The Social Fund for Development (SFD) was established by Law No. 10 of 1997 to contribute to achieve, and align its programs with, goals of the national social and economic development plans for poverty reduction (DPPRs). It has implemented three phases of operations and by, 2011, commenced phase IV. SFD supports development opportunities through improving access to basic services, enhancing economic opportunities and reducing the vulnerability of the poor as well as building capacities at national levels including local authorities and community structures. To reach these objectives, SFD applies the best international and local practices and policies and piloted approaches to share its experiences with all other development players.

SFD has four main programs:

Community Development
Capacity Building
Small and Microenterprises Development
Labor Intensive Program.

SFD operations are carried out through several sectors including: Education, Cultural Heritage, Water, Agriculture, Training & Organizational Support, Health Small and Microenterprises Development, Environment, Special Needs Groups, Integrated Interventions, Rural Roads and Cash for Work.
SFD Units are responsible for policy setting, providing support to branch offices and monitoring progress within their respective sectors.