Our business model
Inputs
Financial capital
The pool of funds (equity) the Group relies on:
- Funds reinvested in the Group
- Return on investments
- Revenue generated from services
Key inputs
- R3.2 billion net asset value
- R274 million reinvested funds
Intellectual capital
The knowledge-based intangible assets:
- Systems and processes
- Customised IT systems
- Licences
- Business and industry knowledge
Key inputs
- IT systems and relevant licences
- Fraud management software
- Medical administration
Manufactured capital
Our service platform:
- Nexus IT system
Key inputs
IT solutions
- Transactional switching
- Specialised disease management
- Back, neck and shoulder treatment
- Pharmaceutical wholesaling
- Pharmaceutical courier distribution services
Human capital
Our employees and contractors’ skills, wellness and motivation
Key inputs
- 5 957 employees
Social and relationship capital
The quality of AfroCentric’s relationships with our material stakeholders
Key inputs
- Managing stakeholder relations
- Social licence to operate
Natural capital
We consume energy, water and paper to provide services
Activities
AfroCentric’s activities are focused on broadening access to healthcare by expanding our presence, integrating our operations and optimising costs across the value chain to measurably improve access to quality care.
Our primary activities at Group level focus on acquiring, developing and integrating businesses that enable us to optimise the healthcare value chain to increase the value of the healthcare Rand.
The healthcare value chain comprises primary care, medicine, specialist care and hospitalisation solutions.
To optimise costs and the delivery of healthcare to our stakeholders, the Group is organised into three clusters that incorporate businesses across the value chain:
Outputs
Our products and services
Enhanced access to healthcare through: Health administration and risk management services
We provide efficient, client-centric administration services to leading medical schemes in Southern Africa.
We provide health risk management by identifying and managing clinical and financial risks for our client schemes in a coordinated manner to improve the consumer’s clinical outcomes.
Complementary services
- Coordinated day-to-day healthcare provision
- Medicine delivery
Products
- Medicine and vitamins
Outcomes
Financial capital
Normalised headline earnings per share 61.56 cents (2020: 56.04 cents)
R198 million in cash reserves (2020: R177 million)
7.7% dividend yield (2020: 9.2%)
20% increase in share price(2020: 25% decrease)
Operating profit increased by 15.5% (2020: 24.4% increase)
Total revenue increased by 25.8% (2020: 21.6% increase)
Intellectual capital
Cost savings based on fraud management software – R848 million (2020: R1.5 billion)
Manufactured capital
3.8 million lives under administration (2020: 3.8 million)
18 client medical schemes in Southern Africa (2020: 19)
Human capital
R10.7 million invested in training employees (2020: R4.5 million)
R458 000 invested in bursaries (2020: R400 000)
Skilled and motivated workforce
Training and developing skills
Social and relationship capital
R6.6 million invested in enterprise development (ED) (2020: R2.8 million)
R13.6 million invested in supplier development (SD) (2020: R6 million)
R9.6 million invested in socioeconomic development (SED) (2020: R3.3 million)
Natural capital
Environmental impact monitoring and management
Optimised energy, water and paper use
Enhanced awareness communication Group-wide
| + | Increase | No change | - | Decrease |