Chairman’s review

❝ AfroCentric reaffirms its commitment to the principles of equitable access to healthcare, which are integral to our purpose of improving the quality of life for all our stakeholders. ❞

LEADING THROUGH A LANDSCAPE OF CHANGE

South Africa is navigating a historic political shift, with the 2024 general elections leading to the formation of a Government of National Unity (GNU) – a coalition of multiple political parties. This transition presents both challenges and opportunities as the country strives to establish a stable and inclusive political system amid widespread socioeconomic pressures.

Our healthcare system starkly reflects these challenges, with the majority of the population dependent on an under-resourced public healthcare system, while only a small percentage benefit from private healthcare. This disparity underscores the broader socioeconomic issues confronting the nation, necessitating reforms towards universal coverage which is essential for the well-being of all South Africans.

AfroCentric reaffirms its commitment to the principles of equitable access to healthcare, which are integral to our purpose of improving the quality of life for all our stakeholders. We are committed to transforming healthcare to make it more affordable and accessible, in line with the NHI's goal of universal health coverage through an integrated system that ensures quality care for everyone.

We believe this alignment positions AfroCentric as a key player in transforming healthcare in South Africa and driving positive health outcomes for all, and while consultations on the substance of the Bill led to limited changes in the Act, there is hope that the national dialogue envisioned by the GNU will foster more constructive engagement. In his opening address to parliament, President Cyril Ramaphosa was clear that the resources and capabilities of the public and private sectors would be needed to realise universal healthcare for all.

AfroCentric is committed to leading through this landscape of change by actively engaging in discussions on how the private sector can collaborate with the public sector to support the NHI's goals. Successful public-private collaborations, such as the CCMDD programme, highlight the potential for partnerships to improve healthcare outcomes. Through this programme, Pharmacy Direct, one of our subsidiaries, provides chronic medications to approximately 1.3 million patients across five provinces monthly. This initiative exemplifies how private sector capacity can be harnessed to support and enhance the public healthcare system and achieve equitable access.

STRENGTHENING OUR STRATEGIC POSITION

The Board's strategic oversight responsibility seeks to steer AfroCentric through its continually shifting operational terrain. We are responsible for setting the strategic direction and policy for the Company and its subsidiaries, and I am pleased to report that the Board has effectively discharged these duties.

In line with our commitment to proactive leadership and future-focused planning, we critically reviewed our strategy during the year to ensure AfroCentric is well‑positioned to capture emerging opportunities. This refreshed strategy, which involves the creation of a Sanlam-aligned open scheme, is designed to capitalise on the Group's unique strengths to achieve its purpose.

Our focus is on pioneering access to inclusive, seamless, and quality healthcare through sustainable models that benefit all Africans. AfroCentric's strategic intent is to be the leading healthcare partner in Southern Africa by 2030, driving innovation and excellence in healthcare delivery. To achieve this, we are leveraging our strengths, expanding our reach, and enhancing clinical outcomes while managing client costs effectively. This includes preparing for the implementation of NHI in South Africa.

AfroCentric is also a strong advocate of value-based care, a model that shifts the focus from volume to value, ensuring that healthcare providers are rewarded for the quality and outcomes of the care they deliver rather than the quantity. By driving the delivery of value-based care through our strategy, we aim to enhance patient outcomes while managing costs more effectively, reinforcing our commitment to providing accessible, high-quality healthcare for all.

DRIVING LONG-TERM VALUE WITH ROBUST GOVERNANCE

Effective governance supports the creation and preservation of value and plays a critical role in preventing value erosion. This is especially pertinent in today's dynamic environment, where transparency, accountability, and ethical leadership are paramount to maintaining stakeholder trust and ensuring long-term success.

As part of our ongoing efforts to reposition AfroCentric for sustainable growth, we made significant strides in enhancing our governance framework. In line with King IV^TM, we undertook a thorough review and where appropriate realignment of our Board committees. This includes changes to the composition of the Remuneration Committee and the Social and Ethics Committee to better align with best practice governance. Additionally, we updated the terms of reference for the Nominations Committee, Audit and Risk Committee, and the Social and Ethics Committee, ensuring compliance with prevailing legislation and pursuing best practice governance principles.

These governance enhancements are not merely procedural; they are strategic. By strengthening our governance structures, we are better positioned to navigate the complexities of our operating environment, mitigate risks, and seize opportunities for growth. Our focus on governance excellence underpins our commitment to creating enduring value for all our stakeholders.

OUTLOOK FOR 2024 AND BEYOND

Looking ahead, the Board is cautiously optimistic about the future. The healthcare landscape in South Africa is evolving rapidly, and AfroCentric is well-positioned to play a leading role in this transformation. The initiatives currently underway provide confidence that the Group is on a firm path towards sustainable growth.

We see significant opportunities for the private sector to innovate and collaborate with the public sector to advance universal healthcare. By focusing on advanced technological solutions, cutting-edge innovations, and next-generation digital health tools and fostering public-private partnerships, AfroCentric is committed to supporting the development of a robust healthcare system that serves all our stakeholders.

APPRECIATION

I would like to express my sincere gratitude to my fellow Board members for their wisdom, clarity, and dedication. Their contributions have been invaluable during this transformative period. I also wish to extend a special thank you to the management team, under the leadership of our new CEO, Gerald van Wyk, for their hard work and commitment. Their efforts have been pivotal in navigating the past year's challenges and positioning AfroCentric for future success.

As we move forward, AfroCentric remains committed to improving access to quality healthcare. We will continue to innovate, adapt, and lead with integrity, ensuring that we meet the evolving needs of our stakeholders and contribute positively to the healthcare sector.

Dr Anna Mokgokong
Chairman