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AfroCentric INTEGRATED ANNUAL REPORT 2016
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AFROCENTRIC HEALTH SOLUTIONS (continued)
OPPORTUNITIES AND CHALLENGES
The International market, especially developing economies
offer attractive prospects for growth and expansion.
East and West Africa are good candidates due to their large,
predominantly English-speaking populations, robust banking
systems and infrastructures.
AfroCentric Health Solutions is constantly seeking prospects
for fund merger opportunities, particularly with smaller
schemes in markets where it is established, namely Namibia,
Zimbabwe, Swaziland and Botswana. We are also pursuing
opportunities for third-party IT solutions contracts such as
the licensing of our administration system, and for the export
of subsidiary company services such as Klinikka, Allegra
and AfA.
To realise identified opportunities across the continent, it is
critical that AHS maintain a high level of cultural awareness.
South African healthcare funding and practice is not
replicated elsewhere on the continent. The business model
used within the South African market must be adapted to
local regulatory, industrial and social customs. The business is
sensitive to the sociocultural barriers that must be overcome
when trading in a multi-national context to ensure as
smooth an integration as possible of new acquisitions and
partnerships into the core business.
PERFORMANCE OVERVIEW AND OUTLOOK
AfroCentric Health Solutions has enjoyed sound performance
over the past year, with revenue increasing by 12.5%.
The business has been successful in building brand
reputation, with Medscheme Namibia and Medscheme
Swaziland winning prestigious service awards.
• Medscheme Namibia won the PMR award for best
administrator for the fifth consecutive year.
• Medscheme Swaziland won the PMR award for best
medical fund for the second consecutive year.
The focus for the year ahead is the consolidation of growth
efforts, seeking to collaborate with existing and potential
partners to develop appropriate healthcare solutions for the
continent, and packaging of existing products for export
markets.
Specific strategic objectives include:
Strategic objectives
Why this is important
Link to Group
strategy
Diversify revenue through
AfroCentric associates, subsidiaries
and ancillary services
Diversification of revenue streams contributes to overall growth
and provides protection from downturns in discrete sectors or
regions. A strong core business platform allows value-added
solutions to be bolted on, such as wellness programmes, IT
solutions or subsidiary company services to new and existing
clients.
Drive operational efficiencies
AHS is actively engaged with key providers in streamlining the
delivery of healthcare to reduce costs and improve quality of care.
Automation of processes is high on the efficiency agenda, driving
down costs and allowing human capital to be re-deployed to new
areas where they can add more value.
Sustain and grow current revenues
Innovation, particularly in terms of processes and technologies,
allows AHS to do more for less. The Company seeks to secure
opportunities within its area of expertise in administration, health
risk management and IT, leveraging Group resources to offer a full
package of products and services to the pan-African market and
contributing to the growth targets of AfroCentric.
Improve employee practices
AHS believes in investing in the development and empowerment
of its most valuable resource, employees. The Group’s online
learning tools are available to employees and proved popular
and effective for developing key skills. Management teams were
integrated into operational group forums, expanding horizons and
spreading the expertise that exists in AfroCentric.