Costed Action Plan for SADC Industrialization Strategy and Roadmap Many of the value chains are supply-based, whose potential in terms of output and employment, is currently constrained by inadequacy of finance and high transaction costs. There are ample opportunities for upgrading but that tends to be also limited by technological and industry skills deficiencies. Once the constraints are removed, many of the identified value chains will have potential to link more densely regionally and globally. In the agro-processing sector, existing or potential value chains include soya, sugar and related products, cassava, food and drinks, fisheries, forestry, dairy, leather and leather products, meat and meat products, fruit and vegetables, etc. The recent profiling studies in the minerals sector (metallic and non-metallic) of the SADC region point to a number of potential value chains. Candidates in this area include: (i) Energy mineral value chain based on coal, oil and gas resources; (ii) Ferrous minerals value chain – that processes iron ore, zinc, chromium, nickel, manganese, tungsten and vanadium to produce different types of steel for infrastructure development; (iii) Base metals mineral value chain which utilises copper and aluminium; (iv) Fertiliser mineral value chain based on coal gas, phosphate and potassium; (v) Cement value chain which utilizes limestone; (vi) Value chains on minerals where SADC has producer power such as diamonds, platinum and cobalt to produce catalysts and jewellery; and (vii) Mining inputs value chain for upstream linkages into mining capital goods, consumables and service industries. The pharmaceuticals sector offers a number of opportunities for regional value chain formation. Areas already identified cover: Anti-retrovirals; anti-TB drugs, artemisinin, condoms, bed-nets and DDT. Crucial to value chain analysis is the identification of links where a country or a firm can participate competitively. There is need for detailed studies to be undertaken to identify particular links in the value chains for each product that could be developed to facilitate deepened Regional Value Chains (RVCs) and/or GVC participation in SADC. It is also critical for the studies to identify the capacities and capabilities as well as the policy and regulatory environment necessary to facilitate effective participation in these value chains. The Action Plan proposes that funding be sought for such hands-on studies. 3.6 Other Potential Regional Value Chains Cross-border services are a promising avenue for RVCs, though for the foreseeable future the probability is that South African dominance will increase. However, there has 36