2 6 S O U T H E R N A F R I C A N D E V E L O P M E N T C O M M U N I T Y productivity and competitiveness combined with a 3.2.4.3 diversified and balanced industrial growth in a wider, well- Challenges in Current Policies and Strategies linked economic space that allows for the efficient and The challenges in the mining sector include the acquisition effective use of factors of production on the basis of of technology and know how to facilitate value addition, increased value addition. The new industrial strategies facilitating more investment in the sector and ensuring and policies need to encourage the participation of women environmentally sustainable development. Another in the development of small and medium scale enterprises challenge is that of increasing the participation of small- and promote the use of information and communications scale operators and vulnerable groups including women. technology. SADC should pay particular attention to investment promotion, entrepreneurship development and ensuring that the manufactured products meet 3.2.5 FINANCE AND INVESTMENT internationally recognised standards and quality in order to compete favourably in the global economy. 3.2.5.1 Review of Current Policies and Strategies 3.2.4 MINING The policy objectives for the finance and investment sector include encouraging movement towards regional macroeconomic stability and convergence through prudent 3.2.4.1 fiscal and monetary policies; providing a framework for co- Review of Current Policies and Strategies operation in the area of finance; promoting the development The main focus is on the development of a regional mining of sound investment policies and encouraging savings; sector that is economically, socially and environmentally facilitating and stimulating investment flows and technology sustainable, capable of meeting the regional mining chal- transfer and innovation in the region. The strategies for achieving these policy objectives lenges as well as ensuring long-term competitive growth for the sector. To this end, policies are being harmonised with a for finance and investment include pursuit of view to improving investment climate, information flows and macroeconomic convergence, co-ordination of direct and development of a commercially viable small-scale mining indirect taxes, liberalization of current and capital account industry with greater participation of women. transactions, reform of payments systems, resource mobilization through development finance institutions 3.2.4.2 and other financial entities and improving incentives for Evaluation of Current Strategies and Policies investment. In addition, it is important that national The mining sector policies and strategies are in line with the investment acts, codes or guidelines facilitate investment SADC's strategic priority of promoting and maximizing in the region and that policies promote free movement of productive employment and the utilization of resources of capital in SADC as well as encouraging Member States to the region. Since the Protocol on mining came into force in accede to international conventions on the protection and 2000, mining legislation has almost been harmonised in all guarantee of investments. SADC Member States with the exception of the D.R.Congo. For a number of themes, Memoranda of Under- However, there is still need for harmonization of policies standing (MOUs) have been prepared. The MOUs on targeted at developing the sector. The sector has also Macroeconomic Convergence and Cooperation in Taxation achieved enhanced mineral prospectivity and all Member and Related Matters have been signed while those on States have accessible databases. Public and private mining Investment promotion, Exchange Control Policies, and training institutions have been effectively networked. Payment, Clearing and Settlement Systems, and The sector is, however, still constrained in terms of dealing Harmonization of Legal Operational Frameworks of with barriers to the flow of factors of production in order to Central Banks of SADC and Development Finance facilitate more investment in it. In an endeavour to improve Institutions (DFI) are still being processed. Other forms of export earnings and derive more benefit from minerals, cooperation exist amongst stock exchanges, commercial SADC is developing strategies for value addition. banks and non-banking financial institutions.