Absa supports preferential procurement as a lever for economic transformation and Broad-Based Black Economic Empowerment (BBBEE). The Group is committed to working with their existing suppliers to transform themselves, as well as sourcing products and services from new suppliers that embody the principles of transformation.
For transformation to be sustainable, prices and service levels need to be competitive. Absa therefore assists its suppliers to be competitive through local and global benchmarking and sourcing processes where the entire supplier offering is evaluated, including BBBEE contribution level, price, service and quality.
By using its buying power, Absa has also been instrumental in many of their suppliers producing their own BBBEE scorecard and submitting to a verification of their BBBEE status. The number of new verification certificates and the improvement in the Group’s own preferential procurement score demonstrate that suppliers have an improved understanding of where they are at and can take further steps to improve in 2009.