Enhancing Inclusion: Absa Bank Kenya’s Commitment to Women-Owned Businesses

Absa Bank Kenya collaborates with IFC’s Sourcing2Equal Program to enhance the representation of women-owned businesses in its supply chain. Launched in 2021, the initiative has supported over 1,500 women entrepreneurs through training and procurement opportunities. Absa aims to diversify its supply chain to include 30% women, youth, and PWDs by 2025, showing a commitment to sustainability and inclusion in corporate operations.

Absa Bank Kenya, one of the largest banks in the nation, has partnered with the International Finance Corporation (IFC) and its Sourcing2Equal Program to enhance the inclusion of women-owned businesses in its supply chain. Launched in 2021, Sourcing2Equal Kenya is a three-year initiative designed to promote gender-inclusive sourcing and support the growth of Women-led Small and Medium Enterprises (WSMEs) by improving access to procurement opportunities and building corporate capacity. Since its inception, the program has assisted over 1,500 women entrepreneurs through capacity-building activities, resulting in the awarding of over 150 procurement contracts to new women-led businesses.

Fredrick Adungo, the Sustainability Manager at Absa Kenya, has emphasized the bank’s commitment to diversity and sustainability. He noted that diversity and inclusion are integral to Absa’s operations, which include initiatives focused on financial inclusion and climate action. Following a sustainability assessment by the IFC in 2021, Absa discovered that only six percent of its suppliers were from underrepresented groups, prompting the engagement with the Sourcing2Equal program to address this gap and work towards a goal of diversifying the supply chain by including at least 30 percent women, youth, and persons with disabilities (PWDs) by 2025.

Post-assessment, Absa developed a supplier diversity policy in collaboration with IFC that incorporates underrepresented groups within the procurement process. The Sourcing2Equal initiative has facilitated significant advancements in supplier training and capacity building through buyer/supplier workshops and matchmaking events. Consequently, over 600 suppliers have benefited from specialized training, contributing to greater diversity within Absa’s supply chain.

Absa has reported considerable improvements in supplier diversity since committing to diversify its supply chain in 2020. By 2023, the bank achieved 15.5 percent of its suppliers being majority women-owned, with projections of reaching 18 percent by December 2024. The companies represented span multiple sectors such as consulting, training, and stationary supply. This emphasis on women-run businesses underscores their vital role within the supply chain.

In addressing the financial barriers faced by women entrepreneurs, Absa has integrated procurement and banking methods to support WSMEs. The bank has implemented workshops and financial literacy training for over 50,000 women entrepreneurs to enhance their financial understanding and awareness of supply chain financing products. Through these initiatives, Absa aims to showcase that women-owned businesses are equally capable and competitive compared to their male counterparts.

Reflecting on the process, Adungo stresses the importance of partnerships in achieving their diversity objectives. He acknowledges that collaborating with entities such as IFC has been instrumental in providing training and identifying high-quality women-run businesses. The emphasis on capacity building is viewed as critical for fostering a diverse supplier base, reinforcing that such measures not only enhance resilience but also position corporations as positive agents of change.

Sourcing2Equal is a global program spearheaded by the IFC and aims to connect women entrepreneurs with new market opportunities through corporate procurement. Since its launch in 2019, two projects have been implemented, with substantial procurement spending surpassing $11.4 billion from corporate buyers. For Kenya and Colombia, the impact of this program strives to empower women entrepreneurs significantly and amplify their roles in the economy.

In summary, Absa Bank Kenya’s collaboration with IFC’s Sourcing2Equal Program has fostered a remarkable increase in the inclusion of women-owned businesses within its supply chain. By utilizing targeted training and developing supplier diversity policies, Absa is progressing towards its goal of enhancing supplier representation of women, youth, and persons with disabilities to at least 30 percent by 2025. This initiative highlights the role of partnerships in achieving corporate diversity goals and underscores the significant impact of women-run businesses in various sectors of the economy.

Original Source: www.ifc.org