In line with the Group's driving ambition, AfroCentric worked closely with the government throughout the COVID-19 pandemic, utilising our infrastructure to distribute procured vaccines in our country's time of crisis. With the understanding that charity begins at home, we also embarked on a vaccination campaign for our staff, which received a positive response. With the Group's part in the vaccination drive now complete, I am pleased to report that 210 503 vaccines were administered in major cities across South Africa. Certainly, the Group's overall performance was impacted by the vaccination distribution programme, as approximately R25 million was invested in this project. However, when weighing up the short-term costs against our long-term ambitions, we knew that leveraging our position as the most diversified healthcare group in Southern Africa was paramount and could significantly contribute to the fight against COVID-19. Indeed, AfroCentric will continue supporting the government to fight fundamental healthcare challenges and forge the path forward in realising our purpose and mission.

Demonstrating resilience in an evolving context

Despite the current circumstances, the Group has continued to progress towards its strategic plans for growth and expansion. AfroCentric's diversification strategy has proven its grit and potential these past years. Furthermore, the Company's diversified healthcare businesses have created stability for investors while enabling the Group to meet heightened stakeholder needs.

We remain passionate about promoting access to care and supporting meaningful progress in the universal healthcare journey. Recently, AfroCentric presented submissions on the NHI system to parliament to demonstrate how we can collectively strive to make the health system more affordable, accessible and of a higher quality for all. We made recommendations on the role the private sector can play towards enabling NHI and the funding sources required.

Beyond vaccination, several of our subsidiaries are already partnering with government to meet broader healthcare needs, including providing chronic medication to government clinic patients across four provinces. With this in mind, we genuinely believe that AfroCentric's diversification strategy positions the Group well within an NHI context.

Embedding environmental, social and governance (ESG) throughout the business

ESG matters present significant material risks and opportunities that require organisations to respond strategically. Our focus on integrating ESG into the core of our business continues to progress within a dynamic context.

Accordingly, we underwent an in-depth materiality review during the year to develop our ESG framework. As a result, AfroCentric has adopted the JSE Sustainability Disclosure Guidance, tailored explicitly for the South African context while remaining closely aligned with various global frameworks. These guidelines became a logical starting point for developing and implementing our ESG reporting framework. We expect to expand our disclosure over the coming years as the ESG reporting context continues to evolve and as we integrate the necessary processes into the business to manage and measure the full range of matters identified.

(For more information on our material matters, please see our material matters.)

Governance and leadership

Effective governance and sustainable value creation go hand in hand, especially in these extraordinary times. We believe this focus has seen us prevail through the crisis, with a strong sense of purpose and a forward-looking emphasis.

I would like to take this opportunity to thank those who have been integral to this journey. To Dr Shirley Zinn, who retired this year from her position as an Independent Non-executive Director; Jurie Strydom, who resigned from his position as a Non-executive Director; and Sello Mmakau, who resigned as an Executive Director, thank you for your contribution to achieving our purpose and furthering the Group's ambitions during this time.

I would also like to thank Willem Britz, who stepped down as an Executive Director of the Group, for his tireless efforts over the years. We are pleased, however, that we will continue to benefit from his insight as a Non-executive Director on the Board.

We welcome Kanyisa Mkhize as a Non-executive Director. Kanyisa will also serve on the Group's Social and Ethics Committee and is the CEO of Sanlam Corporate. We look forward to her contribution to the Group going forward. Her appointment will also enhance our gender diversity at Board level.

In memoriam

During the year, South Africa paid tribute to the doyen of the business world, Jacob "Meyer" Kahn, a co-founder of the AfroCentric Group, who passed on 2 June 2022. He remained a distinguished leader, an inspiration to his colleagues on the Board and a presiding governance icon to management. We wish to take this opportunity to remember his invaluable contributions to the Group. May his soul rest in peace.

Outlook

Globally, the aftershocks of the pandemic will continue to be felt for a long time. We are also cognisant of the significant uncertainty and volatility brought on by the Russia/Ukraine conflict and resultant supply chain constraints. In South Africa, we anticipate a period of sustained economic weakness as the country strives to overcome the significant socioeconomic hardships of the past years off a weak pre-COVID base.

As a purpose-led business, we remain committed to contributing to economic growth and supporting government's universal healthcare aspirations. In the year ahead, we will continue leveraging our position as the most diversified healthcare group in Southern Africa as we implement our strategy to broaden access to sustainable, affordable, quality healthcare.

Appreciation

I am indebted to our leadership team for effectively navigating us through these difficult times and to all our people who respond daily with purpose-driven intent to meet our stakeholders' needs. I also thank my fellow Board members for their unwavering support and diligence in pursuing AfroCentric's purpose and vision. I look forward to their continued support as we move into the future.

Dr Anna Mokgokong
Chairman