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AfroCentric INTEGRATED ANNUAL REPORT 2016
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Strategy
GROWTH
The Group aims to extract value from revenue diversification, acquisitions and strategic transactions as well as
through growth of the client base. The focus will be on inorganic growth, including public sector involvement, in
the next three to five years.
The escalating costs in healthcare make certain smaller schemes unviable on their own and there is likely to be
a consolidation of schemes in the South African market. AfroCentric is well positioned to capitalise on these
opportunities and increase the number of lives in its care.
The Group will continue to seek opportunities in Southern Africa. Potential new ventures outside South Africa
will be analysed for strategic value creation. There will also be a focus on niche markets, differentiation
through innovation and the development of alternative offerings to medical administration. The prospects for
complementary insurance products and the Sanlam Reality loyalty programme will enhance the attractiveness of
medical schemes, benefiting retention and membership growth.
The Group will also actively seek ways to support the government’s efforts to introduce a National Health
Insurance (“NHI”).
Key performance indicators
A. Grow customer base
− Number of members under administration
− Number of contracts with government (government tenders and
projects and public/private partnerships with government)
− Medscheme has secured the health administration and health risk
management contracts for the Liberty Medical Fund (previously
Liberty Medical Scheme) with 110 000 lives, awaiting merger
approval with Bonitas Medical Scheme
− Pharmacy Direct recently won a tender for the management,
distribution and Dispensing of Chronic Medication to
Compensation of Occupational Injuries and Disease (“COID”)
Patients.
B. Consolidation of the South African market
− Mergers of medical schemes
TRANSFORMATION
AfroCentric was founded on the philosophy of transformation and empowerment. Empowerment is linked to
its brand and reputation and supports the ability to grow through winning tenders based on credentials. Being
an empowered company enables the recruitment and retention of skilled employees who are aligned with the
Group’s vision. The Group maintained a Level 2 B-BBEE status based on the revised codes and will continue to
drive transformation as a key initiative.
Key performance indicators
− B-BBEE rating (Level 2 achieved)
− Gender of Board (27% of Board members are female)
− Government contracts
Action plan and targets
− Retain Level 2 B-BBEE status on the
revised codes
− Attract black professionals
− Maintain focus on developing a
work environment that attracts and
develops the best talent, promotes
a high-performance, values-based
culture, encourages diversity and
transformation, and fosters positive
employee relations, underpinned by
trust and respect
− Support economic transformation
through preferential procurement
Action plan and targets
− Increase lives by 120 000 – 200 000
(2017) and the long-term goal is to
increase members in open schemes by
consolidating the South African market
and maintaining a Southern Africa focus