Costed Action Plan for SADC Industrialization Strategy and Roadmap Recommendations (i) SADC region would need to intensify efforts to remove the structural constraints on industrialization and broadening the scope of development (infrastructure, skills and finance). (ii) The region (through public and private efforts) would need to identify and prioritize entry points into value chains, notably tasks that could be undertaken competitively and, to the extent possible, jointly. The criteria developed for potential value chain identification (Section II) should be utilized. (iii) The best value chain participation scenario for the region would be a combination of increased global value chain participation with simultaneous upgrading, which could start regionally and extend globally. (iv) While exploiting supply-based opportunities (e.g. mineral beneficiation) the value chain participation should target demand-driven involvement. (v) Greater attention should be given to development of regional value chains in services, to enhance overall competitiveness. (vi) Without close public-private collaboration and sharing information in the realm of industrialization tapping value chain potential would be severely constrained. - Clusters, SMEs and Value Chains Interdependence Clusters, in the form of locally proximate and complementary producers or service providers, are crucial engines of technological transformation and levers for reducing costs. Dynamic and innovative clusters strengthen SMEs and maximize value chain potential. Successful development of clusters, embodying SMEs and their integration into RVCs and GVCs will unleash economic potential at the firm, enterprise, national and regional level. Recommendations (i) Cluster development should be a deliberate effort. Governments should provide guidance, planning and mapping of actual and potential agglomeration possibilities. 139