- - The recognition that value chain development and sustainability will depend on a number of parameters, notably: the nature of value chain positioning (raw material, low-tech, high-tech, etc), the extent of value addition; upgrading potential; the willingness of Member States to accept deeper integration; and necessity of longer-term up-scaling from regional to global levels. Recognition of the stage of development, size and geographic location of Member States and the need for inclusive industrialization and development. The importance of the private sector as wealth creator and policy partner. Clarity of requisite responsibilities of the various development agents involved in the development and implementation of the Action Plan. The necessity of establishing a coherent and effective industrial developmentsupporting environment, for the public as well as for private involvement. The Action Plan templates (in Part II) detail the key actions, organized with reference to the three pillars of the Strategy, and the requisite activities as well as the key enablers needed to unlock industrial potential. Whilst some of these measures and interventions need to be undertaken immediately, the majority target the medium to long term. Built in the Action Plan is the flexibility of implementation of the Strategy, where beyond collective action on regional projects, national development (a preserve of the countries) would take into consideration the capacities and constraints they face individually. Ultimately, the far-reaching changes and the long-term transformations envisaged in the Strategy (production, distribution, policies, institutions and the global and regional engagements) would assist Member States to converge into the unified and developed SADC economy of the future by 2063. By then SADC countries would be readier to operate and compete at the demanding developed country standards of high business and economic sophistication and innovation. The total indicative public coordination cost for the Action Plan over the period 20162020 is estimated at about 102 million US dollars. Indicative Action Plan Public Coordination Costs (In Thousands of US Dollars) Phase 1 Phase 2 Total Percentage (2016-2020) (2021-2030) (2016-2030) of Total Industrialization 25,464 19,292 44,756 43.72% Competitiveness 11,382 14,958 26,341 25.73% Regional Integration 19,722 3,862 23,584 23.04% Cross-cutting Issues 2,119 658 2,777 2.71% Institutional Arrangements* 0.00% Monitoring and Evaluation 4,521 400 4,921 4.81% Grand Total** 63,208 39,171 102,379 100.00% * The Institutional Cost will be determined based on the Structure approved by Council. 9 Vers. 11.03.2017

Select target paragraph3