Absa Bank Kenya has partnered with IFC’s Sourcing2Equal Program to enhance the inclusion of women-owned businesses in their supply chain. The program supports the growth of women-led Small and Medium Enterprises (WSMEs) by providing training and procurement opportunities. This collaboration has successfully increased procurement contracts awarded to women entrepreneurs and addresses broader barriers such as access to finance.
Absa Bank Kenya, one of the premier banks in the nation, has partnered with the International Finance Corporation (IFC) and its Sourcing2Equal Program to enhance the participation of women-owned businesses within its supply chain. Launched in 2021, the Sourcing2Equal Kenya initiative aims to foster gender-inclusive sourcing and significantly improve the procurement opportunities for women-led Small and Medium Enterprises (WSMEs) in the country.
The program, recognized for its contribution to the empowerment of Kenyan women entrepreneurs, has benefited over 1,500 women through various capacity building activities, including procurement readiness training and matchmaking events with large corporates. As a result, corporates involved have issued more than 150 procurement contracts to newly engaged women entrepreneurs.
Fredrick Adungo, Absa Kenya’s Manager for Sustainability, ESG, and Climate Risk, described the bank’s commitment to diversity and sustainability as foundational, stating that they aim to empower Africa through inclusive practices. Their sustainability agenda emphasizes diversity, inclusion, financial inclusion, and climate action, with a specific goal of ensuring that by the end of 2025, at least 30 percent of their supply chain includes women, youth, and persons with disabilities (PWDs).
Following a detailed assessment conducted by the IFC using the Sourcing2Equal Diagnostic Tool, Absa recognized gaps in their supplier diversity. This prompted them to engage with the Sourcing2Equal program, leading to the establishment of a new supplier diversity policy aimed at integrating special groups into their procurement processes.
To accelerate their diversity initiatives, Absa employed training and capacity-building workshops facilitated by Sourcing2Equal, which has proven instrumental. In 2022, matchmaking events for buyers and suppliers were organized, enhancing access to training and resources for women-led businesses in their supply chain, resulting in over 600 suppliers receiving vital training thus far.
The outcomes of these efforts have been significant. Absa’s commitment to integrating diverse suppliers has led to a substantial increase in the percentage of procurement directed towards women-run businesses, which grew from six percent in 2020 to 18 percent by December 2024. These businesses span various sectors, showcasing their growing importance within the corporate landscape.
Moreover, recognizing access to finance as a critical barrier for women entrepreneurs, Absa combines its procurement activities with banking support through workshops that emphasize financial literacy and provide information on supply chain financing. Their WSME program has successfully trained over 50,000 women entrepreneurs in Kenya, focusing on empowering them in terms of finance and business development.
Reflecting on their experiences, Absa officials observed that collaboration is essential for effective supplier diversification. Partnerships with programs like Sourcing2Equal have been crucial in building a robust supply chain that not only enhances organizational resilience but also acts as a catalyst for social impact
Sourcing2Equal is a global initiative led by the IFC, launched in 2019 to link women entrepreneurs to corporate procurement opportunities. With significant financial potential, corporate buyers represent a substantial market, underlining the program’s relevance in improving women’s access to these markets.
In summary, Absa Bank Kenya’s collaboration with the Sourcing2Equal Program illustrates a successful model for integrating women-led businesses into corporate supply chains. Through targeted capacity building and strategic partnerships, the bank has made remarkable strides in enhancing diversity and inclusion within its procurement processes. This initiative not only addresses the barriers faced by women entrepreneurs but also showcases the potential for transformative impact on local economies. By continuing to foster these inclusive practices, Absa and its partners are paving the way for a more equitable business landscape in Kenya.
Original Source: www.ifc.org
