The Rwandan context was characterised by strong progress in the social sectors of health, education, water and sanitation between 2002 and 2005.  Performance was however weaker within the productive sectors. The Rwandan economy grew between 3 - 5.5 percent in 2006. Inflation was controlled at 5.5 percent while all the governance indicators improved, with some better than others. However, Rwanda still faces various challenges: 

•  56.9 percent of Rwandans live under the poverty line
•  Lack of investment in agriculture and land fragmentation (average for farming 0.73 ha)
• chronic malnutrition (increased from 43% to 45%) and food insecurity (from 10% to 40% depending on the districts)
• high population growth (350 inhabitants per square km, 3.5% per year of growth, 17% users of contraceptives) which erodes economic growth and destroys the environment (poverty decreased from 60.2% to 56.9%, but there are 600,000 more Rwandans living in poverty than there were 5 years ago)
•  Soaring inequality, threatening poverty reduction and economic growth (the average income of the top 20% of the population has almost doubled since 1996, while the income of the bottom 20% has remained stagnant in the last 10 years)
• In terms of governance at voice and accountability level, Rwanda, with 14.4 percentile points, is the last in the region except for the Democratic Republic of Congo

These figures clearly indicate the micro–macro divide in terms of economic growth, public aid and inequality, in threatening poverty reduction, population under the poverty line, and access to basic services. By allowing people to handle their own development and work within the framework of national poverty reduction strategies and the Millennium Development Goals SNV Rwanda ensures a reduction in the micro-macro divide which is more successful and sustainable. This is carried out in collaboration with local capacity builders thus assuring their critical contribution.
Having critically studied this context, and in alignment the Rwanda Poverty Reduction Strategy and the MDGs, SNV Rwanda is working in: Water, Sanitation and Hygiene, Education, Biogas, Coffee, Beekeeping and Tourism.
SNV Rwanda has governance as a main cross-cutting issue which includes gender, environmental sustainability, social inclusion and HIV/Aids.