Under the oversight of the Ministry of Local Government (MINALOC) and guidance from the Ministry of Finance and Economic Planning (MINECOFIN), LODA coordinates the planning and financing of all development activities in districts and the City of Kigali. In more specific terms, LODA is mandated to:

1. Provide support and quality assurance to the strategic planning and prioritisation of all development and social protection activities across decentralised entities to ensure the quality of the planning, budgeting, and monitoring of development projects and activities;
2. Ensure citizen’s participation in planning process;
3. Mobilise, collect funds and Finance development activities in local administrative entities with legal personality.
4. Serce as an intermediary between local administrative entities and development partners, especially those involved in financing development projects and activities in those entities;
5. Ensure the distribution of earmarked transfers and funds is done equitably and priority is put on projects/activities with important and transformational economic impact;
6. Monitor the use of funds allocated by LODA to development projects and activities in the local administrative entities.