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In this study entitled " The contribution of good governance to the economic development of local entities in Rwanda", the researcher was guided by research question, hypothesis and different objectives to come up to the conclusion drown from the data collected and analyzed. In this research, the researcher was based on the following question "how good governance through accountability, transparency and people participation contribute to the economic development in Rwanda especially in Gakenke District?" and also it was based on the following objectives: to examine the concept of good governance; to examine the implementation process of good governance policy in Gakenke District; to analyze the relationship between good governance and the economic development; to identify the benefits of good governance to stakeholders of Gakenke District with regards to economic development; to come up with suggestions and recommendations. It was found that good is central to a country's progress. Thus, good governance and economic development is indivisible, good governance is essential condition for eradicating poverty and hunger, achieving basic needs and economic growth.