The gender pay gap remains a persistent challenge globally, particularly affecting women in developing countries like Rwanda, especially in the agricultural sector. This paper examines the potential of cooperative business models as a viable tool for reducing economic inequality and empowering women. It focuses on the existing state of gender disparities in Rwanda, considering factors such as cultural norms, occupational segregation, and limited access to resources. The analysis highlights cooperatives' transformative role in providing women with economic opportunities, leadership skills, and social support. Drawing on successful examples of women-led cooperatives in Rwanda and internationally, the study identifies critical success factors, including access to training, financial resources, and supportive community structures. Additionally, it evaluates Rwanda's current legislative framework governing cooperatives, compares it to successful international models, and identifies barriers to effective implementation, such as socio-economic and gender-specific challenges. The paper concludes with actionable recommendations to enhance the legislative environment, provide financial and technical support, and address socio-cultural barriers to women’s participation in cooperatives. Advocating for targeted policies and robust monitoring mechanisms emphasizes the importance of integrating cooperatives into Rwanda’s broader strategy for achieving gender equity and sustainable development. This study contributes to the growing discourse on economic empowerment and gender equality by offering valuable insights and strategies