Absa more than doubles its supplier diversity to 16pc
Absa Bank Kenya more than doubled its supplier diversity mix to 15.5 percent in the two years to December 2023, as the tier-one lender powered to bring on board more women and people living with disabilities (PWDs) in line with its sustainability strategy.
The bank’s supplier diversity, a business approach that seeks to incorporate a diverse mix of businesses, including suppliers and vendors into a company’s supply chain ecosystem, was six percent in 2021.
According to the bank’s 2023 Sustainability Report, the Pan-African financial institution incorporated a ReadytoWork program targeting interns whereby 21 fresh graduates were placed to support Absa suppliers in implementing vital sustainability aspects in their business ecosystems. This percentage increased from 10.3 percent in 2022 to 15.5 percent in the FY ending December 2023.
The increase is attributable to the bank’s initiative aimed at stepping up the proportion of special groups, including women, youths, and persons living with disabilities in Absa’s supplier base. Overall, Absa’s target is to ensure that these special groups account for at least 30 percent of the lender’s diverse supplier base.
Women and MSMEs
“Our commitment to diversity and inclusion remains evident, with 15.5 percent of our active suppliers being women, youth, and persons with disabilities. We have also continued to enhance financial inclusion and enterprise development among the marginalized yet high-potential population segments such as women and MSMEs,” said Charles Muchene, Chairman, Board of Directors, Absa Bank Kenya, while unveiling the 2023 sustainability report.
Absa has also committed to supporting PWD-owned businesses and is focusing on increasing the number of suppliers benefitting under this segment to 5 percent by December 2025.
“Currently, less than one percent of our suppliers are registered as PWDs. However, during the pandemic [COVID-19], we actively engaged with PWD-owned and operated firms by contracting them to produce masks. As part of our commitment to financial inclusion, we aim to increase the number of PWD-owned firms among our suppliers to reach 5 percent by 2025,” the report explains in part.
Furthermore, Absa Bank has partnered with the International Finance Corporation (IFC) to provide training and capacity-building opportunities. This undertaking is being implemented through IFC’s Sourcing to Equal Programme, with a focus on women, youths, and PWDs, specifically in the area of procurement practices.
“As part of the initiative, we have been actively building the capacity of women-owned businesses through training programmes. By the end of 2023, we had trained over 500 special group suppliers on Absa Procurement. This capacity-building initiative empowers these special groups to participate and thrive in the procurement process.”
In this endeavour to enhance diversity, Absa Bank Kenya is collaborating with Strathmore University, Amani Institute, and IFC’s (Sourcing2Equal) programme to sharpen vital sustainable business practices for their suppliers.
Read also: Revenue boost drives Absa Bank’s Half-Year profit to Sh10.7Bn
Responsible business practices
“In 2023, over 90 percent of our active suppliers participated in training sessions focused on various sustainability aspects, such as corporate sustainability, responsible business practices, climate change, and climate finance. This training equips our suppliers with the necessary knowledge and skills to integrate sustainability into their business operations,” said the bank in their report.
Looking ahead, the lender plans to expand these initiatives by partnering with Kenya’s Ministry of Gender, Children, and Social Development. This collaboration will focus on providing training and capacity-building programmes tailored to the specific needs of these groups to prepare them for future procurement opportunities and enable them to actively participate in the business sector.
This comes at a time when banks in Kenya are working hard to increase the population of women working in their institutions.
An analysis of the latest sustainability reports shows that Absa Bank Kenya and rival, KCB Group, are the most equitable banks in East Africa in terms of gender mix. In Absa Bank Kenya, the ratio of men to women is currently 49:51 while KCB boats 51 percent female employees, having moved up from 47 percent two years ago.
Regional lender Equity Group came in third at a ratio of 41:59 percent, that is, 41 percent female employees in the financial services group.
