The Common Development Fund (CDF), is a Government owned fund set up to support the implementation of decentralization policy, a policy which the Government of Rwanda considers as the main strategy to achieve good governance and sustainable economic development, and as a weapon of higher caliber to fight poverty. In order to ensure an effective implementation of this policy, availing resources to grassroots administrative entities was indispensable; the CDF was established and assigned the mission to empower those administrative entities by financing development projects.

The Government is conscious that its financial decentralization objective can be achieved by effectively using the Common Development Fund channel. And it is as much better realizable when the populations take part in development activities, are able to express their whole potentiality, to mobilize themselves and negotiate their interests within their local communities.

In this respect,Districts and the populations play a determining role in the planning and management of development projects which take into account their needs and priority with the aim of poverty reduction.

The Common Development Fund (CDF) has the mission of financing Districts and Kigali City development efforts, with at least 10% of the annual national revenues allocated to the Fund.

• To finance development projects, to distribute between Districts and Kigali City funds allocated to those projects and to ensure that these funds are equitably distributed between those entities;
• To monitor the use of funds allocated by CDF to development projects in Districts and the City of Kigali ;
• To "participate to the administrative entities’ capacity building in order for them to manage their development and mobilize complementary resources.
• To serve as an intermediary between Districts, Kigali City and Donors who particularly finance development projects in these entities.

The Government of Rwanda set up the CDF in 2002, to enhance the process of decentralization initiated since 2000, while contributing to the efforts of financial decentralization and decision making capacities. Its mission was to finance Districts’ and Kigali City development projects, thanks to the disposal of 10% of the national revenues and grants by the donors.

It had to contribute to the sustainable, equitable and participatory development through the financing of development projects from the decentralized entities and the improvement of the local benefits of public services.

From 2002 to 2005 the CDF financed Districts and Kigali City, according to a project support approach for the realization of development initiatives proposed by Districts and Kigali City. These projects had to be approved by the CDF’s Board of Directors while referring to CDF’s priorities and distribution criteria. Since 2006, the CDF entered progressively adopted a budget support system that consists of financing development projects as expressed in the planning and performance contracts of partner entities, in return for only one financing contract.

The Rwanda Decentralization Strategic Framework (RDSF) has been developed to act as a reference to the national orientations relative to the Economic Development and to the Poverty Reduction [EDPRS: Economic Development and Poverty Reduction Strategy (2008-2012), Vision 2020 (2003-2020) and MDGs (Millennium Development Goals 1990-2015), in a setting in decentralization.

The RDSF will be set in motion through a five year program called "Decentralization Implementation Program (DIP) "2008-2012. The CDF is called to contribute to the achievement of DIP’s five objectives and to become one of the main actors in the achievement of the fiscal and financial capacities of Local Governments so that they assume their roles and responsibilities in the improvement of development services rendered to the population.

In addition to the responsibility in the allocation of funds, the CDF is destined to progressively mobilize fund donors to finance development, to ensure the periodic monitoring of implementation of financed projects and to evaluate their effects and socio-economic impacts in the districts.

From 2002 to 2005 the CDF financed Districts and Kigali City, according to a project support approach for the realization of development initiatives proposed by Districts and Kigali City. These projects had to be approved by the CDF’s Board of Directors while referring to CDF’s priorities and distribution criteria. Since 2006, the CDF entered progressively adopted a budget support system that consists of financing development projects as expressed in the planning and performance contracts of partner entities, in return for only one financing contract.

The Rwanda Decentralization Strategic Framework (RDSF) has been developed to act as a reference to the national orientations relative to the Economic Development and to the Poverty Reduction [EDPRS: Economic Development and Poverty Reduction Strategy (2008-2012), Vision 2020 (2003-2020) and MDGs (Millennium Development Goals 1990-2015), in a setting in decentralization.

The RDSF will be set in motion through a five year program called "Decentralization Implementation Program (DIP) "2008-2012. The CDF is called to contribute to the achievement of DIP’s five objectives and to become one of the main actors in the achievement of the fiscal and financial capacities of Local Governments so that they assume their roles and responsibilities in the improvement of development services rendered to the population.

In addition to the responsibility in the allocation of funds, the CDF is destined to progressively mobilize fund donors to finance development, to ensure the periodic monitoring of implementation of financed projects and to evaluate their effects and socio-economic impacts in the districts.