This chapter provides a comprehensive understanding of agricultural value chains and their potential contribution to economic growth and development. For Africa to harness the agricultural value chains, a different paradigm is needed: an inclusive agricultural transformation calling for a sustained increase in productivity coupled with a sustained increase of farmer’s income. That comprehensive transformation will trigger agricultural manufacturing, development of agribusiness and agroindustry, creating value and retaining value in the system. The chapter elaborates on the need for economies of scale, economies of complementarity and economies of vertical integration and an interconnected ecosystem of agricultural value chains including all sectors, e.g. agriculture, industry and services. Thus, an agricultural value chains analysis provides a promising framework for understanding effective interventions to achieve economic growth, better outcomes for a healthy and productive environment through climate smart agriculture.