Safaricom - 2020 Sustainable Business Report

SAFARICOM 2020 | SUSTAINABLE BUSINESS REPORT 80 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS OUR STAKEHOLDERS CONCLUDING REMARKS Business partners Our business partners include suppliers, dealers and agents. We rely heavily on our partners from both an operational perspective and in terms of our reputation as they are our interface with many of our other important stakeholders. We also understand that we can play an important role in encouraging sustainable practices throughout our business ecosystem and value chain by engaging with our partners in this regard. Our business partner network is currently comprised of 1 095 suppliers, 440 active dealers and 173 259 M-PESA agents. Suppliers Total suppliers and spend FY20 FY19 FY18 FY17 Total no. of suppliers* 1 095 1 138 1 164 1 172 Total spend (KSh billion) 86.7 84.8 85.6 84.4 * Received POs during the period We partnered with 1 095 providers and spent a total of just under KSh 86.7 billion on products and services during the reporting period. As the following table shows, we continue to favour local suppliers where feasible and, on the whole, we are satisfied with the weighting towards Kenyan companies achieved during the year, with a 7 per cent increase of spend with local suppliers and 82 per cent of our providers remaining local companies. • All contractors on site have been provided with PPE at no cost. • We provided stipend cash to 2,960 partner workers and hygiene packs to 3,315 partner workers between April and June 2020 • Support each Dealer Direct Sales Agent with at least one 500 ML sanitizer to use while undertaking their sales activities in the market. The total population supported was 5000 at a cost of KSh 2.5 million. • Support Dealers Operations as impacts of COVID-19 take toll on Distribution efficiency through KSh 130 million as dealer resource support disbursed over three Months (June, July and August). Supporting our business partners through COVID-19 As part of our ongoing commitment to the SDGs, we continue to engage with our business partners and to forge new partnerships in the private sector to drive inclusiveness, promote woman owned businesses, provide decent jobs and contribute to economic growth in Kenya. Foreign vs local spend (%) FY18 FY17 FY19 FY20 74% 71% 36% 29% 67% 33% 74% 26% Local Foreign