Costed Action Plan for SADC Industrialization Strategy and Roadmap
significantly increase tax revenues as a percentage of GDP, which could
contribute to the financing of infrastructure investment.3
(iii) Doing Business. Given the central role of FDI in enhancing value chain
participation, institutional and Doing Business reforms will be needed to improve
the business and investment environment.
Table 7.3: Projected Financing Gap for 2015-2030 in SADC Countries
SADC Countries ICOR
(Median)
Angola
5.4
GDP
per
capita
Target
6.0
Population
growth rate
Average*
Investment
rates
Average*
Savings
rates
Required
Investment
(% of GDP)
FDI
(% of
GDP)
ODA
(% of
GDP)
3.4
28.5
47.1
50.7
6.0
1.8
Financing
Gap
(% of
GDP)
-4.2
Botswana
5.4
6.0
1.6
27.9
34.9
41.3
4.6
1.4
0.4
Congo, Dem.
Rep.
Lesotho
5.4
6.0
3.1
12.2
8.7
49.2
3.1
15.9
21.5
5.4
6.0
0.8
29.7
36.8
3.4
7.8
25.5
Madagascar
5.4
6.0
2.9
27.3
5.8
48.3
5.5
11.6
25.4
Malawi
5.4
6.0
2.8
21.0
5.1
47.4
2.6
20.4
19.3
Mauritius
5.4
6.0
0.6
23.0
15.8
35.4
2.3
0.7
16.7
Mozambique
5.4
6.0
2.9
21.0
6.1
47.8
5.5
20.9
15.3
Namibia
5.4
6.0
1.5
26.5
12.9
40.6
2.8
2.9
22.1
Seychelles
5.4
6.0
1.0
28.0
18.4
37.8
11.7
2.8
4.9
South Africa
5.4
6.0
1.5
19.6
19.4
40.7
1.9
0.3
19.1
Swaziland
5.4
6.0
1.2
12.6
5.7
38.8
2.6
1.8
28.7
Tanzania
5.4
6.0
2.9
29.7
17.4
48.1
3.8
11.2
15.7
Zambia
5.4
6.0
2.7
21.3
47.1
5.8
12.8
28.5
Zimbabwe
5.4
6.0
1.1
11.2
-7.2
38.4
0.8
6.0
SADC Countries (as a group)
Mean
5.4
6.0
2.0
21.0
14.6
43.2
4.2
7.9
17.1
Median
5.4
6.0
1.6
23.0
12.9
41.3
3.4
6.0
19.2
Standard
deviation
2.4
0.0
1.0
6.5
14.0
5.3
2.6
7.2
10.2
Source: Authors’ Computations based on data from World Bank: World Development Indicators and
UNCTAD Reports: World Investment Reports.
Notes: The ICOR is the median of historical values for the period 2000-2014.
* Averages for the period 2000-2014.
A negative sign (-) suggests a possible surplus.
3
IMF (2015): Sub-Saharan Africa, Regional Economic Outlook (October 2015)
57
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