Costed Action Plan for SADC Industrialization Strategy and Roadmap 6. Country Risk Producers are reluctant to locate value chain operations in high-risk environments because the entire chain is only as strong as its weakest link. 7. Dependence and Vulnerability Policymakers seek to minimize risks arising from dependence on foreign suppliers, as in the food and electricity supply sectors as well as risks from environmental factors related to climate change such as floods, cyclones and drought, particularly for climate sensitive value chains. Following the catastrophic nuclear accident at Fukushima in Japan, which seriously disrupted industrial production and value chains in Japan and abroad, multinational enterprises have become more risk averse, as a result of which there is a new preference for shorter and geographically proximate value chain partners. 3.5 Regional Value Chain Potential in SADC The Action Plan is not designed to prescribe value chains for Member States to prioritize and promote, but highlights value chains with demonstrable potential to deepen regional integration by boosting intra-regional trade and cross-border investment flows. Drawing on national reports by country experts, industrial reports, case and sector studies the section, a brief survey of existing value chains that have the potential to deepen regional and global participation that could be promoted by SADC governments acting under the umbrella of the regional authority or in bilateral or multilateral cooperation with other Member States was undertaken. Six main value chain clusters are identified. These are: (i) Agro-processing (ii) Minerals Beneficiation and related mining operations (iii) Pharmaceuticals (iv) Consumer goods (v) Capital Goods (vi) Services Specific sectors and the SADC countries that can potentially participate in each value chain have been identified by Member States. The central question however is not the focusing on the product or sector per se, but rather understanding the full value-chain and what is required to take advantage of opportunities to add value and migrate to new activities along the value chain. 33