The rapid transformation of agri-foodvalue chains in Africa and other developing countrieshasimportant implications for economic growth and povertyreduction. Policy makers increasinglyrecognize this butthere is a need for a better understanding of what valuechain transformationentails and what the main policy optionsare. This paper provides an overview and analysisofdifferent value chain models that have emerged in the pastdecades and reviews the literatureon the main developmentimplications. We discuss and categorize existing policyinitiativesthat aim to stimulate inclusive value chaindevelopment. Based on this review we identifylessons andimplications for policy makers.