Leading with Decent Work

As a state-owned Development Finance Institution, the Small and Medium Enterprises Development Corporation (SMEDCO) in Zimbabwe has taken deliberate steps to embed Decent Work principles both internally and in its service delivery model. The organisation promotes fair recruitment, inclusivity, and compliance with national labour legislation and ILO standards. SMEDCO maintains full regulatory compliance-paying taxes, contributing to NSSA (social security), and implementing gender and ESG policies to ensure fairness and accountability in both internal operations and client services.

This internal commitment has shaped how SMEDCO interacts with construction sector enterprises. Through its Business Development Services and mentorship programmes, the Corporation has mainstreamed Decent Work components into enterprise support. Training modules are designed to raise awareness and build capacity around fair wages, workplace safety, formal employment contracts, and non-discrimination. These principles are not treated as peripheral topics, but rather as core aspects of building sustainable, productive and responsible businesses.

The result? Early signs of positive change are already visible among participating enterprises. Several businesses have begun formalising employment relationships, adopting written contracts (8) adhering to minimum wage standards, and invigorating their OSH practices (5) by reviewing their OSH plans and providing basic personal protective equipment (PPE) to their workers.

One enterprise, Tidoka Enterprises, shared that all staff now have formal contracts in place, and renewal procedures are documented systematically. Others have introduced grievance mechanisms, clarified roles and responsibilities, and in one case, established a Workers’ Committee to support worker voice and engagement, with 55 members.

In addition to enterprise-level support, SMEDCO is leveraging its role as a lender to reinforce Decent Work standards through its credit assessment processes. Traditionally focused on financial viability and repayment capacity, these assessments now also consider how enterprises manage their labour practices. This includes reviewing whether applicants provide written contracts, comply with wage laws, maintain safe working environments, and respect workers’ rights. By factoring social and labour compliance into financing decisions, SMEDCO is using its financial influence to reward responsible business conduct and promote better working conditions across the sector.

Decent Work is not a separate stream, for us-it is integrated into how we train, finance, and mentor our clients.” Ms Bernice Moyo, Training and Development Manager, SMEDCO

This approach is further reinforced by the Corporation’s efforts to shape the broader enabling environment. SMEDCO actively engages with public procurement authorities, SME and industry associations, and institutional partners to promote the inclusion of Decent Work standards in funding criteria, procurement systems, and workspace allocation mechanisms.

Through this dual strategy-supporting enterprises directly while influencing systems-SMEDCO is contributing to a more inclusive, safer, and fairer construction sector in Zimbabwe.