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TRANSCRIPT
2015 - 2063
SADC INDUSTRIALIZATION STRATEGY AND ROADMAP
Approved by Summit in Harare on 29 April 2015
TABLE OF CONTENTS TABLE OF CONTENTS .......................................................................................................................................... i
ACRONYMS ............................................................................................................................................................... iii
FOREWORD FROM THE SADC CHAIRPERSON .......................................................................................... v
FROM THE EXECUTIVE SECRETARY ................................................................................................................ vii
ACKNOWLEDGEMENTS .................................................................................................................................... .ix
1. INTRODUCTION ......................................................................................................................................... ..1
2. STRATEGIC OBJECTIVES, GUIDING PRINCIPLES AND CORE PILLARS OF THE STRATEGY
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2.1 Strategic Goals .............................................................................................................................................. 3
2.2 Essential Elements for Industrialization ............................................................................................ 4
2.3 Three core pillars of the Industrialization Strategy ....................................................................... 5
3. STRATEGIC INTERVENTIONS ................................................................................................................. 7
3.1 Macroeconomic Framework .............................................................................................................. 7
3.2 Revitalizing Regional Integration ........................................................................................................ 7
3.3 Removing Binding Constraints ........................................................................................................... 9
3.4 Industrial Development ...................................................................................................................... 13
3.5 Potential Growth Paths ........................................................................................................................ 14
3.6 A Compact for Industrialization - The Role of the State and Engaging the Private Sector . 17
3.7 Mainstreaming Gender and Youth Issues ........................................................................................ 19
3.8 Strengthening Small and Medium Scale Enterprises ...................................................................... 20
3.9 Enhancing Competitiveness ................................................................................................................ 21
3.10 Ensuring Environmental Sustainability (Green and Blue Economy) ........................................... 22
3.11 Growth Scenarios and Timelines ............................................................................................................ 23
3.12 Investment Planning .............................................................................................................................. 24
3.13 Mobilizing Financial Resources for the Industrialization Strategy .............................................. 24
4. CO-ORDINATION, IMPLEMENTATION AND MONITORING ..................................................... 27
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5. CONCLUSIONS ............................................................................................................................................. 28
THE ROADMAP ...................................................................................................................................................... 29
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ACRONYMS
AGOA Africa Growth and Opportunity Act
AIDA The Plan of Action for Accelerated Industrial Development
AMV African Mining Vision
AU African Union
AUC African Union Commission
ASM Artisanal and Small-Scale Mining
BIAT Boosting Intra-African Trade Initiative
CCBG Committee of Central Bank Governors
CFTA Continental Free Trade Area
COMESA Common Market for Eastern and Southern Africa
EAC East African Community
ECCAS Economic Community of Central African States
EU European Union
EPA Economic Partnership Agreements
FDI Foreign Direct Investment
FTA Free Trade Area
GVC Global Value Chains
GDP Gross Domestic Product
ICT Information and Communication Technologies
IDPF SADC Industrial Development Policy Framework
IMF International Monetary Fund
IOC Indian Ocean Commission
IUMP SADC Industrial Upgrading and Modernization Programme
LDCs Least Developed Countries
MVA Manufacturing Value Added
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OECD Organization for Economic Corporation and Development
PIDA Programme for Infrastructure Development
PPP Public-Private Partnership
RISDP SADC Regional Indicative Strategic Development Plan
R&D Research and Development
RVC Regional Value Chains
SADC Southern African Development Community
SACU Southern African Customs Union
SEZ Special Economic Zones
SMEs Small and Medium Enterprises
SQAM Standardization, Quality Assurance, Accreditation and Metrology
STEM Science, Technology, Engineering and Mathematics
SWOT Strengths, Weaknesses, Opportunity and Threats Analysis
TFP Total Factor Productivity
TFTA Tripartite Free Trade Area
TIVA Trade in Value Added
TRIPS Agreement on Trade Related Aspects of Intellectual Property Rights
UNCTAD United Nations Conference on Trade and Development
UNECA United Nations Economic Commission for Africa
UNIDO United Nations Industrial Development Organization
VAX Ratio Ratio of Value-Added Exports to total Exports
WTO World Trade Organization
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FOREWORD FROM THE SADC CHAIRPERSON In August 2014, SADC Heads of State and Government considered and endorsed the Summit Theme: “SADC Strategy for Economic Transformation: Leveraging the Region’s Diverse Resources for Sustainable Economic and Social Development through Beneficiation and Value Addition”. The Theme reflects the urgent need for the region to leverage its abundant and diverse resources, especially in agriculture and mining, to accelerate industrialization through beneficiation and value addition. To operationalize the Theme in the SADC regional integration agenda, Summit resolved to develop a SADC Industrialization Strategy and Roadmap. I am pleased to present the SADC Industrialization Strategy and Roadmap, 2015-2063, which was approved by the Extra-Ordinary Summit in Harare, Zimbabwe, in April 2015. This is a historic achievement we should build on and use to transform our economies, to enhance economic growth, and create empowerment. Despite persistent efforts to boost trade within the region through the SADC Free Trade Area, the value of intra-SADC trade has remained very low, at only 17% of total SADC trade. Exports from the region are dominated by unprocessed or minimally processed products mainly from the agricultural and mineral sectors, thus providing very low value returns. Such low level of intra-regional trade clearly shows that the great emphasis placed on tariff elimination, has not brought about the intended socio-economic development, nor the enhancement of quality of life and the well-being of our people. To address this challenge, we have agreed to act collectively, as a Region, to implement effective strategies that boost the productive capacity of our industries, develop infrastructure that leverages industrialization and promotes technological advancement. While SADC is endowed with abundant and diverse natural resources, our productive sectors do not practice value addition. In agriculture, SADC countries continue to export unprocessed agricultural produce, earning approximately 10% of the potential value of the products. The Industrialization Strategy aims at reversing this trend, in order to achieve self-sustaining development for our countries. This can be achieved through value addition to our products which in turn would increase returns from the export of our natural resources. In this context, we need to forge a strong partnership between Governments and the private sector. Since one of the major challenges that has retarded implementation of existing programmes on industrialization is inadequate funding, it is important for the SADC region to consider innovative
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ways of financing industrialization. This includes urgently formalising and operationalizing the Regional Development Fund, promoting public-private-partnerships, and ensuring that the private sector plays a pivotal role in the implementation of the Strategy. Our engagement with International Cooperating Partners should be guided by our Strategy and Roadmap 2015-2063, so as to complement SADC initiatives on industrialization. I would like to commend all who contributed to the development of the Industrialization Strategy and Roadmap including SADC Member States, the Secretariat and International Cooperating Partners.
President of the Republic of Zimbabwe and SADC Chairperson
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FROM THE EXECUTIVE SECRETARY The SADC Industrialization Strategy and Roadmap 2015 - 2063 is the first of its kind. It has a long term perspective, and is aligned to national, regional, continental and international dimensions. The Strategy recognizes that for trade liberalization to contribute to sustainable and equitable development, and thus to poverty reduction, it must be complimented by the requisite capacities to produce, and to trade effectively and efficiently. The primary orientation of the Strategy is the importance of technological and economic transformation of the SADC region through industrialization, modernization, skills development, science and technology, financial strengthening and deeper regional integration. The Strategy is anchored on three pillars namely; industrialization as champion of economic and technological transformation; competitiveness as an active process to move from comparative advantage to competitive advantage; and regional integration and geography as the context for industrial development and economic prosperity. The Strategy’s long term vision is aligned to the African Union Agenda 2063, covering the period 2015-2063. During this period, SADC economies seek to overcome their development constraints, and progressively move from factor-driven; to investment-driven, then to efficiency-driven; and ultimately to the high growth trajectory driven by knowledge, innovation and business sophistication. It is envisioned that by 2063, the SADC region will be fully transformed and will be an important player in the continental and global landscape, premised on the three growth phases: (a) Phase I: covers 2015 to 2020. This period constitutes a period of active frontloading of the
Industrial Development and Market Integration and related infrastructure and services support to industrialization, with interventions to strengthen integration and competitiveness. During this phase, SADC countries should target per capita income growth of about 6 percent annually to achieve the lower income band of the factor-driven stage of US$ 2000.
(b) Phase II: covers the period 2021 to 2050, will focus on diversification and enhancement of
productivity and competitiveness. During this period, SADC aims to achieve the targeted GDP per capita of US$ 9000 by 2050 and a per capita growth rate of 8 per cent annually from 2020 onwards.
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(c) Phase III: covers 2051 – 2063, during which SADC economies would move into the innovation-driven stage, characterized by advanced technologies and increased business sophistication. To achieve that status, GDP per capita would need to rise from US$ 9000 in 2050 to US$ 17000 by 2063, with an annual income growth of about 5 per cent.
On behalf of the SADC Secretariat, I wish to express our gratitude to SADC Heads of State and Government, under the Chairmanship of H.E. Robert Gabriel Mugabe, for their vision and leadership, and commend and thank all stakeholders who contributed to this noble course.
Dr. Stergomena L. Tax EXECUTIVE SECRETARY
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ACKNOWLEDGEMENTS First and foremost, our special gratitude goes to the SADC Heads of State and Government, under the chairmanship of His Excellency, Robert Gabriel Mugabe, President of the Republic of Zimbabwe, for their vision and leadership in the formulation of the Strategy. We also highly appreciate the support provided by Member States throughout the process of developing the Strategy. Recognition also goes to Professor Samuel Mwita Wangwe, the Chief Executive Officer, Research on Poverty Alleviation (REPOA) Tanzania, and Dr. Angelo Mondlane, Director, Policy Planning and Resource Mobilization for their critical role in developing the concept paper that stimulated decisive engagement on the development of the SADC Industrialization Strategy during the 34th Victoria Falls August 2014 Summit. The development of the SADC Industrialization Strategy and Roadmap 2015-2063 was an inclusive process involving SADC Member States, Strategic Partners, notably, the United Nations Economic Commission for Africa (UNECA), World Bank, United Nations Industrial Development Organization (UNIDO) and GIZ; the private sector and non-state actors. Fifteen national reports on industrial policies, strategies and programmes, as well as priorities of SADC Member States informed the Industrialization Strategy and Roadmap. Special recognition goes to UNECA, under the leadership of Dr. Carlos Lopes, Executive Secretary, supported by Prof. Said Adejumobi, Director, Sub-Regional Office for Southern Africa. The development of this Strategy and Roadmap would not have been possible without strategic financial support from UNECA. Appreciation should also go to SADC staff for their dedication and effective coordination which enabled the preparation of the Strategy in record time. Membership of the core team of the Secretariat included Dr. Stergomena L. Tax, the Executive Secretary of SADC who provided outstanding oversight, supported by Dr. Thembinkosi Mhlongo, Deputy Executive Secretary - Regional Integration, and Ms Boitumelo Sendy Gofhamodimo, Director for Trade, Industry, Finance and Investment, who was responsible for coordinating the assignment. Other members of the Team include Dr Angelo Mondlane, Director, Policy Planning and Resource Mobilization, Mr. Remigious Makumbe, Director, Infrastructure and Services, Mr. Stephen Sianga, Director for Social Human Development and Special Programmes, and Mrs Margaret Nyirenda, Director, Food, Agriculture and Natural Resources. We are equally indebted to the team of three Regional Experts, availed by UNECA namely, Dr. Yousif Suliman-Team Leader, Professor Anthony Hawkins and Seth Akweshie, members of the team, who were responsible for putting together the Strategy and Roadmap. Their work was complemented by that of the following national experts: António Henriques da Silva, Malekantwa Mmapatsi, Tshikuku Kabeya, Peete Molapo, Richard Rakotoniaina, Dr Hudson Mtegha, Mrinalsing Ramhit, Dr Peter Coughlin, Errolice Tjipura, the late Kamalandua Winnie Sibongile, Dr Moses Tekere, Allan Kilindo, Professor Samuel Mwita Wangwe, William S. Mbuta, Dr Eli Mtetwa and Saul Levin and Sithembiso Mtanga from Trade and Industrial Policy Strategies (TIPS). We are equally grateful for the support provided by the following officers: Gainmore Zanamwe, Jabulani Mthethwa, Alisoa Vololoniaina, Martin Muchero, Dick Kamuganga, Paul Kalenga, Kirsten Focken and Kuena Molapo. Useful comments were also received from staff in various divisions of the Secretariat
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INTRODUCTION The primary orientation of the strategy is the necessity for the structural transformation of the SADC region by way of industrialization, modernization, upgrading and closer regional integration. ….but the strategic thrust must shift from reliance on resources and low cost labour to increased investment and enhanced productivity of both labour and capital.
The SADC Industrialization Strategy and Roadmap is formulated in the context of existing national and regional policies and specifically the August 2014 Summit at Victoria Falls, Zimbabwe, which was held under the theme: “SADC Strategy for Economic Transformation: Leveraging the Region’s Diverse Resources for Sustainable Economic and Social Development through Beneficiation and Value Addition”. Summit directed that industrialization takes centre stage in SADC’s regional integration Agenda. To this end, Summit mandated the Ministerial Task Force on Regional Economic Integration to develop a strategy and roadmap for industrialization of the Region.
Within this context, Summit also “requested the Committee of Ministers of Trade, assisted by the Secretariat, to review Priority A in the draft Revised Regional Indicative Strategic Development Plan (RISDP), 2015-2020, particularly the sequencing of targeted outputs on Industrial Development and Trade Liberalisation in order to ensure that, at the current stage of integration in SADC, industrialization is prioritized”. Council also directed the Secretariat to finalise the revised RISDP by frontloading industrialization in its implementation plan and to mainstream the theme in the revised RISDP.
The Strategy is premised on the conviction that regional integration will promote industrialization. It recognizes that industrial policy and implementation will be largely undertaken at the national level and that its success depends on forging a compact for industry consisting of the government, the private sector, civil society, labour and the development partners.
The SADC Industrialization Strategy and Roadmap seeks to engender a major economic and technological transformation at the national and regional levels within the context of deeper regional integration. It also aims at accelerating the growth momentum and enhancing the comparative and competitive advantage of the economies of the region. This entails the pursuit of a focussed programme for the accumulation and deployment of knowledge, modern physical assets and human capital, particularly the youth as well as other capabilities. A transformed economy has greater promise for substantially raising living standards, generating employment, alleviating poverty and mitigating external shocks. The Strategy is designed as a modernization scheme, and is predicated on maximum exploitation of comparative advantage and creating enduring conditions for competitive advantage at enterprise level. The latter thrust requires earnest efforts aimed at enhancing technological setups and readiness, changes in the way of doing business, scaling-up productive capacity and enhancing economic interlinkages to unlock regional potential in general. Sustainability of the process would thus require turning the economies into knowledge-based and competitive structures. Such efforts, while requiring quality changes in a wide range of policies and actions, indeed recognize, and build on, the efforts already made nationally and regionally. The Regional Strategy is driven by national development strategies, visions and plans and primarily by the SADC Treaty, the RISDP, SADC protocols and specifically by the Industrial Development Policy Framework (IDPF). It is also informed by African Union’s Accelerated Industrial Development of Africa and Agenda 2063.
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Given the initial development conditions in the majority of SADC countries, the transformation drive should effectively target higher levels of growth and deeper structural change. This requires deliberate and induced interventions to enhance factor accumulation (labour, capital and technology) to substantially raise total and factor productivity. This implies the (direct or induced) shift of resources to more dynamic higher productivity uses, which fundamentally means manufacturing, broadly defined to include agro-processing and minerals beneficiation as well as some development and business enabling services. In the 21st century, SADC economies can no longer rely on rich resources or low-cost labour as a platform for industrialization and modernization. The strategic thrust must shift from factor accumulation growth – employing more labour and investing more capital – to total factor productivity, which is the efficiency with which resources are deployed in the production process. Catching up is dependent on narrowing productivity gaps, both between sectors within SADC economies and with more advanced economies, necessitating a focus on advanced skills and state-of-the-art technologies. The fact that 60 per cent of world trade is in intermediate products strengthens the case for value-addition in SADC economies and value-chain participation. Industrial policy must be crafted within the context of a country’s competitive advantage, including future or nascent advantage. The essence of transformation is diversification via upgrading and climbing the technology ladder. Successful industrialization will be achieved not just by doing things better – though that is a key factor – but also by doing different things, implying industrialization is achieved through diversification. The primary orientation of the Strategy is the necessity for the structural transformation of the SADC region by way of industrialization, modernization, upgrading and closer regional integration. Industrialization should be seen as a long-term process of structural transformation and enhanced competitiveness of the entire SADC region. The SADC region is in catch-up mode and needs to run faster than other emerging economies to converge with upper middle-income and high-income countries.
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1. STRATEGIC OBJECTIVES, GUIDING PRINCIPLES AND CORE PILLARS OF THE STRATEGY
2.1 Strategic Goals Strategic goals are both qualitative and quantitative.
(a) Quantitative
The Strategy envisages substantial quantitative shifts in industrial structure, manufacturing, production, exports, particularly those in the medium- and high-technology categories, while doubling industrial employment.
The quantitative goals and growth targets are aspirational in the context of long-term transformation of the SADC economy and creating the knowledge economy of the future. They are also informed by the strategic desirability of converging SADC economies as a group and within the context of the continental development agenda 2063. They are also guided by the historical performance and the potentialities associated with the transformational programme incorporated in the Strategy. The quantitative goals include the following:
(i) To lift the regional growth rate of real GDP from 4 percent annually (since 2000) to a minimum of 7 percent a year.
(ii) To double the share of manufacturing value added (MVA) in GDP to 30 percent by 2030 and to 40 percent by 2050, including the share of industry-related services.
(iii) To increase the share of medium-and-high-technology production in total MVA from less than 15 percent at present to 30 percent by 2030 and 50 percent by 2050.
(iv) To increase manufactured exports to at least 50 percent of total exports by 2030 from less than 20 percent at present.
(v) To build market share in the global market for the export of intermediate products to East Asian levels of around 60 per cent of total manufactured exports.
(vi) To increase the share of industrial employment to 40 percent of total employment by 2030.
(b) Qualitative
The Strategy is transformational in terms of socio-economic transformation nationally and regionally.
The qualitative goals seek to:
(i) Achieve a major socio-economic transformation at the national and regional levels.
(ii) Accelerate the growth momentum and enhance the comparative and competitive advantage of the economies of the region.
(iii) Diversify and broaden the industrial base and interdependences.
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(iv) Enhance the productive capacity, productivity and competitiveness of SADC economies.
(v) Provide a framework for technological and industrial catch-up, export diversification, natural resources beneficiation, enhanced value-addition and increased regional trade and employment generation.
(vi) Develop viable regional value chains capable of interacting with global value chains and identify areas where the SADC region can have the greatest success in capturing high opportunities based on present and future strengths and capabilities.
(vii) Build a collaborative but challenging strategic partnership between governments, the private sector, the civil society and the development partners as a compact for industrialization.
(viii) Ultimately, build firm and enduring foundations for a modernized SADC economy.
2.2 Essential Elements for Industrialization
The SADC Industrialization Strategy emphasises the following fourteen (14) essential elements/prerequisites for industrialization:
(i) Industrialization is a key for transformation and strengthening inter-industrial links.
(ii) Factor productivity as a fundamental metric of development and transformation processes.
(iii) Technological upgrading and innovation as enablers and creators of employment and competitiveness.
(iv) Geography and natural resources as crucial factors in establishing national and regional economic clusters to support diversification and interlinkages.
(v) The recognition of possible impact of the emerging global technological evolutions on trade patterns.
(vi) The crucial role of the government as a developmental agent in perceiving, developing, promoting and implementing industrial development and creating the requisite environments.
(vii) The importance of establishing a compact for industrialization and development, consisting of the government, private sector, civil society, development partners and prospective investors.
(viii) The central role of the private sector as the driver of industrialization and in particular the contribution of small, medium enterprises (SMEs) to employment growth and national development.
(ix) The acceleration of the tempo of SADC’s integration programme and promoting the complementarities of national and regional efforts on industrial development issues and leveraging the positive aspects of the various regional and global agreements of which SADC is party.
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(x) Creation of a stable macroeconomic environment and strong microeconomic foundations for the development and growth of the private sector and promotion of regional economic interdependence.
(xi) The critical importance of coordination and interfacing of the industrial development efforts nationally and regionally - to ensure maximization of gains and avoidance of harmful competition.
(xii) The importance of ensuring environmental and social sustainability, taking into consideration envisaged impacts of industrialization on climate change and the adoption of technologies and modalities that enhance resource efficiency and reduced waste.
(xiii) The importance of accelerating empowerment of youth and women to enable them to participate fully in economic development.
(xiv) The recognition of the role of ICT as an enabler as well as a catalyst to industrialization and the need for mainstreaming ICT in the socio-economic transformation process.
2.3 Three core pillars of the Industrialization Strategy
The Strategy is anchored on three pillars:
(i) Industrialization as champion of economic and technological transformation.
(ii) Competitiveness (at the firm/industry, country and regional level) as an active process to move from comparative advantage to competitive advantage.
(iii) Regional integration and geography as the context for industrial development and
economic prosperity. The long-term transformation of the SADC economies requires focused qualitative and quantitative shifts in industrial structure, its enabling environment and the interdependence with other sectors to maximize the direct and indirect value addition in the industrial sector broadly defined to include related support services. In so doing, industrialization will need to be situated within the global dynamics of competitiveness, quality of products as well as flexibility to respond to internal and external demand dynamics. The positive spill-overs from industrialization will stimulate employment and substantially raise income levels. A sustainable industrial sector of the future should be resilient and with high propensity for continuous modernization.
SADC countries are equally challenged to substantially enhance their competitiveness to supplement their inherited comparative advantage in natural resource-based production and exports. Action should therefore target the competitiveness of firms as well as the economies at large.
Deeper regional integration reinforced by industrialization and enhanced competitiveness should provide the context for the region’s development. Enabling the productive and distribution capacities of the process will help remove structural impediments and enhance factor productivity.
The pillars are interdependent: Each is uniquely important, but only when they are pursued together will they satisfy the requirement of maximum effectiveness (Figure 1).
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Regional Integration
• Strategies • Resources • Constituency
Figure 1: Transformational Interdependences
Structural Transformation
Capacity building/ Political will
Capacity building/ Political will
• Policies • Technology • Modernization • Standards • Skills • Investments • Institutions • Innovation
• Policies • Technology • Modernization • Standards • Skills • Investments • Institutions • Innovation
Competitiveness
• Firm level • National • Regional • Global
Economic
Transformation Catching Up
Industrialization
• Policies • Investments • Capabilities
-‐ Institutions -‐ Technology -‐ Innovation
• Policies • Investments • Capabilities
-‐ Institutions -‐ Technology -‐ Innovation
Enablers Enablers
Capacity building/ Political will
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3. STRATEGIC INTERVENTIONS The strategic interventions cascade down from those influencing economic growth to those specific for accelerated industrial growth and the reversal of de-industrialization. In this context, while taking on board the strategic goals, particular attention is given to front-loading industrialization within the framework of regional integration. Major strategic actions will need to be reinforced in order to achieve the overarching objectives of the Industrialization Strategy. These will include strategic policies and prioritization of policy interventions.
3.1 Macroeconomic Framework SADC countries should target macroeconomic stability within a developmental state with a specific focus on inclusive growth, economic diversification, enhanced competitiveness and deeper regional integration.
SADC countries need to establish and maintain a stable and conducive macroeconomic environment to enhance growth and support regional integration industrialization and competitiveness. To this end, in addition to the macroeconomic convergence efforts of the Committee of Central Bank Governors (CCBG), SADC countries should use macro-economic policies to foster accelerated industrialization within a developmental state. Appropriate integration and industrial enhancement policies should strike a balance between achieving development goals within a regime of fiscal and monetary prudence. In particular, there should be close consultation between ministries responsible for trade and industry and the relevant fiscal and monetary authorities on the use of macro-economic instruments to facilitate accelerated industrial development. This would require greater fiscal discipline and enhanced capacity for timely implementation of the development programmes. Pacing and sequencing of the policies should be seen as part of the greater transformation of the region and evolution of its societies throughout the long term growth paths of the SADC region through to the year 2063, where it will converge with the continental developmental targets.
The input of the private sector and other stakeholders should be taken into account in the process of macroeconomic policy formulation. The policy should envisage a greater role for this sector in shouldering its share in the cost of development endeavours. An enhanced role for the sector, coupled with deepening capital markets, would greatly enhance opportunities for joint national-foreign partnerships and create growth dynamics that would contribute to the widening of the tax base.
(i) The macroeconomic framework should focus on catalyzing the transformation of production, ensuring the attainment of elevated levels of competitiveness and meeting the macroeconomic convergence requirements for the region as a whole;
(ii) To ensure sustainability, the developmental macroeconomic policy regime should aim at achieving:
• inclusive quality growth;
• economic diversification and competitiveness;
• deeper regional integration; and
• macroeconomic policy convergence.
3.2 Revitalizing Regional Integration Frontloading industrialization will be promoted by the implementation of a conscious strategy of developmental regionalism – sequencing trade liberalisation alongside policy actions to build productive capacity, primarily in the private sector.
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Regional integration is one of the three cornerstones of the SADC Industrialization Strategy. Deeper regional integration is a sine qua non for collective development. To that end, Member States should accelerate implementation of SADC policies, protocols and agreements. Collective development requires complementarity of production and trade structures and policy convergence over time. The Strategy recognizes that frontloading of industrialization will be promoted through the adoption of a strategy of developmental regionalism. This implies sequencing trade liberalization alongside conscious policy actions to build productive capacity in Member States, predominantly in the private sector.
(i) In pursuit of accelerated regional industrialization, national governments should re-align
and interface their policies and plans in line with SADC’s regional industrial priorities.
(ii) Regional programmes and initiatives should be re-focused to give added impetus to regional industrial development. Of particular importance in this regard would be the immediate implementation of industrial development pillar of the Tripartite once it has been approved.
(iii) International development partners are urged to recognize the centrality of regional industrialization and reflect that in their financial and technical support to the region and to Member States.
(iv) Economic space in SADC will be significantly expanded as a result of the Tripartite and the Continental Free Trade Areas. To maximize the benefits of these arrangements, it will be important to rationalize existing Rules of Origin systems to support industrialization.
(v) In the context of regional integration, Member States in their policy formulation should take into account the impact of their policies on other SADC members.
(vi) SADC states should commit to coordination of industrial policies towards convergence
over the medium-to-long-term to ensure that all Member States benefit from SADC membership.
(vii) A strengthened constituency for regional integration is a critical necessity as part of the
process of deeper integration. To that end, Member States should improve the dissemination of information on the implementation of programmes, protocols and projects.
(viii) It is essential that Member States embrace and internalize the spirit and letter of FTA rules in their trade and industrial policies.
(ix) Policymakers at both the national and regional levels should give careful consideration to the necessity of matching further trade liberalization especially with third parties, with the envisaged acceleration and front-loading of industrialization.
(x) A widened economic space would require significant enhancements of the regional infrastructure, including financial institutions and arrangements as well as overall macroeconomic policy convergence.
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3.3 Removing Binding Constraints Accelerated industrialization is being hampered by three binding constraints - inadequate and poor quality infrastructure, a severe deficit of the skills needed for industrial development and insufficient finance.
The country reports show very clearly that three main obstacles stand in the way of accelerated industrialization in SADC – the infrastructure deficit, the scarcity of skills, especially those essential to progression up the technology ladder, and financing. None of these is susceptible to short-term, quick-fix solutions. It is also evident that there is a need for greater participation by the private sector in joint action with the public sector to achieve the strategic goals.
A. Infrastructure Efficient and affordable infrastructural services (consisting of transport, communications, ICT, energy and water supply) are critical inputs for reducing transaction costs for industry and trade, as well as for enhancing the economic and social wellbeing of society at large. Effective implementation of the SADC Industrialization Strategy would indeed require the building and/or close coordination of these services in a timely and optimal manner. To this effect, the Strategy calls for:
• Enhanced access to quality infrastructure;
• Timely and locational availability of services to reduce input and transaction costs;
• Addressing the infrastructural deficits at the national and regional levels;
• Provision of quality and climate resilient infrastructure for the implementation of the Industrial Upgrading and Modernization Programme; and
• Upgrading the transport, energy, ICT and water supply infrastructure.
Increased investment in new infrastructure, soft as well as hard, allied with improved management, performance and additional spending on maintenance, are prerequisites for industrial take-off.
In tackling the infrastructure deficit through increased investment in new facilities, extra attention should be paid to maintenance, quality and environmental factors such as climate change. It is not just the supply of infrastructure that is constraining economic development, but the failure to provide adequate resources for the upkeep and maintenance of existing structure, while ensuring that due attention is paid to the quality of infrastructure provision, particularly in such areas as ICT.
(i) Accordingly, the current Regional Infrastructure Development Master Plan (RIDMP) should be fast-tracked and aligned to meet the varied needs of the Industrialization Strategy also ensuring that the use of existing infrastructure capacity is optimized.
(ii) A strategy for leveraging the RIDMP should be developed to catalyze industrial development and reduce current high costs of doing business, including those related to Non-Trade Barriers (NTBs) and local procurement of inputs for infrastructure development.
(iii) The infrastructure support programme for industrialization should be planned and implemented as a continuum, extending beyond the medium term.
Beyond 2020, the Roadmap addresses the long-term infrastructure interventions. Within this context, Member States should have the flexibility to suit their domestic conditions. Yet the overall
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industrialization and transformation efforts should be consistent and complementary. While governments are expected to take the lead, the private sector should be greatly involved.
Quality and Maintenance
The poor quality and inefficiency of existing infrastructure in the SADC region is largely traceable to the neglect of standards in asset procurement and operation and inadequate maintenance and management.
(i) New funding should include adequate provision for repair, maintenance, rehabilitation, reconstruction and asset replacement costs.
(ii) Member State national budgets should include increased allocations for operational and maintenance expenditure.
Energy
The SADC region faces a serious energy deficit and with the implementation of the industrialization Strategy, this gap will widen unless the supply of electricity is substantially increased, drawing on the ample hydro-power potential of the region.
(i) Member States should increase public investment in energy provision both for domestic use and export to regional partners through the Southern African Power Pool.
(ii) Attention should be paid to the reliability, efficiency and cost effectiveness of energy supply.
(iii) Simultaneously, governments should step up the involvement of independent power providers to ease the burden on government investment spending.
(iv) In addition, alternative sources of energy should be exploited with a particular focus on renewables.
(v) The region should adopt energy efficient technologies to reduce the cost of production and minimise green house gas emissions that contribute to climate change.
(vi) Attention should be paid to greater energy pricing efficiency within the context of deeper regional co-operation. Cheap energy is a necessary condition for industrial competitiveness and to that end, Member States should draw on lower cost regional supplies where practicable, rather than focusing on national self-sufficiency.
(vii) Current plans for hydro-power network connectivity and proposed new generation and transmission projects should be fast-tracked including regional joint-ventures. Member States should accelerate the design and implementation of an appropriate institutional framework for the early development of the Inga Dam project which has enormous potential for the supply of low-cost electricity to the SADC region.
Transport
The expansion, upgrading and interconnection of the regional transport systems (road, rail, air and ports) would greatly enhance trade flows and the mobility of factors of production.
(i) The efficiency of the present transport corridors should therefore receive particular priority to enhance trade facilitation and open up alternative transport links.
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(ii) The effectiveness of the regional transport system depends on the efficiency of interfacing between the multi-modal transport components. Closer regional co-operation is required for this to be achieved.
(iii) Increased investment is needed to improve the quality of the regional transport network across all modes while promoting alternative renewable energy sources for the transport sector.
Information and Communication Technologies (ICT)
In order to accelerate industrialization in the region and achieve socio-economic transformation, there is a need to mainstream ICT in all aspects of the economy. ICT should also be seen as a strategic enabler across the economic and social spectrum of life in view of its potential capacity to help generate knowledge, leverage and enhance technological readiness and promote innovation. To this effect, SADC should fully operationalize its Digital SADC 2027 framework and the ICT component of the RIDMP to catalyse industrialization. In this context, the following issues must be taken into account in the industrialization process:
(i) Globalization, the ICT revolution and the competitiveness challenges have heightened the demand for modern communication systems. Modern industrial production and trade have become particularly ICT intensive and reliant. The SADC region should leverage on the opportunities presented by ICT to catalyse industrialization. By drawing on successful experiences elsewhere, SADC should strive to become an ICT manufacturing hub. The ICT sector should facilitate the development of capacity to manufacture electronic goods in the region in order to support the SADC electronic goods market and support decisions which are relevant to the region at international fora.
(ii) ICT has contributed immensely to the growth of the services sector in the region, and has great potential for raising the industry’s efficiency, quality, productivity and competitiveness.
(iii) In order for industrialization to become the most important engine of growth, development and catch up for developing countries in the 21st century, SADC needs to exploit ICT and promote regional ICT manufacturing (electronic goods), content and software development. This would enable a sustainable supply to the regional electronics market and will provide SADC with an opportunity to be an exporter of electronics goods to the continent and beyond.
(iv) ICT Research and Development (R&D) should be a crucial focus area to support industrialization and enhance linkages between R&D institutions and industry.
(v) The ICT sector is an important incubator for creating and protecting regional intellectual property and extending the frontiers of innovation.
(vi) E-strategies would need to be enhanced and internalized in public and private sector operations.
(vii) By drawing on successful experiences elsewhere, SADC should strive to become an ICT manufacturing hub.
(viii) By international standards, internet connectivity and mobile telephony costs in SADC are high and action is needed to reduce costs through targeted investment in ICT facilities including additional operators and competition within the sector.
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(ix) SADC should put in place measures to improve the supply and quality of ICT skills in the region.
Water Supply
Water and sanitation development and management are among the critical ingredients of industrial development. Industrialization and associated urbanization also have significant environmental spillovers. Water demand will rise exponentially in response to industrial expansion and the related increase in income levels, a problem that will be exacerbated, on the supply side, by climate change.
It is therefore important to fast track the implementation of the SADC Strategic Water Supply Infrastructure Development Programme (SWIDP) taking into account the provisions of the Climate Change Adaptation Strategy for the Water Sector.
B. Skills Development
Increased spending on formal academic education is a necessary, but not a sufficient condition for industrialization.
Education is pivotal and should be re-purposed to bridge the technology gap between the SADC region and its international competitors. A knowledge-based economy will require a high level of science, technology, engineering and mathematics (STEM) training.
To support industrialization, education systems would indeed need to be restructured and re-purposed with focus on technical and vocational skills of all kinds, especially those appropriate for a modern, knowledge economy.
All SADC Member States devote a substantial part of public spending to formal education. Despite this, all the countries have serious skills deficits, implying that education priorities need to be revisited with more resources made available for vocational training of all kinds, and especially those required in medium- and high-technology industries and occupations.
(i) Education system should be re-shaped to ensure that young people are trained – and re-trained – to meet the demands of modern business and public administration with specific focus on mathematics, science and technology disciplines, and innovation.
(ii) Tertiary education should be required to produce quality graduates in STEM disciplines.
(iii) Regional centres of excellence and specialization should be identified and strengthened and new ones established where appropriate.
(iv) Universities and other tertiary educational institutions should be encouraged to create close links with the business and industrial communities and the latter should be consulted on the curriculum design.
(v) Employers should be incentivized with tax breaks or outright subsidies to step up their in-house training programmes and support research and development.
(vi) Member States should facilitate the movement of factors of production – capital and skills - within the SADC region. To this effect, there is particular need for undertaking a skills audit at regional level and establishing mutually agreed accreditation frameworks as important elements of critical resource availability and enhancing productivity.
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C. Financing
To overcome the severe constraints imposed by the infrastructure and skills deficits, governments will need to re-order their public expenditure programmes to give greater priority to public and private investment in physical infrastructure and human capital development. In part, this will depend on the willingness of governments and electorates to embrace the paradigm of change in the form of a switch from consumption-led economic growth to investment-driven expansion.
3.4 Industrial Development
Frontloading industrialization should be a function of diversification – enterprises breaking into new industries, utilizing new processes and producing new and better quality products for domestic and foreign markets. Designing industrial policy within a regional integration context is a complex matter due to the economic diversity of the Member States, in terms of structure, endowments, size and approaches to regional policy. Regional industrial policy should not concentrate on the production and exchange of physical goods only. Services linked to industrialization are important constituents. However, the appropriateness of a regional industrial policy is judged by a number of parameters, notably:
• Effectiveness in addressing common and cross-cutting concerns; • Prospective insights through incorporating present and future challenges and opportunities; • Incorporation of industry-supporting micro and macroeconomic measures in an integrated
manner; • Equity in sharing gains and obligations; and • Demonstrated commitment by Member States to the development of common industrial
policies and strategies. Ultimately industrialization is a function of diversification – enterprises breaking into new industries, producing new and different products, using new and more sophisticated techniques. In the 21st century, market demand is growing more rapidly for sophisticated products than traditional ones – witness the explosive growth of the markets within SADC for mobile telephones and tablets. Entry into such industries will be difficult but there is enormous potential for SADC industry by exploiting a task manufacture approach and integrating into regional and global value chains.
Economic diversification is a discovery process dependent on close private-public sector collaboration.
Diversification policy should be founded on effective partnership with the enterprise sector to identify projects, products and processes that will broaden the industrial base and propel economies up the value addition and technology ladders. Member States should establish working parties drawn from the public and private sectors charged with identifying new products and processes that “fit” the country’s actual and nascent comparative advantage. In collaboration with the private sector policymakers should generate a list of industrial diversification projects, also identifying those for which there is potential to develop regional and global value chains.
New activities should satisfy four main criteria:
• Provide large-scale employment for largely unskilled workers exiting agriculture as
productivity rises in that sector;
• Have higher productivity than existing or shrinking sectors;
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• Policymakers should take note of the risks implicit in projects that are very advanced
technologically in terms of financial and human resources for a country at its current stage of development. Activities in which countries and firms have comparative and competitive advantage are more likely to succeed than those requiring a completely new set of competencies; and
• Projects should be economically and financially viable over the medium-term.
Much of industry in SADC, excluding South Africa, is engaged in producing basic goods for the consumer market. A central element of diversification strategies should be industrial restructuring with a thrust towards the manufacture of intermediate and capital goods, notably engineering, machine tools and high-tech production systems. Harmonization of such projects within the region is desirable to secure the necessary economies of scale while also building cross-border linkages in the supply of inputs.
Particular attention should be paid to task manufacture by way of participation in regional and global value chains. This is consistent with closer regional integration since membership of an FTA facilitates the development of regional value chains. It also provides opportunities for the smaller and less developed Member States to realise concrete benefits from SADC membership.
3.5 Potential Growth Paths Three mutually compatible growth paths are prioritized – agro-processing, minerals beneficiation and downstream processing and enhanced participation in value chains at the national, regional and global level. Traditionally there have been five main growth paths for emerging economies seeking to generate rapid output and employment growth while alleviating poverty and reducing income inequality: domestic demand-driven; agriculture-led; natural resource-led; export-led; and services-led. In the last 25 years, as part of the accelerating globalization process, a sixth option – value chain participation – has emerged. It is recognized that most of the pragmatic policy measures will be implemented at national not regional, level. Within SADC development context, and based on recent experiences regionally and globally, the Industrial Strategy identifies three clear-cut priorities for accelerated industrialization:
• Agriculture-led growth including agricultural value chains;
• Natural resource-led growth including minerals beneficiation and processing, also linking into value chains, both regional and global, and
• Enhanced participation in domestic, regional and global value chains. These three prioritized strategies are mutually compatible. Policymakers are not required to choose between them. Projects under all three can be implemented simultaneously, subject to their financial viability and their regional and/or global competitiveness. A. Agro-processing Increased agricultural productivity and higher quality products are central to the development of agro-industry and agriculture-based value chains. Accordingly, agricultural policies cannot be
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developed in isolation from the industrialization strategy. A vibrant agricultural sector will stimulate domestic and regional production of essential inputs – fertilizer, farm machinery, packaging and support services.
Productivity is lower – often very much lower - in agriculture than in other sectors. The majority of the population live in rural areas, unemployment, underemployment and poverty rates are higher than in the urban economy, while infrastructure falls far short of the levels necessary to support a thriving farm economy. There is therefore a strong case for a strategy of rural industrialization to locate agro-processing industries in rural areas, facilitate rural industrial clusters and make agriculture and agro-processing attractive professions and prospective businesses for the youth.
There is unlikely to be an industrial revolution in SADC without rapid, sustained productivity growth in agriculture.
(i) Productivity growth in agriculture should be vigorously promoted across the product range, including inputs, as proposed in SADC’s Regional Agricultural Policy as an integral component of industrial frontloading.
(ii) Value addition in agriculture and participation in agro-industry value chains is often inhibited by lack of standardised products, post-harvest losses, inadequate marketing and infrastructure facilities, and insufficient market information. To promote the growth of agro-industrial operations, these shortcomings must be urgently and coherently addressed.
(iii) Agro-industrial production processes and capacities require upgrading in terms of quality and the modernization of production systems to bring them in line with international standards.
B. Minerals Beneficiation and Downstream Processing
Resource production and per capita incomes in SADC are closely correlated. SADC countries should fully exploit comparative advantage in resource intensive industries through beneficiation and value addition, while also ensuring that the industrial base is upgraded and diversified by intensified downstream processing and business linkages. Resource production and per capita incomes in SADC are closely correlated. The share of resource output in GDP is highest in the poorer countries, underlining the necessity of adding value to primary resource production via minerals beneficiation and downstream value addition. …but beneficiation requires huge investments… and pertinent policies on resource exploitation, promotion of interlinkages and ploughing back natural resources rents, through establishment of Sovereign Wealth Funds.
(i) Major minerals beneficiation projects require huge investments but may also depend on cross-border co-operation in transport or energy infrastructure and input supply. SADC should facilitate cross border infrastructure investment necessary for the development of such projects.
(ii) SADC should negotiate with destination markets to promote “beneficiation at source” within the SADC region.
(iii) Policy for minerals beneficiation and downstream value addition should pay special
attention to the following four key aspects:
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(a) Policies specific to natural resource exploitation should be promoted, including the provision of resource-specific skills and infrastructure, the availability of inputs (fertilizer, engineering services), issues of ownership and land management and legislation covering exploration and exploitation.
(b) The promotion of linkages, including cross-border regional collaboration,
between firms, industries and sectors along the primary commodity processing value chain, including backward linkages for the supply of inputs;
(c) Revenue-optimization, including resource and profit taxation, the management of
volatile revenue flows, the avoidance of Dutch Disease currency overvaluation and environmental regulations and their implementation.
(d) The establishment of Sovereign Wealth Funds with the specific aim of capacity
building beyond the natural resource sector through the plough-back of mineral rents into infrastructure and human capital development, along with financing of downstream industrialization projects linked to a country’s natural resource endowment.
(iv) SADC countries should fully exploit comparative advantage in resource-intensive sectors
through beneficiation and value addition while taking cognizance of the need to transform the industrial base through intensified downstream processing and inter-linkages.
(v) Returns from enhanced mineral exports would need to be ploughed back into the modernization of the natural resources sector and leveraged to facilitate industrial deepening and diversification.
(vi) Regional co-operation in the exploitation of natural resources which often extend
beyond an individual country’s borders is essential, notably in the sharing of technology and skills, interlinked infrastructure services and input supply.
(vii) Assess the landscape on forward contracts in the minerals sector to assess the scope
and visibility of value addition and mineral beneficiation.
C. Value Chain Development
Value chain participation is a crucial element of the Industrialization Strategy because it has the potential to extend production possibilities and enable cross-border utilization of natural and human resources of the region.
Cross-border value chain development depends on a number of factors, including cheap and efficient transport and streamlined border logistics, as well as the eradication of “behind the border” obstacles to trade. Most importantly, policymakers should seek to ensure that SADC firms and industries can progress up the technology ladder to avoid being locked indefinitely into low-technology, low-wage “screwdriver” activities.
To this effect:
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(i) Policy should be value-chain specific. In close collaboration with industrialists and entrepreneurs, policymakers should identify the stage or stages of the value chain where enterprises are most competitive.
(ii) Policymakers need to ensure that a specific value-chain policy does not create losers in other industries or sectors of the economy. Policy should maximize national gains rather than those of a specific sector, industry or firm.
(iii) A potential trade-off is that between a low hanging fruits strategy of easy and quick gains via participation at the low technology, high-employment stage of the value chain and the path to subsequent upgrading into higher skill, greater value-addition activities.
(iv) Where value chains are buyer-dominated by foreign firms – such as major supermarket chains in agro-processing – the ability for small and medium SADC firms to upgrade and diversify may be severely circumscribed.
(v) Low road strategies may foster “race to the bottom” policies by enterprises in different countries without developing the capability for upgrading and diversification. Member States should substantially develop their capacities for the upgrading and diversification of value chains with the close involvement of firms and enterprises as set out in the SADC’s Industrial Upgrading and Modernization Programme (IUMP).
(vi) The value chain framework should help realize regional sectoral strategies for capital equipment development, intermediate input flows, and addressing regional commons such as environment and health issues. In particular, special attention should be paid to the development of pharmaceutical products.
(vii) Policy should be sequenced to ensure that there is an “exit strategy” from low road to high-technology activities.
(viii) SADC Member States need to redouble their efforts to tackle “behind the border” obstacles to intra-regional trade and regional value chain development. Such reforms are essential for ensuring competitiveness in national, regional and world markets, especially at a time when outsourcing is increasing rapidly.
(ix) SADC should develop model legislation and regulation for intra-SADC processing and value addition along with a protocol to ensure certainty, predictability, transparency and investor protection.
(x) Member States should establish appropriate mechanisms for consultations on the operationalization of regional value chains.
3.6 A Compact for Industrialization - The Role of the State and Engaging the Private
Sector
A. The Role of the State
Government’s central role is the creation of an enabling policy and regulatory environment for accelerated industrialization with a particular focus on tackling the binding constraints of infrastructure, skills development and financing.
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The role of the state is to facilitate the establishment and growth of firms and industries that will exploit a country’s comparative advantage. Modern industrial policy is predicated on an enhanced developmental role for the government. To this effect, industrial policy should be the central platform of national development strategy. The State should assume leadership functions in strategizing for long term inclusive and sustainable growth, by shaping economic structure, creating more jobs, reducing inequality, strengthening research and development and enhancing the overall productivity of the economy.
Government should also take the lead in building industrial infrastructure such as industrial parks to support cluster development, as well as invest in Research and Development for industrial development and innovation.
The principal developmental role of the state in industrialization include:
(i) Creation of an enabling regulatory policy and political environment for industrial development, within the context of the SADC Industrialization Strategy and Roadmap.
(ii) Adoption of trade and competition policies that simultaneously improve market access, restrain market power and create conditions for promotion of employment and industrial capacity.
(iii) Addressing the capability issues to deepen the local technological base and to develop and sustain innovation capacities. This entails significant government intervention and encouragement, technical education, skills development and productivity enhancers should be accorded highest priority.
(iv) Facilitating the financing of industrial projects.
(v) Strengthening the institutional capacity for industry and trade. Governments should have a fresh look at the policies and institutions fostering technological and organizational learning and adaptation as complementary processes.
(vi) Establishment of industrial sites and supporting industrial and geographic clustering.
(vii) Supporting Research and Development for industrial development and innovation
(viii) Promoting environmental sustainability by incorporating environmental principles (ecosystem protection, climate change adaptation and mitigation, green and blue economy) in industrial development and innovation.
B. The Role of the Private Sector
The private sector must be consulted and involved in implementing the Industrialization Strategy. Public-Private Partnerships are crucial in discovering and easing constraints on business and employment growth and in improving the climate for Doing Business and attracting investment.
Given the multi-faceted challenges of industrialization in the 21st century, a strong alliance between governments, the private sector and civil society is essential. The engine of progress will be the productive sector driven by entrepreneurial dynamics within the context of a developmental state.
(i) The private sector should be consulted and involved in the implementation of the SADC Industrial Strategy and Roadmap. Member States should adopt outreach programmes at
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national and regional levels to ensure private sector awareness of and participation in implementation of the Industrialization Strategy.
(ii) Governments should establish a platform for public-private dialogue on industrial policy and its implementation, whereby business leaders from Member States could participate in regional policy-making. Such an organization would not only have a vested interest in cross-border collaboration in infrastructure, skills development, value-addition and value-chain participation, but it would constitute a forum in which policy debates might translate into joint cross-border ventures. Government should also create incentives for inclusive business participation within a regional context.
(iii) The private sector should be involved in helping the state to eliminate obstacles to doing business, advising policymakers of the main problems they encounter in their day-to-day operations.
(iv) A deliberate, closely-monitored capacity-building programme should be developed for the
private sector to enhance entrepreneurial and managerial skills, thereby boosting productivity and competitiveness.
(v) Since private sector business associations in SADC are for the most part, weak and under-resourced, there is a strong case for creating and strengthening business associations at the regional level. National think tanks with research capability to stimulate and inform the private-public dialogue on policy issues of all kinds are critical. The roles envisaged for such institutions include monitoring the progress of industrialization across the SADC region, providing research inputs and advice to policymakers and the public and private sectors in Member States thereby ensuring that transformation and economic modernization are kept in the forefront of public awareness and debate.
(vi) Most SADC economies score poorly on Ease of Doing Business and Competitiveness indicators. Member States should use the annual reports and league tables for these two indicators as a basis for improving their rankings, by implementing reforms that are seen to be successful in competitor countries around the world. Member States may wish to establish their own benchmarking systems to monitor industry competitiveness and efficiency.
(vii) Undertake measures to ensure compliance with environmental principles, rules and regulations.
3.7 Mainstreaming Gender and Youth Issues Industrialization should hold more promise for women and youth. Women and youth participation in industrialization and structural transformation is an important ingredient of the Strategy.
(i) The long-term strategy should contain empowerment dimensions to widen the scope and quality of women and youth’s participation in the industrialization process, notably by improved access to finance, skills development and SME support programmes, and livelihood skills of women and youth, particularly in high value-adding industries in such
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areas as services, manufacturing, horticulture, transport, energy, agricultural and trade industries.
(ii) Youth unemployment and underemployment is a major challenge for SADC Member States which could be addressed through the development of youth economic empowerment and mentoring programmes.
(iii) The public and private sectors must increase their efforts to support youth innovation and entrepreneurship and create quality job opportunities for school-leavers and unemployed youth with a specific focus on ensuring that the education system is better tailored to meet the requirements of modern industry.
3.8 Strengthening Small and Medium Scale Enterprises
An integrated strategy for SME development focusing on increasing the small business survival rate via training programmes, access to information, financing, favourable fiscal policy environment and assistance in accessing modern technology is essential.
SMEs, a domain where the majority of women and youth are concentrated, make important contributions to the growth and development of the SADC countries in terms of output, employment, and the supply of consumer products and services. Almost all Member States have SME support initiatives and programmes in place, but they are largely ineffective in sustaining and promoting the sector. The failure and exit rates are generally high. Additionally, existing laws, policies and practices in accessing finance are not sufficiently geared towards making credit more easily accessible for women and youth. An SME strategy should therefore ameliorate these limitations.
Given the challenges facing the SME sector - operational capacity; limited management and entrepreneurial skills; lack of initiative to engage into sophisticated business endeavours; lack of bankable collateral; poor quality of products and services; lack of trade and industry related information; and poor planning – it is obvious that the SME sector requires substantial quantitative and qualitative interventions.
SADC countries need to put in place an integrated policy framework that will help refocus activities and target them to the broader goal of industrialization and transformation. The strategy should include the following:
(i) Clear policy focusing on graduation and greater sophistication of SMEs allied to their integration into the mainstream economy.
(ii) Addressing gender inequalities in access to credit, capital, land and other means of economic empowerment as specified in the SADC Gender Protocol and Policy.
(iii) A deliberate capacity development and upgrading programme: entrepreneurial and technical skills training, incubation and nurturing youth innovation, technological upgrading, study tours, skills development in such important areas as accounting, marketing and management. The formalized programme should establish accreditation levels that could permit small business mobility across SADC countries.
(iv) A procurement policy that gives priority to local SMEs, especially those owned by women and youth, without compromising quality.
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(v) Measures to foster linkages between large firms and SMEs especially in respect of inputs of goods and services.
(vi) Financing mechanisms more responsive to the needs and scale of operations of the SMEs going beyond short-term commercial bank or microfinance lending to the provision of medium and long-term funding.
(vii) Business support mechanisms should in particular support new SMEs with better technological readiness and export potential through the timeous provision of information on market opportunities at home and abroad.
(viii) Simplification of the fiscal and regulatory framework and the tailoring of specific incentives for SME development and growth.
(ix) Establish a database of the size and structure of the SME sector, including output, product range, employment and exports and a competitiveness observatory for the development of SMEs as provided in the IUMP.
3.9 Enhancing Competitiveness
In the hyper-competitive global economy of the 21st century, improved competitiveness at both national and enterprise levels is central to revitalising industrialization and rebuilding market share lost to foreign competitors, especially from Asia. Public-Private co-operation and dialogue will be an essential input into elevating competitiveness to the top of the economic policy agenda.
SADC countries face intense, growing competition across all products and markets and score poorly in global competitiveness league tables. Improved competitiveness will depend on enhanced macroeconomic policy design and implementation as well as the diversification of and improved quality of production, with greater sophistication at both process and product level and technological upgrading. Increased competitiveness is fundamental to the transformation of the SADC region from reliance on natural resource and low technology industries to medium-and-high technology production and exports. The Strategy recognizes the importance of national and cross-border clusters and specialized production and export zones, including industrial parks, as a means of promoting competitiveness and the development of regional value chains.
(i) Member States should put in place a range of far-reaching measures to enhance competitiveness at both the firm and national level, including investment in infrastructure, the development and increased mobility of skills, establishing and strengthening productivity and quality institutes and improved logistics.
(ii) A partnership for enhancing competitiveness requires close cooperation and dialogue between the public and private sectors.
(iii) A coherent strategy to enhance efficiency through targeted policies in respect of higher education, goods and labour market efficiency, financial market responsiveness, technological readiness and specific measures targeting the widening of markets for firms. To this effect, the macro-economic environment of firms and enterprises should be speedily and effectively improved through, in particular, removal of business constraints and greater participation in the national, regional and global value chains.
(iv) High levels of innovation and increased business sophistication are standout characteristics of highly advanced economies. Policies to boost investment in knowledge-
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based and high-technology industry should be crafted to close the technology and knowledge gap between SADC economies and their comparators, such as those in East and South Asia and Latin America.
(v) Recognizing that export success in the 21st century depends on quality, price, delivery efficiency and targeted marketing, policies for export expansion should focus on the supply of quality products and the upgrading of production processes. A conducive macroeconomic framework and active trade facilitation measures will greatly facilitate and underpin export-led growth.
(vi) Regional and international competitiveness is a function of product quality design, packaging and delivery. Bureaux of standards should be capacitated in terms of skills and finance to assist enterprises to raise product and service quality.
(vii) A SADC instrument to address quality issues is already in place in the form of the Standardization, Quality Assurance, Accreditation and Metrology (SQAM) programme which is under-resourced and should be strengthened.
(viii) SADC countries should elevate the role of competitiveness as a driver of economic progress in their development programmes.
3.10 Ensuring Environmental Sustainability (Green and Blue Economy) The SADC region should promote inclusive and sustainable industrialization by taking into account initiatives on the green and blue economy. A. The Green Economy The SADC region should implement the Regional Green Economy Strategy and Action Plan for Sustainable Development, which seeks to engender a major and sustainable economic and technological transformation that catalyses the socio-economic transformation of the SADC Region. The Strategy should aim to improve human wellbeing and economic growth over the long-term, while minimising the exposure of current and future generations to significant environmental risks and ecological scarcities and externalities. The main components of the Strategy should include:
(i) Adoption and promotion of production technologies, processes and practices that improve resource efficiency; promotes environmental sustainability; are low-carbon while resilient and adaptable to the effects of climate-change; and
(ii) Adoption and promotion of production, consumption and distribution patterns of goods
and services that maximises resource use efficiency while minimising wastage of resources and the production of process and industrial wastes.
B. The Blue Economy
e
,
SADC should exploit the enormous potential offered by its ocean resources under the Blue Economy Initiative in order to catalyze industrialization and economic transformation. Thopportunities under the Blue Economy Initiative include: fishing, shipping, recreation, marine security, renewable energy, oil and mineral exploration among others. To this effect:
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(i) The Blue Economy Initiative should be mainstreamed in developing infrastructure required to accelerate industrialization. In particular, investment in the development and upgrading of regional ports and maritime corridors which is crucial in facilitating viable shipping networks as instrumental enablers for participation in regional and global value chains.
(ii) The ocean resources should also be exploited in a sustainable manner in order to minimize the negative impact on the environment.
(iii) The sustainable development and growth of the ocean wealth should be supported by coherent planning, policies and regulatory frameworks.
3.11 Growth Scenarios and Timelines The Industrialization Strategy should be situated within a generational perspective straddling the years 2015 to 2063. During this period, SADC economies will overcome their binding development constraints and progressively move through the growth stages – from factor-driven to investment- and efficiency-driven and ultimately to the high growth trajectory driven by knowledge, innovation and business sophistication. SADC region will thus be fully transformed and become an important player in the continental and global landscape.
Given SADC’s limiting initial development conditions, particularly in the realm of production and factor productivity as well as poor competitiveness rankings, a generational perspective, running from 2015 to 2063, would help the countries achieve their long development goals and regional convergence. The main thrust of the scenarios is to graduate SADC countries from factor driven to investment driven and ultimately innovation high development stage in line with competitiveness stages. Accordingly, three cascading growth scenarios are in order.
1. Phase I: Years 2015-2020.
2. Phase II: Years 2021-2050.
3. Phase III: Years 2051-2063.
The first phase covers the remaining period of the RISDP until 2020. The second phase, covering 30 years, constitutes a period of heavy lifting development and establishing strong momentum for competitiveness. The final and third phase, covering 13 years, builds up for the convergence with the African Union long term Agenda 2063 and crossing into a fully developed country stage.
Phase I: Years 2015-2020
This phase, which coincides with the implementation of the revised RISDP (2015-2020), should be predicated on the consolidation and achievement of the remaining agenda and laying down firm foundations for long term development. The target instruments and prime movers of the phase should incorporate the following elements:
(i) A growth strategy, based on the transformation of the production base and social equity.
(ii) Enhanced guided efforts to raise the quality of human capital and labour productivity.
(iii) Deepening regional integration and cooperation.
(iv) The articulation of a new generation SADC Vision 2020-2050, premised on advanced competitiveness and self-sustaining economic development.
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During this phase SADC countries should target per capita income growth of about 6 percent annually to achieve the lower income band of the factor-driven stage of US$ 2000.
Phase II: Years 2021-2050
The Phase II scenario should be elaborated as a continuum to Phase I. During this period, the economy would move from factor-driven to efficiency-driven. It should focus on diversification and productivity of factors and sectors and competitiveness in close partnership between the government and the private sector, both domestic and foreign. To achieve the targeted GDP per capita of US$ 9000 by 2050 would entail aiming at a per capita growth rate of 8 per cent annually from 2020 onwards.
Phase III: Years 2051-2063
During this phase, the economy would further transform, with its strength based on high levels of innovation and business sophistication. To achieve that status, GDP per capita would need to rise from US$ 9000 in 2050 to US$ 17000 by 2063, implying annual income growth of about 5 per cent. This will necessitate an increased focus and investment on frontier knowledge, development of unique skills, stimulating and nurturing innovation, sponsoring competitive enterprises and deepening the entrepreneurial culture.
The three phases could appropriately be cast in a series of medium term plans, cascading into a consistent whole.
3.12 Investment Planning The long-term investment planning to support the three phases should take into consideration the following dimensions:
(i) Implementation of the Strategy is primarily the responsibility of each Member State.
(ii) Development of the regional infrastructure networks (roads, rail, research institutions, etc.) is a shared responsibility.
(iii) Development of regional value chains (RVCs) and industrial clusters are a joint
responsibility for governments and the private sector, supported by national and regional banks.
(iv) Prioritization of projects should be based on their national and/ or regional strategic
importance (e.g. mineral beneficiation), their regional interdependence (e.g. those based on inputs to the regional economy such as manufacturing, agriculture and construction), value addition and employment generation potential.
(v) A formula for sharing costs (including risks) and returns should be agreed on.
(vi) Lagging areas should receive particular attention. 3.13 Mobilizing Financial Resources for the Industrialization Strategy In a catch-up regional economy, Member States must increase both savings and investment as shares of GDP to the levels achieved by Asian comparators. There will be no SADC industrial revolution without
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substantially higher investment in infrastructure, upgrading and diversifying the capital stock and the provision of the high-technology skills necessary in modern industry.
Existing savings and investment levels in the SADC region fall well short of what will be needed to drive structural transformation, economic diversification and poverty reduction. Given the present and likely future state of the global economy, SADC countries cannot afford to rely on foreign savings to make good shortfalls in domestic savings.
In a catch-up regional economy, investment levels in the region of 30 percent of GDP will be required which will not be achieved without increased domestic savings. Member States should seek to increase their savings and investment rates to the levels of their comparators and governments will therefore need to widen the spectrum of pro-savings policies, including the establishment of sovereign wealth funds where appropriate, to close the savings gap and target quality FDI, the attraction of remittance income and funding from international development partners.
The requisite resources could be mobilized from both domestic and external sources:
A. Domestic Sources Eight main domestic sources could be tapped:
(a) The internal fiscal system: Taxation
(b) The financial sector
(c) Capital markets
(d) Private equity funds
(e) Public-private partnerships
(f) SADC Regional Development Fund
(g) Sovereign Wealth Funds
(h) Remittances
(i) Institutional savings including Pension Funds
Exploiting the potential of these sources will require deepened financial sector reforms, innovative mechanisms and effective frameworks to maximize and sustain the high level of resources necessary for industrialization. There is a role for Sovereign Wealth Funds in resource-rich economies to ensure that mineral, oil and gas rents are not repatriated or spent domestically on consumption, but mobilized and used to fund investment in infrastructure, skills and industrial projects.
(i) Existing financial and monetary reforms should be strengthened and deepened with an enhanced focus on finance for industrial development including improved access for SMEs.
(ii) Capital markets should be deepened with a specific focus on the provision of medium- and long-term resources for industry, including the use of innovative financing vehicles and institutional savings, such as pension funds.
25
36
(iii) Stock markets should extend the number of companies listed by easing access rules for
medium-sized firms and by expanding their new capital-raising operations.
(iv) Closer links between SADC stock exchanges should be encouraged with the medium-term aim of creating a regional stock exchange.
(v) Private equity firms should be encouraged and enabled to extend their investment portfolios through investing in areas such as SMEs and agro-businesses.
(vi) Remittances frameworks, with clear transfer and incentive mechanisms, should be developed to facilitate the mobilization of significant Diaspora savings.
(vii) Public-private partnerships, including foreign participation, could be used to significantly leverage implementation of major infrastructure and industrialization projects.
(viii) Sovereign wealth funds should be used by resource-rich SADC states to foster diversification of the economy into manufacturing and services via the transfer of resources from resource-depleting industries thereby reducing long-run reliance on foreign funding.
(ix) A well-resourced Regional Development Fund is a pre-requisite for accelerated regional
industrialization. The planned SADC Regional Development Fund should be urgently operationalized as a regional development bank with the capacity to attract international funding.
B. External Resources
Domestic resources can be significantly complemented by external funding.
(i) Foreign aid including technical assistance should be geared to frontloading industrialization and generally supporting regional priorities.
(ii) To ensure effectiveness and accountability, foreign assistance should be closely monitored and evaluated by donors and beneficiaries alike.
(iii) FDI plays a crucial role in the transfer of technology and in the development of regional and global value chains. To increase FDI, SADC countries should substantially improve their business environment, making the regional space more attractive for foreign investors
(iv) Competitiveness imperatives dictate that countries should be highly capital selective.
(v) Intra-SADC FDI is already playing a significant role in financing cross-border projects. Capital controls at national level should be simplified to boost such transactions and ensure repatriation of interest, dividends and capital.
26
4. CO-ORDINATION, IMPLEMENTATION AND MONITORING
A. Co-ordination and Interface
The numerous activities implicit in this Strategy will need close co-ordination by the Member States who will be responsible for the implementation of most of the recommendations. There will also be a key role for the SADC Secretariat in the co-ordination of projects and programmes. A Roadmap for the implementation of the Industrialization Strategy is set out below. While the Roadmap outlines the main areas for intervention and action in accordance with the strategic thrust of the Industrialization Strategy, Member States with the support of the Secretariat will develop a detailed and costed action plan. B. Implementation and Monitoring
Implementation of the Industrialization Strategy within the context of regional integration and competitiveness should be seen as a great challenge to the governments and citizens of the SADC region and their development partners. The Strategy should be implemented as a system of progressive development and transformation. The effectiveness and speed with which the targets are reached will naturally depend on the quality of the efforts deployed. Evaluation of all components, enablers and drivers of the Strategy should be subject to regular monitoring and reporting. C. Role of the SADC Secretariat
Frontloading industrialization in SADC implies a greater role for the SADC Secretariat in co-ordinating and harmonizing industrial policy initiatives. At present industrial development in SADC is one of the responsibilities of the Trade, Industry, Finance and Investment Directorate in the Secretariat. Given the fact that industrialization has been elevated to the top of the SADC policy agenda, it is necessary to reflect this in the administrative structure.
Accordingly, it is recommended that capacity of the Secretariat is strengthened in the context of the revised organizational structure that will be aligned to RISDP.
SADC needs a voice in the form of published research and policy reports such as the Asian Economic Integration Monitor published by the Asian Development Bank. Such a publication would raise SADC’s profile globally, as well as regionally, enabling it to inform citizens, companies, markets and governments of the progress of SADC regional integration.
27
38
5. CONCLUSIONS The SADC Industrialization Strategy has been articulated as a long-term project of economic and societal transformation. The envisaged three phases straddling the period from 2015 to 2063 correspond to the main vision frameworks of SADC and ultimately that of the African Union Agenda 2063. The associated goals and targets permeate all phases although the policy emphasis and interventions are tailored to meet the challenges to be met over time. Throughout, the challenges of speedy and broad-based industrial development are addressed within the context of elevated competitiveness and deeper regional integration. This interdependence will enable swift catching up of SADC countries and ensure the realisation of progressively higher rewards in income, employment and broader social wellbeing.
28
THE ROADMAP
40
THE INDUSTRIALIZATION STRATEGY ROADMAP
The Roadmap outlines the salient areas of interventions, content, objectives, outcomes and responsibilities of main actors (Member States, government, private sector, Development Partners) as well as the sources of funding within the context of a generational industrial development strategy straddling the period 2015 to 2063 for SADC countries to be fully developed and to ultimately converge with the African Union Agenda 2063. The Strategy, developed as a continuum, is built around three cascading growth scenarios that would enable SADC countries to progress from factor-driven to investment-driven economies and thereafter to the high-development innovation stage associated with present developed countries. By then, SADC countries would boast of a deserved status of a fully transformed economy with state-of-art economic setups, frontier competitiveness levels and high income and employment standings.
Phase I covers the remaining period of the RISDP – 2015 to 2020 and constitutes a period of active frontloading of Priority A and related Priority B components on infrastructure and services support into the Industrialization Strategy, together with initiation or continuation of interventions to strengthen integration and competitiveness. A per capita growth rate of about 6 percent annually should be targeted.
Phase II covers the period 2021 to 2050 and would witness the transformation of SADC economies from factor-driven to investment and efficiency-driven stage, and thereby constitutes a period of heavy-lifting interventions. The focus will be on diversification and enhancing productivity and competitiveness. For the countries to converge on lower middle income status, the region should aim to raise GDP per capita to about 8 percent per annum.
In the final Phase III (2051 – 2063), SADC economies would move into the innovation-driven stage, characterized by advanced technologies and increased business sophistication. To reach the lower band of income levels of this stage per capita income would need to further increase by about 5 percent annually through to 2063.
In the Roadmap, interventions covering the period 2015-2063 are outlined within medium and long-term perspectives, organised along the lines of the strategic thrust of the three core strategic pillars – namely:
1. Industrialization
2. Competitiveness
3. Regional Integration
It is understood that the various intervention areas of the Roadmap have different gestation periods. It is also understood that there is going to be structural shifts in the same area of intervention as economies move from one stage of development to the other. The Strategy and the Roadmap are articulated to take on board these transformational shifts in a consistent manner nationally and regionally. The total import of the phased interventions is to ensure coherence and efficiency of the resources so deployed.
The Roadmap covers both Priority A and some supporting elements of Priority B of the RISDP of import to industrialization. The Roadmap revisits the timelines of Priority A and provides confirmation of proposed dates or suggested new dates. Some interventions are continuous, going beyond 2020. The Roadmap is to be populated by Member States and the SADC Secretariat in consultation with the private sector and the Development Partners.
30
41
TH
E IN
DU
STR
IALI
ZA
TIO
N S
TR
AT
EG
Y R
OA
DM
AP
(20
15-2
063)
No
Pol
icy
Are
a
Cha
lleng
es
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t
Out
com
es /
outp
uts
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
In
dust
rial
izat
ion
1.
Key
dri
vers
of
in
dust
rial
izat
ion
• Lo
w p
rodu
ctiv
ity
• Li
mite
d di
vers
ifica
tion
• C
onst
rain
ed fa
ctor
in
puts
•
Lim
ited
regi
onal
and
gl
obal
val
ue c
hain
s •
Lim
ited
supp
ort
infr
astr
uctu
re
• Li
mite
d le
gal a
nd
inst
itutio
nal c
apac
ity fo
r fo
rmul
atin
g,
impl
emen
ting
and
enfo
rcin
g In
telle
ctua
l Pr
oper
ty R
ight
s (IP
Rs)
•
Lim
ited
com
plia
nce
with
in
tern
atio
nal
envi
ronm
enta
l pr
inci
ples
and
pra
ctic
es
• Li
mite
d e
ngag
emen
t of
w
omen
in n
atio
nal a
nd
regi
onal
val
ue c
hain
s
• Int
ensi
ve m
oder
niza
tion
of
indu
stry
and
sup
port
st
ruct
ures
• I
mpr
ove
reso
urce
use
ef
ficie
ncy
(e.g
. ene
rgy,
wat
er,
raw
mat
eria
ls)
• Tec
hnol
ogy
deve
lopm
ent,
acqu
isiti
on a
nd d
iffus
ion
• Upg
rade
sci
ence
, te
chno
logy
, eng
inee
ring
and
re
sear
ch c
apab
ilitie
s
• Ski
lls d
evel
opm
ent
• I
nstit
utio
nal r
efor
ms
• Mac
ro-e
cono
mic
pol
icy
for
indu
stri
al d
evel
opm
ent
• Sel
ectiv
e an
d ta
rget
ed
inve
stm
ents
• S
tren
gthe
n se
rvic
es
infr
astr
uctu
re
• Bui
ld le
gal a
nd in
stitu
tiona
l ca
paci
ty fo
r fo
rmul
atin
g,
impl
emen
ting
and
enfo
rcin
g In
telle
ctua
l Pro
pert
y R
ight
s (IP
Rs)
• I
dent
ify e
xist
ing
prod
uctiv
e ca
paci
ty in
pri
ority
sec
tors
• U
nder
take
val
ue c
hain
m
appi
ng
• Eng
age
the
priv
ate
sect
or a
nd
Dev
elop
men
t Fi
nanc
e In
stitu
tions
• I
dent
ify s
peci
fic c
halle
nges
af
fect
ing
viab
ility
of r
egio
nal
valu
e ch
ains
• I
dent
ify “
behi
nd t
he b
orde
r”
• Im
prov
e SA
DC
in
dust
rial
co
mpe
titiv
enes
s an
d re
sour
ce u
se
effic
ienc
y
• D
iver
sify
SA
DC
in
dust
rial
bas
e •
Use
IPR
s to
en
cour
age
R&
D,
inno
vatio
n an
d ne
w
prod
uct
deve
lopm
ent.
• Det
aile
d na
tiona
l pr
ogra
mm
es
• Det
aile
d re
gion
al
prog
ram
mes
• P
artn
ersh
ips
(Pub
lic-
Priv
ate-
Fore
ign)
• D
etai
led
and
gend
er-
sens
itive
nat
iona
l an
d re
gion
al
prog
ram
mes
to
war
ds in
dust
ry
• Nat
iona
l sys
tem
s of
in
nova
tion-
id
entif
ying
way
s to
em
pow
er w
omen
in
indu
stry
• In
crea
sing
indu
stri
al
capa
bilit
ies
•
Hig
her
inve
stm
ents
•
Reg
iona
l int
er-
depe
nden
ce
• C
reat
ion
of
regi
onal
val
ue
chai
ns
• In
tegr
atio
n in
to
Glo
bal V
alue
C
hain
s (G
VC
s)
• D
evel
opm
ent
of
supp
ort
infr
astr
uctu
re
(phy
sica
l and
se
rvic
es)
that
are
re
silie
nt t
o cl
imat
e ch
ange
•
Prom
otio
n of
R&
D,
inno
vatio
n an
d ne
w
prod
uct
deve
lopm
ent
and
valu
e ad
ditio
n •
Prom
ote
was
te r
e-us
e, r
ecyc
ling
and
was
te m
inim
izat
ion
• In
corp
orat
ion
of t
he
gend
er d
imen
sion
in
regi
onal
val
ue c
hain
cr
eatio
n.
• C
ompa
tible
na
tiona
l ind
ustr
ial
stra
tegi
es
deve
lope
d
• Im
prov
ed
tech
nolo
gica
l pr
epar
edne
ss
• In
crea
sed
skill
ed
labo
ur fo
r in
dust
ries
•
Impr
oved
in
dust
rial
pe
rfor
man
ce
• Im
prov
ed
perf
orm
ance
of
inst
itutio
ns
supp
ortin
g in
dust
ry
• In
crea
sed
inve
stm
ents
in
indu
stry
•
Impr
oved
and
su
stai
nabl
e m
acro
-ec
onom
ic
envi
ronm
ent
• N
ew p
rodu
cts
deve
lope
d •
Impr
oved
res
ourc
e us
e ef
ficie
ncy
• In
crea
sed
part
icip
atio
n of
sk
illed
wom
en i
n in
dust
ry.
• No.
of M
embe
r St
ates
with
co
mpa
tible
na
tiona
l in
dust
rial
izat
ion
stra
tegi
es
• Lev
el o
f te
chno
logi
cal
prep
ared
ness
• N
o. o
f ski
lled
empl
oyee
s in
in
dust
rial
sec
tor
• Gro
wth
rat
e of
fir
ms’
out
put
• Lev
els
of
inst
itutio
nal
perf
orm
ance
•
Leve
ls o
f in
vest
men
t in
in
dust
ry
• Le
vels
of G
DP,
em
ploy
men
t, FD
I, et
c • S
hare
of i
ndus
try
in G
DP
• No.
of s
ecto
rs
dive
rsifi
ed
• N
o. o
f in
nova
tive
prod
ucts
de
velo
ped
• Gui
delin
es t
o pr
omot
e ef
ficie
ncy
and
clea
n pr
oduc
tion
• M
embe
r St
ates
•
Priv
ate
Sect
or
• SA
DC
Se
cret
aria
t
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
31
42
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
2.
Indu
stri
al
Dev
elop
men
t Po
licy
Fram
ewor
k (ID
PF)
• La
ck o
f coo
rdin
atio
n in
in
dust
rial
sec
tor
• In
adeq
uate
and
clim
ate
chan
ge s
usce
ptib
le
infr
astr
uctu
re fo
r in
dust
ry
• Li
mite
d hu
man
cap
acity
an
d us
e of
tec
hnol
ogy
• N
egle
ct o
f SM
Es,
part
icul
arly
wom
en’s
in
volv
emen
t in
en
terp
rise
s
• En
hanc
e se
ctor
al
inte
rdep
ende
nce
• W
iden
the
sco
pe o
f in
dust
rial
sup
port
to
incl
ude
SMEs
in p
artic
ular
reg
ardi
ng
wom
en e
nter
pris
es.
• Im
prov
e pr
oduc
t an
d se
rvic
e qu
ality
for
com
petit
iven
ess
that
pro
mot
e re
sour
ce u
se
effic
ienc
y
• St
art
Dat
e : 2
016
• C
onti
nues
• En
hanc
e co
oper
atio
n,
forw
ard
and
back
war
d lin
kage
s ac
ross
in
dust
rial
sec
tors
•
Build
a d
iver
sifie
d,
equi
tabl
e,
inno
vativ
e an
d gl
obal
ly
com
petit
ive
indu
stri
al b
ase
• Em
pow
er w
omen
an
d yo
uth
in
ente
rpri
se
deve
lopm
ent
• In
dust
rial
Upg
radi
ng
and
Mod
erni
zatio
n Pr
ogra
mm
e (IU
MP)
•
Infr
astr
uctu
re
deve
lopm
ent
prog
ram
mes
•
Proc
ess
and
Prod
uct
qual
ity
enha
ncem
ent
• Sp
ecifi
c pr
ogra
mm
es
targ
eted
at
the
wom
en’s
nee
ds a
nd
chal
leng
es in
the
se
ctor
• En
hanc
ed in
dust
rial
pe
rfor
man
ce
• Nat
iona
l ind
ustr
ial
polic
ies
alig
ned
with
IDPF
and
im
plem
ente
d • I
mpr
oved
in
dust
rial
cap
acity
fo
r va
lue
addi
tion
and
bene
ficia
tion
• Inc
reas
ed t
rade
, em
ploy
men
t an
d fo
reig
n ex
chan
ge
earn
ings
• I
ndus
tria
l co
oper
atio
n en
hanc
ed
• Gen
der
mai
nstr
eam
ing
of
Nat
iona
l Ind
ustr
ial
Polic
ies
alig
ned
with
SA
DC
’s
• N
o. o
f Mem
ber
Stat
es a
ligni
ng a
nd
impl
emen
ting
thei
r na
tiona
l pol
icie
s w
ith ID
PF
• Im
prov
ed r
egio
nal
indu
stri
al
perf
orm
ance
•
Con
trib
utio
n of
in
dust
ry t
o G
DP
• Le
vel o
f for
eign
ex
chan
ge e
arni
ngs
• In
crea
sed
com
petit
iven
ess
incl
udin
g th
at o
f ge
nder
ent
erpr
ises
. •
No.
of c
oope
ratio
n ag
reem
ents
•
• M
embe
r St
ates
•
Priv
ate
sect
or
• M
embe
r St
ates
•
Inno
vativ
e fin
anci
ng
sour
ces
• Eq
uity
fin
anci
ng
issu
es
• Ide
ntify
infr
astr
uctu
re
requ
irem
ents
to
mak
e re
gion
al v
alue
cha
ins
viab
le
and
use
RID
MP
to a
ddre
ss
thos
e re
quir
emen
ts
• Pro
vidi
ng in
term
edia
ries
su
ppor
t an
d ca
paci
ty
deve
lopm
ent
for
wom
en in
in
dust
ries
, SM
Es-
agri
cultu
re
and
extr
activ
es
• Dev
elop
ing
the
ICT
ski
lls o
f w
omen
in e
nter
pris
e • T
arge
ted
inve
stm
ents
of
wom
en in
ST
EMs
educ
atio
n
• Rea
chin
g ge
nder
pa
rity
in s
kille
d an
d se
mi-s
kille
d w
orkf
orce
em
ploy
ed in
the
in
dust
rial
se
ctor
s of
m
embe
r st
ates
32
43
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
gend
er p
roto
col
3.
Agr
o-
proc
essi
ng
• Low
pro
duct
ivity
• L
ow v
alue
add
ition
• I
nade
quat
e na
tiona
l in
fras
truc
ture
to
supp
ort
agri
cultu
re,
whi
ch c
ontr
ibut
es t
o po
or r
egio
nal m
arke
t pe
netr
atio
n • P
oor
farm
sup
port
sy
stem
s • P
oor
natu
ral r
esou
rces
m
anag
emen
t • P
oor
land
-use
m
anag
emen
t • I
nade
quat
e qu
ality
co
ntro
ls
• Lim
ited
acce
ss t
o im
prov
ed in
puts
(bi
o-te
ch, f
ertil
izer
s)
• Soi
l deg
rada
tion
• Poo
r lin
ks w
ith in
dust
ry
• Dev
asta
ting
impa
ct o
f cl
imat
e va
riab
ility
and
ch
ange
• A
ddre
ssin
g ge
nder
di
spar
ities
in t
erm
s of
ac
cess
to
reso
urce
s in
ag
ricu
lture
and
m
anuf
actu
ring
, acr
oss
the
tota
l val
ue c
hain
• Inf
usio
n of
adv
ance
d te
chno
logy
• A
dvan
ced
agri
cultu
ral
rese
arch
tha
t in
crea
se
resi
lienc
e an
d ad
apta
tion
to
clim
ate
chan
ge
• Im
prov
e na
tiona
l in
fras
truc
ture
to
supp
ort
agri
cultu
re a
nd fa
cilit
ate
mar
ketin
g • C
omm
erci
aliz
atio
n of
ag
ricu
lture
• D
evel
op a
gro-
indu
stri
al
clus
ters
• P
rom
ote
agri
-bus
ines
s • F
acili
tate
acc
ess
to fi
nanc
e,
espe
cial
ly fo
r sm
all s
cale
fe
mal
e an
d yo
ung
farm
ers
• Sup
port
sm
all-h
olde
r fa
rmin
g to
cre
ate
mor
e qu
ality
em
ploy
men
t • P
rom
otio
n of
wom
en a
nd
yout
h in
agr
i-bus
ines
s • B
uild
ing
capa
city
for
coop
erat
ives
to
enha
nce
wom
en a
nd y
outh
’s
oppo
rtun
ities
in a
gro-
food
pr
oces
sing
• I
mpr
ovin
g w
omen
and
yo
uth’
s ac
cess
to
fact
or
inpu
ts t
o en
hanc
e ef
fect
ive
part
icip
atio
n in
agr
o-
• T
rans
form
ag
ricu
ltura
l sec
tor
• Im
prov
e ag
ricu
ltura
l m
arke
t in
fras
truc
ture
•
Tra
in c
ritic
al m
ass
of a
gric
ultu
ral
entr
epre
neur
s •
Mak
e ag
ricu
lture
vi
able
with
in t
he
coun
try
• Pr
ovid
e co
nduc
ive
wor
king
en
viro
nmen
t an
d co
nditi
ons
for
agri
cultu
re
• Pr
omot
e re
sear
ch
on c
limat
e re
silie
nt
agri
cultu
ral i
nput
s •
Red
ress
ing
gend
er
ineq
ualit
ies
and
econ
omic
ally
em
pow
erin
g w
omen
and
you
th
in a
gri-b
usin
ess
• Pr
ovid
ing
wom
en
and
yout
h w
ith
enab
lers
to
effe
ctiv
ely
enga
ge
in a
gric
ultu
re v
alue
ch
ains
• IU
MP
• N
atio
nal p
roje
cts
• G
ende
r-se
nsiti
ve
natio
nal p
roje
cts
• T
arge
ted
prog
ram
mes
suc
h as
ext
ensi
on a
nd
trai
ning
ser
vice
s fo
r w
omen
you
ng
farm
ers
and
wom
en
and
yout
h in
agr
i-bu
sine
ss
• M
oder
niza
tion
of
agri
cultu
re
• Pr
omot
ion
of
forw
ard
and
back
war
d lin
kage
s •
Com
mer
cial
izat
ion
of
agri
cultu
re
• Pr
omot
ion
of w
aste
m
inim
izat
ion,
reu
se
and
recy
clin
g in
ag
ricu
lture
•
Prom
otio
n of
su
stai
nabl
e la
nd u
se
and
land
ten
ure
secu
rity
•
Gen
der
equa
lity
in
term
s of
acc
ess
to
reso
urce
s •
Prom
otio
n of
wom
en
and
yout
h’s
inte
rest
s an
d el
imin
atio
n of
co
nstr
aint
s to
ef
fect
ivel
y pa
rtic
ipat
e in
the
agr
o-pr
oces
sing
ent
erpr
ise
• Im
prov
ed
agri
cultu
ral
perf
orm
ance
•
Incr
ease
d cl
imat
e re
silie
nt a
gro-
indu
stri
es
• A
gric
ultu
ral
perf
orm
ance
leve
ls
• N
o. o
f hig
hly
skill
ed jo
bs
crea
ted
• N
o of
agr
o-in
dust
ries
•
Incr
ease
d bu
sine
ss
owne
rshi
p by
w
omen
in t
he
agro
-pro
cess
ing
indu
stry
• M
embe
r St
ates
• P
riva
te s
ecto
r
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
33
44
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
proc
essi
ng
• Pro
vidi
ng m
arke
t ac
cess
to
wom
en a
nd y
oung
farm
ers
• Sta
rt D
ate:
201
5 • C
onti
nues
4.
Agr
icul
tura
l V
alue
Cha
ins
• Ina
dequ
ate
intr
a-A
fric
an
trad
e in
val
ue-a
dded
ag
ricu
ltura
l pro
duct
s • I
nade
quat
e im
plem
enta
tion
of
qual
ity s
tand
ards
• I
nade
quat
e da
ta o
n ag
ricu
lture
• N
o la
nd r
ight
s • I
ssue
s of
acc
ess
to
capi
tal a
nd t
echn
olog
y
• Im
prov
e m
arke
t in
fras
truc
ture
•
Impr
ove
acce
ss t
o in
puts
and
fe
rtili
zers
•
Impr
ove
info
rmat
ion
flow
s •
Ana
lyse
val
ue c
hain
•
Prov
ide
infr
astr
uctu
re fo
r po
st-h
arve
st h
andl
ing
• D
evel
op d
ata
colle
ctio
n in
stru
men
ts
• Im
prov
ing
wom
en’s
pa
rtic
ipat
ion
in a
ll se
ctio
ns
alon
g th
e ag
ricu
lture
val
ue
chai
ns
• U
psca
le w
omen
in a
gric
ultu
re
from
sub
sist
ence
to
com
mer
cial
•
Star
t D
ate:
201
5 •
Con
tinu
es
• In
crea
se r
ange
of
agri
cultu
ral
prod
ucts
•
Enha
nce
agri
cultu
ral
sect
or
prod
uctiv
ity
• Pr
omot
e ag
ricu
ltura
l val
ue
chai
ns o
f hig
h em
ploy
men
t an
d ex
port
pot
entia
l •
Enco
urag
ing
the
wid
er p
artic
ipat
ion
of m
argi
nalis
ed
grou
ps p
artic
ular
ly
wom
en a
nd y
outh
•
Build
ing
mar
ket
infr
astr
uctu
re a
nd
acce
ss t
ailo
red
to
wom
en a
nd y
outh
’s
need
s
• IU
MP
• N
atio
nal
prog
ram
mes
&
proj
ects
•
Nat
iona
l pr
ogra
mm
es
targ
eted
at
wom
en
in r
ural
co
mm
uniti
es a
bove
fa
rmin
g liv
elih
oods
• D
evel
opm
ent
of
agri
cultu
ral v
alue
ch
ains
with
pos
itive
di
rect
and
indi
rect
sp
ill-o
vers
in
inco
me,
em
ploy
men
t an
d ex
port
• In
crea
sed
intr
a-A
fric
an t
rade
in
valu
e-ad
ded
agri
cultu
ral
prod
ucts
•
Wid
er r
ange
of
agro
-bas
ed
prod
ucts
• I
ncre
ased
ag
ricu
lture
val
ue
chai
n co
ntri
butio
n in
th
e ec
onom
y • W
ider
par
ticip
atio
n by
wom
en a
long
th
e va
lue
chai
n.
• Le
vel o
f int
ra-
Afr
ican
tra
de in
va
lue-
adde
d ag
ricu
ltura
l pr
oduc
ts
• N
o. o
f agr
o-ba
sed
prod
ucts
•
Incr
easi
ng
wom
en’s
sha
re in
in
tra-
SA
DC
tr
ade.
• Mem
ber
Stat
es
• Pri
vate
sec
tor
• SA
DC
Se
cret
aria
t • I
nter
natio
nal
Age
ncie
s • U
N S
yste
m
• M
embe
r St
ates
•
Firm
s’
inve
stm
ents
•
Dev
elop
men
t Pa
rtne
rs
34
45
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
5.
M
iner
als
bene
ficia
tion
and
valu
e ad
ditio
n
• Ina
dequ
ate
skill
s • F
inan
cing
nee
ds
• Lim
ited
back
war
d lin
kage
s • L
imite
d in
fras
truc
ture
•
Inad
equa
te/u
nrel
iabl
e
supp
ly a
nd h
igh
cost
of
ener
gy
• Agr
eem
ents
with
min
ing
com
pani
es
• Env
iron
men
tal
sust
aina
bilit
y • T
echn
olog
ical
ob
sole
scen
ce
• Su
b-op
timal
use
of
exis
ting
asse
ts
• In
adeq
uate
reg
ulat
ory
arra
ngem
ents
on
min
eral
be
nefic
iatio
n •
Inad
equa
te/la
ck o
f dat
a on
de
posi
ts, q
ualit
y an
d si
ze
of m
etal
lic a
nd n
on-
met
allic
min
eral
re
sour
ces
•
Inef
ficie
nt u
tiliz
atio
n of
re
sour
ces
(wat
er a
nd
ener
gy)
•
Hig
h in
put
cost
s •
Inte
grat
ing
the
ASM
sub
-se
ctor
to
form
al m
inin
g va
lue
chai
n •
Add
ress
ing
criti
cal
cons
trai
nts
that
lim
its t
he
dire
ct c
ontr
ibut
ion
of
wom
en in
the
ASM
val
ue
chai
n •
Lim
ited
supp
ort
stru
ctur
es fo
r w
omen
in
ASM
to
effe
ctiv
ely
enga
ge
in t
he d
iffer
ent
aspe
cts
with
in t
he v
alue
cha
in
• Pro
file
the
min
eral
sec
tor
• T
ake
stoc
k of
exi
stin
g fe
asib
ility
stu
dies
in m
iner
als
sect
or a
nd u
nder
take
ne
w/u
pdat
ing
stud
ies
• Pro
mot
e an
d su
ppor
t w
omen
and
you
ng s
mal
l-sc
ale
min
ers
• Pro
vide
ski
lls t
rain
ing
and
incu
batio
n • P
rior
itize
min
eral
s be
nefic
iatio
n an
d va
lue
addi
tion
• Dev
elop
indu
stri
al c
lust
ers
• Pro
vide
sup
port
for
min
ing
SMEs
• I
mpr
ove
acce
ss t
o fin
anci
ng
• Add
ress
env
iron
men
tal
issu
es o
n m
inin
g an
d ot
her
extr
activ
es s
uch
as o
il an
d ga
s • P
rom
ote
envi
ronm
enta
lly
frie
ndly
tec
hnol
ogy
acqu
isiti
on a
nd
inno
vatio
n •
Tak
e st
ock
of a
nd o
ptim
ize
utili
zatio
n of
exi
stin
g as
sets
•
Prep
are
regu
lato
ry fr
amew
ork
for
min
eral
ben
efic
iatio
n
• Str
engt
hen
cap
acity
of
geol
ogic
al s
urve
y de
part
men
ts in
Mem
ber
Stat
es t
o un
dert
ake
inte
nsiv
e an
d ex
tens
ive
geol
ogic
al s
urve
ys o
n th
e re
gion
’s m
iner
al a
vaila
bilit
y an
d po
tent
ial
• Ide
ntify
and
pro
file
valu
e ch
ains
•
Prom
ote
targ
eted
in
vest
men
t a
cros
s th
e
• C
reat
e gr
eate
r va
lue
addi
tion/
bene
ficia
tion
in
min
eral
s se
ctor
•
Cre
ate
empl
oym
ent
• W
iden
eco
nom
ic
inte
r-lin
kage
s •
Impr
ove
com
para
tive
adva
ntag
e •
Incr
ease
fore
ign
exch
ange
ea
rnin
gs
• Pr
omot
e en
viro
nmen
tal
sust
aina
bilit
y •
Gre
ater
sha
re o
f w
omen
and
yo
uth
empl
oyed
an
d en
gage
d in
th
e m
iner
als
sect
or
• IU
MP
• N
atio
nal
prog
ram
mes
an
d pr
ojec
ts
• Es
tabl
ishm
ent/
Stre
ngt
heni
ng
of
Min
eral
ogy
Cen
tres
of
Exc
elle
nce
• C
entr
es
of
Exce
llenc
e,
prog
ram
mes
gea
red
tow
ards
tr
aini
ng,
prom
otin
g ex
tens
ion,
se
rvic
es
on
min
eral
ex
trac
tion
and
bene
ficia
tion.
• Ex
tens
ive
and
inte
nsiv
e ex
ploi
tatio
n of
m
iner
al r
esou
rces
•
Impr
ove
effic
ienc
y to
m
inim
ize
he c
ost
of
prod
uctio
n
• In
crea
sed
num
ber
of v
alue
-add
ed
min
eral
pro
duct
s •
Incr
ease
d fo
reig
n ex
chan
ge e
arni
ngs
• Em
ploy
men
t le
vels
incr
ease
d • I
nten
sifie
d se
ctor
al
inte
rlin
kage
s • I
ncre
ased
em
ploy
men
t le
vels
, and
en
gage
men
t of
bo
th m
en a
nd
wom
en in
the
se
ctor
• N
o. o
f val
ue-
adde
d m
iner
al
prod
ucts
•
Leve
l of f
orei
gn
exch
ange
ear
ning
s fr
om m
iner
al
prod
ucts
•
No.
of e
mpl
oyee
s •
No.
of s
take
hold
ers
part
icip
atin
g in
fo
rwar
d an
d ba
ckw
ard
linka
ges
• En
viro
nmen
tal
perf
orm
ance
re
cord
s by
indu
stry
•
num
ber
of
regi
ster
ed A
SM
min
ers,
par
ticul
arly
w
omen
and
you
ng
min
ers
• Mem
ber
Stat
es
• Pri
vate
sec
tor
• Min
ing
com
pani
es
• SA
DC
Se
cret
aria
t
• M
embe
r St
ates
•
Min
ing
c
ompa
nies
/ F
DI
• D
evel
opm
ent
Part
ners
35
46
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
regi
on
• Sec
ure
and
enla
rge
mar
kets
fo
r va
lue
adde
d an
d be
nefic
iate
d go
ods
• Pro
mot
e co
llabo
ratio
n be
twee
n in
stitu
tions
in
volv
ed in
ski
lls
deve
lopm
ent
in t
he r
egio
n • P
rom
ote
R&
D in
min
eral
s se
ctor
• D
evel
op a
nd P
rom
ote
the
SAD
C R
aw M
ater
ial
Initi
ativ
e • U
nder
stan
ding
the
gen
der
dim
ensi
ons
in t
he fo
rmal
m
inin
g an
d A
SM v
alue
cha
ins
• Add
ress
ing
sect
oral
co
nstr
aint
s • E
ncou
ragi
ng m
iner
al
bene
ficia
tion
at t
he S
SM
leve
l for
loca
l mar
kets
• P
rom
otin
g w
omen
you
th’s
pa
rtic
ipat
ion
in A
SM,
espe
cial
ly b
enef
icia
tion
at
dow
nstr
eam
in v
alue
cha
ins
• For
mal
isin
g ar
tisan
al m
inin
g ac
tiviti
es a
nd t
heir
gre
ater
in
sert
ion
into
val
ue c
hain
s • s
tren
gthe
ning
col
labo
ratio
n be
twee
n LS
M a
nd A
SM
• Sta
rt D
ate:
201
5 • C
onti
nuou
s 6.
P
harm
aceu
tical
s pr
oduc
tion
• Low
qua
lity
stan
dard
s • L
imite
d ra
nge
of
phar
mac
eutic
al
prod
uctio
n • W
eak
regu
lato
ry
fram
ewor
k • D
eart
h of
res
earc
h ca
pabi
lity
• Ina
dequ
ate
spec
ializ
ed
• Pri
oriti
ze p
harm
a su
b-se
ctor
• U
nder
take
feas
ibili
ty s
tudi
es
on p
harm
a in
dust
ry
(nat
iona
lly a
nd r
egio
nally
) • D
evel
op r
egio
nal v
alue
ch
ains
• P
ut in
pla
ce s
tron
g ac
cred
itatio
n an
d qu
ality
co
ntro
l sys
tem
s
• St
reng
then
co
mpe
titiv
e ad
vant
age
• Pr
ovid
e hi
gh
qual
ity m
edic
al
prod
ucts
•
Inte
nsify
forw
ard
and
back
war
d lin
kage
s
• IU
MP
• Inf
rast
ruct
ure
for
phar
ma
indu
stry
• S
kills
dev
elop
men
t fo
r ph
arm
aceu
tical
se
ctor
• M
anuf
actu
ring
of
phar
mac
eutic
al
prod
ucts
and
rel
ated
• M
ake
phar
mac
eutic
al
indu
stry
a r
egio
nal
prio
rity
• Im
prov
ed
avai
labi
lity
of
esse
ntia
l m
edic
ines
and
he
alth
pro
duct
s
• In
crea
sed
rang
e an
d qu
ality
of
phar
mac
eutic
al
prod
ucts
• N
o. o
f ava
ilabl
e es
sent
ial
med
icin
es a
nd
heal
th p
rodu
cts
• R
ange
of
phar
mac
eutic
al
prod
ucts
ava
ilabl
e •
No.
of
phar
mac
eutic
al
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• Ph
arm
aceu
tical
com
pani
es
• In
tere
sted
re
gion
al a
nd
inte
rnat
iona
l
• Mem
ber
Stat
es
• Pri
vate
se
ctor
• S
AD
C
Secr
etar
iat
• Dev
elop
men
t Pa
rtne
rs
36
47
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
skill
s • P
oor
back
war
d lin
kage
s •
Lack
of p
olic
y sp
ace
for
man
ufac
turi
ng
phar
mac
eutic
al
prod
ucts
due
to
Inte
llect
ual P
rope
rty
Rig
hts
(IPR
s)
rest
rict
ions
• U
nreg
ulat
ed d
ispo
sal o
f ob
sole
te
phar
mac
eutic
als
and
phar
mac
eutic
al w
aste
• L
imite
d nu
mbe
r of
w
omen
invo
lved
in
scie
nces
• Pro
mot
e R
esea
rch
and
Dev
elop
men
t (in
clud
ing
use
of lo
cal m
ater
ials
) • P
rom
ote
prod
uctio
n of
m
edic
al e
quip
men
t • E
xplo
it T
RIP
S fle
xibi
litie
s fo
r pr
oduc
ing
esse
ntia
l gen
eric
dr
ugs
• Pro
mot
e fe
mal
e sc
ient
ific
educ
atio
n an
d im
prov
e th
eir
spec
ialis
ed p
harm
aceu
tical
sk
ills
• Sta
rt D
ate:
201
5 • E
nd: C
onti
nues
• Br
and
SAD
C
regi
onal
med
ical
pr
oduc
ts
• A
ddre
ss d
isea
se
burd
en in
the
reg
ion
• Pr
otec
t IP
Rs
• Im
prov
ed
regu
latio
ns fo
r di
spos
al o
f obs
olet
e ph
arm
aceu
tical
s an
d ph
arm
aceu
tical
was
te
• Bu
ild a
str
ong,
sp
ecia
lised
and
in
tegr
ated
wor
kfor
ce
aim
ing
to p
rovi
de
high
qua
lity
med
ical
pr
oduc
ts
equi
pmen
t • T
ailo
red
and
inte
grat
ed s
kills
de
velo
pmen
t pr
ogra
mm
es fo
r th
e ph
arm
aceu
tical
s in
dust
ry
• Pa
rtic
ipat
ion
in
regi
onal
and
/or
glob
al v
alue
ch
ains
•
Mor
e fe
mal
e in
clus
ion
and
part
icip
atio
n in
na
tiona
l and
re
gion
al v
alue
ch
ains
com
pani
es
part
icip
atin
g in
re
gion
al/g
loba
l va
lue
chai
ns
• In
crea
sing
the
nu
mbe
r of
fem
ale
owne
d ph
arm
aceu
tical
co
mpa
nies
in
regi
onal
val
ue
chai
ns
inve
stor
s
7.
Tra
nsfo
rmat
ion
of m
anuf
actu
ring
SM
Es
• Lac
k of
form
ality
and
te
chni
cal c
apac
ity
• Low
qua
lity
prod
ucts
• H
igh
cost
of f
inan
ce
• Lac
k of
sta
ndar
diza
tion
• Lim
ited
inno
vatio
n an
d te
chno
logi
cal l
itera
cy
• Ins
uffic
ient
kno
wle
dge
of
man
ufac
turi
ng
proc
esse
s
• Poo
r lin
kage
s be
twee
n SM
Es a
nd la
rge
com
pani
es
• Lac
k of
reg
ulat
ory
mec
hani
sms
for
smal
l sc
ale
artis
anal
min
ers
• Add
ress
ing
othe
r co
nstr
aint
s, i.
e. g
ende
r di
spar
ities
in t
erm
s of
• D
evel
op r
egio
nal f
ram
ewor
k fo
r SM
E pr
omot
ion
• Pr
omot
e lin
kage
s be
twee
n SM
Es a
nd la
rge
com
pani
es
• A
ssis
t SM
Es t
o ac
quir
e kn
owle
dge
of m
anuf
actu
ring
pr
oces
ses
• Reg
iona
l fra
mew
ork
for
SMEs
sh
ould
incl
ude
gend
er
com
pone
nts
• Est
ablis
h in
stitu
tions
and
in
term
edia
ries
tha
t de
fine
mod
aliti
es a
nd p
rovi
de
supp
ort
for
wom
en in
the
pr
ivat
e se
ctor
• S
tart
Dat
e: 2
015
• In
crea
se r
egul
ated
SM
E co
ntri
butio
n to
indu
stri
al o
utpu
t
• IU
MP
• Coh
eren
t na
tiona
l an
d re
gion
al
prog
ram
mes
for
upgr
adin
g sk
ills
and
capa
bilit
ies
to
part
icip
ate
in R
VC
s an
d G
VC
s
• En
hanc
ing
capa
bilit
ies
of S
MEs
• I
mpr
oved
cap
acity
of
SM
Es t
o pr
oduc
e va
lue-
adde
d go
ods
and
serv
ices
•
Incr
ease
d co
ntri
butio
n of
SM
Es t
o in
dust
rial
pr
oduc
tion
real
ized
• N
o. o
f goo
ds a
nd
serv
ices
pr
oduc
ed b
y SM
Es
• G
row
th r
ates
of
SMEs
out
puts
•
Con
trib
utio
n of
SM
E se
ctor
to
GD
P
• M
embe
r St
ates
•
Busi
ness
bo
dies
and
C
ham
bers
of
Com
mer
ce
• M
embe
r St
ates
•
Busi
ness
bo
dies
and
C
ham
bers
of
Com
mer
ce
37
48
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
acce
ss t
o re
sour
ces
•
Con
tinu
es
8.
Indu
stri
al
Upg
radi
ng a
nd
Mod
erni
zatio
n Pr
ogra
mm
e (IU
MP)
• Fi
nanc
ial c
onst
rain
ts
• La
ck o
f cap
acity
for
impl
emen
tatio
n of
IUM
P •
Inad
equa
te
impl
emen
tatio
n of
IUM
P
• D
evel
op a
nd im
plem
ent
natio
nal I
UM
Ps
• Bu
ild c
apac
ity t
o im
plem
ent
IUM
P at
nat
iona
l lev
el
• Fac
ilita
te im
plem
enta
tion
of
IUM
P
• Sta
rt D
ate:
201
5 • C
onti
nues
• Fa
st-t
rack
im
plem
enta
tion
of
IUM
P •
Impr
ove
indu
stry
co
mpe
titiv
enes
s an
d in
nova
tion
• Pr
omot
e cl
imat
e ad
apta
tion
and
resi
lienc
e bu
ildin
g fo
r th
e in
dust
ry
sect
or
• IU
MPs
in a
ll M
embe
r St
ates
•
Mem
ber
Stat
es t
o pr
iori
tize
impl
emen
tatio
n of
IU
MP
•
Subs
tant
ial
tran
sfor
mat
ion
of
SMEs
•
Incr
ease
the
pa
rtic
ipat
ion
of
SMEs
in r
egio
nal
valu
e ch
ains
•
Prom
ote
clim
ate
chan
ge a
dapt
atio
n ac
ross
the
val
ue
chai
ns
• Nat
iona
l IU
MPs
de
velo
ped
and
impl
emen
ted
• Mea
sure
s to
en
hanc
e ef
ficie
ncy
for
impr
oved
pr
oduc
tivity
and
di
vers
ifica
tion
agre
ed
• Inc
reas
ed g
row
th in
SM
Es, e
mpl
oym
ent
and
expo
rt
• No.
of I
UM
Ps
(nat
iona
l) de
velo
ped
and
impl
emen
ted
• No.
of p
erio
dic
eval
uatio
ns a
cros
s th
e re
gion
• M
embe
r St
ates
•
Priv
ate
sect
or
• M
embe
r St
ates
•
Firm
s’
inve
stm
ents
•
FDI
• D
evel
opm
ent
Part
ners
9.
Reg
iona
l pri
vate
se
ctor
pa
rtne
rshi
p an
d co
llabo
ratio
n st
rate
gy
• Lac
k of
bro
ad-b
ased
pa
rtic
ipat
ion
in in
dust
rial
de
velo
pmen
t • I
nade
quat
e m
echn
ism
s fo
r re
gion
al p
artn
ersh
ip
• Lac
k of
par
tner
ship
and
co
llabo
ratio
n am
ong
priv
ate
sect
or o
pera
tors
•
Abs
ence
of P
ublic
-Pri
vate
D
ialo
gue
(PPD
) •
Inad
equa
te r
egio
n-w
ide
inst
itutio
ns fo
r pr
ivat
e se
ctor
eng
agem
ent
• D
iver
sity
and
fr
agm
enta
tion
of t
he
priv
ate
sect
or
• In
adeq
uate
cap
acity
to
part
icip
ate
in r
egio
nal
initi
ativ
es
• In
stitu
tiona
l mec
hani
sms
(bot
h pu
blic
and
pri
vate
) no
t ge
nder
sen
sitiv
e
• D
evel
op p
olic
y fr
amew
ork
for
Publ
ic P
riva
te D
ialo
gue
(PPD
) at
nat
iona
l and
reg
iona
l lev
els
• D
evel
op s
trat
egic
fram
ewor
k fo
r pr
ivat
e se
ctor
pa
rtne
rshi
ps
• C
reat
e ca
paci
ty fo
r pu
blic
-pr
ivat
e en
gage
men
t •
Esta
blis
h in
stitu
tions
and
de
fine
mod
aliti
es fo
r PP
D
• Bu
ild c
apac
ity fo
r pr
ivat
e se
ctor
(in
clud
ing
SMEs
) pa
rtic
ipat
ion
in r
egio
nal
initi
ativ
es
• Es
tabl
ish
inst
itutio
ns a
nd
inte
rmed
iari
es t
hat
defin
e m
odal
ities
and
pro
vide
su
ppor
t fo
r w
omen
and
you
th
in t
he p
riva
te s
ecto
r • S
tart
Dat
e: 2
015
• C
onti
nues
• In
crea
se d
ensi
ty o
f pr
ivat
e se
ctor
co
llabo
ratio
n •
Enha
nce
sym
biot
ic
rela
tions
bet
wee
n pu
blic
and
pri
vate
se
ctor
s •
Prom
ote
seam
less
di
alog
ue
• Bu
ild u
nder
stan
ding
of
gen
der
issu
es in
th
e pr
ivat
e se
ctor
• Fo
cuse
d pr
ogra
mm
es
for
broa
dbas
ed
natio
nal a
nd r
egio
nal
part
ners
hips
•
Tar
gete
d pr
ogra
mm
es
to e
nhan
ce d
ialo
gue
and
esta
blis
h re
late
d in
stitu
tions
•
Tar
gete
d in
stitu
tions
to
rai
se a
war
enes
s on
the
spe
cial
nee
ds
of w
omen
and
you
th
in t
he s
ecto
r
• Org
aniz
atio
n an
d fa
cilit
atio
n of
nat
iona
l an
d re
gion
al
plat
form
s fo
r pa
rtne
rshi
ps
• Pr
omot
ing
dial
ogue
•
Build
ing
conf
iden
ce
• St
rate
gy fo
r pa
rtne
rshi
ps a
nd
dial
ogue
dev
elop
ed
• Pl
atfo
rm fo
r Pu
blic
-Pr
ivat
e D
ialo
gue
esta
blis
hed
• Ef
fect
ive
dial
ogue
on
indu
stri
al
deve
lopm
ent
prom
oted
•
PPD
inst
itutio
ns/
mec
hani
sms
esta
blis
hed
• R
espo
nsiv
enes
s an
d se
nsiti
vity
by
inst
itutio
ns t
o ge
nder
and
you
th
need
s en
hanc
ed.
• Ex
iste
nce
of
part
ners
hip
agre
emen
ts
• N
o. o
f par
tner
ship
s •
No.
of m
eetin
gs fo
r PP
D a
t na
tiona
l and
re
gion
al le
vels
•
No.
of m
utua
l and
pr
actic
al
part
ners
hips
•
Exis
tenc
e of
PPD
in
stitu
tions
/ m
echa
nism
s •
No.
of m
eetin
gs
• N
o of
inst
itutio
ns
that
are
add
ress
ing
gend
er a
nd y
outh
is
sues
•
No
of w
omen
and
yo
uth
part
icip
atin
g in
the
pri
vate
se
ctor
• M
embe
r St
ates
•
Priv
ate
sect
or
• M
embe
r St
ates
•
Priv
ate
sect
or
co-fi
nanc
ing
• D
evel
opm
ent
Part
ners
38
49
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
10.
Reg
iona
l st
rate
gy
on
incl
usiv
e �
busi
ness
• In
adeq
uate
invo
lvem
ent
of
econ
omic
age
nts
in
busi
ness
dev
elop
men
t an
d ga
ins
•
Inad
equa
te in
volv
emen
t of
ec
onom
ic a
gent
s in
bu
sine
ss d
evel
opm
ent
part
icul
arly
wom
en a
nd
yout
h en
gage
d in
the
pr
ivat
e se
ctor
• C
reat
e in
cent
ives
for
incl
usiv
e bu
sine
ss p
artic
ipat
ion
• In
cent
ives
for
wom
en a
nd
yout
h in
bus
ines
s pa
rtic
ipat
ion
•
Star
t D
ate
: 201
6 •
Con
tinu
es
• Im
prov
e in
com
e di
stri
butio
n •
Impr
oved
and
eq
uita
ble
inco
me
dist
ribu
tion
• Pi
lot
proj
ects
for
incl
usiv
e bu
sine
ss
prom
otio
n
Sele
ctiv
e ar
eas
for
succ
essf
ul b
usin
ess
incl
usiv
e pa
rtic
ipat
ion •
Stra
tegy
dev
elop
ed
and
impl
emen
ted
• In
crea
sed
incl
usiv
ity
in b
usin
ess
part
icip
atio
n
• St
rate
gy d
ocum
ent
• N
o. o
f vul
nera
ble
grou
ps p
artic
ipat
ing
in b
usin
ess
• M
embe
r St
ates
•
Priv
ate
Sect
or
• M
embe
r St
ates
•
Priv
ate
sect
or
• D
evel
opm
ent
Part
ners
11.
Polic
y an
d st
rate
gies
for
expl
oita
tion
of
indu
stri
al
deve
lopm
ent
oppo
rtun
ities
in
coop
erat
ion
with
ot
her
regi
ons
• Li
mite
d in
tra-
and
inte
r-R
egio
nal c
oope
ratio
n fo
r ex
ploi
tatio
n of
de
velo
pmen
t op
port
uniti
es
• Fo
rmul
ate
or r
evie
w r
egio
nal
and
inte
r-re
gion
al
coop
erat
ion
agre
emen
ts t
o fa
cilit
ate
reso
urce
s ex
ploi
tatio
n an
d bu
sine
ss
prom
otio
n
• St
art
Dat
e: 2
016
• E
nd :
2017
• W
iden
reg
iona
l and
in
ter-
regi
onal
ec
onom
ic
coop
erat
ion
• Se
lect
ed e
mph
asis
on
prom
otio
n ar
eas
in
the
coop
erat
ion
prot
ocol
s
• D
evel
opm
ent
of
regi
onal
val
ue c
hain
s •
Polic
ies
and
Stra
tegi
es t
hat
take
in
to c
onsi
dera
tion
othe
r re
gion
al
prot
ocol
s an
d st
rate
gies
suc
h as
cl
imat
e ch
ange
, gr
een
econ
omy
and
blue
eco
nom
y
deve
lope
d an
d im
plem
ente
d
• In
crea
sed
coop
erat
ion
with
ot
her
regi
ons
on
indu
stri
al
deve
lopm
ent
• Po
licy
and
Stra
tegy
do
cum
ents
•
No.
of i
ndus
tria
l in
itiat
ives
with
ot
her
regi
ons
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
12.
Cen
tres
of
Exce
llenc
e an
d C
entr
es o
f Sp
ecia
lizat
ion
for
sele
cted
pri
ority
se
ctor
s id
entif
ied
and
stre
ngth
ened
• W
eak
know
ledg
e-ba
sed
supp
ort
• Id
entif
y an
d st
reng
then
ex
istin
g C
entr
es
• Es
tabl
ish
new
cen
tres
of
exce
llenc
e
• St
art
Dat
e : 2
015
• C
onti
nues
• En
hanc
e ta
rget
ed
capa
city
bui
ldin
g an
d sk
ills
deve
lopm
ent
• In
stitu
tiona
l st
reng
then
ing
prog
ram
mes
• T
echn
olog
ical
en
hanc
emen
t •
Reg
iona
l ind
ustr
ial
Cen
tres
of
Exce
llenc
e an
d C
entr
es o
f Sp
ecia
lizat
ion
for
prio
rity
sec
tors
id
entif
ied
and
stre
ngth
ened
•
Impr
oved
R&
D,
enha
nced
pr
oduc
tivity
and
pr
oduc
tion
of
inno
vativ
e pr
oduc
ts
• N
o. o
f Cen
tres
of
Exce
llenc
e an
d C
entr
es o
f Sp
ecia
lizat
ion
iden
tifie
d/
stre
ngth
ened
/ es
tabl
ishe
d •
No.
of i
nnov
ativ
e pr
oduc
ts
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
39
50
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
13.
Mod
el le
gisl
atio
n an
d re
gula
tion
for
intr
a-SA
DC
pr
oces
sing
and
va
lue
addi
tion
for
min
eral
pro
duct
s • In
adeq
uate
lega
l and
in
stitu
tiona
l fra
mew
ork
for
min
eral
s be
nefic
iatio
n an
d va
lue
addi
tion
• D
evel
op le
gal a
nd in
stitu
tiona
l fr
amew
ork
for
intr
a-SA
DC
be
nefic
iatio
n an
d va
lue
addi
tion
•
Star
t D
ate
: 201
6 •
End
: 20
17
• In
crea
se v
alue
ad
ditio
n fr
om
natu
ral r
esou
rces
• R
egio
nal p
rogr
amm
es
for
enha
ncin
g be
nefic
iatio
n an
d va
lue
addi
tion
• St
reng
then
ing
lega
l fr
amew
ork
for
regi
onal
val
ue
addi
tion
for
min
eral
pr
oduc
ts
• M
odel
lega
l and
in
stitu
tiona
l fr
amew
ork
deve
lope
d an
d im
plem
ente
d •
Impr
oved
en
forc
emen
t of
le
gal i
nstr
umen
ts
prom
otin
g be
nefic
iatio
n an
d
valu
e ad
ditio
n
• Ex
iste
nce
of le
gal
and
inst
itutio
nal
fram
ewor
k
• N
o. o
f Mem
ber
Stat
es
impl
emen
ting
the
lega
l and
in
stitu
tiona
l fr
amew
ork
• M
embe
r St
ates
•
Min
ing
com
pani
es
• M
embe
r St
ates
•
Priv
ate
sect
or
14.
Prot
ocol
on
indu
stry
de
velo
ped
and
oper
atio
naliz
ed
• La
ck o
f div
ersi
ficat
ion
and
com
petit
iven
ess
• U
ncoo
rdin
ated
indu
stri
al
deve
lopm
ent
• In
adeq
uate
indu
stri
al
capa
bilit
ies
• In
adeq
uate
env
iron
men
tal
sust
aina
bilit
y pr
inci
ples
• D
evel
op a
nd o
pera
tiona
lize
Prot
ocol
on
Indu
stry
•
Dev
elop
an
oper
atio
nal g
ende
r se
nsiti
ve p
roto
col o
n in
dust
ry.
• St
art
Dat
e : 2
015
• E
nd :
2020
• En
hanc
e le
vel o
f in
dust
rial
de
velo
pmen
t at
na
tiona
l and
re
gion
al le
vels
• C
apac
ity d
evel
opm
ent
prog
ram
mes
•
Cap
acity
bui
ldin
g fo
r in
dust
rial
izat
ion
and
tech
nolo
gica
l re
adin
ess
• Pr
otoc
ol o
n In
dust
ry d
evel
oped
an
d im
plem
ente
d,
taki
ng in
to
cons
ider
atio
n pr
ovis
ions
of o
ther
pr
otoc
ols
such
as
natu
ral r
esou
rces
an
d en
viro
nmen
t
• G
ende
r se
nsiti
ve
Prot
ocol
on
indu
stry
dev
elop
ed
and
impl
emen
ted
• N
o. o
f Mem
ber
Stat
es t
hat
adop
ted
and
impl
emen
ted
the
Prot
ocol
•
Num
ber
of m
embe
r st
ates
tha
t im
plem
ent
the
actu
al p
roto
col a
nd
the
gend
er
dim
ensi
on
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
15.
Stra
tegy
for
leve
ragi
ng
Reg
iona
l In
fras
truc
ture
D
evel
opm
ent
Mas
ter
Plan
(R
IDM
P) t
o ca
taly
se
indu
stri
al
deve
lopm
ent
com
plet
ed
• In
dequ
ate
regi
onal
in
fras
truc
ture
(ro
ads,
rai
l, co
mm
unic
atio
ns, I
CT
, air
, w
ater
) cu
rren
tly r
esul
ting
in h
igh
cost
of d
oing
bu
sine
ss
• Su
b-op
timal
use
of
exis
ting
infr
astr
uctu
re
• Li
mite
d be
nefit
s de
rive
d by
loca
l SM
Es d
urin
g de
velo
pmen
t of
in
fras
truc
ture
pro
ject
s
• Fo
rmul
ate
broa
d-ba
sed
regi
onal
infr
astr
uctu
re
deve
lopm
ent
prog
ram
me
• D
evel
op p
olic
ies
to r
emov
e N
TBs
and
impr
ove
func
tioni
ng
of c
orri
dors
, pow
er
inte
rcon
nect
ions
and
ICT
s •
Impr
ove
utili
zatio
n of
exi
stin
g in
fras
truc
ture
•
Prom
ote
linka
ges
betw
een
loca
l SM
Es a
nd la
rge
com
pani
es t
hrou
gh
outs
ourc
ing
and
proc
urem
ent
polic
ies
, etc
•
Star
t D
ate
: 201
5 •
End
: 20
17
• R
educ
e co
st o
f do
ing
busi
ness
•
Fost
er S
MEs
pa
rtic
ipat
ion
in
deve
lopm
ent
of
infr
astr
uctu
re
proj
ects
• D
evel
opm
ent/
st
reng
hten
ing
of
regi
onal
in
fras
truc
ture
•
Supp
lier
Dev
elop
men
t Pr
ogra
mm
es
• M
ulti-
mod
al a
ppro
ach
to in
fras
truc
ture
de
velo
pmen
t •
Ensu
ring
the
SM
Es a
re
linke
d an
d be
nefit
fr
om in
fras
truc
ture
pr
ojec
ts
• St
rate
gy w
ith fu
ll co
mpo
nent
s of
in
fras
truc
ture
de
velo
ped,
tak
ing
into
con
side
ratio
n ot
her
regi
onal
st
rate
gies
suc
h as
cl
imat
e ch
ange
, gr
een
and
blue
ec
onom
y •
Impr
oved
co
mpe
titiv
enes
s of
SA
DC
indu
stri
es
• SM
Es c
apac
itate
d be
nefit
ed fr
om
enga
gem
ent
in
• V
olum
e an
d va
lue
of lo
cal i
nput
s pr
ocur
ed fo
r in
fras
truc
ture
de
velo
pmen
t •
No.
of S
MEs
as
sist
ed t
hrou
gh
Supp
lier
Dev
elop
men
t Pr
ogra
mm
es
• Be
nefit
s de
rive
d by
SM
Es t
hrou
gh
part
icip
atio
n in
in
fras
truc
ture
pr
ojec
ts
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
•
Priv
ate
sect
or
40
51
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
deve
lopm
ent
and
impl
emen
tatio
n of
in
fras
truc
ture
pr
ogra
mm
es
16.
SAD
C
rule
s of
or
igin
•
Res
tric
ted
trad
e flo
ws
and
in
dust
rial
inpu
ts
• A
lign
rule
s of
ori
gin
with
in
dust
rial
nee
ds
•
Star
t D
ate
: 201
5 •
End
: 20
17
• In
crea
se s
uppl
y of
in
term
edia
te in
puts
•
Gen
erat
e ge
ater
tr
ade
flow
s
• D
evel
opm
ent
of
mor
e bu
sine
ss
supp
ortiv
e ru
les
of
orig
in
• M
akin
g ru
les
of o
rigi
n m
ore
flexi
ble
• R
elax
ed r
ules
of
orig
in
• In
crea
sed
regi
onal
in
term
edia
te in
puts
flo
ws
faci
litat
ed
• Fl
exib
le r
ules
of
orig
in
• Le
vel o
f int
ra-
regi
onal
tra
de
• M
embe
r St
ates
• M
embe
r St
ates
17.
Impl
emen
tatio
n of
Tra
de in
Se
rvic
es
Prot
ocol
m
onito
red
annu
ally
• Po
or s
ervi
ces
incr
ease
tr
ansa
ctio
n co
sts
and
cons
trai
n tr
ade
flow
s an
d cr
eatio
n of
val
ue c
hain
s
• Fa
st-t
rack
dev
elop
men
t of
se
rvic
es in
fras
truc
ture
•
Libe
raliz
e tr
ade
in s
ervi
ces
• Pr
omot
e aw
aren
ess
on r
ole
of
serv
ices
in in
dust
rial
izat
ion
•
Star
t D
ate
: 201
5 •
Con
tinu
es
• Fa
cilit
ate
effe
ctiv
enes
s of
re
gion
al t
rade
in
serv
ices
• N
egot
iatio
ns o
n si
x pr
iori
ty s
ervi
ces
sect
ors
• Su
bseq
uent
ne
gotia
tions
to
cove
r al
l ser
vice
s se
ctor
s
• Li
bera
lizat
ion
of
serv
ices
sec
tors
•
Prot
ocol
im
plem
ente
d •
Incr
ease
d pr
oduc
tivity
and
co
mpe
titiv
enes
s
• N
o. o
f Mem
ber
Stat
es t
hat
ratif
ied
and
impl
emen
ted
the
Prot
ocol
•
Vol
ume
and
valu
e of
tra
de in
ser
vice
s •
Leve
l of
prod
uctiv
ity a
nd
com
petit
iven
ess
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
18.
Cap
acity
of
Mem
ber
Stat
es
to d
evel
op a
nd
enfo
rce
com
petit
ion
polic
ies
and
law
s
• In
adeq
uate
com
petit
ion
polic
ies
and
inst
itutio
ns
• Pu
t in
pla
ce a
ppro
pria
te
com
petit
ion
polic
ies
• Se
t up
/str
engt
hen
Nat
iona
l C
ompe
titio
n A
utho
ritie
s •
Star
t D
ate
: 201
5 •
End
: 20
17
• Im
prov
e bu
sine
ss
envi
ronm
ent
• R
igor
ous
com
petit
ion
polic
ies
• C
reat
ion
of c
ondu
cive
bu
sine
ss e
nvir
onm
ent •
Com
petit
ion
polic
ies
deve
lope
d an
d en
forc
ed b
y M
embe
r St
ates
• N
o. o
f Mem
ber
Stat
es e
nfor
cing
co
mpe
titio
n po
licie
s
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
19.
Impl
emen
tatio
n of
Tra
de
Prot
ocol
and
EP
A
• In
adeq
uate
cap
acity
to
impl
emen
t T
rade
Pr
otoc
ol a
nd E
PAs
• A
ligni
ng E
PA
impl
emen
tatio
n w
ith
Prot
ocol
•
Impa
ct o
f im
plem
enta
tion
of P
roto
col a
nd E
PA o
n M
embe
r St
ates
• D
evel
op c
apac
ity t
o im
plem
ent
Tra
de P
roto
col
and
EPA
• St
art
Dat
e : 2
015
• E
nd :
2020
• M
axim
ize
trad
ing
bene
fits
from
in
crea
sed
mar
ket
oppo
rtun
ities
• Im
plem
ent
the
Tra
de
Rel
ated
Fac
ility
(T
RF)
• A
naly
tical
as
sess
men
ts o
f cos
ts
and
bene
fits
of t
he
arra
ngem
ents
• C
ompa
tibili
ty
betw
een
Tra
de
Prot
ocol
and
EPA
s •
Tra
de P
roto
col a
nd
EPA
fully
im
plem
ente
d
• N
o. o
f Mem
ber
Stat
es
impl
emen
ting
Tra
de P
roto
col a
nd
EPA
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
20.
Indu
stri
al
deve
lopm
ent
pilla
r of
the
• A
lignm
ent
of S
AD
C
Indu
stri
al D
evel
opm
ent
Age
nda
with
Tri
part
ite
• SA
DC
Mem
ber
Stat
es
part
icip
ate
activ
ely
in
Tri
part
ite
nego
tiat
ions
to
• O
ptim
ize
bene
fits
from
the
T
ripa
rtit
e
• N
egot
iatio
n of
in
dust
rial
de
velo
pmen
t pi
llar
of •
Indu
stri
al c
apac
ity
enha
ncem
ent
• Pr
omot
ing
• SA
DC
and
T
ripa
rtit
e in
dust
rial
• N
o. o
f Mem
ber
Stat
es p
artic
ipat
ing
in t
he T
ripa
rtite
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
41
52
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
Tri
part
ite
final
ised
In
dust
rial
Dev
elop
men
t Pi
llar
ensu
re T
ripa
rtite
arr
ange
men
t co
ntri
bute
s to
ach
ievi
ng
SAD
C in
dust
rial
izat
ion
obje
ctiv
es
• Be
tter
info
rm a
nd h
arm
onis
e pr
otoc
ols
on in
dust
ry-
espe
cial
ly S
AD
C’s
gen
der
prot
ocol
•
Star
t D
ate
: 201
5 •
End
: 20
16
• Im
prov
e co
oper
atio
n an
d sy
nerg
ies
on
indu
stri
aliz
atio
n
the
Tri
part
ite
coop
erat
ion
and
deve
lopm
ent
of
Reg
iona
l val
ue c
hain
s
obje
ctiv
es a
ligne
d •
Coo
pera
tion
on
indu
stri
aliz
atio
n an
d de
velo
pmen
t of
reg
iona
l val
ue
chai
ns e
nhan
ced
indu
stri
al
deve
lopm
ent
pilla
r •
No.
of r
egio
nal
valu
e ch
ains
de
velo
ped
• R
egio
nal
Econ
omic
C
omm
uniti
es
21.
SAD
C R
egio
nal
Dev
elop
men
t Fu
nd le
gal
inst
rum
ent
oper
atio
nalis
ed
• In
adeq
uacy
of r
egio
nal
finan
cing
mec
hani
sms
•
Set
up S
AD
C R
egio
nal
Dev
elop
men
t Fu
nd
•
Star
t D
ate
: 201
5 •
End
: 20
16
• R
emov
e lo
ng-t
erm
fin
anci
ng
cons
trai
nts
on
indu
stri
aliz
atio
n an
d in
tegr
atio
n
• SA
DC
Dev
elop
men
t Fu
nd
• SA
DC
dev
elop
men
t fu
nd: a
lso
a sp
ecia
lised
fund
for
wom
en in
SA
DC
• C
onve
rgen
ce o
f vie
ws
on s
cope
of
oper
atio
ns o
n ca
pita
l so
urci
ng
• SA
DC
Reg
iona
l D
evel
opm
ent
Fund
s op
erat
iona
lized
(s
igne
d, r
atifi
ed
and
enfo
rced
)
• Fu
nctio
ning
SA
DC
R
egio
nal
Dev
elop
men
t Fu
nd •
Mem
ber
Stat
es
• SA
DC
Se
cret
aria
t
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
C
ompe
titi
vene
ss
42
53
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
22.
Impr
ovem
ent
of m
icro
-ec
onom
ic
envi
ronm
ent
for
firm
s an
d en
terp
rise
s
• L
imite
d qu
ality
of f
acto
r in
puts
• S
tand
ards
• A
cces
s to
cap
ital
• Ina
dequ
ate
mar
ket
info
rmat
ion
• Lac
k of
sop
hist
icat
ion
of
prod
ucts
and
mar
kets
• I
nade
quat
e in
cent
ives
sy
stem
s • F
orm
aliz
atio
n of
SM
Es
• Wom
en a
nd y
outh
’s
acce
ss t
o ca
pita
l and
m
arke
ts
• D
evel
op s
kills
• E
nhan
ce q
ualit
y st
anda
rds
• Rem
ove
busi
ness
con
stra
ints
on
ent
erpr
ises
• O
ffer
spec
ial i
ncen
tives
for
serv
ice
inpu
t co
sts
(e.g
. el
ectr
icity
) • E
stab
lish
cond
uciv
e m
acro
-ec
onom
ic e
nvir
onm
ent
in
supp
ort
of in
dust
ry
• Pro
mot
e In
dust
ry-A
cade
mia
in
tera
ctio
n • R
emov
e co
nstr
aint
s on
w
omen
in e
cono
mic
en
terp
rise
• T
arge
ted
ince
ntiv
es t
o ad
dres
s w
omen
’s n
eeds
in
ente
rpri
se
•
Incr
ease
co
mpe
titiv
enes
s of
nat
iona
l and
re
gion
al
ente
rpri
ses
• Fa
cilit
ate
grea
ter
part
icip
atio
n in
na
tiona
l, re
gion
al
and
glob
al v
alue
ch
ains
•
Gre
ater
incl
usio
n of
vul
nera
ble
grou
ps
part
icul
arly
w
omen
in
econ
omic
en
terp
rise
s
• I
UM
P (n
atio
nal a
nd
regi
onal
) • N
atio
nal i
ndus
tria
l po
licie
s • P
riva
te S
ecto
r su
ppor
t pr
ogra
mm
es
• Ski
lls d
evel
opm
ent
and
mob
ility
• N
atio
nal i
ndus
tria
l po
licie
s m
ust
be
gend
er s
ensi
tive
to
addr
ess
wom
en’s
pa
rtic
ipat
ion
in t
he
indu
stri
aliz
atio
n dr
ive
of S
AD
C
•
Sign
ifica
ntly
impr
oved
co
mpe
titiv
enes
s,
natio
nally
, reg
iona
lly
and
at fi
rm/e
nter
pris
e le
vels
•
Sign
ifica
ntly
impr
ove
an a
ll-in
clus
ive
com
petit
iven
ess
driv
e in
nat
iona
l, re
gion
al
and
at fi
rm/
ente
rpri
se le
vel.
•
Hig
her
stan
ding
s in
co
mpe
titiv
enes
s in
dice
s
•
Glo
bal
Com
petit
iven
ess
Inde
x ra
nkin
gs
• D
oing
Bus
ines
s In
dex
rank
ings
• M
embe
r St
ates
• P
riva
te S
ecto
r • H
ighe
r le
arni
ng a
nd
trai
ning
in
stitu
tions
•
Mem
ber
Stat
es
• C
ompa
ny
trai
ning
fu
nds
• In
tern
atio
nal
trai
ning
23.
Enha
ncin
g ca
paci
ty o
f the
pr
ivat
e se
ctor
in
str
ateg
y de
velo
pmen
t, in
nova
tion,
m
anag
emen
t an
d te
chno
logy
us
e
• Lim
ited
capa
city
of
busi
ness
ent
repr
eneu
rs
to p
erce
ive
and
deve
lop
com
petit
ive
ente
rpri
ses
• Lim
ited
stra
tegi
c pl
anni
ng a
nd m
arke
ting
skill
s • L
imite
d kn
owle
dge
of
mod
ern
busi
ness
pr
actic
es
• Lim
ited
capa
city
and
en
gage
men
t of
wom
en
and
yout
h in
en
terp
rise
s • L
imite
d m
anag
emen
t sk
ills
of w
omen
and
yo
uth
in b
usin
ess
• Dev
elop
ded
icat
ed m
ulti-
dim
ensi
onal
tra
inin
g an
d in
form
atio
n ac
cess
m
echa
nism
s • E
quita
ble
acce
ss t
o in
form
atio
n as
wel
l as
enha
ncin
g w
omen
’s c
apac
ity
in IC
T a
nd in
nova
tion
for
busi
ness
•
Incr
ease
fo
rmal
izat
ion
of
SMEs
in
man
ufac
turi
ng
sect
or
• R
educ
e SM
E fa
ilure
s •
Incr
ease
pr
oduc
tivity
• Nat
ion
and
regi
on-
wid
e ca
paci
ty
build
ing
prog
ram
mes
for
SMEs
sec
tor
•
Enha
nced
cap
aciti
es
of S
MEs
•
Enha
nced
cap
aciti
es
of S
MEs
, pa
rtic
ular
ly w
omen
an
d vu
lner
able
gr
oups
in
ente
rpri
se
•
Cap
acity
of
Priv
ate
Sect
or in
st
rate
gy
deve
lopm
ent,
inno
vatio
n,
man
agem
ent
and
tech
nolo
gy u
se
enha
nced
• G
reat
er c
apac
ity
of w
omen
and
yo
uth
to
effe
ctiv
ely
enga
ge
in t
he p
riva
te
sect
or
deve
lopm
ent
• H
ighl
y in
crea
sed
cont
ribu
tion
of
SMEs
to
man
ufac
turi
ng
outp
ut
• Mem
ber
Stat
es
• SA
DC
Se
cret
aria
t
•
Mem
ber
Stat
es
43
54
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
24.
Skill
s an
d fa
ctor
m
obili
ty
• Ina
dequ
ate
and
limite
d ra
nge
of in
dust
rial
ski
lls
• Res
tric
tions
on
skill
ed
labo
ur m
obili
ty
• Ina
dequ
ate
and
qual
ified
w
omen
with
sem
i and
hi
ghly
spe
cial
ised
ski
lls
whi
ch fo
ster
incl
usio
n in
pr
oduc
tive
indu
stri
al
sect
ors
of t
he e
cono
my
• Exp
edite
impl
emen
tatio
n of
Pr
otoc
ol o
n Fa
cilit
atio
n of
M
ovem
ent
of P
erso
ns
• Und
erta
ke n
eeds
ass
essm
ent
for
skill
ed la
bour
• D
evel
op r
egio
n-w
ide
skill
s fo
r in
dust
ry
• Est
ablis
h re
gion
al
accr
edita
tion
fram
ewor
k • N
eeds
ass
essm
ent
of s
kille
d la
bour
as
wel
l as
the
gend
er
dim
ensi
ons
in la
bour
forc
e pa
rtic
ipat
ion
and
wha
t ar
e th
e cr
itica
l con
stra
ints
to
both
men
and
wom
en in
in
dust
ry
• Im
prov
e pr
oduc
tivity
and
av
aila
bilit
y of
ski
lled
labo
ur fo
rce
• A
gree
ski
lls
stan
dard
s an
d fr
amew
orks
for
labo
ur m
obili
ty
• Sk
ills,
sta
ndar
ds a
nd
desi
gned
fr
amew
orks
mus
t in
corp
orat
e ge
nder
di
men
sion
s in
fa
ctor
mob
ility
with
qu
otas
set
to
enco
urag
e w
omen
’s
part
icip
atio
n in
in
dust
rial
dri
ve o
f SA
DC
• Cap
acity
bui
ldin
g pr
ogra
mm
es fo
r SM
Es
• Dev
elop
men
t of
co
here
nt
accr
edita
tion
syst
ems
and
conc
essi
ons
• Cap
acity
bui
ldin
g an
d sk
ills
deve
lopm
ent
prog
ram
mes
for
wom
en in
SM
Es
• In
crea
sing
sup
ply
of
skill
ed la
bour
•
Build
sup
port
and
ex
tens
ion
serv
ices
to
dev
elop
wom
en
skill
s ca
paci
ty fo
r en
trep
rene
ursh
ip
• Mob
ility
of s
kills
in
SAD
C r
egio
n in
crea
sed
• Ind
ustr
y sk
ills
need
s id
entif
ied
• Cap
acity
bui
ldin
g pr
ogra
mm
es fo
r SM
Es d
evel
oped
an
d im
plem
ente
d
• Reg
iona
l A
ccre
dita
tion
Fram
ewor
k de
velo
ped
• Cap
acity
bui
ldin
g pr
ogra
mm
es fo
r SM
Es d
evel
oped
an
d im
plem
ente
d w
hich
add
ress
es
the
cons
trai
nts
to
wom
en’s
en
gage
men
t in
the
se
ctor
• No.
of s
kille
d pe
rson
s m
ovin
g fr
eely
in S
AD
C
regi
on
• No.
of S
kills
in
shor
t su
pply
• C
apac
ity b
uild
ing
prog
ram
me
• No
of M
embe
r St
ates
with
C
apac
ity b
uild
ing
prog
ram
me
• Num
ber
of c
ertif
ied
labo
ur fo
rce
• The
rea
l num
bers
of
men
and
wom
en
in s
emi-s
kille
d an
d hi
ghly
ski
lled
empl
oym
ent
in
indu
stry
to
know
th
e sh
orta
ge in
su
pply
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
25.
Reg
iona
l SQ
AM
in
fras
truc
ture
st
reng
then
ed
• Lo
w q
ualit
y pr
oduc
ts
and
serv
ices
pro
duce
d lo
cally
•
Low
qua
lity
of im
port
ed
good
s an
d se
rvic
es
• Lo
w c
ompl
ianc
e w
ith
envi
ronm
enta
l st
anda
rds
• Im
prov
e qu
ality
in
fras
truc
ture
and
ser
vice
s
• St
art
Dat
e: 2
015
• E
nd :
2019
• C
ompl
y w
ith
inte
rnat
iona
l qu
ality
sta
ndar
ds,
taki
ng in
to a
ccou
nt
natio
nal a
nd
regi
onal
sta
ndar
ds •
SQA
M p
rogr
amm
e en
hanc
ed
• Bu
ildin
g in
fras
truc
ture
• Pr
ovid
ing
qual
ity
good
s an
d se
rvic
es
• SQ
AM
im
plem
ente
d •
SQA
M a
nd
Envi
ronm
enta
l St
anda
rds
adop
ted
and
impl
emen
ted
by
Mem
ber
Stat
es
• N
o. o
f fun
ctio
nal
Qua
lity
Infr
astr
uctu
re
inst
itutio
ns
inte
rnat
iona
l M
embe
r St
ates
im
plem
entin
g SQ
AM
• M
embe
r St
ates
•
Mem
ber
Stat
es
26.
Reg
iona
l Sa
nita
ry a
nd
Phyt
o-Sa
nita
ry (
SPS)
re
gula
tory
ag
enci
es
• Lo
w q
ualit
y of
ag
ricu
ltura
l pro
duct
s
• R
ecog
nize
equ
ival
ent
stan
dard
s
• St
art
Dat
e : 2
015
• E
nd :
2019
• Im
prov
e ad
here
nce
to S
PS
stan
dard
s
• SP
S pr
ogra
mm
es
enha
nced
•
Impr
ovin
g pr
oduc
t qu
ality
•
SPS
mea
sure
s fo
r fo
od s
afet
y,
anim
al h
ealth
and
pl
ant
prot
ectio
n ha
rmon
ized
and
im
plem
ente
d •
Impr
oved
qua
lity
of a
nd t
rade
in
agri
cultu
ral
prod
ucts
• N
o. o
f ha
rmon
ized
SP
S m
easu
res
impl
emen
ted
• Le
vel o
f tra
de in
ag
ricu
ltura
l pr
oduc
ts
• M
embe
r St
ates
•
Priv
ate
sect
or
com
pani
es
• M
embe
r St
ates
•
Priv
ate
sect
or
44
55
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
R
egio
nal I
nteg
rati
on
27.
Intr
a-SA
DC
tr
ade
• Lim
ited
regi
onal
mar
ket
pene
trat
ion
• Lim
ited
rang
e of
pr
oduc
ts
• Dis
join
ted
mar
kets
• Wid
en S
AD
C m
arke
t th
roug
h im
plem
enta
tion
of S
AD
C
Tre
aty
and
FTA
• R
emov
e N
TBs
• F
acili
tate
acc
ess
to t
rade
fin
ance
• In
crea
se in
tra-
SAD
C t
rade
to
com
para
tive
inte
rnat
iona
l in
tra-
regi
onal
tr
ade
leve
ls
• Reg
iona
l in
fras
truc
ture
de
velo
pmen
t an
d co
nnec
tivity
• D
eepe
ning
reg
iona
l in
tegr
atio
n •
SAD
C T
reat
y an
d FT
A im
plem
ente
d •
Intr
a-SA
DC
tra
de
Mor
e th
an
doub
led
• Lev
el o
f int
ra-
SAD
C t
rade
• V
arie
ty o
f goo
ds
trad
ed b
etw
een
Mem
ber
Stat
es
• Mem
ber
Stat
es
• SA
DC
Se
cret
aria
t
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
28.
Supp
ortin
g re
gion
al
infr
astr
uctu
re
deve
lopm
ent
to
enha
nce
indu
stri
aliz
atio
n
• Hig
h tr
ansp
ort
and
ener
gy c
osts
• C
limat
e-pr
one
and
clim
ate
sens
itive
in
fras
truc
ture
• Fo
rmul
ate
dedi
cate
d pr
ogra
mm
e to
impr
ove
regi
onal
infr
astr
uctu
re a
nd
conn
ectiv
ity, t
akin
g in
to
cons
ider
atio
n im
pact
s of
cl
imat
e ch
ange
• R
educ
e tr
ansa
ctio
n co
sts
• Com
plem
enta
ry
natio
nal a
nd
regi
onal
pr
ogra
mm
es fo
r in
fras
truc
ture
se
rvic
es
• En
hanc
emen
t of
in
fras
truc
ture
ca
paci
ty a
nd
resi
lienc
e
• Pr
ogra
mm
e to
im
prov
e re
gion
al
infr
astr
uctu
re a
nd
conn
ectiv
ity
deve
lope
d •
Red
uced
cos
t of
do
ing
busi
ness
• Exi
sten
ce o
f the
Pr
ogra
mm
e to
im
prov
e re
gion
al
infr
astr
uctu
re
and
conn
ectiv
ity
• Wor
ld B
ank
Cos
t of
Doi
ng B
usin
ess
inde
x ra
nkin
gs
• Mem
ber
Stat
es
• SA
DC
Se
cret
aria
t
• M
embe
r St
ates
•
Reg
iona
l in
vest
men
t ba
nks
and
fund
s
29.
Tra
de
faci
litat
ion
mec
hani
sms
• D
iffic
ultie
s in
cro
ss-
bord
er t
rade
(e.
g.
cust
oms
proc
edur
es)
• A
cces
s to
tra
de fi
nanc
e
• Li
mite
d ac
cess
to
info
rmat
ion
• Ill
icit
trad
e in
en
viro
nmen
tal g
oods
• Rig
orou
sly
impl
emen
t SA
DC
an
d FT
A a
gree
men
ts
• Im
plem
ent
com
preh
ensi
ve
trad
e fa
cilit
atio
n pr
ogra
mm
e in
clud
ing
esta
blis
hmen
t of
O
ne-S
top
Bord
er P
osts
• Fa
cilit
ate
seam
less
re
gion
al t
rade
flo
ws
• C
urre
nt S
AD
C t
rade
fa
cilit
atio
n pr
ogra
mm
es
• R
emov
al o
f co
nstr
aint
s to
cr
oss-
bord
er t
rade
an
d in
vest
men
ts t
o fa
cilit
ate
indu
stri
aliz
atio
n
• R
educ
ed t
ime
for
trad
e flo
ws
•
Impr
oved
acc
ess
to t
rade
rel
ated
in
form
atio
n de
velo
ped
• Im
prov
ed
com
petit
iven
ess
• Im
prov
ed
surv
eilla
nce
to
redu
ce il
lega
l tra
de
in e
nvir
onm
enta
l go
ods
(wild
life,
tim
ber
and
othe
r fo
rest
ry p
rodu
cts)
• Ran
king
s of
M
embe
r St
ates
on
the
Wor
ld
Bank
Log
istic
s Pe
rfor
man
ce
Inde
x • A
vera
ge t
ime
take
n to
cro
ss
boar
ders
• A
mou
nt o
f tra
de
finan
ce fo
r re
gion
al
trad
e • A
cces
s to
in
form
atio
n
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
45
56
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
30.
Dee
peni
ng
regi
onal
in
tegr
atio
n
• Sl
ow p
rogr
ess
tow
ards
re
gion
al in
tegr
atio
n
• Im
plem
ent
agre
ed
prog
ram
mes
on
deep
enin
g re
gion
al in
tegr
atio
n
• St
art
Dat
e : 2
015
• E
nd :
2016
• D
eepe
n re
gion
al
inte
grat
ion
•
SAD
C in
stru
men
ts o
n re
gion
al in
tegr
atio
n •
Use
dev
elop
men
tal
appr
oach
es t
o re
gion
al in
tegr
atio
n to
acc
eler
ate
indu
stri
aliz
atio
n
• R
egio
nal i
nteg
ratio
n de
epen
ed
• Le
vel a
nd d
iver
sity
of
intr
a-SA
DC
tr
ade
• SA
DC
Se
cret
aria
t •
Mem
ber
Stat
es
31.
Tri
part
ite F
TA
A
gree
men
t si
gned
and
ra
tifie
d
• Sl
ow a
nd c
ompl
ex
nego
tiatio
n pr
oces
ses
• Fa
st-t
rack
neg
otia
tion
and
impl
emen
tatio
n of
Tri
part
ite
FTA
• St
art
Dat
e : A
ctio
n in
pr
ogre
ss
• E
nd :
2016
• C
oncl
ude
nego
tiatio
ns a
nd
cons
olid
ate
inte
grat
ion
proc
ess •
Neg
otia
tion
and
conc
lusi
on o
f T
ripa
rtite
FT
A
• C
reat
ing
a w
ider
m
arke
t fo
r tr
ade
to
faci
litat
e in
dust
rial
izat
ion
Tri
part
ite F
TA
A
gree
men
t si
gned
an
d ra
tifie
d
• Si
gned
Tri
part
ite
FTA
Agr
eem
ent
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
32.
Tra
de
Mon
itori
ng a
nd
Com
plia
nce
Mec
hani
sm
impl
emen
ted
• N
on-C
ompl
ianc
e w
ith
SAD
C t
rade
tar
gets
•
Non
-Com
plia
nce
with
W
TO
agr
eem
ents
•
Red
uced
/inad
equa
te p
olic
y sp
ace
for
indu
stri
aliz
atio
n du
e to
tra
de
arra
ngem
ents
with
thi
rd
part
ies
(EPA
, WT
O, e
tc)
• Es
tabl
ish
benc
hmar
ks fo
r m
onito
ring
•
Und
erta
ke a
stu
dy t
o as
sess
im
pact
of t
rade
arr
ange
men
ts
with
thi
rd p
artie
s on
in
dust
rial
izat
ion
in t
he r
egio
n
• St
art
Dat
e: 2
015
• C
onti
nues
• Ev
alua
te p
rogr
ess
• En
sure
tha
t tr
ade
arra
ngem
ents
with
th
ird
part
ies
are
supp
ortiv
e of
SA
DC
in
dust
rial
izat
ion
agen
da
• Sp
ecifi
c pr
ogra
mm
e fo
r m
onito
ring
•
Prog
ram
me
for
mon
itori
ng im
pact
of
trad
e ar
rang
emen
ts
on in
dust
rial
izat
ion
in
the
regi
on
• C
ompl
ianc
e w
ith
SAD
C g
oals
and
W
TO
req
uire
men
ts
• Pr
eser
vatio
n of
pol
icy
spac
e fo
r in
dust
rial
izat
ion
• M
echa
nism
es
tabl
ishe
d •
Polic
y sp
ace
for
indu
stri
aliz
atio
n pr
eser
ved
• Pr
ogre
ss r
epor
ts
• N
o of
pro
visi
ons
in
trad
e ar
rang
emen
ts
supp
ortin
g in
dust
rial
izat
ion
• D
egre
e/le
vel o
f fle
xibi
lity
in t
rade
ar
rang
emen
ts t
o us
e tr
ade
polic
y in
stru
men
t to
su
ppor
t in
dust
rial
izat
ion
• M
embe
r St
ates
•
SAD
C
Secr
etar
iat
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
C
ross
-cut
ting
Issu
es
33.
Mai
nstr
eam
ing
Gen
der
and
You
th in
to
Stru
ctur
al
• Une
qual
acc
ess
to
mea
ns o
f eco
nom
ic
empo
wer
men
t • L
ow b
arga
inin
g po
wer
of
• Add
ress
gen
der
ineq
ualit
ies
in
acce
ss t
o cr
edit,
cap
ital,
land
an
d ot
her
mea
ns o
f eco
nom
ic
empo
wer
men
t as
spe
cifie
d in
• In
crea
se
part
icip
atio
n of
w
omen
in a
nd
bene
fit fr
om
• SA
DC
Wom
en’s
Ec
onom
ic
Empo
wer
men
t Pr
ogra
mm
e
• W
omen
’s e
cono
mic
em
pow
erm
ent
• Pa
rtic
ipat
ion
of
wom
en in
the
ec
onom
y en
hanc
ed
• No
of w
omen
pa
rtic
ipat
ing
in
trad
e an
d in
dust
rial
• Mem
ber
Stat
es
• Pri
vate
sec
tor
• M
embe
r St
ates
•
Dev
elop
men
t Pa
rtne
rs
46
57
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
Tra
nsfo
rmat
ion
w
omen
and
you
th t
o pa
rtic
ipat
e in
en
trep
rene
uria
l pr
ogra
mm
es a
nd b
enef
it fr
om t
rade
• I
nade
quat
e en
trep
rene
uria
l ski
lls
amon
g w
omen
and
yo
uth
• Lim
ited
part
icip
atio
n by
w
omen
and
you
th in
Sm
all,
Med
ium
and
La
rge
ente
rpri
se
deve
lopm
ent
• Lim
ited
acce
ss t
o m
arke
ts b
y w
omen
and
yo
ung
entr
epre
neur
s
• Lim
ited
part
icip
atio
n by
w
omen
and
you
th in
na
tiona
l eco
nom
ic
proc
esse
s, p
olic
y fo
rmul
atio
n an
d ge
nder
in
itiat
ives
• L
imite
d ac
cess
to
info
rmat
ion
on
econ
omic
opp
ortu
nitie
s,
fund
s et
c
the
SAD
C G
ende
r Pr
otoc
ol
and
Polic
y • F
acili
tate
wom
en y
outh
’s
barg
aini
ng p
ower
to
colle
ctiv
ely
enga
ge
Entr
epre
neur
ial p
rogr
amm
es
espe
cial
ly in
the
Ser
vice
, M
anuf
actu
ring
, Hor
ticul
ture
, T
rans
port
, Ene
rgy,
A
gric
ultu
ral a
nd T
rade
in
dust
ries
at
loca
l, na
tiona
l an
d re
gion
al le
vels
to
enha
nce
equi
tabl
e pa
rtic
ipat
ion
and
bene
fits
from
tra
de
• Pr
omot
e th
e es
tabl
ishm
ent
of
wom
en a
nd y
outh
’s
prog
ram
mes
tha
t pr
omot
e ec
onom
ic li
tera
cy a
nd
entr
epre
neur
ial s
kills
in o
rder
to
incr
ease
und
erst
andi
ng a
nd
criti
cal t
hink
ing
abou
t bu
sine
ss, t
rade
and
eco
nom
ic
polic
ies
• En
hanc
e an
d pr
omot
e pa
rtic
ipat
ion
of w
omen
and
yo
uth
in s
mal
l, m
ediu
m a
nd
larg
e en
terp
rise
de
velo
pmen
t •
Incr
ease
wom
en a
nd y
outh
’s
acce
ss t
o na
tiona
l, re
gion
al
and
glob
al m
arke
ts
• Es
tabl
ish
and
stre
ngth
en
gend
er a
naly
sis,
gen
der
mai
nstr
eam
ing
and
equa
l pa
rtic
ipat
ion
of w
omen
and
m
en in
nat
iona
l eco
nom
ic
proc
esse
s, e
cono
mic
pol
icy
form
ulat
ion
and
gend
er
budg
etin
g in
itiat
ives
•
Enha
nce
wom
en a
nd y
outh
’s
netw
orki
ng o
ppor
tuni
ties
and
acce
ss t
o in
form
atio
n on
econ
omic
ac
tiviti
es
•
activ
ities
• SA
DC
Se
cret
aria
t
• M
embe
r St
ates
•
Reg
iona
l in
vest
men
t ba
nks
and
fund
s
47
58
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
econ
omic
opp
ortu
nitie
s,
fund
s, (
inte
rnat
iona
l and
loca
l) m
arke
ts, p
artn
ersh
ip
34.
ICT
& E
lect
roni
c M
anuf
actu
ring
• I
nade
quat
e na
tiona
l in
fras
truc
ture
to
supp
ort
elec
tron
ics
man
ufac
turi
ng, w
hich
co
ntri
bute
s to
poo
r re
gion
al m
arke
t pe
netr
atio
n • I
nade
quat
e in
tra-
Afr
ican
tr
ade
in v
alue
-add
ed
cons
umer
ele
ctro
nics
pr
oduc
ts
• Ina
dequ
ate
impl
emen
tatio
n of
qu
ality
sta
ndar
ds
• Ele
ctro
nics
Dum
ping
bo
th in
fras
truc
ture
and
co
nsum
er p
rodu
cts
(e-
Was
te)
• Low
usa
ge o
f ele
ctro
nics
an
d te
chno
logy
in
telle
ctua
l pro
pert
y in
th
e de
ploy
men
t of
gr
een
indu
stri
es.
• Lim
ited
usag
e of
ICT
and
el
ectr
onic
s so
lutio
ns in
th
e m
onito
ring
of
indu
stri
al p
roce
sses
and
se
rvic
es s
ecto
r
• Lim
ited
usag
e of
co
nsum
er e
lect
roni
c pr
oduc
ts in
the
ed
ucat
ion
and
skill
s de
velo
pmen
t se
ctor
• Im
prov
e re
gion
al
infr
astr
uctu
re t
o su
ppor
t el
ectr
onic
s m
anuf
actu
ring
and
m
arke
ting
• Im
prov
e ac
cess
to
finan
cing
• I
dent
ify a
nd p
rofil
e v
alue
ch
ains
in e
lect
roni
cs
prod
ucts
• P
rom
ote
targ
eted
in
vest
men
t a
cros
s th
e re
gion
• Sec
ure
and
enla
rge
mar
kets
fo
r va
lue
adde
d an
d be
nefic
iate
d go
ods
• Pro
mot
e co
llabo
ratio
n be
twee
n in
stitu
tions
in
volv
ed in
ski
lls
deve
lopm
ent
in IC
T
• Lev
erag
e IP
R t
o pr
omot
e R
&D
in IC
T s
ecto
r an
d de
velo
pmen
t of
inno
vativ
e el
ectr
onic
s pr
oduc
ts
• Sup
port
oth
er a
ncill
iary
se
ctor
s fo
r th
e m
ater
ials
re
quir
ed t
o m
anuf
actu
re a
nd
finis
h IC
T p
rodu
cts
• Sta
rt D
ate:
201
5 • C
ontin
ues
• St
reng
then
SM
E’s
wor
king
in t
he
elec
tron
ic
man
ufac
turi
ng
sect
or
• Su
ppor
t lo
cal
elec
tron
ics
equi
pmen
t re
quir
emen
ts a
nd
build
cap
acity
for
expo
rt
• D
evel
op a
nd
stre
ngth
en
com
petit
ive
adva
ntag
e in
ICT
•
Prov
ide
high
qua
lity
ICT
pro
duct
s •
Bran
d IC
T p
rodu
cts
mad
e in
the
reg
ion
• A
ddre
ss e
-Was
te in
th
e re
gion
• Str
engt
hen
the
Fram
ewor
k fo
r th
e es
tabl
ishm
ent
of IC
T
SMEs
incu
batio
n fa
cilit
ies
and
supp
ort
• Enc
oura
ge IC
T u
ptak
e an
d in
nova
tion
in
SMEs
to
brin
g ab
out
effic
ienc
y an
d co
mpe
titiv
enes
s • D
igita
l Mig
ratio
n an
d Br
oadb
and
proj
ects
to
anc
hor
and
su
ppor
t
deve
lopm
ent
capa
city
of
ele
ctro
nics
m
anuf
actu
ring
in
dust
ry
• Im
plem
ent
regi
onal
st
rate
gies
and
de
velo
p st
anda
rds
to
miti
gate
neg
ativ
e en
viro
nmen
tal i
mpa
ct
of e
-Was
te a
nd
clim
ate
chan
ge
• Mak
e el
ectr
onic
m
anuf
actu
ring
in
dust
ry a
reg
iona
l pr
iori
ty
• Est
ablis
h re
gion
al
ICT
res
earc
h in
stitu
tions
, ca
paci
ty b
uild
ing
prog
ram
mes
and
pr
omot
ion
of
know
ledg
e tr
ansf
er
• Im
prov
ed
avai
labi
lity
of
elec
tron
ic p
rodu
cts
to s
uppo
rt a
ll ve
rtic
al in
dust
rial
m
anuf
actu
ring
and
co
nsum
er s
ervi
ces
sect
ors
•
Incr
ease
d ra
nge
and
qual
ity o
f el
ectr
onic
s pr
oduc
ts
• In
crea
sed
part
icip
atio
n in
re
gion
al a
nd/o
r gl
obal
val
ue c
hain
s •
SAD
C’s
sha
re o
f in
telle
ctua
l pr
oper
ty r
ight
s in
crea
sed
as a
re
sult
of
impr
ovem
ents
in
R&
D a
nd IC
T
capa
bilit
ies
• N
o. o
f ele
ctro
nic
man
ufac
turi
ng
com
pani
es a
vaila
ble
to s
uppo
rt k
ey
indu
stri
es a
nd
cons
umer
pro
duct
s •
Ran
ge o
f ele
ctro
nic
man
ufac
turi
ng
prod
ucts
ava
ilabl
e •
No.
of e
lect
roni
c m
anuf
actu
ring
co
mpa
nies
pa
rtic
ipat
ing
in
regi
onal
/glo
bal
valu
e ch
ains
• M
embe
r St
ates
•
Priv
ate
sect
or
• SA
DC
Se
cret
aria
t
• Mem
ber
Stat
es
• Pri
vate
se
ctor
• S
AD
C
Secr
etar
iat
• Dev
elop
men
t Pa
rtne
rs
35.
En
viro
nmen
tal
Sust
aina
bilit
y (G
reen
ec
onom
y)
• N
egat
ive
impa
ct o
f clim
ate
chan
ge
• En
viro
nmen
tal
degr
adat
ion
due
to p
oor
• Im
plem
ent
the
Reg
iona
l Gre
en
Econ
omy
Stra
tegy
and
Act
ion
Plan
for
Sust
aina
ble
Dev
elop
men
t
• Pr
omot
e en
viro
nmen
tally
an
d so
cial
ly
sust
aina
ble
• A
ctiv
ities
in t
he
Gre
en E
cono
my
Stra
tegy
Act
ion
Plan
• Su
stai
nabl
e
indu
stri
aliz
atio
n •
Incr
ease
d us
e of
en
viro
nmen
tally
fr
iend
ly p
rodu
ctio
n pr
oces
ses
• N
o. o
f en
viro
nmen
tally
fr
iend
ly g
oods
and
se
rvic
es in
SA
DC
• M
embe
r St
ates
•
Priv
ate
sect
or
• SA
DC
Se
cret
aria
t
• M
embe
r St
ates
•
Priv
ate
sect
or
• D
evel
opm
ent
Part
ners
48
59
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
man
agem
ent
of in
dust
rial
w
aste
•
Inef
ficie
nt a
nd
unsu
stai
nabl
e ut
iliza
tion
of r
esou
rces
•
Inad
equa
te p
rote
ctio
n of
bi
olog
ical
div
ersi
ty a
nd
othe
r ec
osys
tem
re
sour
ces.
•
Star
t D
ate
: 201
5 •
End
: 20
16
indu
stri
aliz
atio
n
regi
on
• D
evel
opm
ent
Part
ners
Envi
ronm
enta
l Su
stai
nabi
lity
Blue
Eco
nom
y D
evel
opm
ent
Polic
y Fr
amew
ork
(BED
PF)
• Ina
dequ
ate
clim
ate-
chan
ge r
esili
ent
infr
astr
uctu
re
• Poo
r tr
ansp
orta
tion
links
, esp
ecia
lly b
etw
een
coas
tal a
nd is
land
sta
tes
• Ina
dequ
ate
Stat
istic
s • I
nade
quat
e ca
paci
ty t
o co
mpl
y w
ith s
tand
ards
• P
oor
acce
ss t
o ca
pita
l • I
nade
quat
e ac
cess
to
mar
ket
info
rmat
ion
• Ina
dequ
ate
skill
s to
su
ppor
t in
itiat
ives
on
blue
eco
nom
y
• Ina
dequ
ate
ince
ntiv
es t
o pr
omot
e th
e bl
ue
econ
omy
initi
ativ
e • S
low
pro
gres
s in
fo
rmal
isin
g th
e SM
Es
• D
evel
op a
dequ
ate
and
qual
ity
infr
astr
uctu
re a
nd in
crea
se t
he
com
petit
iven
ess
of p
orts
and
sh
ippi
ng t
rans
port
•
Impr
ove
tran
spor
tatio
n lin
kage
s
• U
nder
take
a s
tudy
to
gath
er
and
com
pile
sta
tistic
s on
blu
e ec
onom
y an
d bu
ild lo
ng t
erm
ca
paci
ty in
thi
s ar
ea
• D
evel
op s
kills
to
supp
ort
initi
ativ
es o
n th
e bl
ue
econ
omy
•
Enha
nce
capa
city
to
com
ply
with
qua
lity
stan
dard
s •
Rem
ove
bus
ines
s co
nstr
aint
s on
ent
erpr
ises
, esp
ecia
lly S
MEs
op
erat
ing
in b
lue
econ
omy
• Pr
ovid
e in
cent
ives
to
supp
ort
deve
lopm
ents
with
reg
ard
to
blue
eco
nom
y
• Id
entif
y C
entr
es o
f Exc
elle
nce
in t
he d
iffer
ent
sect
ors
to
rein
forc
e re
sear
ch a
nd
deve
lopm
ent
capa
city
on
mat
ters
rel
atin
g to
the
blu
e ec
onom
y
• St
art
Dat
e : 2
015
• C
onti
nues
• U
se o
cean
re
sour
ces
to
prom
ote
incl
usiv
e an
d su
stai
nabl
e in
dust
rial
izat
ion
•
Put
in p
lace
in
fras
truc
ture
tha
t su
ppor
t bl
ue
econ
omy
initi
ativ
e an
d fa
cilit
ate
m
ovem
ent
of
envi
ronm
enta
lly
frie
ndly
goo
ds a
nd
serv
ices
bet
wee
n SA
DC
coa
stal
and
ot
her
isla
nd s
tate
s
• G
reat
er
part
icip
atio
n in
na
tiona
l, re
gion
al
and
glob
al v
alue
ch
ains
invo
lvin
g sm
art
good
s an
d se
rvic
es
• Dev
elop
a b
lue
econ
omy
Polic
y an
d St
rate
gy b
y 20
17
• Mai
nstr
eam
blu
e ec
onom
y in
itiat
ives
in
all
aspe
cts
of t
he
econ
omy
• In
clus
ive
and
sust
aina
ble
indu
stri
aliz
atio
n
• C
onne
ctiv
ity
betw
een
cost
al a
nd
isla
nds
stat
es
impr
oved
•
Oce
an-b
ased
re
sour
ces
utili
sed
effic
ient
ly t
o su
ppor
t in
clus
ive
and
sust
aina
ble
indu
stri
aliz
atio
n •
Incr
ease
d pr
oduc
tion
and
trad
e in
en
viro
nmen
tally
fr
iend
ly g
oods
and
se
rvic
es
• N
umbe
r of
M
embe
r St
ates
ad
optin
g th
e Bl
ue
Econ
omy
Initi
ativ
e an
d ut
ilisi
ng o
cean
-ba
sed
reso
urce
s in
a
sust
aina
ble
man
ner
• N
umbe
r of
en
viro
nmen
tal
good
s an
d se
rvic
es
prod
uced
in t
he
regi
on
• Mem
ber
Stat
es
• Pri
vate
Sec
tor
• Hig
her
lear
ning
and
tr
aini
ng
inst
itutio
ns
• Dev
elop
men
t Pa
rtne
rs
• M
embe
r St
ates
•
Priv
ate
sect
or
• D
evel
opm
ent
Part
ners
36.
SAD
C R
aw
Mat
eria
l Ini
tiativ
e • In
adeq
uate
coo
pera
tion
on a
cces
s to
raw
m
ater
ials
in t
he r
egio
n
• D
evel
op a
Com
mon
SA
DC
Po
sitio
n on
raw
mat
eria
l in
itiat
ive
• Pr
omot
e
coop
erat
ion
and
acce
ss t
o ra
w
• C
onsu
ltatio
n am
ong
Mem
ber
Stat
es t
o de
velo
p th
e In
itiat
ive
• A
Com
mon
SA
DC
Po
sitio
n on
acc
ess
to
raw
mat
eria
ls
• In
crea
sed
avai
labi
lity
and
use
of r
aw m
ater
ials
• N
o. o
f Mem
ber
Stat
es c
oope
ratin
g on
acc
ess
to r
aw
• M
embe
r St
ates
•
Priv
ate
Sect
or
• SA
DC
• M
embe
r St
ates
•
Priv
ate
sect
or
49
60
N
o
Pol
icy
Are
a C
halle
nges
Inte
rven
tion
s
Obj
ecti
ves
Pro
gram
mes
/ P
roje
cts/
A
ctiv
itie
s
Pri
orit
y T
hrus
t O
utco
mes
/ ou
tput
s
Key
Per
form
ance
In
dica
tors
R
espo
nsib
ility
Fund
ing
• Ex
cess
ive
relia
nce
on
expo
rtat
ion
of r
aw
mat
eria
ls t
hat
are
subj
ect
to p
rice
vol
atili
ty
mat
eria
ls
• U
se o
f SA
DC
raw
m
ater
ials
to
prom
ote
be
nefic
iatio
n an
d va
lue
addi
tion
for
bene
ficia
tion
and
valu
e ad
ditio
n in
Reg
ion
mat
eria
ls a
nd
regi
onal
val
ue
chai
ns
• Q
uant
ity o
f raw
m
ater
ials
ava
ilabl
e fo
r be
nefic
iatio
n an
d va
lue
addi
tion
Secr
etar
iat
50