Safaricom - 2021 Sustainable Business Report

83 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 / STANDING TOGETHER: GOING BEYOND / OUR MATERIAL TOPICS //// OUR STAKEHOLDERS / KPI SUMMARY BUSINESS PARTNERS MEETING THE NEEDS OF OUR GROWING CLIENT BASE Our business partners are our agents, dealers, and suppliers who enable our products and services to reach the market. We rely heavily on our partners to keep our operations going and to meet the needs of our customers. As they represent us in the marketplace they have an important role to play in upholding our reputation and brand integrity. We acknowledge our responsibility to promote sustainable practices throughout our business ecosystem and value chain by engaging with our partners in this regard. We are seeing results as they move from compliance to commitment. Our business partner network is currently comprised of 839 suppliers, 435 dealers and 247 869 M-PESA agents. SUPPLIERS We engage with our suppliers through interactive sessions such as our annual supplier forum. Held online in October 2020, the forum was attended by 533 suppliers who had the opportunity to interact with our CEO for the first time. Topics covered included: • Our new company strategy and mission. • The raising of performance standards from a minimum of 60% to 80%, in line with our revised strategy. • The launch of the supplier NPS. • Operational updates and progress of previous issues raised by suppliers. • Aligning with suppliers on the ethical standards expected. • Updates on health and safety as well as expectations on OSH standards In addition, a supplier representative shared their journey of resilience and lessons learned in navigating the COVID-19 pandemic. Due to the pandemic, the Safaricom Annual Partner Awards (SAPA) were put on hold, but the awards ceremony will take place through a virtual forum in FY22. Every year we focus on areas identified as gaps highlighted through the self- assessment from suppliers, together with on-the-ground compliance checks as well as trends in the current business environment. These results, together We contribute to economic development (SDG8) by supporting our business partners in ways that allow them to expand their own economic activity. We also work to reduce inequalities (SDG10) by actively promoting women in business. OUR HIGHLIGHTS • Our dealer channel contributed 48% of the total sales on Lipa Mdogo Mdogo. • Dealers had purchased 8 400 MobiGo devices by the end of the financial year. MobiGo is a subsidised, affordable smartphone which has no calling functionality, but enables dealers to connect to the internet. ISSUES FOR OUR BUSINESS PARTNERS • Increased operational difficulties because of the COVID-19 pandemic for all the business partners. • Suppliers: The suspension of some scopes of work affected some suppliers. We mitigated this impact by continuing to pay those with suspended scopes for a whole quarter in order to help them transition through the pandemic and support their employees. • Dealers: High targets and the need for more streamlined, automated processes. • Agents: Arbitrage claw back commission. SUPPORTING OUR BUSINESS PARTNERS DURING THE COVID CRISIS COVID-19 caused a significant downturn in the economy which negatively impacted many of our partners. We supported them in a number of ways to ensure their businesses stayed afloat: • Phase 1 (May-June 2020) We supported our partners workers through monthly stipend and hygiene packs (guarding/ cleaning/catering). A total of 3 200 partner workers from 27 partner companies benefited. • We continued making payments to retainer accounts with partner workers that had been fully suspended with no operations in order to cushion the employees for 2 quarters e.g. Gymnasium and crèche • Surgical masks and gloves provided every day to the approximately 3 200 partner workers who were on the frontline • Locally made reusable facemasks have now been provided for all the partner workers (each received 3 pieces) • We allocated PPE to all agent head offices. • We managed the distribution of KSh 200 to 115 604 sub agent stores for COVID-19 support.