A significant focus of the past decade has been on expediting investment into major infrastructure projects. The focus moving forward should also emphasise ensuring that private sector investment is leveraged in key economic infrastructure (with strong conditional reciprocal conditions) and unlock major economic activity in the productive sectors of the regional economy. State Owned Enterprises (SOEs) also have a major role to play in supporting infrastructure development and enabling economic infrastructure (energy, rail, road and port, and telecommunications) and crowding in investment. To achieve this, strong support for localisation and support for regional supplier development is essential. To encourage the entry of domestic players into new industrial activities, particularly into higher value-added activities, will require the application of smart and responsive trade measures to create a dynamic regional market. This for example, would require the rapid response to the dumping of sub-standard products in the region or the flooding of markets of second hand clothing and vehicles. Without protection against these forms of market penetrating strategies it would be exceptionally challenging for emerging producers to be able to compete in what is an unequal playing field. There should also be a deliberate policy to promote national and regional clusters as vehicles for developing the SMEs sector, enhance competitiveness and innovation and facilitate interface and complementarily between firms and value chains. A critical mass of competitive enterprises with high aptitude and readiness to operate regionally and globally is a precondition for successful interface between clusters, SMEs and regional and global value chains. To strengthen capabilities and interfaces, the Action Plan proposes two linkage programmes: (i) action programme to strengthen SMEs, clusters and regional value chains; and (ii) a business linkage programme. Capabilities and capacities development require massive investments especially in education, innovation, institution building and physical assets to create strong knowledge economies in SADC countries, and raise productivity and competitiveness. The Action Plan therefore indicates important areas for capabilities and capacities development, comprising of: i) a business environment and competitiveness programme; and ii) a programme for enhancing the quality of education, training and innovation and related support institutions including the strengthening/creation of Centres of Excellence and Centres of Specialization. The policy focus should target raising productivity and competitiveness, laying emphasis on research and development (R&D) and the science, technology and mathematics (STEM) education and leveraging them to support industrialization. Focus areas for value chain policymaking should be on facilitating: i) entry into regional/global value chains; ii) expanding and strengthening cross-border value 6 Vers. 11.03.2017