chain participation, and iii) embedding value chains in the domestic economy. This requires strong cooperation between governments, the private sector and other critical role-players to address the medium-term challenge of building consensus among Member States to determine which policy functions should be prioritized and to what extent. Policy must also be value chain-specific and maximize national gains rather than those of a specific sector or industry or firm. The implementation of the Action Plan would require significant financial, technical and logistical resources, which for the sake of greater economic and social prosperity, should be situated within a long-term macroeconomic equilibrium path. Analysis for the Plan suggests that the SADC region has a financing gap amounting to 11.3 percent of GDP in 2014. Resource needs projections for the period 20152030 reveal that investment will need to rise substantially to 41.3 percent as compared to 23.6 percent of GDP (2014), in line with the targeted high growth rate of 6 percent in per-capita income and the assumed improved capital efficiency. Assuming that savings rates, FDI and ODA remain at their historical averages for the period 2000-2014, the financing gap will rise to 18.2 percent of GDP. These projections have important implications for resource mobilization. To close the financing gap, action will be needed across the policy spectrum. To this effect: - Efforts will be needed to boost savings rates, enhance FDI flows and ensure fiscal consolidation - Specific measures to increase the flow of risk capital to SMEs - Institutional reforms and incentives - Governments will need substantial funding for infrastructure development, notably energy, transport, skills and technological development - SMEs will need large amounts of capital for output expansion, technology upgrading and the replacement of obsolete plant and equipment, and - Special provisions will also have to be made for financing start-ups. The relative importance of these sources of demand for finance will naturally vary according to the stage of a country's development, its resource endowments, macroeconomic challenges and the sophistication of the private sector. Given the funding constraints, the Action Plan prioritizes those activities most crucial to the successful implementation of the Industrialization Strategy. The implementation of the Strategy also requires a strong, capable, cohesive and accountable governance body. The Action Plan is of the view that this structure should consist of four interdependent tiers, namely: SADC statutory bodies; national structures; private sector associations; and industry-related Centres of Excellence and Centres of Specialization. A new dispensation is needed, functionally and institutionally. The Strategy and its Action Plan recognize the critical role of the private sector in industrial development. Efforts to create knowledge economies across the region also underscore the role of technological and scientific inputs. The 7 Vers. 11.03.2017