Enhancing Women’s Inclusion in Kenya’s Supply Chain through Absa Bank and IFC
Absa Bank Kenya partners with IFC’s Sourcing2Equal Program to enhance women-owned business inclusion in its supply chain. Launched in 2021, this initiative has aided over 1,500 women entrepreneurs and resulted in a significant increase in supplier diversity. With a commitment to supporting WSMEs, Absa emphasizes financial literacy and capacity building to overcome barriers and fulfill its diversity goals.
Absa Bank Kenya, a leading financial institution, has taken significant steps to incorporate more women-led businesses into its supply chain by collaborating with the International Finance Corporation (IFC) through the Sourcing2Equal Program. Launched in 2021, this three-year initiative aims to support gender-inclusive sourcing in Kenya, enhancing the growth of Women-led Small and Medium Enterprises (WSMEs) by improving access to corporate procurement and building capacity among corporates to engage more with WSMEs.
Through the Sourcing2Equal Kenya initiative, IFC has provided assistance to over 1,500 women entrepreneurs, focusing on procurement readiness and corporate matchmaking. The program has successfully facilitated the awarding of over 150 procurement contracts to women-owned businesses, thus promoting gender diversity within corporate supply chains.
In an interview, Fredrick Adungo, Sustainability Manager at Absa Kenya, discusses the importance of diversity in aligning the bank’s operations with sustainable practices. With over a decade of tenure at Absa, he highlights the institution’s focus on financial inclusivity and the commitment to integrating diversity into their supply chain, targeting 30 percent representation of women, youth, and persons with disabilities by 2025.
Absa Bank has implemented several measures following IFC’s assessment through the Sourcing2Equal Diagnostic Tool. The bank crafted a supplier diversity policy that prioritizes including diverse groups in procurement. Furthermore, they established training sessions, networking events, and capacity-building workshops aimed at empowering suppliers, which have led to successful matchmaking events that enhance supplier diversity.
As a result of these initiatives, Absa Bank made notable progress in diversifying its supply chain, increasing representation from six percent in 2020 to 15.5 percent in 2023, with expectations of further growth by the end of 2024. Women-led businesses now contribute significantly to various sectors, including consulting and debt collection.
Addressing financial barriers for women entrepreneurs is a priority for Absa, which simultaneously acts as a buyer and provides supply chain financing. The bank has conducted financial literacy workshops, training over 50,000 WSMEs in Kenya and promoting available financing products alongside procurement strategies.
Reflecting on the journey, Adungo emphasized that partnerships have been crucial to achieving their diversification goals. The collaboration with IFC has helped identify high-quality women-run businesses, while also underscoring the importance of capacity building in fostering a resilient and diversified supplier base. Absa’s commitment to diversity and inclusion has positioned it as a transformative force within the business landscape.
Sourcing2Equal, a global program initiated by the IFC in 2019, seeks to connect women entrepreneurs with new market opportunities through corporate procurement. Its focus on gender equality complements ongoing projects in various countries, amplifying the impact of corporate procurement, which has a substantial economic footprint globally.
In summary, Absa Bank Kenya’s collaboration with the IFC’s Sourcing2Equal Program signifies a major initiative towards fostering inclusivity within the corporate supply chain. Absa’s commitment to integrating women, youth, and persons with disabilities into their procurement processes reflects a transformative approach to diversity and sustainability. The tangible improvements in supplier representation illustrate the effectiveness of capacity-building efforts and partnerships, highlighting the bank’s role in empowering underrepresented groups in the economic landscape.
Original Source: www.ifc.org
