BOARD DELIBERATIONS 2024
The Board serves as the custodian of corporate governance and ensures that sound corporate governance principles are observed and entrenched. These principles are linked to our organisational values and are therefore based on transparency, accountability, ethical management and fairness. For the year under review, the Board deliberated the following matters aligned with the Group’s adopted strategy:
Board succession and structure
The Board has established its committees to assist with the balance of power and effectively fulfilling its responsibilities.
The Board has focused on its committees, specifically their roles and responsibilities, functions, scope of authority, and composition. To this end, the Board approved revised terms of reference for the Nominations Committee and Social and Ethics Committee and, for the 2025 financial year, will continue its review of the terms of reference of the remaining committees to ensure alignment with prevailing corporate governance principles and practices.
In addition to the above, while preserving institutional knowledge within the Remuneration Committee and the Social and Ethics Committee, the Board has bolstered the functioning of these committees through the appointment of new members.
Related strategic lever
Risk and strategic review
- Risk review and adjustment to ratings and tolerance levels
- Strategic review and related projects within the current context
- Considered operating and financial updates
- Linked our risks to materiality factors to ensure assessment of those factors that would affect the organisation’s ability to create value. The organisation will continue to assess the materiality issues at least annually
Related strategic lever
AfroCentric/Sanlam collaboration
Determining the best opportunities/growth initiatives to create a value chain of healthcare enterprises that maximises the purchasing power of citizens’ healthcare spend. During the period, the Board evaluated and identified the opportunities presented by the Sanlam transaction for unlocking future synergies and collaboration.
Related strategic lever
ESG
Focused on deepening ESG integration and expanding disclosure in line with those matters that were deemed material.
Related strategic lever
Transformation
- Monitored initiatives to ensure that we achieved a Level 1 B-BBEE status, along with a continual focus on enhancing organisational transformation at every level of the business
- AfroCentric Health (RF) (Proprietary) Limited, the Group’s main operating subsidiary, retained its Level 1 B-BBEE rating
- AfroCentric Investment Corporation Limited attained a Level 1 B-BBEE rating, effective December 2023
Related strategic lever
AFS and integrated reporting
- Ensured that the appropriate financial procedures were in place
- Approved the interim dividends, having considered the solvency and liquidity status of the Company, as required by the Companies Act 71 of 2008 and the JSE Limited Listing Requirements
- Approved the Integrated Report 2024
Related strategic lever
Legal compliance
- Approved the compliance framework to ensure that appropriate processes were in place concerning legal compliance
Related strategic lever
Socioeconomic/corporate social investment
- Considered the Group’s contribution to society through ESD and corporate social investment initiatives, including its bursary programme and contributions to organisations such as Eluthandweni Maternity Health Services and SABCOHA (refer to our social performance for more information).
Related strategic lever
Our strategic focus areas
AfroCentric aspires to become a leading diversified global healthcare investment company and ensure our clients and stakeholders benefit from our growth. AfroCentric’s Board adopts an integrated approach to managing the Group to ensure the governance structure actively identifies, responds to and communicates material issues impacting its ability to create value. Corporate governance provides the Board with a framework that supports transparency, sustainability, fairness and ethical conduct. One of the key principles of King IVTM is establishing a unitary board, which reflects a balance of power, with no individuals yielding unfettered power on the Board.
The Board believes it adhered to the Board Charter, and the Group complied with the JSE Listings Requirements and Companies Act. The Board believes it ethically executed its responsibilities and reported on the outcomes of its direction in line with King IVTM.
https://www.afrocentric.za.com/financial-information.php
As the stewards of public trust, the Board acts for the organisation's good, exercising reasonable care in all decision-making without placing the organisation at undue risk. The Board applies and leverages sound corporate governance in improving performance by:
- Enhancing accountability at all levels
- Determining how governance requirements, particularly King IVTM, can be implemented to add organisational value
- Guiding decision-making, reinforcing material disclosures and refining risk processes
- Ensuring certain powers are delegated to management for operational efficiency
- Implementing integrated reporting of all business aspects
- Embedding risk controls in day-to-day processes and decision-making
- Effectively identifying, understanding and managing stakeholders and their expectations to improve our ability to reduce risks