Yusuf Omari, CFO of Absa Bank Kenya recently spoke at the financial services provider's 2023 Sustainability Report event in Nairobi.
He was part of a panel featuring Daisy Wanjie, Group CFO of Africa Guarantee Fund (AGF) and Dilip Pal, Group CFO of Safaricom, all of whom shared insights on sustainability, environmental responsibility, social impact and corporate governance.
“Sustainability is a core element of Absa’s strategy,” Yusuf explained. “Our managing director highlighted this just this week during a strategic board committee meeting. We reviewed our performance, particularly in relation to our 13 key sustainability commitments. In everything we do, sustainability is central — it's embedded in how we structure our products and ensure environmental protection. I can confidently state that no company associated with Absa will be polluting rivers like the Nairobi River.”
He stated that Absa places sustainability at the heart of its appraisal process, particularly when providing facilities to industries like manufacturing. The bank conducts site visits to assess waste management, sourcing of raw materials, and processing methods to ensure that environmental considerations are embedded in their operations. This commitment to sustainability is a key aspect of Absa's enterprise risk management framework, ensuring that every decision aligns with its environmental goals.
“An example of this can be seen with one manufacturing company Absa supports, which has named one of its production lines the "Absa line" due to its exceptional efficiency and incorporation of sustainability principles. Although the equipment is more costly, the long-term value goes beyond mere profit—it also benefits the environment. The high level of efficiency achieved demonstrates Absa's positive impact on both business performance and ecological responsibility,” he said.
Yusuf observed that the biggest challenge for job seekers is the prior experience requirement. It is a similar story for SMEs—they often lack solid bank records as they're just starting out, which raises the question of how banks can best support them.
“At a recent golf event we sponsored, every supplier — whether for catering, tents, or seating — was an SME. These small businesses often face challenges, like lacking formal financial records, so we assess them based on alternative data like Mpesa transactions. I recall one caterer who received a 5-million-shilling tender but lacked the funds, so we worked with our risk team to finance her. This year alone, our MD noted we’ve financed SMEs to the tune of 22 billion shillings, demonstrating our commitment to supporting them,” he explained.
By collaborating with the Africa Guarantee Fund (AGF), Absa secures insurance to cushion itself, enabling SMEs to access financing. This approach helps younger generations, such as Gen Z, to generate revenue by starting businesses, even without a formal track record thus fostering entrepreneurship.
“You cannot understate the importance of partnerships in pursuing SDG’s,” he noted. “Sustainability is such a massive agenda that no single organisation can tackle it alone. For example, the 15 billion trees that the government hopes for cannot be achieved without collaboration. The other key element for me is innovation — ensuring that whatever we do, we do it more efficiently and intelligently. The challenge with trees is tracking their growth. Through technology, you can track the progress of a tree you planted six months ago from the comfort of your home - that’s the kind of innovation that makes a real difference.”
