STRATEGY
Strategy development
AfroCentric's strategic objectives support our purpose. Together with our stakeholders, we aim to achieve universal access to healthcare.
The Board oversees and guides the Group's strategic direction. The Board and the Executive Committee attend two workshops annually to review the Group's strategy. The Executive Committee then meets to distil the implementation of the strategy. Our internal stakeholders raise awareness about our strategy through plenaries and dialogues on the strategy at CEO roadshows. The outcome of this process is an annual leadership manifesto that promotes greater leadership accountability.
This year we focused on:
- value chain optimisation in terms of acquisitions geared towards client retention strategies and cost reduction, increase on market cap, and becoming a strategic global player in the healthcare space; and
- increasing the healthcare value chain in contributing towards expansion of medical scheme clients.
Our executive management reports to the Board on the Group's material matters. These matters are regularly assessed, and the relevance of the strategy is reviewed against the external environment and our key risks and opportunities.
AfroCentric's business model depicts how the Group's operating subsidiaries are integrated into the healthcare value chain and drive our strategy through various inputs and activities.
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Driven by our strategic objectives
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Executed via our strategy
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Enhance shareholder valueAfroCentric aims to deliver sustainable returns for our shareholders. Acquisitions, mergers, diversification and further growth of our client base enables us to continue fulfilling our shareholders' expectations. The successful execution of our other strategic objectives also enhances our shareholder value.
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Maximise growth opportunitiesAfroCentric seeks opportunities to diversify or acquire new businesses that contribute to our value chain and grow our client base. The Group also pursues inorganic growth and public private partnerships with the Department of Health and in support of the NHI. As we consolidate our schemes, we drive out fragmented role players who are increasing costs.
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Improve efficiencies through cost consciousnessAll companies within the Group are committed to becoming more efficient. We aim to deploy resources appropriately while optimising our outputs and maintaining high-quality service. Integrating systems and services within the Group and leveraging innovations such as robotics and digitalisation enhance our efficiencies and those of our clients.
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Reduce the cost of healthcareEnsuring universal access to healthcare requires us to ensure affordability. The Group implements initiatives such as value chain optimisation and a shift of focus from managed care to primary care. Our forensic team uses our IFM software to combat fraud, waste and abuse.
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Promote transformationWe are committed to corporate citizenship, driving transformation and upholding our social licence to operate. Our recruitment is aligned to our transformation policy, and we aim to empower our people.
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Diversify revenue sourcesAcquisitions and partnerships of non-health administration and health risk management businesses diversify our revenue sources and contain costs. We target new businesses that complement and enhance our current service offering by optimising our operations and introducing cost-effective packages.
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Deliver exceptional client serviceAfroCentric is committed to excellence in the customer experience and continuously improving its service offering. Our aim is to ensure that our employees are engaged and motivated, which will lead to excellent service delivery and client retention. We gain insights and identify improvement opportunities from Voice of the Customer surveys, our Customer Experience Management tool and our employee engagements. The Root Cause Analysis also assists in identifying causes and addressing gaps in our customers' experience.
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Uplift our peopleThe Group aims to instil a positive culture that empowers the broader community and motivates employees. Empowered communities and motivated employees drive the Group towards its strategic objectives.
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Future focus areas
Our focus will remain on retaining our clients and exceeding our service level agreements.
To drive our growth targets, we will focus on growing our open schemes (Bonitas, Fedhealth and Hosmed), pursuing further consolidation, identifying and leveraging more public private partnerships, and targeting strategic acquisitions. Specific projects include building momentum on Medscheme Swaziland and expanding Pharmacy Direct through the additional volumes to be delivered on the new Department of Health tender awarded.
We will build momentum in our fraud, waste and abuse reduction activities and in enhancing the Group's IT capabilities through the Fusion and digitalisation projects. We will also integrate newly acquired businesses into the Group.