The following summarizes (1) possible actions that governments can take (vertical axis) that will influence

(2) outputs that contribute to the achievement of high-level objectives such as job creation, poverty reduction, increased exports (horizontal axis). Agricultural production and related inputs are included in the Product Quality Improvement column. Note that to actually implement some or all of the final policy actions, capacity building may be needed for targeted government institutions implicated in strategy implementation. Outputs that Yield Achievement of Objectives Possible Government Actions Reform of Rules / Laws / Regulations / Policies Attract New Investment in Coffee Value Chain Maintain a conducive macroeconomic environment. Contract enforcement. Zoning laws in secondary towns and enterprise zones. Foreign investment laws / policies. Foreign ownership laws. Competition policies and licensing laws. Franchising laws. Reductions in the costs of establishing and doing business (including tax incentives). Technology Adaptation and Innovation in Coffee Value Chaintry Maintain a conducive macroeconomic environment. Restrictive policies such as local-content requirement imposed on foreign producers. Intellectual property rights regime. Contract enforcement. Environmental regulations that encourage processing of by-products. Coffee Quality Improvement (Fwd and Bckwd Linkages) Land Policies, including taxing land, titling, land as collateral, and encouragement of (larger scale) commercial farming. Contract enforcement. Seed import laws. Sanitary/Phytosanitary laws and regulation. Grades/standards/packaging laws. Seed testing/approval/ certification laws. Environmental regulations for agro-chemical production/ storage/distribution. Veterinary products laws and regulations. Fertilizer trade and marketing policies. Nutrition requirements. Increase Sales

Trade policies. Warehousing laws. Regional harmonization of policies and administrative standards and procedures. Contract enforcement. Favorable exchange rate valuation. Transport policy. Open competition among domestic firms, and between domestic and international firms.

 Incentives and Tax Policies Tax holidays, reductions or deferrals. Funding for feasibility studies. Incentives to attract anchor firms. Business to business facilitation. Restrictive policies such as tariffs and bans on imports, taxes on exporters of raw materials. Provide lucrative packages to induce diaspora to return. Funding for feasibility studies. Fund demonstration pilots (with exit strategy). Support universityindustry relationships. Support education in targeted areas. Externships / Intentional student exchange / Study tours. Investments in management or business education. Establish / support small business incubators. Analysis and training on appropriate technologies for micro and small-scale processing.

Law of association. Cooperative laws. Transport policies. Environmental pollution policies. VAT exemptions for domestic transactions destined for export.

Price policy Restrictive policies such as tariffs and bans on imports, taxes on exporters of raw materials. VAT exemptions for export. Business to business facilitation.

Education / Skills Development

Training grants. Support universityindustry relationships.

Support university-industry relationships. Support education in targeted areas.

Investments in management or business education.

Private Sector Capacitybuilding

Strengthen farmer/ commodity/industry associations. Publicly fund research to complement private R&D. Develop industry-specific learning and research institutes in which to adapt existing technologies. Encourage technology transfer agreements and joint ventures.

Infrastructure Investments [Explore PPP arrangements for all

Establish free trade zones Establish industrial zones Establish science and technology parks /

Establish export processing zones. Establish science and technology parks / industrial parks.

Supply chain management training. Management systems for contract farming. Agricultural extension. Marketing extension services for farmers. Strengthen farmer/ commodity/industry associations. Availability of high quality inputs through technical assistance to input distribution companies. HACCP and other quality control system training. Traceability / identity preservation training. Publicly fund research to complement private R&D. Improve market information dissemination systems. Improve value-chain linkages. Foster a business perspective among producers organizations and cooperatives. Work with lead firms to improve the supply chain. [Corridor] road and/or rail construction, rehab/ maintenance. Coffee Washing Stations Warehouse construction and lease. Professionalize

Market development. Market intelligence training. Commercializing innovation and technology. Improve quality and standards or product. Improve buyersupplier relationships.

Marketplace rehab/management (domestic sales). Establish/rehab wholesale markets. Port rehab and

infrastructure investments.]

industrial parks. Adequate access to roads, electricity and water.

Access to Finance

Investment credit. SME credit. Venture capital. Credit information. Catalyst (jump-start) funds. Co-investment funds.

Investment Promotion

Focus efforts and knowledge on priority (competitive) sectors. Actively court anchor firms. Targeting of valuechain investments. Develop internal and

Technical assistance to financial service firms to develop new / improved products that support industry development. Investment credit (such as from IFC). SME credit. Seasonal and mediumterm credit. Royalty-based credit. Venture capital funds to seed firms with new technologies. Risk management and mitigation. Catalyst (jump-start) funds. Co-investment funds. Tailor programs to specifically attract innovation and technology. Negotiating with MNCs to maximize technology transfer. Facilitating acquisition

warehouse management to be managed as a business. Electricity construction or fortification. Irrigation infrastructure. Watershed management structures. Technical assistance to financial service firms to develop new / improved products that support industry development. Agricultural production credit. Warehouse receipt guarantees. Value-chain credit. Microfinance and savings facilities. Medium-term credit. Co-finance cooperative supply arrangements. Contract farming credit guarantees.

management. Logistics centers. Dry port development. Port and airport freight storage and handling facilities and management. Regional trade financing and clearinghouse mechanisms. Royalty-based credit.

Regional trade/investment for joint venture match-making. Targeting of value-chain investments.

Export Promotion

external systems to ensure that the investor gets good service and response. Demonstrate professionalism in everything the IPI does. Fast approvals and delegated authorities to permit rapid responses to investor needs. Quick, flexible responses to investor needs. Follow-up until investor is satisfied. Promote replicable business models. Promote licensing.

and dissemination of technologies. Organize activities around industrial clusters. Targeting of value-chain investments.

Collect, analyze and operationalize market intelligence. Feedback mechanisms. Improve buyer-supplier information exchange.

Collect, analyze and operationalize market intelligence. Market development. Branding of product from country. Promote exports abroad. Sponsor participation in International Trade Shows as a key source of market intelligence,

market linkages. Support Industry Alliances as a means for disseminating market intelligence, analysis of opportunities and strengthening market linkages. Training in sales client relationship management. Information dissemination on customs procedures. Regional harmonization of trade policies / procedures.