration is a sine qua non for collective development. To that end, Member States should accelerate implementation of SADC policies, protocols and agreements. Collective development requires complementarity of production and trade structures and policy convergence over time. The Strategy recognizes that frontloading of industrialization will be promoted through the adoption of a strategy of developmental regionalism. This implies sequencing trade liberalization alongside conscious policy actions to build productive capacity in Member States, predominantly in the private sector.

(i) In pursuit of accelerated regional industrialization, national governments should re-align

and interface their policies and plans in line with SADC’s regional industrial priorities.

(ii) Regional programmes and initiatives should be re-focused to give added impetus to regional industrial development. Of particular importance in this regard would be the immediate implementation of industrial development pillar of the Tripartite once it has been approved.

(iii) International development partners are urged to recognize the centrality of regional industrialization and reflect that in their financial and technical support to the region and to Member States.

(iv) Economic space in SADC will be significantly expanded as a result of the Tripartite and the Continental Free Trade Areas. To maximize the benefits of these arrangements, it will be important to rationalize existing Rules of Origin systems to support industrialization.

(v) In the context of regional integration, Member States in their policy formulation should take into account the impact of their policies on other SADC members.

(vi) SADC states should commit to coordination of industrial policies towards convergence

over the medium-to-long-term to ensure that all Member States benefit from SADC membership.

(vii) A strengthened constituency for regional integration is a critical necessity as part of the

process of deeper integration. To that end, Member States should improve the dissemination of information on the implementation of programmes, protocols and projects.

(viii) It is essential that Member States embrace and internalize the spirit and letter of FTA rules in their trade and industrial policies.

(ix) Policymakers at both the national and regional levels should give careful consideration to the necessity of matching further trade liberalization especially with third parties, with the envisaged acceleration and front-loading of industrialization.

(x) A widened economic space would require significant enhancements of the regional infrastructure, including financial institutions and arrangements as well as overall macroeconomic policy convergence.

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3.3 Removing Binding Constraints Accelerated industrialization is being hampered by three binding constraints - inadequate and poor quality infrastructure, a severe deficit of the skills needed for industrial development and insufficient finance.

The country reports show very clearly that three main obstacles stand in the way of accelerated industrialization in SADC – the infrastructure deficit, the scarcity of skills, especially those essential to progression up the technology ladder, and financing. None of these is susceptible to short-term, quick-fix solutions. It is also evident that there is a need for greater participation by the private sector in joint action with the public sector to achieve the strategic goals.

A. Infrastructure Efficient and affordable infrastructural services (consisting of transport, communications, ICT, energy and water supply) are critical inputs for reducing transaction costs for industry and trade, as well as for enhancing the economic and social wellbeing of society at large. Effective implementation of the SADC Industrialization Strategy would indeed require the building and/or close coordination of these services in a timely and optimal manner. To this effect, the Strategy calls for:

• Enhanced access to quality infrastructure;

• Timely and locational availability of services to reduce input and transaction costs;

• Addressing the infrastructural deficits at the national and regional levels;

• Provision of quality and climate resilient infrastructure for the implementation of the Industrial Upgrading and Modernization Programme; and

• Upgrading the transport, energy, ICT and water supply infrastructure.

Increased investment in new infrastructure, soft as well as hard, allied with improved management, performance and additional spending on maintenance, are prerequisites for industrial take-off.

In tackling the infrastructure deficit through increased investment in new facilities, extra attention should be paid to maintenance, quality and environmental factors such as climate change. It is not just the supply of infrastructure that is constraining economic development, but the failure to provide adequate resources for the upkeep and maintenance of existing structure, while ensuring that due attention is paid to the quality of infrastructure provision, particularly in such areas as ICT.

(i) Accordingly, the current Regional Infrastructure Development Master Plan (RIDMP) should be fast-tracked and aligned to meet the varied needs of the Industrialization Strategy also ensuring that the use of existing infrastructure capacity is optimized.

(ii) A strategy for leveraging the RIDMP should be developed to catalyze industrial development and reduce current high costs of doing business, including those related to Non-Trade Barriers (NTBs) and local procurement of inputs for infrastructure development.

(iii) The infrastructure support programme for industrialization should be planned and implemented as a continuum, extending beyond the medium term.

Beyond 2020, the Roadmap addresses the long-term infrastructure interventions. Within this context, Member States should have the flexibility to suit their domestic conditions. Yet the overall

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industrialization and transformation efforts should be consistent and complementary. While governments are expected to take the lead, the private sector should be greatly involved.

Quality and Maintenance

The poor quality and inefficiency of existing infrastructure in the SADC region is largely traceable to the neglect of standards in asset procurement and operation and inadequate maintenance and management.

(i) New funding should include adequate provision for repair, maintenance, rehabilitation, reconstruction and asset replacement costs.

(ii) Member State national budgets should include increased allocations for operational and maintenance expenditure.

Energy

The SADC region faces a serious energy deficit and with the implementation of the industrialization Strategy, this gap will widen unless the supply of electricity is substantially increased, drawing on the ample hydro-power potential of the region.

(i) Member States should increase public investment in energy provision both for domestic use and export to regional partners through the Southern African Power Pool.

(ii) Attention should be paid to the reliability, efficiency and cost effectiveness of energy supply.

(iii) Simultaneously, governments should step up the involvement of independent power providers to ease the burden on government investment spending.

(iv) In addition, alternative sources of energy should be exploited with a particular focus on renewables.

(v) The region should adopt energy efficient technologies to reduce the cost of production and minimise green house gas emissions that contribute to climate change.

(vi) Attention should be paid to greater energy pricing efficiency within the context of deeper regional co-operation. Cheap energy is a necessary condition for industrial competitiveness and to that end, Member States should draw on lower cost regional supplies where practicable, rather than focusing on national self-sufficiency.

(vii) Current plans for hydro-power network connectivity and proposed new generation and transmission projects should be fast-tracked including regional joint-ventures. Member States should accelerate the design and implementation of an appropriate institutional framework for the early development of the Inga Dam project which has enormous potential for the supply of low-cost electricity to the SADC region.

Transport

The expansion, upgrading and interconnection of the regional transport systems (road, rail, air and ports) would greatly enhance trade flows and the mobility of factors of production.

(i) The efficiency of the present transport corridors should therefore receive particular priority to enhance trade facilitation and open up alternative transport links.

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(ii) The effectiveness of the regional transport system depends on the efficiency of interfacing between the multi-modal transport components. Closer regional co-operation is required for this to be achieved.

(iii) Increased investment is needed to improve the quality of the regional transport network across all modes while promoting alternative renewable energy sources for the transport sector.

Information and Communication Technologies (ICT)

In order to accelerate industrialization in the region and achieve socio-economic transformation, there is a need to mainstream ICT in all aspects of the economy. ICT should also be seen as a strategic enabler across the economic and social spectrum of life in view of its potential capacity to help generate knowledge, leverage and enhance technological readiness and promote innovation. To this effect, SADC should fully operationalize its Digital SADC 2027 framework and the ICT component of the RIDMP to catalyse industrialization. In this context, the following issues must be taken into account in the industrialization process:

(i) Globalization, the ICT revolution and the competitiveness challenges have heightened the demand for modern communication systems. Modern industrial production and trade have become particularly ICT intensive and reliant. The SADC region should leverage on the opportunities presented by ICT to catalyse industrialization. By drawing on successful experiences elsewhere, SADC should strive to become an ICT manufacturing hub. The ICT sector should facilitate the development of capacity to manufacture electronic goods in the region in order to support the SADC electronic goods market and support decisions which are relevant to the region at international fora.

(ii) ICT has contributed immensely to the growth of the services sector in the region, and has great potential for raising the industry’s efficiency, quality, productivity and competitiveness.

(iii) In order for industrialization to become the most important engine of growth, development and catch up for developing countries in the 21st century, SADC needs to exploit ICT and promote regional ICT manufacturing (electronic goods), content and software development. This would enable a sustainable supply to the regional electronics market and will provide SADC with an opportunity to be an exporter of electronics goods to the continent and beyond.

(iv) ICT Research and Development (R&D) should be a crucial focus area to support industrialization and enhance linkages between R&D institutions and industry.

(v) The ICT sector is an important incubator for creating and protecting regional intellectual property and extending the frontiers of innovation.

(vi) E-strategies would need to be enhanced and internalized in public and private sector operations.

(vii) By drawing on successful experiences elsewhere, SADC should strive to become an ICT manufacturing hub.

(viii) By international standards, internet connectivity and mobile telephony costs in SADC are high and action is needed to reduce costs through targeted investment in ICT facilities including additional operators and competition within the sector.

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(ix) SADC should put in place measures to improve the supply and quality of ICT skills in the region.

Water Supply

Water and sanitation development and management are among the critical ingredients of industrial development. Industrialization and associated urbanization also have significant environmental spillovers. Water demand will rise exponentially in response to industrial expansion and the related increase in income levels, a problem that will be exacerbated, on the supply side, by climate change.

It is therefore important to fast track the implementation of the SADC Strategic Water Supply Infrastructure Development Programme (SWIDP) taking into account the provisions of the Climate Change Adaptation Strategy for the Water Sector.

B. Skills Development

Increased spending on formal academic education is a necessary, but not a sufficient condition for industrialization.

Education is pivotal and should be re-purposed to bridge the technology gap between the SADC region and its international competitors. A knowledge-based economy will require a high level of science, technology, engineering and mathematics (STEM) training.

To support industrialization, education systems would indeed need to be restructured and re-purposed with focus on technical and vocational skills of all kinds, especially those appropriate for a modern, knowledge economy.

All SADC Member States devote a substantial part of public spending to formal education. Despite this, all the countries have serious skills deficits, implying that education priorities need to be revisited with more resources made available for vocational training of all kinds, and especially those required in medium- and high-technology industries and occupations.

(i) Education system should be re-shaped to ensure that young people are trained – and re-trained – to meet the demands of modern business and public administration with specific focus on mathematics, science and technology disciplines, and innovation.

(ii) Tertiary education should be required to produce quality graduates in STEM disciplines.

(iii) Regional centres of excellence and specialization should be identified and strengthened and new ones established where appropriate.

(iv) Universities and other tertiary educational institutions should be encouraged to create close links with the business and industrial communities and the latter should be consulted on the curriculum design.

(v) Employers should be incentivized with tax breaks or outright subsidies to step up their in-house training programmes and support research and development.

(vi) Member States should facilitate the movement of factors of production – capital and skills - within the SADC region. To this effect, there is particular need for undertaking a skills audit at regional level and establishing mutually agreed accreditation frameworks as important elements of critical resource availability and enhancing productivity.

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C. Financing

To overcome the severe constraints imposed by the infrastructure and skills deficits, governments will need to re-order their public expenditure programmes to give greater priority to public and private investment in physical infrastructure and human capital development. In part, this will depend on the willingness of governments and electorates to embrace the paradigm of change in the form of a switch from consumption-led economic growth to investment-driven expansion.

3.4 Industrial Development

Frontloading industrialization should be a function of diversification – enterprises breaking into new industries, utilizing new processes and producing new and better quality products for domestic and foreign markets. Designing industrial policy within a regional integration context is a complex matter due to the economic diversity of the Member States, in terms of structure, endowments, size and approaches to regional policy. Regional industrial policy should not concentrate on the production and exchange of physical goods only. Services linked to industrialization are important constituents. However, the appropriateness of a regional industrial policy is judged by a number of parameters, notably:

• Effectiveness in addressing common and cross-cutting concerns; • Prospective insights through incorporating present and future challenges and opportunities; • Incorporation of industry-supporting micro and macroeconomic measures in an integrated

manner; • Equity in sharing gains and obligations; and • Demonstrated commitment by Member States to the development of common industrial

policies and strategies. Ultimately industrialization is a function of diversification – enterprises breaking into new industries, producing new and different products, using new and more sophisticated techniques. In the 21st century, market demand is growing more rapidly for sophisticated products than traditional ones – witness the explosive growth of the markets within SADC for mobile telephones and tablets. Entry into such industries will be difficult but there is enormous potential for SADC industry by exploiting a task manufacture approach and integrating into regional and global value chains.

Economic diversification is a discovery process dependent on close private-public sector collaboration.

Diversification policy should be founded on effective partnership with the enterprise sector to identify projects, products and processes that will broaden the industrial base and propel economies up the value addition and technology ladders. Member States should establish working parties drawn from the public and private sectors charged with identifying new products and processes that “fit” the country’s actual and nascent comparative advantage. In collaboration with the private sector policymakers should generate a list of industrial diversification projects, also identifying those for which there is potential to develop regional and global value chains.

New activities should satisfy four main criteria:

• Provide large-scale employment for largely unskilled workers exiting agriculture as

productivity rises in that sector;

• Have higher productivity than existing or shrinking sectors;

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• Policymakers should take note of the risks implicit in projects that are very advanced

technologically in terms of financial and human resources for a country at its current stage of development. Activities in which countries and firms have comparative and competitive advantage are more likely to succeed than those requiring a completely new set of competencies; and

• Projects should be economically and financially viable over the medium-term.

Much of industry in SADC, excluding South Africa, is engaged in producing basic goods for the consumer market. A central element of diversification strategies should be industrial restructuring with a thrust towards the manufacture of intermediate and capital goods, notably engineering, machine tools and high-tech production systems. Harmonization of such projects within the region is desirable to secure the necessary economies of scale while also building cross-border linkages in the supply of inputs.

Particular attention should be paid to task manufacture by way of participation in regional and global value chains. This is consistent with closer regional integration since membership of an FTA facilitates the development of regional value chains. It also provides opportunities for the smaller and less developed Member States to realise concrete benefits from SADC membership.

3.5 Potential Growth Paths Three mutually compatible growth paths are prioritized – agro-processing, minerals beneficiation and downstream processing and enhanced participation in value chains at the national, regional and global level. Traditionally there have been five main growth paths for emerging economies seeking to generate rapid output and employment growth while alleviating poverty and reducing income inequality: domestic demand-driven; agriculture-led; natural resource-led; export-led; and services-led. In the last 25 years, as part of the accelerating globalization process, a sixth option – value chain participation – has emerged. It is recognized that most of the pragmatic policy measures will be implemented at national not regional, level. Within SADC development context, and based on recent experiences regionally and globally, the Industrial Strategy identifies three clear-cut priorities for accelerated industrialization:

• Agriculture-led growth including agricultural value chains;

• Natural resource-led growth including minerals beneficiation and processing, also linking into value chains, both regional and global, and

• Enhanced participation in domestic, regional and global value chains. These three prioritized strategies are mutually compatible. Policymakers are not required to choose between them. Projects under all three can be implemented simultaneously, subject to their financial viability and their regional and/or global competitiveness. A. Agro-processing Increased agricultural productivity and higher quality products are central to the development of agro-industry and agriculture-based value chains. Accordingly, agricultural policies cannot be

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developed in isolation from the industrialization strategy. A vibrant agricultural sector will stimulate domestic and regional production of essential inputs – fertilizer, farm machinery, packaging and support services.

Productivity is lower – often very much lower - in agriculture than in other sectors. The majority of the population live in rural areas, unemployment, underemployment and poverty rates are higher than in the urban economy, while infrastructure falls far short of the levels necessary to support a thriving farm economy. There is therefore a strong case for a strategy of rural industrialization to locate agro-processing industries in rural areas, facilitate rural industrial clusters and make agriculture and agro-processing attractive professions and prospective businesses for the youth.

There is unlikely to be an industrial revolution in SADC without rapid, sustained productivity growth in agriculture.

(i) Productivity growth in agriculture should be vigorously promoted across the product range, including inputs, as proposed in SADC’s Regional Agricultural Policy as an integral component of industrial frontloading.

(ii) Value addition in agriculture and participation in agro-industry value chains is often inhibited by lack of standardised products, post-harvest losses, inadequate marketing and infrastructure facilities, and insufficient market information. To promote the growth of agro-industrial operations, these shortcomings must be urgently and coherently addressed.

(iii) Agro-industrial production processes and capacities require upgrading in terms of quality and the modernization of production systems to bring them in line with international standards.

B. Minerals Beneficiation and Downstream Processing

Resource production and per capita incomes in SADC are closely correlated. SADC countries should fully exploit comparative advantage in resource intensive industries through beneficiation and value addition, while also ensuring that the industrial base is upgraded and diversified by intensified downstream processing and business linkages. Resource production and per capita incomes in SADC are closely correlated. The share of resource output in GDP is highest in the poorer countries, underlining the necessity of adding value to primary resource production via minerals beneficiation and downstream value addition. …but beneficiation requires huge investments… and pertinent policies on resource exploitation, promotion of interlinkages and ploughing back natural resources rents, through establishment of Sovereign Wealth Funds.

(i) Major minerals beneficiation projects require huge investments but may also depend on cross-border co-operation in transport or energy infrastructure and input supply. SADC should facilitate cross border infrastructure investment necessary for the development of such projects.

(ii) SADC should negotiate with destination markets to promote “beneficiation at source” within the SADC region.

(iii) Policy for minerals beneficiation and downstream value addition should pay special

attention to the following four key aspects:

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(a) Policies specific to natural resource exploitation should be promoted, including the provision of resource-specific skills and infrastructure, the availability of inputs (fertilizer, engineering services), issues of ownership and land management and legislation covering exploration and exploitation.

(b) The promotion of linkages, including cross-border regional collaboration,

between firms, industries and sectors along the primary commodity processing value chain, including backward linkages for the supply of inputs;

(c) Revenue-optimization, including resource and profit taxation, the management of

volatile revenue flows, the avoidance of Dutch Disease currency overvaluation and environmental regulations and their implementation.

(d) The establishment of Sovereign Wealth Funds with the specific aim of capacity

building beyond the natural resource sector through the plough-back of mineral rents into infrastructure and human capital development, along with financing of downstream industrialization projects linked to a country’s natural resource endowment.

(iv) SADC countries should fully exploit comparative advantage in resource-intensive sectors

through beneficiation and value addition while taking cognizance of the need to transform the industrial base through intensified downstream processing and inter-linkages.

(v) Returns from enhanced mineral exports would need to be ploughed back into the modernization of the natural resources sector and leveraged to facilitate industrial deepening and diversification.

(vi) Regional co-operation in the exploitation of natural resources which often extend

beyond an individual country’s borders is essential, notably in the sharing of technology and skills, interlinked infrastructure services and input supply.

(vii) Assess the landscape on forward contracts in the minerals sector to assess the scope

and visibility of value addition and mineral beneficiation.

C. Value Chain Development

Value chain participation is a crucial element of the Industrialization Strategy because it has the potential to extend production possibilities and enable cross-border utilization of natural and human resources of the region.

Cross-border value chain development depends on a number of factors, including cheap and efficient transport and streamlined border logistics, as well as the eradication of “behind the border” obstacles to trade. Most importantly, policymakers should seek to ensure that SADC firms and industries can progress up the technology ladder to avoid being locked indefinitely into low-technology, low-wage “screwdriver” activities.

To this effect:

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(i) Policy should be value-chain specific. In close collaboration with industrialists and entrepreneurs, policymakers should identify the stage or stages of the value chain where enterprises are most competitive.

(ii) Policymakers need to ensure that a specific value-chain policy does not create losers in other industries or sectors of the economy. Policy should maximize national gains rather than those of a specific sector, industry or firm.

(iii) A potential trade-off is that between a low hanging fruits strategy of easy and quick gains via participation at the low technology, high-employment stage of the value chain and the path to subsequent upgrading into higher skill, greater value-addition activities.

(iv) Where value chains are buyer-dominated by foreign firms – such as major supermarket chains in agro-processing – the ability for small and medium SADC firms to upgrade and diversify may be severely circumscribed.

(v) Low road strategies may foster “race to the bottom” policies by enterprises in different countries without developing the capability for upgrading and diversification. Member States should substantially develop their capacities for the upgrading and diversification of value chains with the close involvement of firms and enterprises as set out in the SADC’s Industrial Upgrading and Modernization Programme (IUMP).

(vi) The value chain framework should help realize regional sectoral strategies for capital equipment development, intermediate input flows, and addressing regional commons such as environment and health issues. In particular, special attention should be paid to the development of pharmaceutical products.

(vii) Policy should be sequenced to ensure that there is an “exit strategy” from low road to high-technology activities.

(viii) SADC Member States need to redouble their efforts to tackle “behind the border” obstacles to intra-regional trade and regional value chain development. Such reforms are essential for ensuring competitiveness in national, regional and world markets, especially at a time when outsourcing is increasing rapidly.

(ix) SADC should develop model legislation and regulation for intra-SADC processing and value addition along with a protocol to ensure certainty, predictability, transparency and investor protection.

(x) Member States should establish appropriate mechanisms for consultations on the operationalization of regional value chains.

3.6 A Compact for Industrialization - The Role of the State and Engaging the Private

Sector

A. The Role of the State

Government’s central role is the creation of an enabling policy and regulatory environment for accelerated industrialization with a particular focus on tackling the binding constraints of infrastructure, skills development and financing.

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The role of the state is to facilitate the establishment and growth of firms and industries that will exploit a country’s comparative advantage. Modern industrial policy is predicated on an enhanced developmental role for the government. To this effect, industrial policy should be the central platform of national development strategy. The State should assume leadership functions in strategizing for long term inclusive and sustainable growth, by shaping economic structure, creating more jobs, reducing inequality, strengthening research and development and enhancing the overall productivity of the economy.

Government should also take the lead in building industrial infrastructure such as industrial parks to support cluster development, as well as invest in Research and Development for industrial development and innovation.

The principal developmental role of the state in industrialization include:

(i) Creation of an enabling regulatory policy and political environment for industrial development, within the context of the SADC Industrialization Strategy and Roadmap.

(ii) Adoption of trade and competition policies that simultaneously improve market access, restrain market power and create conditions for promotion of employment and industrial capacity.

(iii) Addressing the capability issues to deepen the local technological base and to develop and sustain innovation capacities. This entails significant government intervention and encouragement, technical education, skills development and productivity enhancers should be accorded highest priority.

(iv) Facilitating the financing of industrial projects.

(v) Strengthening the institutional capacity for industry and trade. Governments should have a fresh look at the policies and institutions fostering technological and organizational learning and adaptation as complementary processes.

(vi) Establishment of industrial sites and supporting industrial and geographic clustering.

(vii) Supporting Research and Development for industrial development and innovation

(viii) Promoting environmental sustainability by incorporating environmental principles (ecosystem protection, climate change adaptation and mitigation, green and blue economy) in industrial development and innovation.

B. The Role of the Private Sector

The private sector must be consulted and involved in implementing the Industrialization Strategy. Public-Private Partnerships are crucial in discovering and easing constraints on business and employment growth and in improving the climate for Doing Business and attracting investment.

Given the multi-faceted challenges of industrialization in the 21st century, a strong alliance between governments, the private sector and civil society is essential. The engine of progress will be the productive sector driven by entrepreneurial dynamics within the context of a developmental state.

(i) The private sector should be consulted and involved in the implementation of the SADC Industrial Strategy and Roadmap. Member States should adopt outreach programmes at

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national and regional levels to ensure private sector awareness of and participation in implementation of the Industrialization Strategy.

(ii) Governments should establish a platform for public-private dialogue on industrial policy and its implementation, whereby business leaders from Member States could participate in regional policy-making. Such an organization would not only have a vested interest in cross-border collaboration in infrastructure, skills development, value-addition and value-chain participation, but it would constitute a forum in which policy debates might translate into joint cross-border ventures. Government should also create incentives for inclusive business participation within a regional context.

(iii) The private sector should be involved in helping the state to eliminate obstacles to doing business, advising policymakers of the main problems they encounter in their day-to-day operations.

(iv) A deliberate, closely-monitored capacity-building programme should be developed for the

private sector to enhance entrepreneurial and managerial skills, thereby boosting productivity and competitiveness.

(v) Since private sector business associations in SADC are for the most part, weak and under-resourced, there is a strong case for creating and strengthening business associations at the regional level. National think tanks with research capability to stimulate and inform the private-public dialogue on policy issues of all kinds are critical. The roles envisaged for such institutions include monitoring the progress of industrialization across the SADC region, providing research inputs and advice to policymakers and the public and private sectors in Member States thereby ensuring that transformation and economic modernization are kept in the forefront of public awareness and debate.

(vi) Most SADC economies score poorly on Ease of Doing Business and Competitiveness indicators. Member States should use the annual reports and league tables for these two indicators as a basis for improving their rankings, by implementing reforms that are seen to be successful in competitor countries around the world. Member States may wish to establish their own benchmarking systems to monitor industry competitiveness and efficiency.

(vii) Undertake measures to ensure compliance with environmental principles, rules and regulations.

3.7 Mainstreaming Gender and Youth Issues Industrialization should hold more promise for women and youth. Women and youth participation in industrialization and structural transformation is an important ingredient of the Strategy.

(i) The long-term strategy should contain empowerment dimensions to widen the scope and quality of women and youth’s participation in the industrialization process, notably by improved access to finance, skills development and SME support programmes, and livelihood skills of women and youth, particularly in high value-adding industries in such

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areas as services, manufacturing, horticulture, transport, energy, agricultural and trade industries.

(ii) Youth unemployment and underemployment is a major challenge for SADC Member States which could be addressed through the development of youth economic empowerment and mentoring programmes.

(iii) The public and private sectors must increase their efforts to support youth innovation and entrepreneurship and create quality job opportunities for school-leavers and unemployed youth with a specific focus on ensuring that the education system is better tailored to meet the requirements of modern industry.

3.8 Strengthening Small and Medium Scale Enterprises

An integrated strategy for SME development focusing on increasing the small business survival rate via training programmes, access to information, financing, favourable fiscal policy environment and assistance in accessing modern technology is essential.

SMEs, a domain where the majority of women and youth are concentrated, make important contributions to the growth and development of the SADC countries in terms of output, employment, and the supply of consumer products and services. Almost all Member States have SME support initiatives and programmes in place, but they are largely ineffective in sustaining and promoting the sector. The failure and exit rates are generally high. Additionally, existing laws, policies and practices in accessing finance are not sufficiently geared towards making credit more easily accessible for women and youth. An SME strategy should therefore ameliorate these limitations.

Given the challenges facing the SME sector - operational capacity; limited management and entrepreneurial skills; lack of initiative to engage into sophisticated business endeavours; lack of bankable collateral; poor quality of products and services; lack of trade and industry related information; and poor planning – it is obvious that the SME sector requires substantial quantitative and qualitative interventions.

SADC countries need to put in place an integrated policy framework that will help refocus activities and target them to the broader goal of industrialization and transformation. The strategy should include the following:

(i) Clear policy focusing on graduation and greater sophistication of SMEs allied to their integration into the mainstream economy.

(ii) Addressing gender inequalities in access to credit, capital, land and other means of economic empowerment as specified in the SADC Gender Protocol and Policy.

(iii) A deliberate capacity development and upgrading programme: entrepreneurial and technical skills training, incubation and nurturing youth innovation, technological upgrading, study tours, skills development in such important areas as accounting, marketing and management. The formalized programme should establish accreditation levels that could permit small business mobility across SADC countries.

(iv) A procurement policy that gives priority to local SMEs, especially those owned by women and youth, without compromising quality.

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(v) Measures to foster linkages between large firms and SMEs especially in respect of inputs of goods and services.

(vi) Financing mechanisms more responsive to the needs and scale of operations of the SMEs going beyond short-term commercial bank or microfinance lending to the provision of medium and long-term funding.

(vii) Business support mechanisms should in particular support new SMEs with better technological readiness and export potential through the timeous provision of information on market opportunities at home and abroad.

(viii) Simplification of the fiscal and regulatory framework and the tailoring of specific incentives for SME development and growth.

(ix) Establish a database of the size and structure of the SME sector, including output, product range, employment and exports and a competitiveness observatory for the development of SMEs as provided in the IUMP.

3.9 Enhancing Competitiveness

In the hyper-competitive global economy of the 21st century, improved competitiveness at both national and enterprise levels is central to revitalising industrialization and rebuilding market share lost to foreign competitors, especially from Asia. Public-Private co-operation and dialogue will be an essential input into elevating competitiveness to the top of the economic policy agenda.

SADC countries face intense, growing competition across all products and markets and score poorly in global competitiveness league tables. Improved competitiveness will depend on enhanced macroeconomic policy design and implementation as well as the diversification of and improved quality of production, with greater sophistication at both process and product level and technological upgrading. Increased competitiveness is fundamental to the transformation of the SADC region from reliance on natural resource and low technology industries to medium-and-high technology production and exports. The Strategy recognizes the importance of national and cross-border clusters and specialized production and export zones, including industrial parks, as a means of promoting competitiveness and the development of regional value chains.

(i) Member States should put in place a range of far-reaching measures to enhance competitiveness at both the firm and national level, including investment in infrastructure, the development and increased mobility of skills, establishing and strengthening productivity and quality institutes and improved logistics.

(ii) A partnership for enhancing competitiveness requires close cooperation and dialogue between the public and private sectors.

(iii) A coherent strategy to enhance efficiency through targeted policies in respect of higher education, goods and labour market efficiency, financial market responsiveness, technological readiness and specific measures targeting the widening of markets for firms. To this effect, the macro-economic environment of firms and enterprises should be speedily and effectively improved through, in particular, removal of business constraints and greater participation in the national, regional and global value chains.

(iv) High levels of innovation and increased business sophistication are standout characteristics of highly advanced economies. Policies to boost investment in knowledge-

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based and high-technology industry should be crafted to close the technology and knowledge gap between SADC economies and their comparators, such as those in East and South Asia and Latin America.

(v) Recognizing that export success in the 21st century depends on quality, price, delivery efficiency and targeted marketing, policies for export expansion should focus on the supply of quality products and the upgrading of production processes. A conducive macroeconomic framework and active trade facilitation measures will greatly facilitate and underpin export-led growth.

(vi) Regional and international competitiveness is a function of product quality design, packaging and delivery. Bureaux of standards should be capacitated in terms of skills and finance to assist enterprises to raise product and service quality.

(vii) A SADC instrument to address quality issues is already in place in the form of the Standardization, Quality Assurance, Accreditation and Metrology (SQAM) programme which is under-resourced and should be strengthened.

(viii) SADC countries should elevate the role of competitiveness as a driver of economic progress in their development programmes.

3.10 Ensuring Environmental Sustainability (Green and Blue Economy) The SADC region should promote inclusive and sustainable industrialization by taking into account initiatives on the green and blue economy. A. The Green Economy The SADC region should implement the Regional Green Economy Strategy and Action Plan for Sustainable Development, which seeks to engender a major and sustainable economic and technological transformation that catalyses the socio-economic transformation of the SADC Region. The Strategy should aim to improve human wellbeing and economic growth over the long-term, while minimising the exposure of current and future generations to significant environmental risks and ecological scarcities and externalities. The main components of the Strategy should include:

(i) Adoption and promotion of production technologies, processes and practices that improve resource efficiency; promotes environmental sustainability; are low-carbon while resilient and adaptable to the effects of climate-change; and

(ii) Adoption and promotion of production, consumption and distribution patterns of goods

and services that maximises resource use efficiency while minimising wastage of resources and the production of process and industrial wastes.

B. The Blue Economy

e

,

SADC should exploit the enormous potential offered by its ocean resources under the Blue Economy Initiative in order to catalyze industrialization and economic transformation. Thopportunities under the Blue Economy Initiative include: fishing, shipping, recreation, marine security, renewable energy, oil and mineral exploration among others. To this effect:

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(i) The Blue Economy Initiative should be mainstreamed in developing infrastructure required to accelerate industrialization. In particular, investment in the development and upgrading of regional ports and maritime corridors which is crucial in facilitating viable shipping networks as instrumental enablers for participation in regional and global value chains.

(ii) The ocean resources should also be exploited in a sustainable manner in order to minimize the negative impact on the environment.

(iii) The sustainable development and growth of the ocean wealth should be supported by coherent planning, policies and regulatory frameworks.

3.11 Growth Scenarios and Timelines The Industrialization Strategy should be situated within a generational perspective straddling the years 2015 to 2063. During this period, SADC economies will overcome their binding development constraints and progressively move through the growth stages – from factor-driven to investment- and efficiency-driven and ultimately to the high growth trajectory driven by knowledge, innovation and business sophistication. SADC region will thus be fully transformed and become an important player in the continental and global landscape.

Given SADC’s limiting initial development conditions, particularly in the realm of production and factor productivity as well as poor competitiveness rankings, a generational perspective, running from 2015 to 2063, would help the countries achieve their long development goals and regional convergence. The main thrust of the scenarios is to graduate SADC countries from factor driven to investment driven and ultimately innovation high development stage in line with competitiveness stages. Accordingly, three cascading growth scenarios are in order.

1. Phase I: Years 2015-2020.

2. Phase II: Years 2021-2050.

3. Phase III: Years 2051-2063.

The first phase covers the remaining period of the RISDP until 2020. The second phase, covering 30 years, constitutes a period of heavy lifting development and establishing strong momentum for competitiveness. The final and third phase, covering 13 years, builds up for the convergence with the African Union long term Agenda 2063 and crossing into a fully developed country stage.

Phase I: Years 2015-2020

This phase, which coincides with the implementation of the revised RISDP (2015-2020), should be predicated on the consolidation and achievement of the remaining agenda and laying down firm foundations for long term development. The target instruments and prime movers of the phase should incorporate the following elements:

(i) A growth strategy, based on the transformation of the production base and social equity.

(ii) Enhanced guided efforts to raise the quality of human capital and labour productivity.

(iii) Deepening regional integration and cooperation.

(iv) The articulation of a new generation SADC Vision 2020-2050, premised on advanced competitiveness and self-sustaining economic development.

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During this phase SADC countries should target per capita income growth of about 6 percent annually to achieve the lower income band of the factor-driven stage of US$ 2000.

Phase II: Years 2021-2050

The Phase II scenario should be elaborated as a continuum to Phase I. During this period, the economy would move from factor-driven to efficiency-driven. It should focus on diversification and productivity of factors and sectors and competitiveness in close partnership between the government and the private sector, both domestic and foreign. To achieve the targeted GDP per capita of US$ 9000 by 2050 would entail aiming at a per capita growth rate of 8 per cent annually from 2020 onwards.

Phase III: Years 2051-2063

During this phase, the economy would further transform, with its strength based on high levels of innovation and business sophistication. To achieve that status, GDP per capita would need to rise from US$ 9000 in 2050 to US$ 17000 by 2063, implying annual income growth of about 5 per cent. This will necessitate an increased focus and investment on frontier knowledge, development of unique skills, stimulating and nurturing innovation, sponsoring competitive enterprises and deepening the entrepreneurial culture.

The three phases could appropriately be cast in a series of medium term plans, cascading into a consistent whole.

3.12 Investment Planning The long-term investment planning to support the three phases should take into consideration the following dimensions:

(i) Implementation of the Strategy is primarily the responsibility of each Member State.

(ii) Development of the regional infrastructure networks (roads, rail, research institutions, etc.) is a shared responsibility.

(iii) Development of regional value chains (RVCs) and industrial clusters are a joint

responsibility for governments and the private sector, supported by national and regional banks.

(iv) Prioritization of projects should be based on their national and/ or regional strategic

importance (e.g. mineral beneficiation), their regional interdependence (e.g. those based on inputs to the regional economy such as manufacturing, agriculture and construction), value addition and employment generation potential.

(v) A formula for sharing costs (including risks) and returns should be agreed on.

(vi) Lagging areas should receive particular attention. 3.13 Mobilizing Financial Resources for the Industrialization Strategy In a catch-up regional economy, Member States must increase both savings and investment as shares of GDP to the levels achieved by Asian comparators. There will be no SADC industrial revolution without

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substantially higher investment in infrastructure, upgrading and diversifying the capital stock and the provision of the high-technology skills necessary in modern industry.

Existing savings and investment levels in the SADC region fall well short of what will be needed to drive structural transformation, economic diversification and poverty reduction. Given the present and likely future state of the global economy, SADC countries cannot afford to rely on foreign savings to make good shortfalls in domestic savings.

In a catch-up regional economy, investment levels in the region of 30 percent of GDP will be required which will not be achieved without increased domestic savings. Member States should seek to increase their savings and investment rates to the levels of their comparators and governments will therefore need to widen the spectrum of pro-savings policies, including the establishment of sovereign wealth funds where appropriate, to close the savings gap and target quality FDI, the attraction of remittance income and funding from international development partners.

The requisite resources could be mobilized from both domestic and external sources:

A. Domestic Sources Eight main domestic sources could be tapped:

(a) The internal fiscal system: Taxation

(b) The financial sector

(c) Capital markets

(d) Private equity funds

(e) Public-private partnerships

(f) SADC Regional Development Fund

(g) Sovereign Wealth Funds

(h) Remittances

(i) Institutional savings including Pension Funds

Exploiting the potential of these sources will require deepened financial sector reforms, innovative mechanisms and effective frameworks to maximize and sustain the high level of resources necessary for industrialization. There is a role for Sovereign Wealth Funds in resource-rich economies to ensure that mineral, oil and gas rents are not repatriated or spent domestically on consumption, but mobilized and used to fund investment in infrastructure, skills and industrial projects.

(i) Existing financial and monetary reforms should be strengthened and deepened with an enhanced focus on finance for industrial development including improved access for SMEs.

(ii) Capital markets should be deepened with a specific focus on the provision of medium- and long-term resources for industry, including the use of innovative financing vehicles and institutional savings, such as pension funds.

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(iii) Stock markets should extend the number of companies listed by easing access rules for

medium-sized firms and by expanding their new capital-raising operations.

(iv) Closer links between SADC stock exchanges should be encouraged with the medium-term aim of creating a regional stock exchange.

(v) Private equity firms should be encouraged and enabled to extend their investment portfolios through investing in areas such as SMEs and agro-businesses.

(vi) Remittances frameworks, with clear transfer and incentive mechanisms, should be developed to facilitate the mobilization of significant Diaspora savings.

(vii) Public-private partnerships, including foreign participation, could be used to significantly leverage implementation of major infrastructure and industrialization projects.

(viii) Sovereign wealth funds should be used by resource-rich SADC states to foster diversification of the economy into manufacturing and services via the transfer of resources from resource-depleting industries thereby reducing long-run reliance on foreign funding.

(ix) A well-resourced Regional Development Fund is a pre-requisite for accelerated regional

industrialization. The planned SADC Regional Development Fund should be urgently operationalized as a regional development bank with the capacity to attract international funding.

B. External Resources

Domestic resources can be significantly complemented by external funding.

(i) Foreign aid including technical assistance should be geared to frontloading industrialization and generally supporting regional priorities.

(ii) To ensure effectiveness and accountability, foreign assistance should be closely monitored and evaluated by donors and beneficiaries alike.

(iii) FDI plays a crucial role in the transfer of technology and in the development of regional and global value chains. To increase FDI, SADC countries should substantially improve their business environment, making the regional space more attractive for foreign investors

(iv) Competitiveness imperatives dictate that countries should be highly capital selective.

(v) Intra-SADC FDI is already playing a significant role in financing cross-border projects. Capital controls at national level should be simplified to boost such transactions and ensure repatriation of interest, dividends and capital.

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4. CO-ORDINATION, IMPLEMENTATION AND MONITORING

A. Co-ordination and Interface

The numerous activities implicit in this Strategy will need close co-ordination by the Member States who will be responsible for the implementation of most of the recommendations. There will also be a key role for the SADC Secretariat in the co-ordination of projects and programmes. A Roadmap for the implementation of the Industrialization Strategy is set out below. While the Roadmap outlines the main areas for intervention and action in accordance with the strategic thrust of the Industrialization Strategy, Member States with the support of the Secretariat will develop a detailed and costed action plan. B. Implementation and Monitoring

Implementation of the Industrialization Strategy within the context of regional integration and competitiveness should be seen as a great challenge to the governments and citizens of the SADC region and their development partners. The Strategy should be implemented as a system of progressive development and transformation. The effectiveness and speed with which the targets are reached will naturally depend on the quality of the efforts deployed. Evaluation of all components, enablers and drivers of the Strategy should be subject to regular monitoring and reporting. C. Role of the SADC Secretariat

Frontloading industrialization in SADC implies a greater role for the SADC Secretariat in co-ordinating and harmonizing industrial policy initiatives. At present industrial development in SADC is one of the responsibilities of the Trade, Industry, Finance and Investment Directorate in the Secretariat. Given the fact that industrialization has been elevated to the top of the SADC policy agenda, it is necessary to reflect this in the administrative structure.

Accordingly, it is recommended that capacity of the Secretariat is strengthened in the context of the revised organizational structure that will be aligned to RISDP.

SADC needs a voice in the form of published research and policy reports such as the Asian Economic Integration Monitor published by the Asian Development Bank. Such a publication would raise SADC’s profile globally, as well as regionally, enabling it to inform citizens, companies, markets and governments of the progress of SADC regional integration.

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5. CONCLUSIONS The SADC Industrialization Strategy has been articulated as a long-term project of economic and societal transformation. The envisaged three phases straddling the period from 2015 to 2063 correspond to the main vision frameworks of SADC and ultimately that of the African Union Agenda 2063. The associated goals and targets permeate all phases although the policy emphasis and interventions are tailored to meet the challenges to be met over time. Throughout, the challenges of speedy and broad-based industrial development are addressed within the context of elevated competitiveness and deeper regional integration. This interdependence will enable swift catching up of SADC countries and ensure the realisation of progressively higher rewards in income, employment and broader social wellbeing.

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THE ROADMAP

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THE INDUSTRIALIZATION STRATEGY ROADMAP

The Roadmap outlines the salient areas of interventions, content, objectives, outcomes and responsibilities of main actors (Member States, government, private sector, Development Partners) as well as the sources of funding within the context of a generational industrial development strategy straddling the period 2015 to 2063 for SADC countries to be fully developed and to ultimately converge with the African Union Agenda 2063. The Strategy, developed as a continuum, is built around three cascading growth scenarios that would enable SADC countries to progress from factor-driven to investment-driven economies and thereafter to the high-development innovation stage associated with present developed countries. By then, SADC countries would boast of a deserved status of a fully transformed economy with state-of-art economic setups, frontier competitiveness levels and high income and employment standings.

Phase I covers the remaining period of the RISDP – 2015 to 2020 and constitutes a period of active frontloading of Priority A and related Priority B components on infrastructure and services support into the Industrialization Strategy, together with initiation or continuation of interventions to strengthen integration and competitiveness. A per capita growth rate of about 6 percent annually should be targeted.

Phase II covers the period 2021 to 2050 and would witness the transformation of SADC economies from factor-driven to investment and efficiency-driven stage, and thereby constitutes a period of heavy-lifting interventions. The focus will be on diversification and enhancing productivity and competitiveness. For the countries to converge on lower middle income status, the region should aim to raise GDP per capita to about 8 percent per annum.

In the final Phase III (2051 – 2063), SADC economies would move into the innovation-driven stage, characterized by advanced technologies and increased business sophistication. To reach the lower band of income levels of this stage per capita income would need to further increase by about 5 percent annually through to 2063.

In the Roadmap, interventions covering the period 2015-2063 are outlined within medium and long-term perspectives, organised along the lines of the strategic thrust of the three core strategic pillars – namely:

1. Industrialization

2. Competitiveness

3. Regional Integration

It is understood that the various intervention areas of the Roadmap have different gestation periods. It is also understood that there is going to be structural shifts in the same area of intervention as economies move from one stage of development to the other. The Strategy and the Roadmap are articulated to take on board these transformational shifts in a consistent manner nationally and regionally. The total import of the phased interventions is to ensure coherence and efficiency of the resources so deployed.

The Roadmap covers both Priority A and some supporting elements of Priority B of the RISDP of import to industrialization. The Roadmap revisits the timelines of Priority A and provides confirmation of proposed dates or suggested new dates. Some interventions are continuous, going beyond 2020. The Roadmap is to be populated by Member States and the SADC Secretariat in consultation with the private sector and the Development Partners.

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rial

Upg

radi

ng

and

Mod

erni

zatio

n Pr

ogra

mm

e (IU

MP)

Infr

astr

uctu

re

deve

lopm

ent

prog

ram

mes

Proc

ess

and

Prod

uct

qual

ity

enha

ncem

ent

• Sp

ecifi

c pr

ogra

mm

es

targ

eted

at

the

wom

en’s

nee

ds a

nd

chal

leng

es in

the

se

ctor

• En

hanc

ed in

dust

rial

pe

rfor

man

ce

• Nat

iona

l ind

ustr

ial

polic

ies

alig

ned

with

IDPF

and

im

plem

ente

d • I

mpr

oved

in

dust

rial

cap

acity

fo

r va

lue

addi

tion

and

bene

ficia

tion

• Inc

reas

ed t

rade

, em

ploy

men

t an

d fo

reig

n ex

chan

ge

earn

ings

• I

ndus

tria

l co

oper

atio

n en

hanc

ed

• Gen

der

mai

nstr

eam

ing

of

Nat

iona

l Ind

ustr

ial

Polic

ies

alig

ned

with

SA

DC

’s

• N

o. o

f Mem

ber

Stat

es a

ligni

ng a

nd

impl

emen

ting

thei

r na

tiona

l pol

icie

s w

ith ID

PF

• Im

prov

ed r

egio

nal

indu

stri

al

perf

orm

ance

Con

trib

utio

n of

in

dust

ry t

o G

DP

• Le

vel o

f for

eign

ex

chan

ge e

arni

ngs

• In

crea

sed

com

petit

iven

ess

incl

udin

g th

at o

f ge

nder

ent

erpr

ises

. •

No.

of c

oope

ratio

n ag

reem

ents

• M

embe

r St

ates

Priv

ate

sect

or

• M

embe

r St

ates

Inno

vativ

e fin

anci

ng

sour

ces

• Eq

uity

fin

anci

ng

issu

es

• Ide

ntify

infr

astr

uctu

re

requ

irem

ents

to

mak

e re

gion

al v

alue

cha

ins

viab

le

and

use

RID

MP

to a

ddre

ss

thos

e re

quir

emen

ts

• Pro

vidi

ng in

term

edia

ries

su

ppor

t an

d ca

paci

ty

deve

lopm

ent

for

wom

en in

in

dust

ries

, SM

Es-

agri

cultu

re

and

extr

activ

es

• Dev

elop

ing

the

ICT

ski

lls o

f w

omen

in e

nter

pris

e • T

arge

ted

inve

stm

ents

of

wom

en in

ST

EMs

educ

atio

n

• Rea

chin

g ge

nder

pa

rity

in s

kille

d an

d se

mi-s

kille

d w

orkf

orce

em

ploy

ed in

the

in

dust

rial

se

ctor

s of

m

embe

r st

ates

32

Page 43: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

43  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

gend

er p

roto

col

3.

Agr

o-

proc

essi

ng

• Low

pro

duct

ivity

• L

ow v

alue

add

ition

• I

nade

quat

e na

tiona

l in

fras

truc

ture

to

supp

ort

agri

cultu

re,

whi

ch c

ontr

ibut

es t

o po

or r

egio

nal m

arke

t pe

netr

atio

n • P

oor

farm

sup

port

sy

stem

s • P

oor

natu

ral r

esou

rces

m

anag

emen

t • P

oor

land

-use

m

anag

emen

t • I

nade

quat

e qu

ality

co

ntro

ls

• Lim

ited

acce

ss t

o im

prov

ed in

puts

(bi

o-te

ch, f

ertil

izer

s)

• Soi

l deg

rada

tion

• Poo

r lin

ks w

ith in

dust

ry

• Dev

asta

ting

impa

ct o

f cl

imat

e va

riab

ility

and

ch

ange

• A

ddre

ssin

g ge

nder

di

spar

ities

in t

erm

s of

ac

cess

to

reso

urce

s in

ag

ricu

lture

and

m

anuf

actu

ring

, acr

oss

the

tota

l val

ue c

hain

• Inf

usio

n of

adv

ance

d te

chno

logy

• A

dvan

ced

agri

cultu

ral

rese

arch

tha

t in

crea

se

resi

lienc

e an

d ad

apta

tion

to

clim

ate

chan

ge

• Im

prov

e na

tiona

l in

fras

truc

ture

to

supp

ort

agri

cultu

re a

nd fa

cilit

ate

mar

ketin

g • C

omm

erci

aliz

atio

n of

ag

ricu

lture

• D

evel

op a

gro-

indu

stri

al

clus

ters

• P

rom

ote

agri

-bus

ines

s • F

acili

tate

acc

ess

to fi

nanc

e,

espe

cial

ly fo

r sm

all s

cale

fe

mal

e an

d yo

ung

farm

ers

• Sup

port

sm

all-h

olde

r fa

rmin

g to

cre

ate

mor

e qu

ality

em

ploy

men

t • P

rom

otio

n of

wom

en a

nd

yout

h in

agr

i-bus

ines

s • B

uild

ing

capa

city

for

coop

erat

ives

to

enha

nce

wom

en a

nd y

outh

’s

oppo

rtun

ities

in a

gro-

food

pr

oces

sing

• I

mpr

ovin

g w

omen

and

yo

uth’

s ac

cess

to

fact

or

inpu

ts t

o en

hanc

e ef

fect

ive

part

icip

atio

n in

agr

o-

• T

rans

form

ag

ricu

ltura

l sec

tor

• Im

prov

e ag

ricu

ltura

l m

arke

t in

fras

truc

ture

Tra

in c

ritic

al m

ass

of a

gric

ultu

ral

entr

epre

neur

s •

Mak

e ag

ricu

lture

vi

able

with

in t

he

coun

try

• Pr

ovid

e co

nduc

ive

wor

king

en

viro

nmen

t an

d co

nditi

ons

for

agri

cultu

re

• Pr

omot

e re

sear

ch

on c

limat

e re

silie

nt

agri

cultu

ral i

nput

s •

Red

ress

ing

gend

er

ineq

ualit

ies

and

econ

omic

ally

em

pow

erin

g w

omen

and

you

th

in a

gri-b

usin

ess

• Pr

ovid

ing

wom

en

and

yout

h w

ith

enab

lers

to

effe

ctiv

ely

enga

ge

in a

gric

ultu

re v

alue

ch

ains

• IU

MP

• N

atio

nal p

roje

cts

• G

ende

r-se

nsiti

ve

natio

nal p

roje

cts

• T

arge

ted

prog

ram

mes

suc

h as

ext

ensi

on a

nd

trai

ning

ser

vice

s fo

r w

omen

you

ng

farm

ers

and

wom

en

and

yout

h in

agr

i-bu

sine

ss

• M

oder

niza

tion

of

agri

cultu

re

• Pr

omot

ion

of

forw

ard

and

back

war

d lin

kage

s •

Com

mer

cial

izat

ion

of

agri

cultu

re

• Pr

omot

ion

of w

aste

m

inim

izat

ion,

reu

se

and

recy

clin

g in

ag

ricu

lture

Prom

otio

n of

su

stai

nabl

e la

nd u

se

and

land

ten

ure

secu

rity

Gen

der

equa

lity

in

term

s of

acc

ess

to

reso

urce

s •

Prom

otio

n of

wom

en

and

yout

h’s

inte

rest

s an

d el

imin

atio

n of

co

nstr

aint

s to

ef

fect

ivel

y pa

rtic

ipat

e in

the

agr

o-pr

oces

sing

ent

erpr

ise

• Im

prov

ed

agri

cultu

ral

perf

orm

ance

Incr

ease

d cl

imat

e re

silie

nt a

gro-

indu

stri

es

• A

gric

ultu

ral

perf

orm

ance

leve

ls

• N

o. o

f hig

hly

skill

ed jo

bs

crea

ted

• N

o of

agr

o-in

dust

ries

Incr

ease

d bu

sine

ss

owne

rshi

p by

w

omen

in t

he

agro

-pro

cess

ing

indu

stry

• M

embe

r St

ates

• P

riva

te s

ecto

r

• M

embe

r St

ates

Dev

elop

men

t Pa

rtne

rs

33

Page 44: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

44  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

proc

essi

ng

• Pro

vidi

ng m

arke

t ac

cess

to

wom

en a

nd y

oung

farm

ers

• Sta

rt D

ate:

201

5 • C

onti

nues

4.

Agr

icul

tura

l V

alue

Cha

ins

• Ina

dequ

ate

intr

a-A

fric

an

trad

e in

val

ue-a

dded

ag

ricu

ltura

l pro

duct

s • I

nade

quat

e im

plem

enta

tion

of

qual

ity s

tand

ards

• I

nade

quat

e da

ta o

n ag

ricu

lture

• N

o la

nd r

ight

s • I

ssue

s of

acc

ess

to

capi

tal a

nd t

echn

olog

y

• Im

prov

e m

arke

t in

fras

truc

ture

Impr

ove

acce

ss t

o in

puts

and

fe

rtili

zers

Impr

ove

info

rmat

ion

flow

s •

Ana

lyse

val

ue c

hain

Prov

ide

infr

astr

uctu

re fo

r po

st-h

arve

st h

andl

ing

• D

evel

op d

ata

colle

ctio

n in

stru

men

ts

• Im

prov

ing

wom

en’s

pa

rtic

ipat

ion

in a

ll se

ctio

ns

alon

g th

e ag

ricu

lture

val

ue

chai

ns

• U

psca

le w

omen

in a

gric

ultu

re

from

sub

sist

ence

to

com

mer

cial

Star

t D

ate:

201

5 •

Con

tinu

es

• In

crea

se r

ange

of

agri

cultu

ral

prod

ucts

Enha

nce

agri

cultu

ral

sect

or

prod

uctiv

ity

• Pr

omot

e ag

ricu

ltura

l val

ue

chai

ns o

f hig

h em

ploy

men

t an

d ex

port

pot

entia

l •

Enco

urag

ing

the

wid

er p

artic

ipat

ion

of m

argi

nalis

ed

grou

ps p

artic

ular

ly

wom

en a

nd y

outh

Build

ing

mar

ket

infr

astr

uctu

re a

nd

acce

ss t

ailo

red

to

wom

en a

nd y

outh

’s

need

s

• IU

MP

• N

atio

nal

prog

ram

mes

&

proj

ects

Nat

iona

l pr

ogra

mm

es

targ

eted

at

wom

en

in r

ural

co

mm

uniti

es a

bove

fa

rmin

g liv

elih

oods

• D

evel

opm

ent

of

agri

cultu

ral v

alue

ch

ains

with

pos

itive

di

rect

and

indi

rect

sp

ill-o

vers

in

inco

me,

em

ploy

men

t an

d ex

port

• In

crea

sed

intr

a-A

fric

an t

rade

in

valu

e-ad

ded

agri

cultu

ral

prod

ucts

Wid

er r

ange

of

agro

-bas

ed

prod

ucts

• I

ncre

ased

ag

ricu

lture

val

ue

chai

n co

ntri

butio

n in

th

e ec

onom

y • W

ider

par

ticip

atio

n by

wom

en a

long

th

e va

lue

chai

n.

• Le

vel o

f int

ra-

Afr

ican

tra

de in

va

lue-

adde

d ag

ricu

ltura

l pr

oduc

ts

• N

o. o

f agr

o-ba

sed

prod

ucts

Incr

easi

ng

wom

en’s

sha

re in

in

tra-

SA

DC

tr

ade.

• Mem

ber

Stat

es

• Pri

vate

sec

tor

• SA

DC

Se

cret

aria

t • I

nter

natio

nal

Age

ncie

s • U

N S

yste

m

• M

embe

r St

ates

Firm

s’

inve

stm

ents

Dev

elop

men

t Pa

rtne

rs

34

Page 45: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

45  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

5.

M

iner

als

bene

ficia

tion

and

valu

e ad

ditio

n

• Ina

dequ

ate

skill

s • F

inan

cing

nee

ds

• Lim

ited

back

war

d lin

kage

s • L

imite

d in

fras

truc

ture

Inad

equa

te/u

nrel

iabl

e

supp

ly a

nd h

igh

cost

of

ener

gy

• Agr

eem

ents

with

min

ing

com

pani

es

• Env

iron

men

tal

sust

aina

bilit

y • T

echn

olog

ical

ob

sole

scen

ce

• Su

b-op

timal

use

of

exis

ting

asse

ts

• In

adeq

uate

reg

ulat

ory

arra

ngem

ents

on

min

eral

be

nefic

iatio

n •

Inad

equa

te/la

ck o

f dat

a on

de

posi

ts, q

ualit

y an

d si

ze

of m

etal

lic a

nd n

on-

met

allic

min

eral

re

sour

ces

Inef

ficie

nt u

tiliz

atio

n of

re

sour

ces

(wat

er a

nd

ener

gy)

Hig

h in

put

cost

s •

Inte

grat

ing

the

ASM

sub

-se

ctor

to

form

al m

inin

g va

lue

chai

n •

Add

ress

ing

criti

cal

cons

trai

nts

that

lim

its t

he

dire

ct c

ontr

ibut

ion

of

wom

en in

the

ASM

val

ue

chai

n •

Lim

ited

supp

ort

stru

ctur

es fo

r w

omen

in

ASM

to

effe

ctiv

ely

enga

ge

in t

he d

iffer

ent

aspe

cts

with

in t

he v

alue

cha

in

• Pro

file

the

min

eral

sec

tor

• T

ake

stoc

k of

exi

stin

g fe

asib

ility

stu

dies

in m

iner

als

sect

or a

nd u

nder

take

ne

w/u

pdat

ing

stud

ies

• Pro

mot

e an

d su

ppor

t w

omen

and

you

ng s

mal

l-sc

ale

min

ers

• Pro

vide

ski

lls t

rain

ing

and

incu

batio

n • P

rior

itize

min

eral

s be

nefic

iatio

n an

d va

lue

addi

tion

• Dev

elop

indu

stri

al c

lust

ers

• Pro

vide

sup

port

for

min

ing

SMEs

• I

mpr

ove

acce

ss t

o fin

anci

ng

• Add

ress

env

iron

men

tal

issu

es o

n m

inin

g an

d ot

her

extr

activ

es s

uch

as o

il an

d ga

s • P

rom

ote

envi

ronm

enta

lly

frie

ndly

tec

hnol

ogy

acqu

isiti

on a

nd

inno

vatio

n •

Tak

e st

ock

of a

nd o

ptim

ize

utili

zatio

n of

exi

stin

g as

sets

Prep

are

regu

lato

ry fr

amew

ork

for

min

eral

ben

efic

iatio

n

• Str

engt

hen

cap

acity

of

geol

ogic

al s

urve

y de

part

men

ts in

Mem

ber

Stat

es t

o un

dert

ake

inte

nsiv

e an

d ex

tens

ive

geol

ogic

al s

urve

ys o

n th

e re

gion

’s m

iner

al a

vaila

bilit

y an

d po

tent

ial

• Ide

ntify

and

pro

file

valu

e ch

ains

Prom

ote

targ

eted

in

vest

men

t a

cros

s th

e

• C

reat

e gr

eate

r va

lue

addi

tion/

bene

ficia

tion

in

min

eral

s se

ctor

Cre

ate

empl

oym

ent

• W

iden

eco

nom

ic

inte

r-lin

kage

s •

Impr

ove

com

para

tive

adva

ntag

e •

Incr

ease

fore

ign

exch

ange

ea

rnin

gs

• Pr

omot

e en

viro

nmen

tal

sust

aina

bilit

y •

Gre

ater

sha

re o

f w

omen

and

yo

uth

empl

oyed

an

d en

gage

d in

th

e m

iner

als

sect

or

• IU

MP

• N

atio

nal

prog

ram

mes

an

d pr

ojec

ts

• Es

tabl

ishm

ent/

Stre

ngt

heni

ng

of

Min

eral

ogy

Cen

tres

of

Exc

elle

nce

• C

entr

es

of

Exce

llenc

e,

prog

ram

mes

gea

red

tow

ards

tr

aini

ng,

prom

otin

g ex

tens

ion,

se

rvic

es

on

min

eral

ex

trac

tion

and

bene

ficia

tion.

• Ex

tens

ive

and

inte

nsiv

e ex

ploi

tatio

n of

m

iner

al r

esou

rces

Impr

ove

effic

ienc

y to

m

inim

ize

he c

ost

of

prod

uctio

n

• In

crea

sed

num

ber

of v

alue

-add

ed

min

eral

pro

duct

s •

Incr

ease

d fo

reig

n ex

chan

ge e

arni

ngs

• Em

ploy

men

t le

vels

incr

ease

d • I

nten

sifie

d se

ctor

al

inte

rlin

kage

s • I

ncre

ased

em

ploy

men

t le

vels

, and

en

gage

men

t of

bo

th m

en a

nd

wom

en in

the

se

ctor

• N

o. o

f val

ue-

adde

d m

iner

al

prod

ucts

Leve

l of f

orei

gn

exch

ange

ear

ning

s fr

om m

iner

al

prod

ucts

No.

of e

mpl

oyee

s •

No.

of s

take

hold

ers

part

icip

atin

g in

fo

rwar

d an

d ba

ckw

ard

linka

ges

• En

viro

nmen

tal

perf

orm

ance

re

cord

s by

indu

stry

num

ber

of

regi

ster

ed A

SM

min

ers,

par

ticul

arly

w

omen

and

you

ng

min

ers

• Mem

ber

Stat

es

• Pri

vate

sec

tor

• Min

ing

com

pani

es

• SA

DC

Se

cret

aria

t

• M

embe

r St

ates

Min

ing

c

ompa

nies

/ F

DI

• D

evel

opm

ent

Part

ners

35

Page 46: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

46  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

regi

on

• Sec

ure

and

enla

rge

mar

kets

fo

r va

lue

adde

d an

d be

nefic

iate

d go

ods

• Pro

mot

e co

llabo

ratio

n be

twee

n in

stitu

tions

in

volv

ed in

ski

lls

deve

lopm

ent

in t

he r

egio

n • P

rom

ote

R&

D in

min

eral

s se

ctor

• D

evel

op a

nd P

rom

ote

the

SAD

C R

aw M

ater

ial

Initi

ativ

e • U

nder

stan

ding

the

gen

der

dim

ensi

ons

in t

he fo

rmal

m

inin

g an

d A

SM v

alue

cha

ins

• Add

ress

ing

sect

oral

co

nstr

aint

s • E

ncou

ragi

ng m

iner

al

bene

ficia

tion

at t

he S

SM

leve

l for

loca

l mar

kets

• P

rom

otin

g w

omen

you

th’s

pa

rtic

ipat

ion

in A

SM,

espe

cial

ly b

enef

icia

tion

at

dow

nstr

eam

in v

alue

cha

ins

• For

mal

isin

g ar

tisan

al m

inin

g ac

tiviti

es a

nd t

heir

gre

ater

in

sert

ion

into

val

ue c

hain

s • s

tren

gthe

ning

col

labo

ratio

n be

twee

n LS

M a

nd A

SM

• Sta

rt D

ate:

201

5 • C

onti

nuou

s 6.

P

harm

aceu

tical

s pr

oduc

tion

• Low

qua

lity

stan

dard

s • L

imite

d ra

nge

of

phar

mac

eutic

al

prod

uctio

n • W

eak

regu

lato

ry

fram

ewor

k • D

eart

h of

res

earc

h ca

pabi

lity

• Ina

dequ

ate

spec

ializ

ed

• Pri

oriti

ze p

harm

a su

b-se

ctor

• U

nder

take

feas

ibili

ty s

tudi

es

on p

harm

a in

dust

ry

(nat

iona

lly a

nd r

egio

nally

) • D

evel

op r

egio

nal v

alue

ch

ains

• P

ut in

pla

ce s

tron

g ac

cred

itatio

n an

d qu

ality

co

ntro

l sys

tem

s

• St

reng

then

co

mpe

titiv

e ad

vant

age

• Pr

ovid

e hi

gh

qual

ity m

edic

al

prod

ucts

Inte

nsify

forw

ard

and

back

war

d lin

kage

s

• IU

MP

• Inf

rast

ruct

ure

for

phar

ma

indu

stry

• S

kills

dev

elop

men

t fo

r ph

arm

aceu

tical

se

ctor

• M

anuf

actu

ring

of

phar

mac

eutic

al

prod

ucts

and

rel

ated

• M

ake

phar

mac

eutic

al

indu

stry

a r

egio

nal

prio

rity

• Im

prov

ed

avai

labi

lity

of

esse

ntia

l m

edic

ines

and

he

alth

pro

duct

s

• In

crea

sed

rang

e an

d qu

ality

of

phar

mac

eutic

al

prod

ucts

• N

o. o

f ava

ilabl

e es

sent

ial

med

icin

es a

nd

heal

th p

rodu

cts

• R

ange

of

phar

mac

eutic

al

prod

ucts

ava

ilabl

e •

No.

of

phar

mac

eutic

al

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• Ph

arm

aceu

tical

com

pani

es

• In

tere

sted

re

gion

al a

nd

inte

rnat

iona

l

• Mem

ber

Stat

es

• Pri

vate

se

ctor

• S

AD

C

Secr

etar

iat

• Dev

elop

men

t Pa

rtne

rs

36

Page 47: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

47  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

skill

s • P

oor

back

war

d lin

kage

s •

Lack

of p

olic

y sp

ace

for

man

ufac

turi

ng

phar

mac

eutic

al

prod

ucts

due

to

Inte

llect

ual P

rope

rty

Rig

hts

(IPR

s)

rest

rict

ions

• U

nreg

ulat

ed d

ispo

sal o

f ob

sole

te

phar

mac

eutic

als

and

phar

mac

eutic

al w

aste

• L

imite

d nu

mbe

r of

w

omen

invo

lved

in

scie

nces

• Pro

mot

e R

esea

rch

and

Dev

elop

men

t (in

clud

ing

use

of lo

cal m

ater

ials

) • P

rom

ote

prod

uctio

n of

m

edic

al e

quip

men

t • E

xplo

it T

RIP

S fle

xibi

litie

s fo

r pr

oduc

ing

esse

ntia

l gen

eric

dr

ugs

• Pro

mot

e fe

mal

e sc

ient

ific

educ

atio

n an

d im

prov

e th

eir

spec

ialis

ed p

harm

aceu

tical

sk

ills

• Sta

rt D

ate:

201

5 • E

nd: C

onti

nues

• Br

and

SAD

C

regi

onal

med

ical

pr

oduc

ts

• A

ddre

ss d

isea

se

burd

en in

the

reg

ion

• Pr

otec

t IP

Rs

• Im

prov

ed

regu

latio

ns fo

r di

spos

al o

f obs

olet

e ph

arm

aceu

tical

s an

d ph

arm

aceu

tical

was

te

• Bu

ild a

str

ong,

sp

ecia

lised

and

in

tegr

ated

wor

kfor

ce

aim

ing

to p

rovi

de

high

qua

lity

med

ical

pr

oduc

ts

equi

pmen

t • T

ailo

red

and

inte

grat

ed s

kills

de

velo

pmen

t pr

ogra

mm

es fo

r th

e ph

arm

aceu

tical

s in

dust

ry

• Pa

rtic

ipat

ion

in

regi

onal

and

/or

glob

al v

alue

ch

ains

Mor

e fe

mal

e in

clus

ion

and

part

icip

atio

n in

na

tiona

l and

re

gion

al v

alue

ch

ains

com

pani

es

part

icip

atin

g in

re

gion

al/g

loba

l va

lue

chai

ns

• In

crea

sing

the

nu

mbe

r of

fem

ale

owne

d ph

arm

aceu

tical

co

mpa

nies

in

regi

onal

val

ue

chai

ns

inve

stor

s

7.

Tra

nsfo

rmat

ion

of m

anuf

actu

ring

SM

Es

• Lac

k of

form

ality

and

te

chni

cal c

apac

ity

• Low

qua

lity

prod

ucts

• H

igh

cost

of f

inan

ce

• Lac

k of

sta

ndar

diza

tion

• Lim

ited

inno

vatio

n an

d te

chno

logi

cal l

itera

cy

• Ins

uffic

ient

kno

wle

dge

of

man

ufac

turi

ng

proc

esse

s

• Poo

r lin

kage

s be

twee

n SM

Es a

nd la

rge

com

pani

es

• Lac

k of

reg

ulat

ory

mec

hani

sms

for

smal

l sc

ale

artis

anal

min

ers

• Add

ress

ing

othe

r co

nstr

aint

s, i.

e. g

ende

r di

spar

ities

in t

erm

s of

• D

evel

op r

egio

nal f

ram

ewor

k fo

r SM

E pr

omot

ion

• Pr

omot

e lin

kage

s be

twee

n SM

Es a

nd la

rge

com

pani

es

• A

ssis

t SM

Es t

o ac

quir

e kn

owle

dge

of m

anuf

actu

ring

pr

oces

ses

• Reg

iona

l fra

mew

ork

for

SMEs

sh

ould

incl

ude

gend

er

com

pone

nts

• Est

ablis

h in

stitu

tions

and

in

term

edia

ries

tha

t de

fine

mod

aliti

es a

nd p

rovi

de

supp

ort

for

wom

en in

the

pr

ivat

e se

ctor

• S

tart

Dat

e: 2

015

• In

crea

se r

egul

ated

SM

E co

ntri

butio

n to

indu

stri

al o

utpu

t

• IU

MP

• Coh

eren

t na

tiona

l an

d re

gion

al

prog

ram

mes

for

upgr

adin

g sk

ills

and

capa

bilit

ies

to

part

icip

ate

in R

VC

s an

d G

VC

s

• En

hanc

ing

capa

bilit

ies

of S

MEs

• I

mpr

oved

cap

acity

of

SM

Es t

o pr

oduc

e va

lue-

adde

d go

ods

and

serv

ices

Incr

ease

d co

ntri

butio

n of

SM

Es t

o in

dust

rial

pr

oduc

tion

real

ized

• N

o. o

f goo

ds a

nd

serv

ices

pr

oduc

ed b

y SM

Es

• G

row

th r

ates

of

SMEs

out

puts

Con

trib

utio

n of

SM

E se

ctor

to

GD

P

• M

embe

r St

ates

Busi

ness

bo

dies

and

C

ham

bers

of

Com

mer

ce

• M

embe

r St

ates

Busi

ness

bo

dies

and

C

ham

bers

of

Com

mer

ce

37

Page 48: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

48  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

acce

ss t

o re

sour

ces

Con

tinu

es

8.

Indu

stri

al

Upg

radi

ng a

nd

Mod

erni

zatio

n Pr

ogra

mm

e (IU

MP)

• Fi

nanc

ial c

onst

rain

ts

• La

ck o

f cap

acity

for

impl

emen

tatio

n of

IUM

P •

Inad

equa

te

impl

emen

tatio

n of

IUM

P

• D

evel

op a

nd im

plem

ent

natio

nal I

UM

Ps

• Bu

ild c

apac

ity t

o im

plem

ent

IUM

P at

nat

iona

l lev

el

• Fac

ilita

te im

plem

enta

tion

of

IUM

P

• Sta

rt D

ate:

201

5 • C

onti

nues

• Fa

st-t

rack

im

plem

enta

tion

of

IUM

P •

Impr

ove

indu

stry

co

mpe

titiv

enes

s an

d in

nova

tion

• Pr

omot

e cl

imat

e ad

apta

tion

and

resi

lienc

e bu

ildin

g fo

r th

e in

dust

ry

sect

or

• IU

MPs

in a

ll M

embe

r St

ates

Mem

ber

Stat

es t

o pr

iori

tize

impl

emen

tatio

n of

IU

MP

Subs

tant

ial

tran

sfor

mat

ion

of

SMEs

Incr

ease

the

pa

rtic

ipat

ion

of

SMEs

in r

egio

nal

valu

e ch

ains

Prom

ote

clim

ate

chan

ge a

dapt

atio

n ac

ross

the

val

ue

chai

ns

• Nat

iona

l IU

MPs

de

velo

ped

and

impl

emen

ted

• Mea

sure

s to

en

hanc

e ef

ficie

ncy

for

impr

oved

pr

oduc

tivity

and

di

vers

ifica

tion

agre

ed

• Inc

reas

ed g

row

th in

SM

Es, e

mpl

oym

ent

and

expo

rt

• No.

of I

UM

Ps

(nat

iona

l) de

velo

ped

and

impl

emen

ted

• No.

of p

erio

dic

eval

uatio

ns a

cros

s th

e re

gion

• M

embe

r St

ates

Priv

ate

sect

or

• M

embe

r St

ates

Firm

s’

inve

stm

ents

FDI

• D

evel

opm

ent

Part

ners

9.

Reg

iona

l pri

vate

se

ctor

pa

rtne

rshi

p an

d co

llabo

ratio

n st

rate

gy

• Lac

k of

bro

ad-b

ased

pa

rtic

ipat

ion

in in

dust

rial

de

velo

pmen

t • I

nade

quat

e m

echn

ism

s fo

r re

gion

al p

artn

ersh

ip

• Lac

k of

par

tner

ship

and

co

llabo

ratio

n am

ong

priv

ate

sect

or o

pera

tors

Abs

ence

of P

ublic

-Pri

vate

D

ialo

gue

(PPD

) •

Inad

equa

te r

egio

n-w

ide

inst

itutio

ns fo

r pr

ivat

e se

ctor

eng

agem

ent

• D

iver

sity

and

fr

agm

enta

tion

of t

he

priv

ate

sect

or

• In

adeq

uate

cap

acity

to

part

icip

ate

in r

egio

nal

initi

ativ

es

• In

stitu

tiona

l mec

hani

sms

(bot

h pu

blic

and

pri

vate

) no

t ge

nder

sen

sitiv

e

• D

evel

op p

olic

y fr

amew

ork

for

Publ

ic P

riva

te D

ialo

gue

(PPD

) at

nat

iona

l and

reg

iona

l lev

els

• D

evel

op s

trat

egic

fram

ewor

k fo

r pr

ivat

e se

ctor

pa

rtne

rshi

ps

• C

reat

e ca

paci

ty fo

r pu

blic

-pr

ivat

e en

gage

men

t •

Esta

blis

h in

stitu

tions

and

de

fine

mod

aliti

es fo

r PP

D

• Bu

ild c

apac

ity fo

r pr

ivat

e se

ctor

(in

clud

ing

SMEs

) pa

rtic

ipat

ion

in r

egio

nal

initi

ativ

es

• Es

tabl

ish

inst

itutio

ns a

nd

inte

rmed

iari

es t

hat

defin

e m

odal

ities

and

pro

vide

su

ppor

t fo

r w

omen

and

you

th

in t

he p

riva

te s

ecto

r • S

tart

Dat

e: 2

015

• C

onti

nues

• In

crea

se d

ensi

ty o

f pr

ivat

e se

ctor

co

llabo

ratio

n •

Enha

nce

sym

biot

ic

rela

tions

bet

wee

n pu

blic

and

pri

vate

se

ctor

s •

Prom

ote

seam

less

di

alog

ue

• Bu

ild u

nder

stan

ding

of

gen

der

issu

es in

th

e pr

ivat

e se

ctor

• Fo

cuse

d pr

ogra

mm

es

for

broa

dbas

ed

natio

nal a

nd r

egio

nal

part

ners

hips

Tar

gete

d pr

ogra

mm

es

to e

nhan

ce d

ialo

gue

and

esta

blis

h re

late

d in

stitu

tions

Tar

gete

d in

stitu

tions

to

rai

se a

war

enes

s on

the

spe

cial

nee

ds

of w

omen

and

you

th

in t

he s

ecto

r

• Org

aniz

atio

n an

d fa

cilit

atio

n of

nat

iona

l an

d re

gion

al

plat

form

s fo

r pa

rtne

rshi

ps

• Pr

omot

ing

dial

ogue

Build

ing

conf

iden

ce

• St

rate

gy fo

r pa

rtne

rshi

ps a

nd

dial

ogue

dev

elop

ed

• Pl

atfo

rm fo

r Pu

blic

-Pr

ivat

e D

ialo

gue

esta

blis

hed

• Ef

fect

ive

dial

ogue

on

indu

stri

al

deve

lopm

ent

prom

oted

PPD

inst

itutio

ns/

mec

hani

sms

esta

blis

hed

• R

espo

nsiv

enes

s an

d se

nsiti

vity

by

inst

itutio

ns t

o ge

nder

and

you

th

need

s en

hanc

ed.

• Ex

iste

nce

of

part

ners

hip

agre

emen

ts

• N

o. o

f par

tner

ship

s •

No.

of m

eetin

gs fo

r PP

D a

t na

tiona

l and

re

gion

al le

vels

No.

of m

utua

l and

pr

actic

al

part

ners

hips

Exis

tenc

e of

PPD

in

stitu

tions

/ m

echa

nism

s •

No.

of m

eetin

gs

• N

o of

inst

itutio

ns

that

are

add

ress

ing

gend

er a

nd y

outh

is

sues

No

of w

omen

and

yo

uth

part

icip

atin

g in

the

pri

vate

se

ctor

• M

embe

r St

ates

Priv

ate

sect

or

• M

embe

r St

ates

Priv

ate

sect

or

co-fi

nanc

ing

• D

evel

opm

ent

Part

ners

38

Page 49: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

49  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

10.

Reg

iona

l st

rate

gy

on

incl

usiv

e �

busi

ness

• In

adeq

uate

invo

lvem

ent

of

econ

omic

age

nts

in

busi

ness

dev

elop

men

t an

d ga

ins

Inad

equa

te in

volv

emen

t of

ec

onom

ic a

gent

s in

bu

sine

ss d

evel

opm

ent

part

icul

arly

wom

en a

nd

yout

h en

gage

d in

the

pr

ivat

e se

ctor

• C

reat

e in

cent

ives

for

incl

usiv

e bu

sine

ss p

artic

ipat

ion

• In

cent

ives

for

wom

en a

nd

yout

h in

bus

ines

s pa

rtic

ipat

ion

Star

t D

ate

: 201

6 •

Con

tinu

es

• Im

prov

e in

com

e di

stri

butio

n •

Impr

oved

and

eq

uita

ble

inco

me

dist

ribu

tion

• Pi

lot

proj

ects

for

incl

usiv

e bu

sine

ss

prom

otio

n

Sele

ctiv

e ar

eas

for

succ

essf

ul b

usin

ess

incl

usiv

e pa

rtic

ipat

ion •

Stra

tegy

dev

elop

ed

and

impl

emen

ted

• In

crea

sed

incl

usiv

ity

in b

usin

ess

part

icip

atio

n

• St

rate

gy d

ocum

ent

• N

o. o

f vul

nera

ble

grou

ps p

artic

ipat

ing

in b

usin

ess

• M

embe

r St

ates

Priv

ate

Sect

or

• M

embe

r St

ates

Priv

ate

sect

or

• D

evel

opm

ent

Part

ners

11.

Polic

y an

d st

rate

gies

for

expl

oita

tion

of

indu

stri

al

deve

lopm

ent

oppo

rtun

ities

in

coop

erat

ion

with

ot

her

regi

ons

• Li

mite

d in

tra-

and

inte

r-R

egio

nal c

oope

ratio

n fo

r ex

ploi

tatio

n of

de

velo

pmen

t op

port

uniti

es

• Fo

rmul

ate

or r

evie

w r

egio

nal

and

inte

r-re

gion

al

coop

erat

ion

agre

emen

ts t

o fa

cilit

ate

reso

urce

s ex

ploi

tatio

n an

d bu

sine

ss

prom

otio

n

• St

art

Dat

e: 2

016

• E

nd :

2017

• W

iden

reg

iona

l and

in

ter-

regi

onal

ec

onom

ic

coop

erat

ion

• Se

lect

ed e

mph

asis

on

prom

otio

n ar

eas

in

the

coop

erat

ion

prot

ocol

s

• D

evel

opm

ent

of

regi

onal

val

ue c

hain

s •

Polic

ies

and

Stra

tegi

es t

hat

take

in

to c

onsi

dera

tion

othe

r re

gion

al

prot

ocol

s an

d st

rate

gies

suc

h as

cl

imat

e ch

ange

, gr

een

econ

omy

and

blue

eco

nom

y

deve

lope

d an

d im

plem

ente

d

• In

crea

sed

coop

erat

ion

with

ot

her

regi

ons

on

indu

stri

al

deve

lopm

ent

• Po

licy

and

Stra

tegy

do

cum

ents

No.

of i

ndus

tria

l in

itiat

ives

with

ot

her

regi

ons

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

Dev

elop

men

t Pa

rtne

rs

12.

Cen

tres

of

Exce

llenc

e an

d C

entr

es o

f Sp

ecia

lizat

ion

for

sele

cted

pri

ority

se

ctor

s id

entif

ied

and

stre

ngth

ened

• W

eak

know

ledg

e-ba

sed

supp

ort

• Id

entif

y an

d st

reng

then

ex

istin

g C

entr

es

• Es

tabl

ish

new

cen

tres

of

exce

llenc

e

• St

art

Dat

e : 2

015

• C

onti

nues

• En

hanc

e ta

rget

ed

capa

city

bui

ldin

g an

d sk

ills

deve

lopm

ent

• In

stitu

tiona

l st

reng

then

ing

prog

ram

mes

• T

echn

olog

ical

en

hanc

emen

t •

Reg

iona

l ind

ustr

ial

Cen

tres

of

Exce

llenc

e an

d C

entr

es o

f Sp

ecia

lizat

ion

for

prio

rity

sec

tors

id

entif

ied

and

stre

ngth

ened

Impr

oved

R&

D,

enha

nced

pr

oduc

tivity

and

pr

oduc

tion

of

inno

vativ

e pr

oduc

ts

• N

o. o

f Cen

tres

of

Exce

llenc

e an

d C

entr

es o

f Sp

ecia

lizat

ion

iden

tifie

d/

stre

ngth

ened

/ es

tabl

ishe

d •

No.

of i

nnov

ativ

e pr

oduc

ts

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

Dev

elop

men

t Pa

rtne

rs

39

Page 50: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

50  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

13.

Mod

el le

gisl

atio

n an

d re

gula

tion

for

intr

a-SA

DC

pr

oces

sing

and

va

lue

addi

tion

for

min

eral

pro

duct

s • In

adeq

uate

lega

l and

in

stitu

tiona

l fra

mew

ork

for

min

eral

s be

nefic

iatio

n an

d va

lue

addi

tion

• D

evel

op le

gal a

nd in

stitu

tiona

l fr

amew

ork

for

intr

a-SA

DC

be

nefic

iatio

n an

d va

lue

addi

tion

Star

t D

ate

: 201

6 •

End

: 20

17

• In

crea

se v

alue

ad

ditio

n fr

om

natu

ral r

esou

rces

• R

egio

nal p

rogr

amm

es

for

enha

ncin

g be

nefic

iatio

n an

d va

lue

addi

tion

• St

reng

then

ing

lega

l fr

amew

ork

for

regi

onal

val

ue

addi

tion

for

min

eral

pr

oduc

ts

• M

odel

lega

l and

in

stitu

tiona

l fr

amew

ork

deve

lope

d an

d im

plem

ente

d •

Impr

oved

en

forc

emen

t of

le

gal i

nstr

umen

ts

prom

otin

g be

nefic

iatio

n an

d

valu

e ad

ditio

n

• Ex

iste

nce

of le

gal

and

inst

itutio

nal

fram

ewor

k

• N

o. o

f Mem

ber

Stat

es

impl

emen

ting

the

lega

l and

in

stitu

tiona

l fr

amew

ork

• M

embe

r St

ates

Min

ing

com

pani

es

• M

embe

r St

ates

Priv

ate

sect

or

14.

Prot

ocol

on

indu

stry

de

velo

ped

and

oper

atio

naliz

ed

• La

ck o

f div

ersi

ficat

ion

and

com

petit

iven

ess

• U

ncoo

rdin

ated

indu

stri

al

deve

lopm

ent

• In

adeq

uate

indu

stri

al

capa

bilit

ies

• In

adeq

uate

env

iron

men

tal

sust

aina

bilit

y pr

inci

ples

• D

evel

op a

nd o

pera

tiona

lize

Prot

ocol

on

Indu

stry

Dev

elop

an

oper

atio

nal g

ende

r se

nsiti

ve p

roto

col o

n in

dust

ry.

• St

art

Dat

e : 2

015

• E

nd :

2020

• En

hanc

e le

vel o

f in

dust

rial

de

velo

pmen

t at

na

tiona

l and

re

gion

al le

vels

• C

apac

ity d

evel

opm

ent

prog

ram

mes

Cap

acity

bui

ldin

g fo

r in

dust

rial

izat

ion

and

tech

nolo

gica

l re

adin

ess

• Pr

otoc

ol o

n In

dust

ry d

evel

oped

an

d im

plem

ente

d,

taki

ng in

to

cons

ider

atio

n pr

ovis

ions

of o

ther

pr

otoc

ols

such

as

natu

ral r

esou

rces

an

d en

viro

nmen

t

• G

ende

r se

nsiti

ve

Prot

ocol

on

indu

stry

dev

elop

ed

and

impl

emen

ted

• N

o. o

f Mem

ber

Stat

es t

hat

adop

ted

and

impl

emen

ted

the

Prot

ocol

Num

ber

of m

embe

r st

ates

tha

t im

plem

ent

the

actu

al p

roto

col a

nd

the

gend

er

dim

ensi

on

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

15.

Stra

tegy

for

leve

ragi

ng

Reg

iona

l In

fras

truc

ture

D

evel

opm

ent

Mas

ter

Plan

(R

IDM

P) t

o ca

taly

se

indu

stri

al

deve

lopm

ent

com

plet

ed

• In

dequ

ate

regi

onal

in

fras

truc

ture

(ro

ads,

rai

l, co

mm

unic

atio

ns, I

CT

, air

, w

ater

) cu

rren

tly r

esul

ting

in h

igh

cost

of d

oing

bu

sine

ss

• Su

b-op

timal

use

of

exis

ting

infr

astr

uctu

re

• Li

mite

d be

nefit

s de

rive

d by

loca

l SM

Es d

urin

g de

velo

pmen

t of

in

fras

truc

ture

pro

ject

s

• Fo

rmul

ate

broa

d-ba

sed

regi

onal

infr

astr

uctu

re

deve

lopm

ent

prog

ram

me

• D

evel

op p

olic

ies

to r

emov

e N

TBs

and

impr

ove

func

tioni

ng

of c

orri

dors

, pow

er

inte

rcon

nect

ions

and

ICT

s •

Impr

ove

utili

zatio

n of

exi

stin

g in

fras

truc

ture

Prom

ote

linka

ges

betw

een

loca

l SM

Es a

nd la

rge

com

pani

es t

hrou

gh

outs

ourc

ing

and

proc

urem

ent

polic

ies

, etc

Star

t D

ate

: 201

5 •

End

: 20

17

• R

educ

e co

st o

f do

ing

busi

ness

Fost

er S

MEs

pa

rtic

ipat

ion

in

deve

lopm

ent

of

infr

astr

uctu

re

proj

ects

• D

evel

opm

ent/

st

reng

hten

ing

of

regi

onal

in

fras

truc

ture

Supp

lier

Dev

elop

men

t Pr

ogra

mm

es

• M

ulti-

mod

al a

ppro

ach

to in

fras

truc

ture

de

velo

pmen

t •

Ensu

ring

the

SM

Es a

re

linke

d an

d be

nefit

fr

om in

fras

truc

ture

pr

ojec

ts

• St

rate

gy w

ith fu

ll co

mpo

nent

s of

in

fras

truc

ture

de

velo

ped,

tak

ing

into

con

side

ratio

n ot

her

regi

onal

st

rate

gies

suc

h as

cl

imat

e ch

ange

, gr

een

and

blue

ec

onom

y •

Impr

oved

co

mpe

titiv

enes

s of

SA

DC

indu

stri

es

• SM

Es c

apac

itate

d be

nefit

ed fr

om

enga

gem

ent

in

• V

olum

e an

d va

lue

of lo

cal i

nput

s pr

ocur

ed fo

r in

fras

truc

ture

de

velo

pmen

t •

No.

of S

MEs

as

sist

ed t

hrou

gh

Supp

lier

Dev

elop

men

t Pr

ogra

mm

es

• Be

nefit

s de

rive

d by

SM

Es t

hrou

gh

part

icip

atio

n in

in

fras

truc

ture

pr

ojec

ts

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

Priv

ate

sect

or

40

Page 51: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

51  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

deve

lopm

ent

and

impl

emen

tatio

n of

in

fras

truc

ture

pr

ogra

mm

es

16.

SAD

C

rule

s of

or

igin

Res

tric

ted

trad

e flo

ws

and

in

dust

rial

inpu

ts

• A

lign

rule

s of

ori

gin

with

in

dust

rial

nee

ds

Star

t D

ate

: 201

5 •

End

: 20

17

• In

crea

se s

uppl

y of

in

term

edia

te in

puts

Gen

erat

e ge

ater

tr

ade

flow

s

• D

evel

opm

ent

of

mor

e bu

sine

ss

supp

ortiv

e ru

les

of

orig

in

• M

akin

g ru

les

of o

rigi

n m

ore

flexi

ble

• R

elax

ed r

ules

of

orig

in

• In

crea

sed

regi

onal

in

term

edia

te in

puts

flo

ws

faci

litat

ed

• Fl

exib

le r

ules

of

orig

in

• Le

vel o

f int

ra-

regi

onal

tra

de

• M

embe

r St

ates

• M

embe

r St

ates

17.

Impl

emen

tatio

n of

Tra

de in

Se

rvic

es

Prot

ocol

m

onito

red

annu

ally

• Po

or s

ervi

ces

incr

ease

tr

ansa

ctio

n co

sts

and

cons

trai

n tr

ade

flow

s an

d cr

eatio

n of

val

ue c

hain

s

• Fa

st-t

rack

dev

elop

men

t of

se

rvic

es in

fras

truc

ture

Libe

raliz

e tr

ade

in s

ervi

ces

• Pr

omot

e aw

aren

ess

on r

ole

of

serv

ices

in in

dust

rial

izat

ion

Star

t D

ate

: 201

5 •

Con

tinu

es

• Fa

cilit

ate

effe

ctiv

enes

s of

re

gion

al t

rade

in

serv

ices

• N

egot

iatio

ns o

n si

x pr

iori

ty s

ervi

ces

sect

ors

• Su

bseq

uent

ne

gotia

tions

to

cove

r al

l ser

vice

s se

ctor

s

• Li

bera

lizat

ion

of

serv

ices

sec

tors

Prot

ocol

im

plem

ente

d •

Incr

ease

d pr

oduc

tivity

and

co

mpe

titiv

enes

s

• N

o. o

f Mem

ber

Stat

es t

hat

ratif

ied

and

impl

emen

ted

the

Prot

ocol

Vol

ume

and

valu

e of

tra

de in

ser

vice

s •

Leve

l of

prod

uctiv

ity a

nd

com

petit

iven

ess

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

18.

Cap

acity

of

Mem

ber

Stat

es

to d

evel

op a

nd

enfo

rce

com

petit

ion

polic

ies

and

law

s

• In

adeq

uate

com

petit

ion

polic

ies

and

inst

itutio

ns

• Pu

t in

pla

ce a

ppro

pria

te

com

petit

ion

polic

ies

• Se

t up

/str

engt

hen

Nat

iona

l C

ompe

titio

n A

utho

ritie

s •

Star

t D

ate

: 201

5 •

End

: 20

17

• Im

prov

e bu

sine

ss

envi

ronm

ent

• R

igor

ous

com

petit

ion

polic

ies

• C

reat

ion

of c

ondu

cive

bu

sine

ss e

nvir

onm

ent •

Com

petit

ion

polic

ies

deve

lope

d an

d en

forc

ed b

y M

embe

r St

ates

• N

o. o

f Mem

ber

Stat

es e

nfor

cing

co

mpe

titio

n po

licie

s

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

19.

Impl

emen

tatio

n of

Tra

de

Prot

ocol

and

EP

A

• In

adeq

uate

cap

acity

to

impl

emen

t T

rade

Pr

otoc

ol a

nd E

PAs

• A

ligni

ng E

PA

impl

emen

tatio

n w

ith

Prot

ocol

Impa

ct o

f im

plem

enta

tion

of P

roto

col a

nd E

PA o

n M

embe

r St

ates

• D

evel

op c

apac

ity t

o im

plem

ent

Tra

de P

roto

col

and

EPA

• St

art

Dat

e : 2

015

• E

nd :

2020

• M

axim

ize

trad

ing

bene

fits

from

in

crea

sed

mar

ket

oppo

rtun

ities

• Im

plem

ent

the

Tra

de

Rel

ated

Fac

ility

(T

RF)

• A

naly

tical

as

sess

men

ts o

f cos

ts

and

bene

fits

of t

he

arra

ngem

ents

• C

ompa

tibili

ty

betw

een

Tra

de

Prot

ocol

and

EPA

s •

Tra

de P

roto

col a

nd

EPA

fully

im

plem

ente

d

• N

o. o

f Mem

ber

Stat

es

impl

emen

ting

Tra

de P

roto

col a

nd

EPA

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

Dev

elop

men

t Pa

rtne

rs

20.

Indu

stri

al

deve

lopm

ent

pilla

r of

the

• A

lignm

ent

of S

AD

C

Indu

stri

al D

evel

opm

ent

Age

nda

with

Tri

part

ite

• SA

DC

Mem

ber

Stat

es

part

icip

ate

activ

ely

in

Tri

part

ite

nego

tiat

ions

to

• O

ptim

ize

bene

fits

from

the

T

ripa

rtit

e

• N

egot

iatio

n of

in

dust

rial

de

velo

pmen

t pi

llar

of •

Indu

stri

al c

apac

ity

enha

ncem

ent

• Pr

omot

ing

• SA

DC

and

T

ripa

rtit

e in

dust

rial

• N

o. o

f Mem

ber

Stat

es p

artic

ipat

ing

in t

he T

ripa

rtite

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

41

Page 52: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

52  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

Tri

part

ite

final

ised

In

dust

rial

Dev

elop

men

t Pi

llar

ensu

re T

ripa

rtite

arr

ange

men

t co

ntri

bute

s to

ach

ievi

ng

SAD

C in

dust

rial

izat

ion

obje

ctiv

es

• Be

tter

info

rm a

nd h

arm

onis

e pr

otoc

ols

on in

dust

ry-

espe

cial

ly S

AD

C’s

gen

der

prot

ocol

Star

t D

ate

: 201

5 •

End

: 20

16

• Im

prov

e co

oper

atio

n an

d sy

nerg

ies

on

indu

stri

aliz

atio

n

the

Tri

part

ite

coop

erat

ion

and

deve

lopm

ent

of

Reg

iona

l val

ue c

hain

s

obje

ctiv

es a

ligne

d •

Coo

pera

tion

on

indu

stri

aliz

atio

n an

d de

velo

pmen

t of

reg

iona

l val

ue

chai

ns e

nhan

ced

indu

stri

al

deve

lopm

ent

pilla

r •

No.

of r

egio

nal

valu

e ch

ains

de

velo

ped

• R

egio

nal

Econ

omic

C

omm

uniti

es

21.

SAD

C R

egio

nal

Dev

elop

men

t Fu

nd le

gal

inst

rum

ent

oper

atio

nalis

ed

• In

adeq

uacy

of r

egio

nal

finan

cing

mec

hani

sms

Set

up S

AD

C R

egio

nal

Dev

elop

men

t Fu

nd

Star

t D

ate

: 201

5 •

End

: 20

16

• R

emov

e lo

ng-t

erm

fin

anci

ng

cons

trai

nts

on

indu

stri

aliz

atio

n an

d in

tegr

atio

n

• SA

DC

Dev

elop

men

t Fu

nd

• SA

DC

dev

elop

men

t fu

nd: a

lso

a sp

ecia

lised

fund

for

wom

en in

SA

DC

• C

onve

rgen

ce o

f vie

ws

on s

cope

of

oper

atio

ns o

n ca

pita

l so

urci

ng

• SA

DC

Reg

iona

l D

evel

opm

ent

Fund

s op

erat

iona

lized

(s

igne

d, r

atifi

ed

and

enfo

rced

)

• Fu

nctio

ning

SA

DC

R

egio

nal

Dev

elop

men

t Fu

nd •

Mem

ber

Stat

es

• SA

DC

Se

cret

aria

t

• M

embe

r St

ates

Dev

elop

men

t Pa

rtne

rs

C

ompe

titi

vene

ss

42

Page 53: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

53  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

22.

Impr

ovem

ent

of m

icro

-ec

onom

ic

envi

ronm

ent

for

firm

s an

d en

terp

rise

s

• L

imite

d qu

ality

of f

acto

r in

puts

• S

tand

ards

• A

cces

s to

cap

ital

• Ina

dequ

ate

mar

ket

info

rmat

ion

• Lac

k of

sop

hist

icat

ion

of

prod

ucts

and

mar

kets

• I

nade

quat

e in

cent

ives

sy

stem

s • F

orm

aliz

atio

n of

SM

Es

• Wom

en a

nd y

outh

’s

acce

ss t

o ca

pita

l and

m

arke

ts

• D

evel

op s

kills

• E

nhan

ce q

ualit

y st

anda

rds

• Rem

ove

busi

ness

con

stra

ints

on

ent

erpr

ises

• O

ffer

spec

ial i

ncen

tives

for

serv

ice

inpu

t co

sts

(e.g

. el

ectr

icity

) • E

stab

lish

cond

uciv

e m

acro

-ec

onom

ic e

nvir

onm

ent

in

supp

ort

of in

dust

ry

• Pro

mot

e In

dust

ry-A

cade

mia

in

tera

ctio

n • R

emov

e co

nstr

aint

s on

w

omen

in e

cono

mic

en

terp

rise

• T

arge

ted

ince

ntiv

es t

o ad

dres

s w

omen

’s n

eeds

in

ente

rpri

se

Incr

ease

co

mpe

titiv

enes

s of

nat

iona

l and

re

gion

al

ente

rpri

ses

• Fa

cilit

ate

grea

ter

part

icip

atio

n in

na

tiona

l, re

gion

al

and

glob

al v

alue

ch

ains

Gre

ater

incl

usio

n of

vul

nera

ble

grou

ps

part

icul

arly

w

omen

in

econ

omic

en

terp

rise

s

• I

UM

P (n

atio

nal a

nd

regi

onal

) • N

atio

nal i

ndus

tria

l po

licie

s • P

riva

te S

ecto

r su

ppor

t pr

ogra

mm

es

• Ski

lls d

evel

opm

ent

and

mob

ility

• N

atio

nal i

ndus

tria

l po

licie

s m

ust

be

gend

er s

ensi

tive

to

addr

ess

wom

en’s

pa

rtic

ipat

ion

in t

he

indu

stri

aliz

atio

n dr

ive

of S

AD

C

Sign

ifica

ntly

impr

oved

co

mpe

titiv

enes

s,

natio

nally

, reg

iona

lly

and

at fi

rm/e

nter

pris

e le

vels

Sign

ifica

ntly

impr

ove

an a

ll-in

clus

ive

com

petit

iven

ess

driv

e in

nat

iona

l, re

gion

al

and

at fi

rm/

ente

rpri

se le

vel.

Hig

her

stan

ding

s in

co

mpe

titiv

enes

s in

dice

s

Glo

bal

Com

petit

iven

ess

Inde

x ra

nkin

gs

• D

oing

Bus

ines

s In

dex

rank

ings

• M

embe

r St

ates

• P

riva

te S

ecto

r • H

ighe

r le

arni

ng a

nd

trai

ning

in

stitu

tions

Mem

ber

Stat

es

• C

ompa

ny

trai

ning

fu

nds

• In

tern

atio

nal

trai

ning

23.

Enha

ncin

g ca

paci

ty o

f the

pr

ivat

e se

ctor

in

str

ateg

y de

velo

pmen

t, in

nova

tion,

m

anag

emen

t an

d te

chno

logy

us

e

• Lim

ited

capa

city

of

busi

ness

ent

repr

eneu

rs

to p

erce

ive

and

deve

lop

com

petit

ive

ente

rpri

ses

• Lim

ited

stra

tegi

c pl

anni

ng a

nd m

arke

ting

skill

s • L

imite

d kn

owle

dge

of

mod

ern

busi

ness

pr

actic

es

• Lim

ited

capa

city

and

en

gage

men

t of

wom

en

and

yout

h in

en

terp

rise

s • L

imite

d m

anag

emen

t sk

ills

of w

omen

and

yo

uth

in b

usin

ess

• Dev

elop

ded

icat

ed m

ulti-

dim

ensi

onal

tra

inin

g an

d in

form

atio

n ac

cess

m

echa

nism

s • E

quita

ble

acce

ss t

o in

form

atio

n as

wel

l as

enha

ncin

g w

omen

’s c

apac

ity

in IC

T a

nd in

nova

tion

for

busi

ness

Incr

ease

fo

rmal

izat

ion

of

SMEs

in

man

ufac

turi

ng

sect

or

• R

educ

e SM

E fa

ilure

s •

Incr

ease

pr

oduc

tivity

• Nat

ion

and

regi

on-

wid

e ca

paci

ty

build

ing

prog

ram

mes

for

SMEs

sec

tor

Enha

nced

cap

aciti

es

of S

MEs

Enha

nced

cap

aciti

es

of S

MEs

, pa

rtic

ular

ly w

omen

an

d vu

lner

able

gr

oups

in

ente

rpri

se

Cap

acity

of

Priv

ate

Sect

or in

st

rate

gy

deve

lopm

ent,

inno

vatio

n,

man

agem

ent

and

tech

nolo

gy u

se

enha

nced

• G

reat

er c

apac

ity

of w

omen

and

yo

uth

to

effe

ctiv

ely

enga

ge

in t

he p

riva

te

sect

or

deve

lopm

ent

• H

ighl

y in

crea

sed

cont

ribu

tion

of

SMEs

to

man

ufac

turi

ng

outp

ut

• Mem

ber

Stat

es

• SA

DC

Se

cret

aria

t

Mem

ber

Stat

es

43

Page 54: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

54  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

24.

Skill

s an

d fa

ctor

m

obili

ty

• Ina

dequ

ate

and

limite

d ra

nge

of in

dust

rial

ski

lls

• Res

tric

tions

on

skill

ed

labo

ur m

obili

ty

• Ina

dequ

ate

and

qual

ified

w

omen

with

sem

i and

hi

ghly

spe

cial

ised

ski

lls

whi

ch fo

ster

incl

usio

n in

pr

oduc

tive

indu

stri

al

sect

ors

of t

he e

cono

my

• Exp

edite

impl

emen

tatio

n of

Pr

otoc

ol o

n Fa

cilit

atio

n of

M

ovem

ent

of P

erso

ns

• Und

erta

ke n

eeds

ass

essm

ent

for

skill

ed la

bour

• D

evel

op r

egio

n-w

ide

skill

s fo

r in

dust

ry

• Est

ablis

h re

gion

al

accr

edita

tion

fram

ewor

k • N

eeds

ass

essm

ent

of s

kille

d la

bour

as

wel

l as

the

gend

er

dim

ensi

ons

in la

bour

forc

e pa

rtic

ipat

ion

and

wha

t ar

e th

e cr

itica

l con

stra

ints

to

both

men

and

wom

en in

in

dust

ry

• Im

prov

e pr

oduc

tivity

and

av

aila

bilit

y of

ski

lled

labo

ur fo

rce

• A

gree

ski

lls

stan

dard

s an

d fr

amew

orks

for

labo

ur m

obili

ty

• Sk

ills,

sta

ndar

ds a

nd

desi

gned

fr

amew

orks

mus

t in

corp

orat

e ge

nder

di

men

sion

s in

fa

ctor

mob

ility

with

qu

otas

set

to

enco

urag

e w

omen

’s

part

icip

atio

n in

in

dust

rial

dri

ve o

f SA

DC

• Cap

acity

bui

ldin

g pr

ogra

mm

es fo

r SM

Es

• Dev

elop

men

t of

co

here

nt

accr

edita

tion

syst

ems

and

conc

essi

ons

• Cap

acity

bui

ldin

g an

d sk

ills

deve

lopm

ent

prog

ram

mes

for

wom

en in

SM

Es

• In

crea

sing

sup

ply

of

skill

ed la

bour

Build

sup

port

and

ex

tens

ion

serv

ices

to

dev

elop

wom

en

skill

s ca

paci

ty fo

r en

trep

rene

ursh

ip

• Mob

ility

of s

kills

in

SAD

C r

egio

n in

crea

sed

• Ind

ustr

y sk

ills

need

s id

entif

ied

• Cap

acity

bui

ldin

g pr

ogra

mm

es fo

r SM

Es d

evel

oped

an

d im

plem

ente

d

• Reg

iona

l A

ccre

dita

tion

Fram

ewor

k de

velo

ped

• Cap

acity

bui

ldin

g pr

ogra

mm

es fo

r SM

Es d

evel

oped

an

d im

plem

ente

d w

hich

add

ress

es

the

cons

trai

nts

to

wom

en’s

en

gage

men

t in

the

se

ctor

• No.

of s

kille

d pe

rson

s m

ovin

g fr

eely

in S

AD

C

regi

on

• No.

of S

kills

in

shor

t su

pply

• C

apac

ity b

uild

ing

prog

ram

me

• No

of M

embe

r St

ates

with

C

apac

ity b

uild

ing

prog

ram

me

• Num

ber

of c

ertif

ied

labo

ur fo

rce

• The

rea

l num

bers

of

men

and

wom

en

in s

emi-s

kille

d an

d hi

ghly

ski

lled

empl

oym

ent

in

indu

stry

to

know

th

e sh

orta

ge in

su

pply

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

25.

Reg

iona

l SQ

AM

in

fras

truc

ture

st

reng

then

ed

• Lo

w q

ualit

y pr

oduc

ts

and

serv

ices

pro

duce

d lo

cally

Low

qua

lity

of im

port

ed

good

s an

d se

rvic

es

• Lo

w c

ompl

ianc

e w

ith

envi

ronm

enta

l st

anda

rds

• Im

prov

e qu

ality

in

fras

truc

ture

and

ser

vice

s

• St

art

Dat

e: 2

015

• E

nd :

2019

• C

ompl

y w

ith

inte

rnat

iona

l qu

ality

sta

ndar

ds,

taki

ng in

to a

ccou

nt

natio

nal a

nd

regi

onal

sta

ndar

ds •

SQA

M p

rogr

amm

e en

hanc

ed

• Bu

ildin

g in

fras

truc

ture

• Pr

ovid

ing

qual

ity

good

s an

d se

rvic

es

• SQ

AM

im

plem

ente

d •

SQA

M a

nd

Envi

ronm

enta

l St

anda

rds

adop

ted

and

impl

emen

ted

by

Mem

ber

Stat

es

• N

o. o

f fun

ctio

nal

Qua

lity

Infr

astr

uctu

re

inst

itutio

ns

inte

rnat

iona

l M

embe

r St

ates

im

plem

entin

g SQ

AM

• M

embe

r St

ates

Mem

ber

Stat

es

26.

Reg

iona

l Sa

nita

ry a

nd

Phyt

o-Sa

nita

ry (

SPS)

re

gula

tory

ag

enci

es

• Lo

w q

ualit

y of

ag

ricu

ltura

l pro

duct

s

• R

ecog

nize

equ

ival

ent

stan

dard

s

• St

art

Dat

e : 2

015

• E

nd :

2019

• Im

prov

e ad

here

nce

to S

PS

stan

dard

s

• SP

S pr

ogra

mm

es

enha

nced

Impr

ovin

g pr

oduc

t qu

ality

SPS

mea

sure

s fo

r fo

od s

afet

y,

anim

al h

ealth

and

pl

ant

prot

ectio

n ha

rmon

ized

and

im

plem

ente

d •

Impr

oved

qua

lity

of a

nd t

rade

in

agri

cultu

ral

prod

ucts

• N

o. o

f ha

rmon

ized

SP

S m

easu

res

impl

emen

ted

• Le

vel o

f tra

de in

ag

ricu

ltura

l pr

oduc

ts

• M

embe

r St

ates

Priv

ate

sect

or

com

pani

es

• M

embe

r St

ates

Priv

ate

sect

or

44

Page 55: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

55  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

R

egio

nal I

nteg

rati

on

27.

Intr

a-SA

DC

tr

ade

• Lim

ited

regi

onal

mar

ket

pene

trat

ion

• Lim

ited

rang

e of

pr

oduc

ts

• Dis

join

ted

mar

kets

• Wid

en S

AD

C m

arke

t th

roug

h im

plem

enta

tion

of S

AD

C

Tre

aty

and

FTA

• R

emov

e N

TBs

• F

acili

tate

acc

ess

to t

rade

fin

ance

• In

crea

se in

tra-

SAD

C t

rade

to

com

para

tive

inte

rnat

iona

l in

tra-

regi

onal

tr

ade

leve

ls

• Reg

iona

l in

fras

truc

ture

de

velo

pmen

t an

d co

nnec

tivity

• D

eepe

ning

reg

iona

l in

tegr

atio

n •

SAD

C T

reat

y an

d FT

A im

plem

ente

d •

Intr

a-SA

DC

tra

de

Mor

e th

an

doub

led

• Lev

el o

f int

ra-

SAD

C t

rade

• V

arie

ty o

f goo

ds

trad

ed b

etw

een

Mem

ber

Stat

es

• Mem

ber

Stat

es

• SA

DC

Se

cret

aria

t

• M

embe

r St

ates

Dev

elop

men

t Pa

rtne

rs

28.

Supp

ortin

g re

gion

al

infr

astr

uctu

re

deve

lopm

ent

to

enha

nce

indu

stri

aliz

atio

n

• Hig

h tr

ansp

ort

and

ener

gy c

osts

• C

limat

e-pr

one

and

clim

ate

sens

itive

in

fras

truc

ture

• Fo

rmul

ate

dedi

cate

d pr

ogra

mm

e to

impr

ove

regi

onal

infr

astr

uctu

re a

nd

conn

ectiv

ity, t

akin

g in

to

cons

ider

atio

n im

pact

s of

cl

imat

e ch

ange

• R

educ

e tr

ansa

ctio

n co

sts

• Com

plem

enta

ry

natio

nal a

nd

regi

onal

pr

ogra

mm

es fo

r in

fras

truc

ture

se

rvic

es

• En

hanc

emen

t of

in

fras

truc

ture

ca

paci

ty a

nd

resi

lienc

e

• Pr

ogra

mm

e to

im

prov

e re

gion

al

infr

astr

uctu

re a

nd

conn

ectiv

ity

deve

lope

d •

Red

uced

cos

t of

do

ing

busi

ness

• Exi

sten

ce o

f the

Pr

ogra

mm

e to

im

prov

e re

gion

al

infr

astr

uctu

re

and

conn

ectiv

ity

• Wor

ld B

ank

Cos

t of

Doi

ng B

usin

ess

inde

x ra

nkin

gs

• Mem

ber

Stat

es

• SA

DC

Se

cret

aria

t

• M

embe

r St

ates

Reg

iona

l in

vest

men

t ba

nks

and

fund

s

29.

Tra

de

faci

litat

ion

mec

hani

sms

• D

iffic

ultie

s in

cro

ss-

bord

er t

rade

(e.

g.

cust

oms

proc

edur

es)

• A

cces

s to

tra

de fi

nanc

e

• Li

mite

d ac

cess

to

info

rmat

ion

• Ill

icit

trad

e in

en

viro

nmen

tal g

oods

• Rig

orou

sly

impl

emen

t SA

DC

an

d FT

A a

gree

men

ts

• Im

plem

ent

com

preh

ensi

ve

trad

e fa

cilit

atio

n pr

ogra

mm

e in

clud

ing

esta

blis

hmen

t of

O

ne-S

top

Bord

er P

osts

• Fa

cilit

ate

seam

less

re

gion

al t

rade

flo

ws

• C

urre

nt S

AD

C t

rade

fa

cilit

atio

n pr

ogra

mm

es

• R

emov

al o

f co

nstr

aint

s to

cr

oss-

bord

er t

rade

an

d in

vest

men

ts t

o fa

cilit

ate

indu

stri

aliz

atio

n

• R

educ

ed t

ime

for

trad

e flo

ws

Impr

oved

acc

ess

to t

rade

rel

ated

in

form

atio

n de

velo

ped

• Im

prov

ed

com

petit

iven

ess

• Im

prov

ed

surv

eilla

nce

to

redu

ce il

lega

l tra

de

in e

nvir

onm

enta

l go

ods

(wild

life,

tim

ber

and

othe

r fo

rest

ry p

rodu

cts)

• Ran

king

s of

M

embe

r St

ates

on

the

Wor

ld

Bank

Log

istic

s Pe

rfor

man

ce

Inde

x • A

vera

ge t

ime

take

n to

cro

ss

boar

ders

• A

mou

nt o

f tra

de

finan

ce fo

r re

gion

al

trad

e • A

cces

s to

in

form

atio

n

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

45

Page 56: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

56  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

30.

Dee

peni

ng

regi

onal

in

tegr

atio

n

• Sl

ow p

rogr

ess

tow

ards

re

gion

al in

tegr

atio

n

• Im

plem

ent

agre

ed

prog

ram

mes

on

deep

enin

g re

gion

al in

tegr

atio

n

• St

art

Dat

e : 2

015

• E

nd :

2016

• D

eepe

n re

gion

al

inte

grat

ion

SAD

C in

stru

men

ts o

n re

gion

al in

tegr

atio

n •

Use

dev

elop

men

tal

appr

oach

es t

o re

gion

al in

tegr

atio

n to

acc

eler

ate

indu

stri

aliz

atio

n

• R

egio

nal i

nteg

ratio

n de

epen

ed

• Le

vel a

nd d

iver

sity

of

intr

a-SA

DC

tr

ade

• SA

DC

Se

cret

aria

t •

Mem

ber

Stat

es

31.

Tri

part

ite F

TA

A

gree

men

t si

gned

and

ra

tifie

d

• Sl

ow a

nd c

ompl

ex

nego

tiatio

n pr

oces

ses

• Fa

st-t

rack

neg

otia

tion

and

impl

emen

tatio

n of

Tri

part

ite

FTA

• St

art

Dat

e : A

ctio

n in

pr

ogre

ss

• E

nd :

2016

• C

oncl

ude

nego

tiatio

ns a

nd

cons

olid

ate

inte

grat

ion

proc

ess •

Neg

otia

tion

and

conc

lusi

on o

f T

ripa

rtite

FT

A

• C

reat

ing

a w

ider

m

arke

t fo

r tr

ade

to

faci

litat

e in

dust

rial

izat

ion

Tri

part

ite F

TA

A

gree

men

t si

gned

an

d ra

tifie

d

• Si

gned

Tri

part

ite

FTA

Agr

eem

ent

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

32.

Tra

de

Mon

itori

ng a

nd

Com

plia

nce

Mec

hani

sm

impl

emen

ted

• N

on-C

ompl

ianc

e w

ith

SAD

C t

rade

tar

gets

Non

-Com

plia

nce

with

W

TO

agr

eem

ents

Red

uced

/inad

equa

te p

olic

y sp

ace

for

indu

stri

aliz

atio

n du

e to

tra

de

arra

ngem

ents

with

thi

rd

part

ies

(EPA

, WT

O, e

tc)

• Es

tabl

ish

benc

hmar

ks fo

r m

onito

ring

Und

erta

ke a

stu

dy t

o as

sess

im

pact

of t

rade

arr

ange

men

ts

with

thi

rd p

artie

s on

in

dust

rial

izat

ion

in t

he r

egio

n

• St

art

Dat

e: 2

015

• C

onti

nues

• Ev

alua

te p

rogr

ess

• En

sure

tha

t tr

ade

arra

ngem

ents

with

th

ird

part

ies

are

supp

ortiv

e of

SA

DC

in

dust

rial

izat

ion

agen

da

• Sp

ecifi

c pr

ogra

mm

e fo

r m

onito

ring

Prog

ram

me

for

mon

itori

ng im

pact

of

trad

e ar

rang

emen

ts

on in

dust

rial

izat

ion

in

the

regi

on

• C

ompl

ianc

e w

ith

SAD

C g

oals

and

W

TO

req

uire

men

ts

• Pr

eser

vatio

n of

pol

icy

spac

e fo

r in

dust

rial

izat

ion

• M

echa

nism

es

tabl

ishe

d •

Polic

y sp

ace

for

indu

stri

aliz

atio

n pr

eser

ved

• Pr

ogre

ss r

epor

ts

• N

o of

pro

visi

ons

in

trad

e ar

rang

emen

ts

supp

ortin

g in

dust

rial

izat

ion

• D

egre

e/le

vel o

f fle

xibi

lity

in t

rade

ar

rang

emen

ts t

o us

e tr

ade

polic

y in

stru

men

t to

su

ppor

t in

dust

rial

izat

ion

• M

embe

r St

ates

SAD

C

Secr

etar

iat

• M

embe

r St

ates

Dev

elop

men

t Pa

rtne

rs

C

ross

-cut

ting

Issu

es

33.

Mai

nstr

eam

ing

Gen

der

and

You

th in

to

Stru

ctur

al

• Une

qual

acc

ess

to

mea

ns o

f eco

nom

ic

empo

wer

men

t • L

ow b

arga

inin

g po

wer

of

• Add

ress

gen

der

ineq

ualit

ies

in

acce

ss t

o cr

edit,

cap

ital,

land

an

d ot

her

mea

ns o

f eco

nom

ic

empo

wer

men

t as

spe

cifie

d in

• In

crea

se

part

icip

atio

n of

w

omen

in a

nd

bene

fit fr

om

• SA

DC

Wom

en’s

Ec

onom

ic

Empo

wer

men

t Pr

ogra

mm

e

• W

omen

’s e

cono

mic

em

pow

erm

ent

• Pa

rtic

ipat

ion

of

wom

en in

the

ec

onom

y en

hanc

ed

• No

of w

omen

pa

rtic

ipat

ing

in

trad

e an

d in

dust

rial

• Mem

ber

Stat

es

• Pri

vate

sec

tor

• M

embe

r St

ates

Dev

elop

men

t Pa

rtne

rs

46

Page 57: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

57  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

Tra

nsfo

rmat

ion

w

omen

and

you

th t

o pa

rtic

ipat

e in

en

trep

rene

uria

l pr

ogra

mm

es a

nd b

enef

it fr

om t

rade

• I

nade

quat

e en

trep

rene

uria

l ski

lls

amon

g w

omen

and

yo

uth

• Lim

ited

part

icip

atio

n by

w

omen

and

you

th in

Sm

all,

Med

ium

and

La

rge

ente

rpri

se

deve

lopm

ent

• Lim

ited

acce

ss t

o m

arke

ts b

y w

omen

and

yo

ung

entr

epre

neur

s

• Lim

ited

part

icip

atio

n by

w

omen

and

you

th in

na

tiona

l eco

nom

ic

proc

esse

s, p

olic

y fo

rmul

atio

n an

d ge

nder

in

itiat

ives

• L

imite

d ac

cess

to

info

rmat

ion

on

econ

omic

opp

ortu

nitie

s,

fund

s et

c

the

SAD

C G

ende

r Pr

otoc

ol

and

Polic

y • F

acili

tate

wom

en y

outh

’s

barg

aini

ng p

ower

to

colle

ctiv

ely

enga

ge

Entr

epre

neur

ial p

rogr

amm

es

espe

cial

ly in

the

Ser

vice

, M

anuf

actu

ring

, Hor

ticul

ture

, T

rans

port

, Ene

rgy,

A

gric

ultu

ral a

nd T

rade

in

dust

ries

at

loca

l, na

tiona

l an

d re

gion

al le

vels

to

enha

nce

equi

tabl

e pa

rtic

ipat

ion

and

bene

fits

from

tra

de

• Pr

omot

e th

e es

tabl

ishm

ent

of

wom

en a

nd y

outh

’s

prog

ram

mes

tha

t pr

omot

e ec

onom

ic li

tera

cy a

nd

entr

epre

neur

ial s

kills

in o

rder

to

incr

ease

und

erst

andi

ng a

nd

criti

cal t

hink

ing

abou

t bu

sine

ss, t

rade

and

eco

nom

ic

polic

ies

• En

hanc

e an

d pr

omot

e pa

rtic

ipat

ion

of w

omen

and

yo

uth

in s

mal

l, m

ediu

m a

nd

larg

e en

terp

rise

de

velo

pmen

t •

Incr

ease

wom

en a

nd y

outh

’s

acce

ss t

o na

tiona

l, re

gion

al

and

glob

al m

arke

ts

• Es

tabl

ish

and

stre

ngth

en

gend

er a

naly

sis,

gen

der

mai

nstr

eam

ing

and

equa

l pa

rtic

ipat

ion

of w

omen

and

m

en in

nat

iona

l eco

nom

ic

proc

esse

s, e

cono

mic

pol

icy

form

ulat

ion

and

gend

er

budg

etin

g in

itiat

ives

Enha

nce

wom

en a

nd y

outh

’s

netw

orki

ng o

ppor

tuni

ties

and

acce

ss t

o in

form

atio

n on

econ

omic

ac

tiviti

es

activ

ities

• SA

DC

Se

cret

aria

t

• M

embe

r St

ates

Reg

iona

l in

vest

men

t ba

nks

and

fund

s

47

Page 58: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

58  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

econ

omic

opp

ortu

nitie

s,

fund

s, (

inte

rnat

iona

l and

loca

l) m

arke

ts, p

artn

ersh

ip

34.

ICT

& E

lect

roni

c M

anuf

actu

ring

• I

nade

quat

e na

tiona

l in

fras

truc

ture

to

supp

ort

elec

tron

ics

man

ufac

turi

ng, w

hich

co

ntri

bute

s to

poo

r re

gion

al m

arke

t pe

netr

atio

n • I

nade

quat

e in

tra-

Afr

ican

tr

ade

in v

alue

-add

ed

cons

umer

ele

ctro

nics

pr

oduc

ts

• Ina

dequ

ate

impl

emen

tatio

n of

qu

ality

sta

ndar

ds

• Ele

ctro

nics

Dum

ping

bo

th in

fras

truc

ture

and

co

nsum

er p

rodu

cts

(e-

Was

te)

• Low

usa

ge o

f ele

ctro

nics

an

d te

chno

logy

in

telle

ctua

l pro

pert

y in

th

e de

ploy

men

t of

gr

een

indu

stri

es.

• Lim

ited

usag

e of

ICT

and

el

ectr

onic

s so

lutio

ns in

th

e m

onito

ring

of

indu

stri

al p

roce

sses

and

se

rvic

es s

ecto

r

• Lim

ited

usag

e of

co

nsum

er e

lect

roni

c pr

oduc

ts in

the

ed

ucat

ion

and

skill

s de

velo

pmen

t se

ctor

• Im

prov

e re

gion

al

infr

astr

uctu

re t

o su

ppor

t el

ectr

onic

s m

anuf

actu

ring

and

m

arke

ting

• Im

prov

e ac

cess

to

finan

cing

• I

dent

ify a

nd p

rofil

e v

alue

ch

ains

in e

lect

roni

cs

prod

ucts

• P

rom

ote

targ

eted

in

vest

men

t a

cros

s th

e re

gion

• Sec

ure

and

enla

rge

mar

kets

fo

r va

lue

adde

d an

d be

nefic

iate

d go

ods

• Pro

mot

e co

llabo

ratio

n be

twee

n in

stitu

tions

in

volv

ed in

ski

lls

deve

lopm

ent

in IC

T

• Lev

erag

e IP

R t

o pr

omot

e R

&D

in IC

T s

ecto

r an

d de

velo

pmen

t of

inno

vativ

e el

ectr

onic

s pr

oduc

ts

• Sup

port

oth

er a

ncill

iary

se

ctor

s fo

r th

e m

ater

ials

re

quir

ed t

o m

anuf

actu

re a

nd

finis

h IC

T p

rodu

cts

• Sta

rt D

ate:

201

5 • C

ontin

ues

• St

reng

then

SM

E’s

wor

king

in t

he

elec

tron

ic

man

ufac

turi

ng

sect

or

• Su

ppor

t lo

cal

elec

tron

ics

equi

pmen

t re

quir

emen

ts a

nd

build

cap

acity

for

expo

rt

• D

evel

op a

nd

stre

ngth

en

com

petit

ive

adva

ntag

e in

ICT

Prov

ide

high

qua

lity

ICT

pro

duct

s •

Bran

d IC

T p

rodu

cts

mad

e in

the

reg

ion

• A

ddre

ss e

-Was

te in

th

e re

gion

• Str

engt

hen

the

Fram

ewor

k fo

r th

e es

tabl

ishm

ent

of IC

T

SMEs

incu

batio

n fa

cilit

ies

and

supp

ort

• Enc

oura

ge IC

T u

ptak

e an

d in

nova

tion

in

SMEs

to

brin

g ab

out

effic

ienc

y an

d co

mpe

titiv

enes

s • D

igita

l Mig

ratio

n an

d Br

oadb

and

proj

ects

to

anc

hor

and

su

ppor

t

deve

lopm

ent

capa

city

of

ele

ctro

nics

m

anuf

actu

ring

in

dust

ry

• Im

plem

ent

regi

onal

st

rate

gies

and

de

velo

p st

anda

rds

to

miti

gate

neg

ativ

e en

viro

nmen

tal i

mpa

ct

of e

-Was

te a

nd

clim

ate

chan

ge

• Mak

e el

ectr

onic

m

anuf

actu

ring

in

dust

ry a

reg

iona

l pr

iori

ty

• Est

ablis

h re

gion

al

ICT

res

earc

h in

stitu

tions

, ca

paci

ty b

uild

ing

prog

ram

mes

and

pr

omot

ion

of

know

ledg

e tr

ansf

er

• Im

prov

ed

avai

labi

lity

of

elec

tron

ic p

rodu

cts

to s

uppo

rt a

ll ve

rtic

al in

dust

rial

m

anuf

actu

ring

and

co

nsum

er s

ervi

ces

sect

ors

Incr

ease

d ra

nge

and

qual

ity o

f el

ectr

onic

s pr

oduc

ts

• In

crea

sed

part

icip

atio

n in

re

gion

al a

nd/o

r gl

obal

val

ue c

hain

s •

SAD

C’s

sha

re o

f in

telle

ctua

l pr

oper

ty r

ight

s in

crea

sed

as a

re

sult

of

impr

ovem

ents

in

R&

D a

nd IC

T

capa

bilit

ies

• N

o. o

f ele

ctro

nic

man

ufac

turi

ng

com

pani

es a

vaila

ble

to s

uppo

rt k

ey

indu

stri

es a

nd

cons

umer

pro

duct

s •

Ran

ge o

f ele

ctro

nic

man

ufac

turi

ng

prod

ucts

ava

ilabl

e •

No.

of e

lect

roni

c m

anuf

actu

ring

co

mpa

nies

pa

rtic

ipat

ing

in

regi

onal

/glo

bal

valu

e ch

ains

• M

embe

r St

ates

Priv

ate

sect

or

• SA

DC

Se

cret

aria

t

• Mem

ber

Stat

es

• Pri

vate

se

ctor

• S

AD

C

Secr

etar

iat

• Dev

elop

men

t Pa

rtne

rs

35.

En

viro

nmen

tal

Sust

aina

bilit

y (G

reen

ec

onom

y)

• N

egat

ive

impa

ct o

f clim

ate

chan

ge

• En

viro

nmen

tal

degr

adat

ion

due

to p

oor

• Im

plem

ent

the

Reg

iona

l Gre

en

Econ

omy

Stra

tegy

and

Act

ion

Plan

for

Sust

aina

ble

Dev

elop

men

t

• Pr

omot

e en

viro

nmen

tally

an

d so

cial

ly

sust

aina

ble

• A

ctiv

ities

in t

he

Gre

en E

cono

my

Stra

tegy

Act

ion

Plan

• Su

stai

nabl

e

indu

stri

aliz

atio

n •

Incr

ease

d us

e of

en

viro

nmen

tally

fr

iend

ly p

rodu

ctio

n pr

oces

ses

• N

o. o

f en

viro

nmen

tally

fr

iend

ly g

oods

and

se

rvic

es in

SA

DC

• M

embe

r St

ates

Priv

ate

sect

or

• SA

DC

Se

cret

aria

t

• M

embe

r St

ates

Priv

ate

sect

or

• D

evel

opm

ent

Part

ners

48

Page 59: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

59  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

man

agem

ent

of in

dust

rial

w

aste

Inef

ficie

nt a

nd

unsu

stai

nabl

e ut

iliza

tion

of r

esou

rces

Inad

equa

te p

rote

ctio

n of

bi

olog

ical

div

ersi

ty a

nd

othe

r ec

osys

tem

re

sour

ces.

Star

t D

ate

: 201

5 •

End

: 20

16

indu

stri

aliz

atio

n

regi

on

• D

evel

opm

ent

Part

ners

Envi

ronm

enta

l Su

stai

nabi

lity

Blue

Eco

nom

y D

evel

opm

ent

Polic

y Fr

amew

ork

(BED

PF)

• Ina

dequ

ate

clim

ate-

chan

ge r

esili

ent

infr

astr

uctu

re

• Poo

r tr

ansp

orta

tion

links

, esp

ecia

lly b

etw

een

coas

tal a

nd is

land

sta

tes

• Ina

dequ

ate

Stat

istic

s • I

nade

quat

e ca

paci

ty t

o co

mpl

y w

ith s

tand

ards

• P

oor

acce

ss t

o ca

pita

l • I

nade

quat

e ac

cess

to

mar

ket

info

rmat

ion

• Ina

dequ

ate

skill

s to

su

ppor

t in

itiat

ives

on

blue

eco

nom

y

• Ina

dequ

ate

ince

ntiv

es t

o pr

omot

e th

e bl

ue

econ

omy

initi

ativ

e • S

low

pro

gres

s in

fo

rmal

isin

g th

e SM

Es

• D

evel

op a

dequ

ate

and

qual

ity

infr

astr

uctu

re a

nd in

crea

se t

he

com

petit

iven

ess

of p

orts

and

sh

ippi

ng t

rans

port

Impr

ove

tran

spor

tatio

n lin

kage

s

• U

nder

take

a s

tudy

to

gath

er

and

com

pile

sta

tistic

s on

blu

e ec

onom

y an

d bu

ild lo

ng t

erm

ca

paci

ty in

thi

s ar

ea

• D

evel

op s

kills

to

supp

ort

initi

ativ

es o

n th

e bl

ue

econ

omy

Enha

nce

capa

city

to

com

ply

with

qua

lity

stan

dard

s •

Rem

ove

bus

ines

s co

nstr

aint

s on

ent

erpr

ises

, esp

ecia

lly S

MEs

op

erat

ing

in b

lue

econ

omy

• Pr

ovid

e in

cent

ives

to

supp

ort

deve

lopm

ents

with

reg

ard

to

blue

eco

nom

y

• Id

entif

y C

entr

es o

f Exc

elle

nce

in t

he d

iffer

ent

sect

ors

to

rein

forc

e re

sear

ch a

nd

deve

lopm

ent

capa

city

on

mat

ters

rel

atin

g to

the

blu

e ec

onom

y

• St

art

Dat

e : 2

015

• C

onti

nues

• U

se o

cean

re

sour

ces

to

prom

ote

incl

usiv

e an

d su

stai

nabl

e in

dust

rial

izat

ion

Put

in p

lace

in

fras

truc

ture

tha

t su

ppor

t bl

ue

econ

omy

initi

ativ

e an

d fa

cilit

ate

m

ovem

ent

of

envi

ronm

enta

lly

frie

ndly

goo

ds a

nd

serv

ices

bet

wee

n SA

DC

coa

stal

and

ot

her

isla

nd s

tate

s

• G

reat

er

part

icip

atio

n in

na

tiona

l, re

gion

al

and

glob

al v

alue

ch

ains

invo

lvin

g sm

art

good

s an

d se

rvic

es

• Dev

elop

a b

lue

econ

omy

Polic

y an

d St

rate

gy b

y 20

17

• Mai

nstr

eam

blu

e ec

onom

y in

itiat

ives

in

all

aspe

cts

of t

he

econ

omy

• In

clus

ive

and

sust

aina

ble

indu

stri

aliz

atio

n

• C

onne

ctiv

ity

betw

een

cost

al a

nd

isla

nds

stat

es

impr

oved

Oce

an-b

ased

re

sour

ces

utili

sed

effic

ient

ly t

o su

ppor

t in

clus

ive

and

sust

aina

ble

indu

stri

aliz

atio

n •

Incr

ease

d pr

oduc

tion

and

trad

e in

en

viro

nmen

tally

fr

iend

ly g

oods

and

se

rvic

es

• N

umbe

r of

M

embe

r St

ates

ad

optin

g th

e Bl

ue

Econ

omy

Initi

ativ

e an

d ut

ilisi

ng o

cean

-ba

sed

reso

urce

s in

a

sust

aina

ble

man

ner

• N

umbe

r of

en

viro

nmen

tal

good

s an

d se

rvic

es

prod

uced

in t

he

regi

on

• Mem

ber

Stat

es

• Pri

vate

Sec

tor

• Hig

her

lear

ning

and

tr

aini

ng

inst

itutio

ns

• Dev

elop

men

t Pa

rtne

rs

• M

embe

r St

ates

Priv

ate

sect

or

• D

evel

opm

ent

Part

ners

36.

SAD

C R

aw

Mat

eria

l Ini

tiativ

e • In

adeq

uate

coo

pera

tion

on a

cces

s to

raw

m

ater

ials

in t

he r

egio

n

• D

evel

op a

Com

mon

SA

DC

Po

sitio

n on

raw

mat

eria

l in

itiat

ive

• Pr

omot

e

coop

erat

ion

and

acce

ss t

o ra

w

• C

onsu

ltatio

n am

ong

Mem

ber

Stat

es t

o de

velo

p th

e In

itiat

ive

• A

Com

mon

SA

DC

Po

sitio

n on

acc

ess

to

raw

mat

eria

ls

• In

crea

sed

avai

labi

lity

and

use

of r

aw m

ater

ials

• N

o. o

f Mem

ber

Stat

es c

oope

ratin

g on

acc

ess

to r

aw

• M

embe

r St

ates

Priv

ate

Sect

or

• SA

DC

• M

embe

r St

ates

Priv

ate

sect

or

49

Page 60: SADC INDUSTRIALIZATION STRATEGY AND ROADMAP · Since one of the major challenges that ... The SADC Industrialization Strategy and Roadmap ... support provided by Member States throughout

   

60  

 

N

o

Pol

icy

Are

a C

halle

nges

Inte

rven

tion

s

Obj

ecti

ves

Pro

gram

mes

/ P

roje

cts/

A

ctiv

itie

s

Pri

orit

y T

hrus

t O

utco

mes

/ ou

tput

s

Key

Per

form

ance

In

dica

tors

R

espo

nsib

ility

Fund

ing

• Ex

cess

ive

relia

nce

on

expo

rtat

ion

of r

aw

mat

eria

ls t

hat

are

subj

ect

to p

rice

vol

atili

ty

mat

eria

ls

• U

se o

f SA

DC

raw

m

ater

ials

to

prom

ote

be

nefic

iatio

n an

d va

lue

addi

tion

for

bene

ficia

tion

and

valu

e ad

ditio

n in

Reg

ion

mat

eria

ls a

nd

regi

onal

val

ue

chai

ns

• Q

uant

ity o

f raw

m

ater

ials

ava

ilabl

e fo

r be

nefic

iatio

n an

d va

lue

addi

tion

Secr

etar

iat

50