Costed Action Plan for SADC Industrialization Strategy and Roadmap - Deeper Regional Integration The case for deeper regional integration cannot be over-emphasised. Deeper integration, including further trade liberalization, will provide the space and conditions for the development of regional value chains, through reduced transaction and border costs and exploiting opportunities for economies of scale. Deeper integration will also facilitate increased inflow of FDI and integration in global value chains. Recommendations (i) Completion of the FTA areas to cover all intra-regional trade and elimination of tariff barriers and targeted reduction of Rules of Origin. (ii) Harmonization of differential trading regimes, especially in the COMESA, EAC and SADC regions (iii) Acceleration of the Trade Facilitation measures and programmes (iv) Eventual establishment of a Customs Union, incorporating a Common External Tariff (v) Facilitation of capital and labour mobility (vi) SADC would need to adapt to the challenges of the new regionalism of the 21st Century characterised by dispersed production facilities and diversity of value chain disciplines. - Private Sector Participation The private sector is the main wealth creator and industrialization promoter. To effectively play this role, the private sector should be enabled and its participation in policy planning and investment sought. Value chain identification and decisionmaking would require close interaction and dialogue with local and foreign investors to ensure that the “discovery” process works to attain maximum efficiency and benefits to the regional economy. Recommendations (i) A main priority is the improvement of microeconomic environment for business competitiveness. 141