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AfroCentric INTEGRATED ANNUAL REPORT 2016
9
Our business
ORGANISATIONAL OVERVIEW
PROFILE
AfroCentric is a black-owned investment holding company with an investment
portfolio focused on services to the healthcare sector. AfroCentric was established
in 2008 and is listed in the healthcare sector on the JSE.
The Group was founded on the core philosophy of transformation and
empowerment, and is one of the few black-owned and controlled companies
on the JSE. We are a level 2 B-BBEE rated company and the most empowered
health-related business on the JSE.
Through its operating subsidiaries, AfroCentric provides health administration
and health risk management solutions to the healthcare industry. It also provides
a range of complementary services to its traditional medical scheme clients and
a portfolio of healthcare-related enterprises. These services include information
technology (“IT”) solutions; transactional switching; specialised disease
management; back, neck and shoulder treatment; pharmaceutical wholesaling;
and pharmaceutical courier distribution services.
AfroCentric seeks to invest in healthcare related businesses that demonstrate
prospects for growth as well as diversify its revenue sources, while contributing to
the sustainable health and welfare of South African communities. Medscheme is
the Group’s largest subsidiary and is one of South Africa’s leading medical scheme
administrators and health risk management providers. Medscheme is the largest
manager of medical schemes with approximately 3.7 million lives under our
management through our 19 client medical schemes in Southern Africa. It is the
largest black-owned medical scheme administrator, with a national footprint of
offices in South Africa, and 4 781 employees (including countries outside of
South Africa).
INCREASING THE HEALTHCARE VALUE CHAIN
AfroCentric continues to provide the healthcare sector with practical strategies
for expanding the membership of its medical scheme clients. New initiatives
that enable us to further promote more efficient and effective patient care and
treatment management include the Document Based Care (“DBC”) back and
neck rehabilitation programme and pharmaceutical courier distribution services
to patients.
On 1 August 2015, AfroCentric acquired a 100% interest in Pharmacy Direct, a
courier pharmacy; 100% of Curasana, a pharmaceutical wholesaler; and a 26%
stake in Activo Health, a Southern African distributor of generic medicines and
complementary nutraceutical products. These acquisitions provided greater
access to the wider healthcare delivery value chain and greater visibility in the
relevant markets.
On 15 December 2015, Sanlam Life Insurance
Limited (“Sanlam”), one of the country’s
foremost financial institutions, concluded
its acquisition of a 28.7% stake in ACT
Healthcare Assets, a wholly owned
subsidiary of the Group. In alignment
with the Group’s growth strategy, this
strategic alliance has enhanced the
Group’s marketing and distribution
initiatives and positioned certain
divisions within the Group on an
improved growth path.
Growth and diversification
outside South Africa has
always been a strategic
imperative. We have a
presence in Botswana,
Namibia, Swaziland,
Kenya, Zimbabwe and
Mauritius.
AfroCentric
seeks to invest
in healthcare
related
businesses that
demonstrate
prospects for
growth as well
as diversify
its revenue
sources, while
contributing to
the sustainable
health and
welfare of
South African
communities.
Founded
on the core
philosophy of
transformation and
empowerment