TABLE OF CONTENTS Page EXECUTIVE SUMMARY………………………………………………………………….………. 3 PART ONE: INDUSTRIAL STRATEGY I. Background and Context ………………………………………………………………....14 II. Value Chains and Industrialization Strategy………………….……............................ 23 III. Criteria for Value Chain Entry and Potential Value Chains in SADC….....................28 IV. Industrial Clusters and SMEs Development………….……………..…………………..39 V. Capabilities and Capacities for Industrial Development…………………………….….43 VI. Industrial Policy and Value Chains………………………..……….…..........................46 VII. Financing………………..…………………………………………………………………..54 VIII. Governance and Interface Institutions…………………………....…………………......61 PART TWO: THE ACTION PLAN FRAMEWORK ………………………..….…...................69 Action Plan Templates PART THREE: CONCLUSIONS AND RECOMMENDATIONS ………………...................138 Tables 3.1 Potential Value Chains in SADC ..……………………………...……………………...................34 7.1 Investment and Financing in SADC (2000-2014) …………...…………..…………...................54 7.2 Financing Gap 2014……………………………………..…………...………………………………55 7.3 Projected Financing Gap: Phase One (2015-2030)…………...…..………………….……….....57 Boxes Box 1.1 Strategic Objectives of the Strategy………………………...………………….…………….…....19 Box 2.1 Country Specificities …………………………………………………….…….………….……..…..25 Box 8.1 The SADC Industrial Observatory …………………………..............................………….……. 68 Box A.1: Glossary …………………………………………….……..….…………….…………………....... 75 Figures Figure 1.1 Transformational Interdependences…………………………..……..……………………........18 Figure 3.1 The Four Stages of Value Chain Policymaking……………..….…..……….….……………...29 Figure 8.1: A Coordination and Oversight Framework for Industrial Development in SADC Region ..66 2 Vers. 11.03.2017