Equality, empowerment and Transformation

It is the responsibility of every company operating in South Africa to incorporate the country’s economic transformation agenda into business strategy. Companies should actively seek opportunities to support existing government initiatives aimed at driving economic transformation within their operations. More importantly, they should contribute to the upliftment of the communities they serve.

AfroCentric continues to review and re-align its policies and business strategy with the evolving transformation legislation to ensure that the Group’s contribution remains relevant and meaningful to the country’s overall transformation.

Compliance with relevant legislation is a pillar of our transformation strategy and we believe that we do more than comply. We focus on development and health-related initiatives, believing that the activities of the Group should have a meaningful and sustainable impact on the lives and communities of beneficiaries; as well as provide sustainable healthcare.

TRANSFORMATION STEERING COMMITTEE

Transformation and B-BBEE remain the focus of the Transformation Steering Committee, which comprises members of the Executive Committee and Heads of business. Individual members are allocated responsibility for various aspects of transformation. They are accountable for the Group’s performance and performance in the areas of the business for which they are directly responsible. In this way, transformation becomes a collective responsibility of members of the Group’s Executive Committee and the heads of the business.

B-BBEE PERFORMANCE

AfroCentric Health (Pty) Ltd, under the stewardship of the AfroCentric Group, is committed to B-BBEE. This is demonstrated by the Group’s majority black shareholding and considerable black female shareholding.

AfroCentric Health maintained a strong performance and averaged 90 points in the previous four verifications, and a score of 95.90 in the most recent exercise. This was conducted under a more rigorous scoring regime.

The table below depicts the scores obtained by the different elements for the past five verification periods.

                  Afrocentric Health scores
  New elements Total
available
points
(including
bonus points)
  2015
achieved
  Previous
elements
Total
available
points
  2014   2013   2012   2011  
  Ownership 25   25.00   Ownership 20.00   22.00   22.00   22.00   20.00  
  Management
control
19   13.70   Management
control

10.00   9.00   8.55   8.17   8.63  
  Skills development 25   15.55   Employment
equity
15.00   11.09   11.10   10.13   10.60  
  Enterprise
and supplier
development
44   37.75   Skills
development
15.00   11.27   13.74   13.57   5.42  
  Socio-economic
development
5   3.90   Preferential
procurement
20.00   19.76   19.12   17.43   18.14  
            Enterprise
development
15.00   10.98   11.56   14.49   12.54  
            Socio-economic
development
5.00   5.00   5.00   5.00   5.00  
    118   95.90   Total 100   89.01   91.07   91.29   80.33  
        Level 2   BEE contributor
status
    Level 2   Level 2   Level 2   Level 3  


OWNERSHIP

The Group’s black shareholding at year-end was 52.41%, with shares held by black females equating to 13.84%. This contributed to the Group achieving 25 points for this element in the B-BBEE scorecard out of a total of 25 available points.

MANAGEMENT CONTROL

The management control element of the scorecard measures the composition of the Board of Directors and Group Executive Committee, where 70% are black employees and 30% black females; and of top management, where 70% of positions are held by black employees and 20% by black females. This led to the Group achieving 13.70 out of the available 19 points for this element.

SKILLS DEVELOPMENT

The Group is committed to investing in the skills and training of its workforce as this improves the quality of service delivered and results in a qualified workforce. R19.2 million was invested in training black employees in the last verifi cation period.

Learnership and internship programmes provided 135 unemployed youth with training and mentoring while exposing them to the work environment, increasing their level of employability.

ENTERPRISE AND SUPPLIER DEVELOPMENT

The new B-BBEE element of enterprise and supplier development is a merger of preferential procurement and enterprise development. The purpose is to encourage fi rms to procure goods and services from black-owned and blackmanaged suppliers, and to contribute to the development of those suppliers as entrepreneurs. preferential procurement is still managed under this element and is equally weighted with supplier development in terms of points allocated on the scorecard. AfroCentric Health worked diligently in recent years to implement a procurement process that supports B-BBEE-compliant suppliers and black-owned businesses, and performed well on that sub-indicator. Committed resources support and develop black suppliers and the Group looks forward to seeing that investment refl ected in the supplier development score next year.

SUPPLIER DEVELOPMENT

Seven black-owned EME or QSE suppliers from the supply chain who meet the criteria for grant allocation were targeted and a total amount of R5.2 million was spent on them to increase capacity in their businesses and provide them with fi nancial and operational sustainability.

These suppliers were also enrolled in the AfroCentric Health supplier development mentoring programme.

products and services of selected suppliers include outdoor and innovative marketing, placement programmes, wellness promotions and providing professional training. The relationship with developing suppliers will have a positive impact on the services provided to AfroCentric Health and the communities they serve.

A total of R5.2 million was spent on supplier development and a total of R691 million on B-BBEE-qualifying procurement.

ENTERPRISE DEVELOPMENT

It is the responsibility of the private sector and government to implement and drive initiatives that are aimed at growing small, medium and micro enterprises (“SMMEs”) into selfsustaining entities through skills development and the provision of professional services. This is true in the South African context where smaller businesses make a signifi cant contribution to job creation while at the same time being the fi rst ones to experience the negative impact of the economic setbacks.

Wherever possible, AfroCentric ensures that the Enterprise Development (“ED”) contributions result in greater synergies and improved relationships with customers and suppliers. Therefore, the focus of ED projects is to enhance the revitalisation of public health facilities, support suppliers and to address the severe shortage of medical personnel in our country.

The total spent on enterprise development 2015/2016 amounted to R2.63 million.

 

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