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Our Sustainability:

TRANSFORMATION AND BEE

Our Corporate Social Investment, Transformation and BEE

The AfroCentric Group has a strong commitment to transformation, making a meaningful contribution to the uplifting of the community in which we operate and to positively contribute to the South African community. We appreciate the fact that this responsibility cannot be relegated to the Government but all stakeholders including those in the private sector like ourselves have a role. Our responsibility goes beyond compliance with the country’s transformationrelated legislation and includes conducting business and using our resources in line with the spirit of economic development. This is in line with our vision of Creating a World of Sustainable Healthcare.

Broad-based Black Economic Empowerment

Black Economic Empowerment and progressive transformation has been a deliberate objective since the Group’s constitution and forms part of its overall business strategy. AfroCentric enjoys a Level 2 contributor status as measured on the generic scorecard rating.

Since its commencement, the Group has maintained high levels of black ownership, notably a high level of ownership by black women. In fact, the Group is substantially owned and controlled by black shareholders, one of the very few listed companies on the JSE who can claim such a status and is by far the most empowered company in the listed healthcare and healthcare-related sectors.

This was recognised in the 2013 Mail and Guardian Most Empowered Companies survey which indicated a score of 91.07 and a Level 2 BBBEE Contributor status. AfroCentric Health is also a Value Adding Supplier and as a result, clients receive enhanced BBBEE recognition, scoring their spend with the Group at a factor of 1.5.

Medscheme, a member of the AfroCentric Group, was recognised by the Impumelelo Top Empowered Company’s Awards for the second consecutive year in 2014. These awards recognise companies in terms of empowerment credentials, financial performance, and performance on the seven pillars of the BBBEE scorecard as well as its leadership of empowerment and transformation in South African business, an honour the Group does not take lightly but is determined to consistently work towards upholding and improving.

The Transformation Steering Committee

Driving transformation and BBBEE is the primary focus of the Transformation Steering Committee which comprises members of the Executive Committee. The responsibility for each of the BBBEE elements is allocated to the executive who is directly accountable to the Transformation Steering Committee. Further, the managing directors of each subsidiary also form part of this committee and they account for performance of their companies to the Transformation Steering Committee. The Transformation Steering Committee comprises senior individuals who have been tasked with driving the different pillars of the BEE scorecard. The objectives set out for this committee includes:

The committee meets on a quarterly basis, for the purposes of monitoring progress of implemented initiatives in driving transformation. The Transformation Steering Committee is supported by the following committees in achieving its objectives:

•	The National Employment Equity Forum: The National Employment Equity Forum is a forum that is responsible for driving employment equity compliance in the Company. The forum is well represented by employees, management and union representatives and discusses the Company statistics, performance towards EE targets, the effects of attrition and recruitment on the targets. The forum is further supported by sub-committees which represent the different business units. Information discussed and presented at the National Employment Equity Forum ("NEEF") is used as input into the Transformation Steering Committee.
•	The SED Committee: The SED Committee comprises volunteer members from the business. The committee’s main objectives are to ensure that the CSI/SED budget is spent in line with the SED policy. The SED Committee meets at least twice a year, firstly once the budget has been finalised with another seating closer to the financial year to monitor the spend and progress on implemented projects. The SED Committee’s objectives are: To ensure that the Group’s initiatives are in line with the Group’s overall mission and vision; To identify suitable projects in line with the available budget; To ensure that the SED budget is spent on projects that meet the criteria set out in the Group’s SED policy, satisfy the requirements for the SED element of the BBBEE scorecard and strengthen the Group’s brand; The committee is also responsible for the allocation of funds in line with the priority areas, i.e. health, youth development and HIV/AID
•	The projects supported and funded are aligned to: BBBEE requirements outlined for any contribution to be recognised as compliant with the SED requirements; The 10 point plan on health by the Department of Health, which is aimed at improving the state of healthcare in the country and providing accessibility to quality healthcare to all; Alignment to the Millennium Development Goals that are health-related.
•	Current SED projects for 2014: Our approach is to establish a few flagship projects and to focus on these in order to maximise the impact of our contribution to the beneficiaries. Priority is given to these projects when allocating funds with ad hoc requests being considered on whether they satisfy the criteria specified in the SED policy. The key projects contributed to in this period include: The Public Health Enhancement Fund and Social Compact Fund – As the co-founders and signatories to these funds we have contributed a significant portion of our SED budget to the funds. The objective of these funds is to build a common fund to which both the private and public sector subscribe. The pooled resources will assist in driving the achievement of the key objectives of the 10 point plan on health. South African Disabled Golf Association – SADGA hosts an annual tournament which encourages the participation of disabled people in the sport of golf. We provide sponsorship of the First Swing Programme which provides training for black disabled youth from disadvantaged backgrounds. Medscheme Development Cyclists – a programme that provides township students with an opportunity to participate in the sport of cycling, which not only provides them with extramural activities and sporting discipline but also provides them with an opportunity to follow cycling as a career, if they decide to do so. Mount Arthur School for girls – The school is located in Lady Frere, Eastern Cape and caters for students from disadvantaged communities. The school was in a state of disrepair, with very poor boarding facilities and lack of proper sanitary facilities due to lack of funding. Medscheme contributed towards the improvement of the quality of the facilities which includes refurbishment of the buildings, providing linen and furniture for the boarding house as well and paying for mentors who will assist the school with life skills education and extra curriculum activities. The school’s refurbished buildings were officially opened on 9 August, to coincide with National Women’s Day, in an event that was attended by both the Minister of Defence, Ms Nosiviwe Mapisa-Nqakula, and former IEC chairperson, Ms Brigalia Bam, who are both former learners of the school. Natalspruit Hospital in Katlehong – AfroCentric Health donated a portable ultrasound machine to the maternity ward of the hospital in December 2013. The handover ceremony was attended by the Deputy Minister of Health, Dr Gwen Ramokgopa. The ultrasound machine has had a positive impact to the delivery of quality care services.

Staff volunteerism

Our employees are at the core of our business. They interact directly with the medical scheme members and they represent the community in which we do business. It therefore makes sense that we involve them in our community development initiatives. Staff are afforded the opportunity to participate in these initiatives and are encouraged to participate in community initiatives in their personal capacity. As a result, our staff have various fund raising initiatives including potjiekos competitions and raffles to raise funds for the various beneficiaries. During the winter months, employees collect blankets and non-perishables which are distributed to various organisations.

Nelson Mandela Day

The annual Mandela Day offers an ideal opportunity for our employees to pay their respect to this icon of South Africa and the world, by offering their time and energy towards the development of the community.

Sparrow Ministries, which provides for care and comfort to adults and children who have been affected by HIV/AIDS, was a beneficiary of AfroCentric Health’s contributions in 2014. The ministry operates a hospice for the terminally ill and a children’s home for vulnerable children who have become homeless following the death of one or both of their parents. AfroCentric Health contributed computer equipment and printers and our employees assisted in the installation. This improved the study centre used by the learners as part of their learning and development.

This committee is responsible for the identification of suitably qualifying projects that meet the requirements for enterprise development recognition. The projects are identified, approved, implemented and driven to completion by the committee members. The committee further provides any additional support, e.g. business skills, business and/or training equipment, and cash investment, where required.

The enterprise development projects

Our approach is to establish a long-standing relationship with the beneficiary in order to maximise the benefit and the impact to the beneficiaries as well as driving the objectives outlined in the Minister’s 10 point plan on health.

Nursing colleges

Broad-based Black Economic Empowerment

AfroCentric’s commitment to transformation in general and Broad-based Black Economic Empowerment is clearly visible in the Group’s performance as measured by the generic scorecard. The Group has maintained a Level 2 Contributor status for two consecutive measurement periods. We are also a confirmed Value Adding Supplier which means that our clients receive enhanced recognition of their spend with us at 1.5. The graph below reflects the BBBEE score for the five years leading up to 2014.