This Policy and Strategy Papercontributes to an ongoing policy debate-within the Bank butalso with its client governments-about the role of treecrops in various production systems, and as key commoditiesin the trade portfolio of various African nations. Itattempts to answer the following questions: a) What is therole of tree crops in a rural development strategy focusedon smallholders? B) Under what conditions can small-holdertree crops be included in such a strategy, and be viable,and what are the operational guidelines to do so? The set oftree crops considered includes cashew nuts, coconuts, cocoa,coffee, gum arabic, oil palm, rubber,and tea. Other treecrops, such as teak and tropical fruit, hold less economicimportance for the subcontinent, and are thus excluded fromthe analysis. Although plantations exist for many of thesecrops, small-holders play a major role in their overallproduction. These small-holder systems are mixed farmingsystems, including a variety of annual crops as well asmajor, or minor tree crops. The paper illustrates the placeof tree crops in African economies, at the macro- andmicro-levels, and draws a number of lessons from a set ofAsian experiences. It then suggests that, under appropriateconditions, investment in small-holder systems that includetree crops can be a good choice for investment in theproductive sector. The report finally provides strategic andoperational guidelines, and, includes five sections: 1.Background; 2. Support to the Sector; 3. The AsianExperience(s); 4. Perspectives on Tree Crops; and, 5.Strategic and Operational Issues. A bibliography isincluded, and the Statistical Appendix is available both asa separate document, and electronically.