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AFROCENTRIC GROUP
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HOW WE CREATE VALUE
MATERIALITY
The AfroCentric Group defines materiality as those matters that substantively affect our ability
to
create and sustain value
over the short, medium and long term.
MATERIALITY DETERMINATION PROCESS
Our Group CEO and other internal stakeholders initially undertook the materiality determination process in 2015. As outlined below,
the process involved considering the external environment and key corporate risks and opportunities, linking each to legitimate
stakeholder interests and concerns and aligning these to the strategy. This process is reviewed and updated annually and comprises
a reflection of the progress made on previously identified material matters.
AfroCentric has outlined the risks and opportunities that may considerably influence the organisation’s ability to create value.
The matrix on page 27 depicts how each of these material matters have been evaluated and prioritised on the basis of their
respective impact and likelihood. In 2017, three additional matters have been identified and the prioritisation of the matters
has altered.
External environment
AfroCentric is mindful of the dynamic and fluctuating nature of the external environment.
We believe that our sustainability is dependent on our ability to monitor, assess and be
responsive to the external environment and associated material matters.
Our external environment page 28
Stakeholder expectations
The quality of our relationships with our stakeholders is a key component of our ability
to create value.
Through effective feedback and communication channels, AfroCentric is able to identify
and address risks and opportunities. The Group also relies on stakeholder engagement
to inform our material matters and our strategy.
Our stakeholders page 36
Risks and opportunities
Through our enterprise risk management process, the Group regularly conducts risk
assessments which consider the external environment and stakeholder expectations.
The process involves considering the likelihood and potential impact of the risks and
opportunities within the quantitative and qualitative parameters set by the Group.
These matters form the foundation for the Group’s future materiality assessments, as
management continuously seeks to align its strategic approach with the critical factors
in its operating environment.
Each assessment informs our strategic, financial, reporting, IT, compliance, reputational
and operational risks.
Enterprise risk management process page 30
Strategy
A thorough understanding of our material matters enables our strategy to remain relevant
and value adding.
Our strategy page 42