Turning Uganda’s MSMEs into champions of decent work

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OPINION

By Daniel Opio

Every year, on October 7th, the world observes the International Day for Decent Work, a time to reaffirm the global commitment to fair, dignified, and productive employment. For Uganda, a signatory to key International Labour Organisation (ILO) conventions, this day serves as both a reminder and a call to action.

Uganda’s Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the economy, sustaining millions of livelihoods and driving job creation. Yet, their story is one of both promise and paradox. Despite their economic importance, MSMEs continue to face some of the most severe deficits in decent work.

According to the 2024 State of Entrepreneurship in Uganda and ILO data, over 60% of MSME workers globally are employed informally, without contracts, social protection, or legal safeguards. In Africa, this rises to nearly 90%, and in Uganda, a staggering 92% of MSME employees work without written contracts. Such informality exposes workers to low wages, irregular pay, and job insecurity.

The challenges run deeper. Many MSME workers face unsafe and unhealthy conditions, chemical exposure, long hours, and inadequate protective gear, exacerbated by weak enforcement of Occupational Safety and Health (OSH) standards. Social protection remains out of reach for most, while women, youth, migrants, and persons with disabilities often face systemic exclusion. Unless these gaps are addressed, the sector’s economic promise will continue to be undermined by its human cost.

To shift this narrative, MSMEs need a clear, actionable one-year roadmap that translates the principles of decent work into daily practice, laying strong foundations, building resilient systems, and fostering a culture of fairness, safety, and productivity.

Phase I: Laying the foundations (0 – 4 months)

The first stage focuses on trust, safety, and accountability through simple, low-cost actions. MSMEs should start by appointing a Decent Work focal person, issuing written contracts, and standardising wage payments. Policies against child labour, harassment, and discrimination must be visibly enforced, while workers receive orientation on rights, safety, and ethics. Basic health and safety measures, such as hazard checks, first-aid kits, and enrolment in social protection schemes, lay the groundwork for responsible operations.

Phase II: Building systems and resilience (4 – 8 months)

With the basics in place, enterprises should strengthen systems that ensure fairness and transparency. This means fixing workplace hazards, training supervisors in respectful leadership, and digitising wage payments. Clear leave and pay policies, supplier codes of conduct, and regular performance reviews create consistency and build confidence. Introducing family-friendly measures, disability inclusion, and fair pay assessments moves MSMEs toward a culture of shared prosperity.

Phase III: Consolidation and growth (8 – 12 months)

The final phase cements decent work as part of business culture. MSMEs should form occupational safety and health committees, certify first-aiders, and improve workplace facilities. Transparent job grading, employee handbooks, and recognition for staff innovation reinforce engagement and accountability. By adopting structured organisation systems like 5S and conducting annual self-audits, MSMEs position themselves for sustainable growth and competitiveness.

As the world marks Decent Work Month this October, Uganda must reaffirm its ILO commitments by putting MSMEs at the centre of labour reform. These enterprises have the potential not only to create jobs but also to shape the future of fair, dignified, and productive work. By following this roadmap, they can turn workplaces into drivers of both economic growth and human development.

The writer is a  labour rights and social dialogue expert

opiodaniel1@gmail.com