Costed Action Plan for SADC Industrialization Strategy and Roadmap VII. FINANCING 7.1 Introduction Costing and financing estimates for the Action Plan are unavoidably fragile given the uncertainties and unknowns inherent in such an exercise, especially under current conditions of heightened uncertainty in the world economy. The Action Plan distinguishes between regional and national responsibilities and also between those to be undertaken by public agencies, including state-owned enterprises, and the private sector. 7.2 Demand for Financing While the demand for finance can be analysed in tandem with the costing exercise of public regional and national expenditures, private sector funding requirements can only be very crudely estimated at macro-level. Since 2000, fixed investment in SADC has averaged 21 percent of GDP which with GDP growth of 3.6 percent annually implies an incremental capital-output ratio averaging just under 6. (Table 7.1) Over the 15-year period to 2014, the bulk of this funding has come from the private sector whose share of total fixed investment for 11 of the 15 countries for which data is available was twothirds. Table 7.1 Investment and Financing in SADC (2000-2014) COUNTRY Gross Fixed Investment % of GDP Private Sector Investment (% share) Foreign Gross GDP Incremental Direct Domestic Growth CapitalInvestment Savings (% 2000Output (% of Fixed of GDP) 2014 Ratio Investment) (% p.a.) (ICOR) Angola 28.5 n.a. 33.5 47.1 9.7 2.9 Botswana 27.9 64.2 12.7 34.9 4.7 5.9 DRC 12.2 66.6 38.4 8.7 5.6 2.2 Lesotho 29.7 61.8 14.9 n.a. 4.1 7.2 Madagascar 27.3 73.0 24.5 5.8 2.6 10.5 Malawi 21.0 53.0 16.4 5.1 4.4 4.8 Mauritius 23.0 73.0 11.3 15.8 3.7 6.2 Mozambique 21.0 n.a. 42.5 6.1 7.9 2.7 Namibia 26.5 73.0 27.1 12.9 4.9 5.3 Seychelles 28.0 n.a. 47.6 18.4 3.1 9.0 South Africa 19.6 69.0 9.4 19.4 3.1 6.3 Swaziland 12.6 58.0 23.0 5.7 2.4 5.5 Tanzania 29.7 70.7 14.4 17.4 6.7 4.4 Zambia 21.3 n.a. 23.0 n.a. 7.2 2.9 Zimbabwe 11.2 83.0 7.4 -7.2 -1.3 n.a. SADC 21.0 65.7 18.8 14.0 3.6 5.8 Sources; World Bank: World Development Indicators and UNCTAD: World Investment Report 2015 54