8 2 S O U T H E R N A F R I C A N STRATEGIES • • • • • D E V E L O P M E N T C O M M U N I T Y Development and maintenance of a private equity 5.3.4 A SADC Development Fund and venture capital infrastructure including legal and A feasibility study is underway to advise Member States regulatory framework, and government support to of the desirability and viability of establishing a SADC venture entrepreneurs; Development Fund in support of its regional development Promote development of venture capital industry objectives. The important issues for regional integration associations at regional and national levels to lead are potential asymmetrical benefits and costs of regional the creation of a conducive environment for integration in terms of resource flows, the need to provide development of a venture capital culture; sustainable finance for SADC Programme of Action, and Promote business angel networks at the regional bottlenecks and constraints in the mobilisation and level to facilitate investment by individuals in the utilisation of existing sources of finance for regional region; development. The need therefore arises for the re- Encourage development and implementation of pro- allocation of resources in favour of less endowed venture capital legal framework and taxation policies countries to avoid polarisation. to facilitate structuring of venture capital funds; and The study will take into account and address the following Development and maintenance of a comprehensive issues: database on regional and international funding • mechanisms which can be accessed by Member States on a bilateral basis or through a regional Existing funding arrangements (i.e. investment funds) both in SADC and continent-wide; • window for the implementation of RISDP projects. The effectiveness of such funding sources and their suitability in addressing the development agenda of the region; TARGETS • regional cooperation and integration projects; • Establishment of a venture capital infrastructure in Member States including venture capital business The need for a development funding mechanism for • The need for and advisability of enabling elements for associations, business angel networks and legal intra-regional resource transfers to avoid polarisation and regulatory frameworks by 2008; (i.e. structural funds); • Development and implementation of programmes to promote venture capital including business angels, The first phase of the study is expected to be complete by corporate and government venturing by 2008; and June 2003. • Publication of a compendium of regional and international funding mechanisms with a potential to support RISDP activities by 2005.