Abstract:
Performance contracts serve as a tool to hold individuals, organizations, or entities accountable for achieving specific targets and objectives within a defined timeframe. By setting clear expectations and measurable goals, performance contracts establish accountability mechanisms to ensure that responsibilities are met, and commitments fulfilled. The study thought to identify the Contribution of Performance Contracts to the Development of Rwanda in Muhanga District, It was guided by the specific objectives namely to assess the contribution of performance contracts to service delivery improvement in Muhanga district, to analyze the impact of performance contracts on poverty reduction and human development in Muhanga district and to discuss the challenges that the country faces in implementation of performance contract, the study adopted a cross-sectional design using both quantitative and qualitative research approaches on a sample of 71 respondents. The findings reveal that performance contracts have significantly improved service delivery in Muhanga District, with 78.8% of respondents highlighting their role in setting clear targets and enhancing accountability, leading to tangible outcomes in areas like infrastructure, healthcare, and education. A vast majority (97.1%) believe these contracts have increased efficiency and effectiveness, optimized resource management and reducing wastage. Monitoring and evaluation were also crucial, as 76.1% acknowledged their importance in tracking progress and ensuring continuous improvement. According to the second objective, as statistics shows that, the performance contracts have significantly contributed to poverty reduction and human development in Muhanga District. A majority of respondents (83.1%) recognized improved access to essential services like healthcare, clean water, and sanitation, which directly enhance quality of life. Employment generation, noted by 92.9%, has also been a key impact, supporting economic growth and reducing poverty. The research has found challenges related to implementation of Imihigo performance like insufficient capacity, both in terms of human resources and institutional capacity (83.1%), can hinder effective implementation. Limited skills, expertise, and experience among government officials (95.7%), In addition, Inadequate financial, technological, and logistical resources (87.6%) can pose significant challenges to implementation Imihigo. Addressing these challenges requires strong leadership, commitment, and concerted efforts from government authorities, stakeholders, and development partners.
