Absa Bank Kenya is working with IFC’s Sourcing2Equal Program to boost women-led businesses’ participation in its supply chain. The initiative has trained over 1,500 women entrepreneurs, resulting in increased procurement contracts awarded to them. Absa aims to diversify its supply chain with a goal of at least 30% representation of women, youth, and persons with disabilities by 2025, demonstrating a commitment to sustainable inclusivity.
Absa Bank Kenya is enhancing its commitment to gender inclusivity by collaborating with the International Finance Corporation (IFC) through the Sourcing2Equal Program. Launched in 2021, Sourcing2Equal Kenya aims to bolster women-led small and medium enterprises (WSMEs) by expanding their access to corporate procurement opportunities and enhancing corporate capacity to procure from these businesses.
The program has significantly impacted over 1,500 women entrepreneurs in Kenya, providing them with training in procurement readiness and facilitating matchmaking with larger corporates. As a result, participating corporations have issued over 150 procurement contracts to new women entrepreneurs, showcasing the program’s success in promoting gender-inclusive sourcing.
Fredrick Adungo, Absa Bank Kenya’s Sustainability Manager, highlights the bank’s commitment to diversity and sustainability as part of its core mission. He shares that Absa aims to diversify its supply chain to include at least 30% women, youth, and persons with disabilities (PWDs) by 2025, aligning with government guidelines to improve inclusivity.
After assessing the bank’s diversity with IFC’s Sourcing2Equal Diagnostic Tool, they discovered a significant underrepresentation of women and other marginalized groups in their supplier base, prompting engagement in the program. Consequently, Absa developed a supplier diversity policy and intends to introduce a supplier webpage to facilitate better access for diverse businesses.
The collaboration has delivered significant results in supplier diversity. From a starting point of 6%, women-owned businesses reached 10.3% in 2022 and increased to 15.5% in 2023. By December 2024, their involvement rose to 18%, reflecting a steady growth of women-run businesses across various sectors within the supply chain.
Absa is also addressing the financing challenges faced by WSMEs through supply chain financing support. The bank has provided financial literacy training and workshops to over 50,000 WSMEs, underlining its commitment to empowering women entrepreneurs through access to financial resources.
Critical lessons learned include the acknowledgment that diversification requires collaboration. Partnering with organizations like IFC has been essential in identifying quality suppliers from underrepresented groups and facilitating effective capacity-building programs, ensuring a resilient and diverse supplier base. The Sourcing2Equal program has not only aided supplier identification but has also been pivotal in strengthening Absa’s commitment to social impact, carving a path for transformation in the business landscape.
Absa Bank Kenya’s partnership with the IFC through the Sourcing2Equal Program exemplifies a successful approach to enhancing gender inclusivity within its supply chain. With impactful training and increased procurement opportunities for women-led businesses, the bank has managed to significantly evolve its supplier diversity. This strategic collaboration highlights the importance of partnerships in fostering an inclusive environment that empowers women entrepreneurs and addresses financial barriers in the business landscape.
Original Source: www.ifc.org
