DFIs typically require that projects respect workers’ fundamental right to a safe and healthy workplace, yet workers at DFI-financed hotels have discovered unsafe accommodations, unhealthy working environments, and inadequate COVID-19 protection policies, subjecting workforces to unacceptable risks. PS states that:

“The client will provide a safe and healthy work environment, taking into account inherent risks in its particular sector and specific classes of hazards in the client’s work areas, including physical, chemical, biological, and radiological hazards, and specific threats to women.”

CASE STUDY: Kasada Hospitality Fund 

In April 2021, the IFC approved a $160 million USD loan to Kasada Hospitality Fund (KHF) to finance the acquisition of eight Accor hotels in Africa. After reviewing the environmental and social risks associated with the project, the IUF filed a complaint alleging that there was not sufficient involvement of the IFC in overseeing the project and Kasada’s compliance with issues ranging from health and safety during the pandemic to freedom of association and the rights to collective bargaining. Following the filing of the complaint, KHF was very responsive and facilitated numerous joint meetings with the IUF and the IFC to ensure that the hotels under its purview adhered to the bank’s requirements and international law. The cooperation between the IUF, IFC and KHF has been productive and led to positive impacts for workers in the hospitality industry.