Rwanda is expected to grow at over 8percent in 2011, led by strong growth in the agricultural,industrial, and services sectors in the second half of theyear. Rwanda’s growth prospects for 2011 compare favorablywith others in the region. Rwanda has demonstrated economicresilience at a time when regional and global shocks havehad serious consequences for many neighboring East AfricanCommunity (EAC) countries. The main drivers of Rwanda’sgrowth for the first half of 2011 were the industrial andservices sectors. Increased agricultural production in thesecond half of 2011 follows the excellent rains in thesecond planting season(March-June). Rwanda has ambitiousplans to transform from a largely agrarian economy, to oneled by a vibrant modern non-agricultural private sector,providing goods and services to meet growing internal andregional demands. Household enterprises (HEs) are activitiesproviding goods and services that are run out of thehousehold, usually by one family member although they mayincorporate other family members in their operation. Thisupdate concludes with a series of policy recommendations fordeveloping HEs which can have a major impact on increasingthe output and productivity of this important, butneglected, sector of the economy.