Costed Action Plan for SADC Industrialization Strategy and Roadmap (iv) Specific measures to increase the flow of risk capital to SMEs, in particular, will be required. (v) Institutional reforms and initiatives, outlined in the Industrialization Strategy and Roadmap will be necessary to increase the flow of resources, including skills, to the infrastructure sector of the regional economy. (vi) Governments will need substantial funding for infrastructure development of all kinds, especially energy and soft infrastructure as well as funding for human capital development and access to technology. Almost certainly this will require greater private sector participation than in the past, with potentially far-reaching implications in respect of public-private projects and the commercialization or privatization of infrastructure industries. (vii) Medium-scale and large firms – both in the private and public sectors – will need large amounts of capital for output expansion, technology upgrading and the replacement of obsolete plant and equipment. They too will also need finance for ‘soft’ infrastructure: in-house training for skills development, product development and branding, market research and export and domestic market promotion. (viii) Special provisions will also have to be made for the financing of start-ups and SMEs through state and donor-supported SME programmes but also in the form of venture capital and private equity markets. The relative importance of these sources of demand for finance will vary according to the stage of a country’s development, its resource endowment, the health or otherwise of its balance-of-payments, its debt exposure and the sophistication of the private sector, including the degree of domestic financial sophistication and diversification. 7.4 Potential Sources of Finance SADC countries will need to match the financing demand with appropriate and robust financial systems and modalities to finance the Action Plan interventions. These resources could be sourced from both public and private sources as well as through joint Public-Private Partnerships (PPPs). 7.4.1 Public Sources Judiciously used, and administered, and equally matched by improved expenditure systems, taxation could make a major contribution to financing the Action Plan. In addition, sovereign wealth funds could be re-invested in tangible wealth (infrastructure, plant and machinery, etc.) or intangible wealth (education, health, skills, development research, and technology transfer). A fully resourced and operationalised SADC Development Fund will be an important source for long-term financing of the Action Plan, especially in the areas of industry, infrastructure and capacity building. In mobilising the huge resources, SADC countries 58