Our purpose is to enhance the quality of life of our stakeholders. Value for AfroCentric is therefore tied to our ability to achieve this aim. We seek to fulfil this purpose by transforming healthcare – making it more affordable and widely accessible.
For our business to achieve this purpose, we must determine the matters that are most material to us.
(See below for value delivered to each of our stakeholders)
We are uniquely positioned to deliver an integrated healthcare offering that aligns financial, wellness, and medical services. We continue to explore opportunities with like-minded partners to expand our service offerings and strengthen healthcare access, ensuring a broader and more integrated healthcare experience.
- 4.08 million lives covered under our schemes
- 3.7% increase in primary health policies, extending affordable healthcare access
- Completion of the development and implementation of a low-cost health insurance offering
Clinical innovation is a crucial differentiator. We aim to transform traditional care delivery into a value-based model, focusing on healthcare outcomes and exceptional experiences for scheme members and service providers.
- Established a dedicated value-based care orthocare unit to advance specialised care and operationalise new opportunities
- Targeted interventions for chronic illnesses like HIV and diabetes, promoting early detection and treatment
By investing in data analytics, digital tools, and technology, we aim to improve operational efficiency and enhance the healthcare experience for our clients, empowering them with seamless digital solutions.
- Digital self-service channels and speech analytics tools enhanced client engagement
- Gained significant traction in digital solutions and enablement capabilities
- Completion of major upgrades on core systems led to improving processing times and enhancing the client experience
We foster innovation, collaboration, and continuous learning, creating an inclusive environment that embraces diversity and maximises everyone’s potential.
Our approach focuses on developing a cohesive, integrated operating model, leveraging the strengths of our diversified businesses.
- Refocused our business around core service offerings, positioning Medscheme as the foundation of our healthcare solutions
- Recognised as a Top Employer with an employee Net Promoter Score of 21
We contribute across most SDGs, but our core focus is on SDG 3, enhancing health and wellbeing by expanding access to healthcare, aligning with our definition of value and greatest impact on sustainable development. Our objectives also support the National Development Plan (NDP) – Vision 2030, promoting a health system that delivers positive outcomes for all.
Delivering value to society by fulfilling our purpose
Our success is intrinsically linked to the value we provide to our stakeholders. We recognise our societal role and envision how AfroCentric’s presence can positively transform healthcare for the benefit of society. A clear sense of purpose informs us of our strategic direction and decision-making, enabling us to balance creating long-term value and achieving short-term goals.
Value for our clients
AfroCentric is committed to exceptional client service and continuous improvement in our service offerings.
We optimise the healthcare value chain by leveraging our market presence and size to reduce costs for our clients and their scheme members.
Customer effort score
83%
(June 2024: 73.64%)
Weighted scheme solvency of
54.8%
(June 2024: 49.2%)
Average scheme contribution increase of
11.27%
(June 2024: 8.29%)
R155.5 million
FWA cases recovered
(June 2024: R151 million)
R278.4 million
fraud, waste and abuse (FWA)
(June 2024: R296.6 million)
Value created/capital enhanced
Value eroded/capital reduced
Value preservation
Value created for us
Retaining and growing our medical scheme clients is critical to our sustainability and enhances the organisation’s profitability.
Value for our client’s members
Enhancing the quality and ease of access to healthcare services.
Enabled VirtualCare consultations
Enabled WhatsApp member engagements
Facilitated the use of the hospital-at-home product by patients
Driving a value-based care model to ensure the best outcomes at the best cost for members
Value created for us
Member satisfaction is critical to our clients and therefore top of mind. By ensuring member satisfaction for our clients, we support the continued sustainability of our business.
Value created for our shareholders and investors
Sustainable returns over time derived from a purpose-driven business model.
The below information is comparing a six months reporting period to a twelve months reporting period.
Dividend yield of
3.0%
(June 2024: 3.8%)
Decrease in revenue
(51.8%)
(June 2024: 0.4% increase)
Operating profit decreased by
(63.8%)
(June 2024: 0.8% increase)
Return on equity of
(3.6%)
(June 2024: 1.9%)
Headline earnings per share of
3.80 cents
(June 2024: 40.32 cents)
Return on invested capital of
(1.0%)
(June 2024: 4.3%)
Net working capital
2.5%
increase year-on-year
(June 2024: 12.6% decrease)
Diversifying into other revenue streams through our various subsidiaries supports
business sustainability
Revenue contribution
45.4%
(June 2024: 47.8%)
40%
Contribution to operating profit
(June 2024: 24%)
Value created for us
Our providers of capital enable us to diversify our revenue sources and grow our business.
Value for our employees
A purpose-driven work culture that fosters inclusivity and high performance.
Passionate individuals who pursue innovation, excellence and career advancement through continued professional development and focused executive programmes.
The below information is comparing a six months reporting period to a twelve months reporting period.
15.3%
Employee turnover (annualised)
(June 2024: 14.8%)
69.4%
of the workforce are women
(June 2024: 69.2%)
59.3%
Black representation at senior management level
(June 2024: 53.3%)
R1.6 million
was spent on developing our employees
(June 2024: R5.2 million)
87.3%
of the workforce are black
(June 2024: 85.6%)
62.2%
of the workforce are black women
(June 2024: 61.6%)
4 040
courses taken
(June 2024: 3 927)
Value created for us
Our people are a key differentiator and enable our continued success. AfroCentric competes for skilled and experienced global and local healthcare employees. Retention of critical skills, particularly actuarial, information technology (IT) and medical specialists, is imperative to our continued success.
Value for government and regulators
Enhancing public-private partnership in furthering the aim of enabling access to healthcare for all.
Through the partnership with the NDoH on the CCMDD programme, AfroCentric dispensed
88.4 million
Scripts
(June 2024: 15.3 million scripts)
AfroCentric contributed approximately
R595 million
in total tax borne
(June 2024: R862 million)
(refer to Tax transparency for detailed breakdown)
Value created for us
Policy and regulatory decisions directly impact the Group and our subsidiary entities. By engaging with government and regulators, we contribute to shaping an environment that supports our mission of innovating a new integrated model of sustainable healthcare that measurably improves access to care. Furthermore, we can develop sustainable revenue streams by seeking to support national and provincial spheres of government by delivering services that meet their mandate.
Value created for industry bodies
Contributing our technical expertise and in-depth knowledge to pertinent industry topics.
AfroCentric participates in various engagements with industry bodies
Value created for us
Industry bodies provide vital opportunities to interact with broader industry players concerning critical interests in the healthcare sector. In some instances, they open communication channels to government and regulators, particularly when policymakers and regulators seek industry-wide positions.