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AfroCentric INTEGRATED ANNUAL REPORT 2016
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SOCIAL AND ETHICS COMMITTEE REPORT (continued)
ENTERPRISE AND SUPPLIER DEVELOPMENT
The new B-BBEE element of
enterprise and supplier
development
is a merger of preferential procurement and
enterprise development. The purpose is to encourage firms
to procure goods and services from black-owned and black-
managed suppliers, and to contribute to the development of
those suppliers as entrepreneurs. Preferential procurement
is still managed under this element and is equally weighted
with supplier development in terms of points allocated on
the scorecard. AfroCentric Health worked diligently in recent
years to implement a procurement process that supports
B-BBEE-compliant suppliers and black-owned businesses,
and performed well on that sub-indicator. Committed
resources support and develop black suppliers and the
Group looks forward to seeing that investment reflected in
the supplier development score next year.
SUPPLIER DEVELOPMENT
Seven black-owned Exempt Micro Enterprise (“EME”) or
Qualifying Small Enterprise (“QSE”) suppliers from the supply
chain who meet the criteria for grant allocation were targeted
and a total amount of R5.5 million was spent on them to
increase capacity in their businesses and provide them with
financial and operational sustainability.
These suppliers were also enrolled in the AfroCentric Health
supplier development mentoring programme.
Products and services of selected suppliers include outdoor
and innovative marketing, placement programmes, wellness
promotions and providing professional training. The
relationship with developing suppliers will have a positive
impact on the services provided to AfroCentric Health and
the communities they serve.
A total of R5.5 million was spent on supplier development and
a total of R691 million on B-BBEE-qualifying procurement.
ENTERPRISE DEVELOPMENT
It is the responsibility of the private sector and government
to implement and drive initiatives that are aimed at growing
small, medium and micro enterprises (“SMMEs”) into self-
sustaining entities through skills development and the
provision of professional services. This is true in the South
African context where smaller businesses make a significant
contribution to job creation while at the same time being the
first ones to experience the negative impact of the economic
setbacks.
Wherever possible, AfroCentric ensures that the Enterprise
Development (“ED”) contributions result in greater synergies
and improved relationships with customers and suppliers.
Therefore, the focus of ED projects is to enhance the
revitalisation of public health facilities, support suppliers and
to address the severe shortage of medical personnel in
our country.
The total spent on enterprise development 2015/2016
amounted to R2.63 million.
Recent ED projects include:
Project
Overview
Funding provided Social impact
Eluthandweni
Maternity Clinic
Provision of quality healthcare
and maternity facilities (non-profit
hospital)
R691 000 Improved the clinics resources via
infrastructure expansion which
enhanced its capacity to service the
community
A’Dare Women’s
Wellness Centre
Preventative healthcare, wellness
and lifestyle solutions through
health screening and consultations
R919 770 Improved the clinic’s resources and
enhanced its capacity to service the
community
Xenia Information
Technologies
IT consulting and services
R497 986 Increased technology capabilities and
equipment to assist the business to
grow sustainably
Karogano Trading and
Projects
Burglar bar installation and
provision of security upgrades
R521 244 Enhanced prospects for success of this
business, assisting it to expand and
grow sustainably