Costed Action Plan for SADC Industrialization Strategy and Roadmap close interaction – dialogue – with investors at home and abroad to ensure that the discovery process works to maximum efficiency. 6.13 Aims and Instruments for Industrial Policy “Selective industrial policy” entails strategic support for important spill-over sectors where countries or a region enjoy comparative or competitive advantages and when there is a deliberate choice to build industrial capabilities in a close collaborative relationship with the private sector. Such a strategy deliberately targets particular industries with the judicious use of key policy instruments to support investment, technology transfer, innovation and to raise competitiveness. Building public sector capacity to deploy industrial policy levers and engage with the private sector to secure national and regional interests is imperative. A Toolbox for Member States Levers available to SADC Member States, and which require regional coordination and collaboration, include the following: 1. Stronger articulation between macroeconomic and microeconomic policies. 2. The deployment of a range of integrated and aligned industrial finance and incentive programmes targeting projects and sectors to support industrial development and regional industrial integration. 3. Promotion of public procurement localisation to support domestic production by raising aggregate demand to secure investment, capacity utilisation, product development and technology acquisition. 4. Developmental trade policies that deploy trade measures in a selected and strategic manner, including tariffs and Standardisation, Quality Assurance, Accreditation and Metrology (SQAM) measures. These should be aligned to Member States’ international commitments and must be deployed together with stronger customs regulations and enforcement to prevent illegal imports and fraud. 5. Appropriate, certain and development-friendly competition and regulation policies that lower costs to encourage productive investments, skills, and innovation policies that are aligned to sectoral priorities, such as providing R&D. 6. Interventions designed to stimulate sub-national growth, including in key sectors and value chains by way of the special industrial/ economic zones and clusters supported by a variety of enabling infrastructure and programmes. The above generic policy tools should be supported by Member States in addition to drawing on a range of less direct measures. These often require strong coordination from government and key stakeholders within each Member State. This will require 51