A key focus of the SADC strategy is to develop targeted and selected industrial policies that create conditions that will enable higher rates of investment by the public and private sectors into economic infrastructure, which in turn will enable crucial sectors of the economy, particularly value-adding manufacturing, to grow. The policy toolkit should include a review of existing trade, investment and industrial policies, with a view to these being deepened and broadened. This will, amongst others, entail the more strategic use of tariffs, incentives and industrial financing, targeted foreign direct investment, stronger customs controls, compulsory specifications and standards, public procurement policies and other measures. Within this context, the Strategy sets out ambitious, but highly feasible growth targets (of 6 percent annual growth in per capita income) and significant transformation of the industrial sector and allied services – through doubling of the share of manufacturing value added (MVA) in GDP to 30 percent by 2030 and to 40 percent by 2050, raising the share of medium-and-high technology from its current level of less than 15 percent to 30 percent by 2030 and 50 percent by 2050. To achieve these targets, the share of manufactured exports in total exports should rise from the present 20 percent to at least 50 percent by 2030, and the share of industrial employment in total employment increase to 40 percent. This should be underpinned by a strong industrial diversification drive, the development of viable and competitive regional value chains capable of interacting with global value chains, as well as supporting measures to enhance capital and labour productivity and efficiency. Emphasis on value chains promotion arises from the desirability of moving development perspectives from a national to a regional focus. Secondly, the greater share of global exchange is currently carried out through value chain participation, reflecting the profound structural changes in modern manufacturing systems and their complex product and geographical interdependencies. The fundamental issue is not whether or not SADC countries are integrated into global value chains (GVC’s); rather, it is where the SADC countries are integrated in GVC's. The key objective of the Action Plan is to facilitate the movement of SADC participation up the value chains where the highest value is derived. This will be accomplished by working with and supporting industry players and investors to diversify into higher value-addition activities. This needs to be supported by the application of well-harmonised industrial policies at both a member state level that is supported by a strong regional integration agenda. In light of the above, the Action Plan proposes an approach that calls for very decisive actions by SADC Member States to promote investment, trade, and industrial regionalisation. This requires national policies that, as a collective, are coherent and support the growth of productive capacities of the regional economy and achieve regional industrial integration for a more effective participation at higher levels within RVC’s and GVC’s. This will depend on a functional free trade area 4 Vers. 11.03.2017