•There is a deep divide between the social and business sector, which shouldn't be the case
Private sector players should rethink their business models to attain maximum shared value with surrounding communities and profitability.
Speaking during the Africa Shared Value Summit 2019, Safaricom CEO Bob Collymore said local firms were still banking on old business strategies rather than adopting more inclusive approaches.
"The existing model of business is not generating enough value for the economy," he said. Firms should engage the youth, women, and SMEs for shared wealth across the board.
During a forum for women in business held on Wednesday, the Telco announced plans to increase its deals with women-owned enterprises to 10 per cent by 2030 from the current seven per cent.
FSG Social managing director Mark Kramer reiterated Collymore's sentiments adding that most businesses are running on ideas developed decades ago.
"Some of these models, like in the banking sector, were designed to serve the well off people in developed countries," he said.
Such models are not only holding back businesses but the whole country from achieving the kind of economic growth it intends to. "There is a deep divide between the social and business sector, which shouldn't be the case," he said.
Collymore added that there is heightened need to deal with corruption, with particular focus on the private sector which is the other side of the coin. He said firms should uphold their responsibility as forthcoming taxpayers as well as looking into disparities between the executive and bottom employee salaries.