Rwanda's economic recovery since the genocide is largely associated with the government's effective leadership. This paper questions that narrative, highlighting that failure—rather than consistent effectiveness—is a common feature of productive sector policies in late developing countries and that the Rwandan case is no different. Using three examples where Rwanda's party‐owned investment group (Crystal Ventures Ltd) has been used as a key agent in productive sector policies, the paper finds that outcomes of learning from failure have varied significantly, highlighting some way to go before the government's developmental ambitions are met. Copyright © 2018 John Wiley & Sons, Ltd.