Abstract: The topic of this research is “performance contract scenario and socio-economic development of Rwanda” a case study of Gatsibo District. The purpose of this study was to find out the social and economic effects of performance contracts in Gatsibo District and to find out challenges of the performance contracts and possible strategies for improvement. The problem at hand was that; reconstructing a nation from ashes was nearly impossible in Rwanda after the scourge of war and genocide that took almost a million of people and left many others with physical and psychological wounds.