Safaricom 2023 Sustainable Business Report

84 OUR BUSINESS KPI SUMMARY OUR MATERIAL TOPICS SAFARICOM SUSTAINABLE BUSINESS REPORT 2023 OUR STAKEHOLDERS MAINTAINING CONSTRUCTIVE RELATIONSHIPS WITH OUR BUSINESS PARTNERS Our business partner network is important in driving digital inclusion and helping to achieve purpose-led growth. This network comprises 720 suppliers, 432 dealers and 270 360 M-PESA agents. We rely on our network to uphold and enhance the Safaricom brand which is synonymous with integrity and innovation. SUPPLIERS PROMOTING LOCAL BUSINESS We are succeeding in our goal of promoting local business, as indicated in the table below, which shows that spend with local suppliers increased by just over two percentage points year-on-year. As the total supplier and spend table indicates, the number of suppliers has decreased in line with our strategy of consolidation. TOTAL SUPPLIER SPEND FY20 FY21 FY22 FY23 No. of suppliers 1 095 839 799 720 Total spend (KSh million) 86 696 92 827 94 625 102 012 BUSINESS PARTNERS • Spend with local suppliers at 63.53% compared to foreign spend 36.47%. • Increased Women in Business (WIB) spend, the result of an intensified WIB mentorship programme. • Dealer contribution of KSh 500 million to the drought response. • Intensified geolocking of M-PESA tills. • Enabling more partners to sell Lipa Na M-PESA. • Reduction in the number of arbitrage appeals from agents, from 3 000 in October 2022 to 180 in March 2023. • Automated KYC collection and till swap for agents resulted in savings of KSh 50 million. Sustainable economic growth and decent work are vital for the development and prosperity of Kenya and the wellbeing and personal fulfilment of individuals (SDG8). Recognising that high levels of inequality damage social cohesion and hinder economic activity, we work to entrench diversity and inclusion in all our business relationships (SDG10). • Suppliers: Difficulties in using the iSourcing platform and contract pricing. • Dealers: KYC regulations. • Agents: Arbitrage claw back commission. SUPPLIER SPEND BY CATEGORY NUMBER OF SUPPLIERS Spend with foreign suppliers Foreign suppliers Spend with local suppliers Local suppliers 22 226 197 36 173 191 36 289 186 37 203 170 64 470 898 56 654 648 58 217 613 64 808 550 FY23 FY23 FY22 FY22 FY21 FY21 FY20 FY20 ISSUES FOR BUSINESS PARTNERS OUR HIGHLIGHTS SDG GOALS