The Social Fund for Development (SFD) was established by a Presidential Decree in 1990, in collaboration with the World Bank and UNDP, the European Union and three Arab Funds, mainly to mobilize national and international resources to be used for human development. SFD could secure US$ 1,550 million donations and soft loans. It facilitates and supports the economic reform program and mitigates its adverse effects on vulnerable and low income population groups. It helps to mitigate poverty and reduce unemployment by providing new job opportunities through financing small enterprises and by offering donations for community development and infrastructure works.

    SFD addresses structural social problems through further employment creation and income generation and through stimulation of institutional relations which would strengthen civil society and provide increased social awareness. One of the SFD's mandate is to activate local NGOs and build their capacities. It also helped make poverty alleviation a main priority in the national development strategy. SFD, contrary to some concepts, is not a poverty program. It covers three national priorities; poverty, economic development, and employment.

    ERSAP was successful in economically moving the country forward. Economic growth was considered the most important engine to create job opportunities and generate resources to alleviate poverty. However, the social sector has not been exposed to the same level of efforts. There is still a need to focus on social development as high national priority by holding a national conference on social development in Egypt, through various tested mechanism, that made the World Bank and the European Union rank it as the best social fund among 55 social funds in the world.


Answer the following questions.

What does SFD stand for?

What is SFD used for?

How did the government provide new job opportunities?

What are three main priorities of SFD?

Who fund SFD?


Write True or False




  1. SFD is to mobilize national and international resources for human development.
  2. SFD helps to increase the low income of population groups.
  3. SFD reduces the poverty and unemployment.
  4. SFD ignores the social problems.
  5. SFD doesn't get involved in employment creation and income generation.
  6. The main priority in national development strategy is poverty alleviation.
  7. SFD just focuses on a poverty program.
  8. World Bank is the most important role for SFD.

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