Costed Action Plan for SADC Industrialization Strategy and Roadmap VI. INDUSTRIAL POLICY AND VALUE CHAINS The main drivers of industrialization in the action plan are: (i) Structural Transformation through accelerated industrialization (ii) Enhanced Competitiveness (iii) Regional Integration To achieve these three goals, substantially increased and more efficiently targeted investment will be required, most notably in infrastructure and expanding the supply of industry related skills, especially in medium and high technology activities. In addition, far-reaching institutional reforms will be required including region-wide measures to deepen integration and institutional restructuring within the SADC Secretariat to champion the industrialization thrust. The activities necessary to implement the industrialization strategy are cross-cutting in nature and mutually reinforcing. Policies essential for enhanced value chain participation as a vehicle for structural transformation are also essential to deepen regional integration and enhance competitiveness. This overlap means that similar but reinforcing activities occur throughout the Action Plan. A developmental state perspective is an essential context for advancing industrialization. At the same time, the role of the private sector must be recognized. To this effect, actions and policies are needed to address the issue of policy space required for industrialization that could be undermined by trade and investment policy arrangements, especially with third parties. Particular emphasis should be placed on a set of policy-mix in support of industrialization including policies related to procurement, investment, taxation (e.g. export taxes, double taxations and mineral access agreements which are skewed in favour of investors), as well as necessary legislative reforms. 6.1 Connectivity Deeper regional integration is essential for the fast and efficient connectivity that is a prerequisite for supply chain efficiency and greater value chain participation. Connectivity is not simply a matter of trade barriers or high tariffs, but extends to encompass a country’s competitiveness and capabilities as well as institutional efficiency in terms of border post management, logistics and the predictability and consistency of macroeconomic policies. 46