This paper examines the Annual Progress Report (APR) on Rwanda’s Poverty Reduction Strategy Paper (PRSP). The 2004 APR is an important progress marker in Rwanda’s long-term vision to reduce the proportion of Rwandans living below the poverty line from 60 percent to 25 percent and raise per capita incomes from $250 to above $1,000. It represents an analysis of progress to date under the 2002 PRSP and sets out in detail government initiatives, which contribute to the goal of poverty reduction.