STAKEHOLDER ENGAGEMENT
Stakeholders are the individuals and groups who have an interest in, or who are affected by, Group business operations and the manner in which business objectives are achieved.
AfroCentric’s long-term sustainability depends on strong stakeholder relationships, which are maintained through transparent and effective communication. We engage with key stakeholders in a responsive, constructive and collaborative manner to achieve mutual value.
The AfroCentric Board and executive management are responsible for sustainably managing the Group to create value for shareholders and stakeholders in the long term. This sustainable shareholder value depends on the value the Group identifies and creates for all the other stakeholder groups that may materially influence the Group’s ability to create value.
| STAKEHOLDER GROUP | OVERVIEW | IMPACT AND ENGAGEMENT | EXPECTATIONS/CONCERNS | RELATED MATERIAL MATTERS AND OUR STRATEGIC RESPONSE | ||||||||||||||||
| Our clients – medical schemes | SA schemes: Open schemes: Bonitas, Fedhealth, Medshield Closed schemes: AECI, Barloworld, GEMS, Horizon, MBMed, NedGroup, ParMed, POLMED, SABC, SAMWUMED, Sasolmed Outside SA schemes: NAMMED, Namibia Health Plan, Swazimed |
Medical schemes choose their administrator and
health risk provider. The quality of the end-to-end
service delivered to our clients has a direct impact on
their ability to retain their customers, i.e. the scheme
members who, in turn, impact their satisfaction levels
with all Group companies. To manage these relationships, the Group regularly engages clients at formal meetings and through the annual report and website. Additionally, the CEOs of the Group and Medscheme engage regularly with these key clients. |
|
|
||||||||||||||||
| Shareholders, investors | Institutional and individual investors | Shareholders affect AfroCentric by voting at
Annual General Meetings (“AGMs”) and accordingly,
AfroCentric has a duty to maximise shareholder
returns. Engagement takes place through the annual report, the website, trading statements and SENS announcements. |
|
|
||||||||||||||||
| Regulators | Council for Medical Schemes The Council for Medical Schemes (“CMS”) is a statutory body established by the Medical Schemes Act 131 of 1998 to provide regulatory supervision of private health financing through medical schemes. |
The Group’s major subsidiary, Medscheme, depends
on the CMS for the accreditation to conduct
healthcare administration and health risk
management. Any proposed amendments to benefit
options must be approved by the CMS. Medscheme
is required to provide electronic submissions of the
financial overview of each scheme, a process
managed by Group Compliance. Engagement takes place via Group Compliance, as required, and via annual reports and other interactions. |
|
|
||||||||||||||||
| Medicines Control Council
The Medicines Control Council (“MCC”) applies standards laid down by the Medicines and Related Substances Act, 101 of 1965, which governs the manufacture, distribution, sale and marketing of medicines. |
The MCC regulates pharmaceutical manufacturers
and distributors. Pharmacy Direct, Curasana and
Activo Health are impacted by amendments to
regulations and must also comply with MCC
licensing requirements. Engagement takes place through the annual report and other interactions. |
|
|
|||||||||||||||||
| South African Pharmacy Council
The South African Pharmacy Council (“SAPC”) is mandated to protect, promote and maintain the health, safety and wellbeing of patients and the public, ensuring quality pharmaceutical service for all South Africans. |
The SAPC regulates pharmacists, pharmacy support
personnel and pharmacy premises in South Africa.
Pharmacy Direct, Curasana and Activo Health have
to implement Good Pharmacy Practice and comply
with the Pharmacy Act 53 of 1974. Engagement takes place through the annual report and other interactions. |
|
|
|||||||||||||||||
| The Johannesburg Stock Exchange
The Johannesburg Stock Exchange (“JSE”) offers secure, efficient primary and secondary capital markets across a diverse range of securities, supported by its post-trade and regulatory services. |
The JSE is the presiding authority over AfroCentric’s public listing. It creates a healthy exchange for trade and engagement and the relationship is managed by Group Finance with the Group’s corporate sponsors, Sasfin Capital. |
|
|
|||||||||||||||||
| Competition Commission
The stated purpose of the Competition Act 89 of 1998 is to promote and maintain competition in South Africa. |
The Competition Commission ensures that AfroCentric does not act anti-competitively, and, more broadly, controls restrictive practices and ensures fair competition in the industry. |
|
|
|||||||||||||||||
| Suppliers | Contractors and suppliers. | Direct supplier engagements, the annual report and our website. |
|
|
||||||||||||||||
| AfroCentric employees | The Group’s employees who perform core functions within the organisation. | AfroCentric employees operationalise our value
proposition. We rely on their skills, wellbeing and
motivation. The Group has a responsibility to clients
to ensure all core employees are in place for the
smooth running of the organisation. The Group values the contribution of every employee. We engage them regularly through internal communication channels such as the Company intranet, newsletters, CEO roadshows and manager/team dialogues. |
|
|
||||||||||||||||
| Trade unions | National Education, Health and Allied Workers Union (“NEHAWU”) is the union for workers from the Education, Health, Government and Social Welfare sectors. | Trade unions have the ability to impede business
operations through industrial action. Engagement is conducted as required through established channels, primarily if there are any matters regarding terms of employment. The relationship is managed by the Group’s Human Capital function. |
|
|
||||||||||||||||
| Government | Government has proposed National Health Insurance (“NHI”) to create universal access to appropriate, efficient and quality health services. | Government is a key stakeholder, particularly with the
advent of a unified NHI, due to be phased in over
a 14-year period. Therefore, it is important that
government has a full understanding of our business
and service offering. Group revenue may be negatively
impacted in the longer term if there is a significant
move away from private healthcare funding. However,
revenue may be positively impacted if tenders are
issued to the private sector for service delivery. The Group continuously engages government (predominantly the Department of Health) to ensure there are adequate procedures in place for the NHI to run smoothly and for AfroCentric to benefit from any available opportunities. |
|
|
||||||||||||||||
