AfroCentric operates within interconnected economic, social and institutional systems that shape how healthcare is funded, accessed and delivered in South Africa. Conditions across the economy, healthcare funding landscape, population health profile, technology environment and workforce availability influence the availability, affordability and quality of the capitals we rely on (see Our business model) .
These system dynamics affect stakeholders directly through access, cost and continuity of care, and indirectly through the resilience and sustainability of the healthcare ecosystem within the wider socioeconomic context.
Economic conditions and affordability pressures
South Africa’s macroeconomic environment continues to be characterised by constrained growth and persistent household affordability pressure. While headline inflation moderated during 2024 and remained near the lower end of the target band through much of 2025, healthcare affordability remains under pressure as households and employers balance medical scheme contributions against broader cost-of-living demands.
This environment increases price sensitivity among members and employers, influencing benefit selection, retention and demand for lower-cost healthcare solutions. For healthcare funders and administrators, these pressures reinforce the importance of affordability-focused design, utilisation management and cost discipline.
Material matters
- Access to healthcare and medicine
- Sustainable financial performance
- Member satisfaction
- Economic, transformation, political, geopolitical and societal risk
Strategic levers
Healthcare access, utilisation and market dynamics
South Africa’s healthcare system continues to operate within a structural imbalance between healthcare need and access. Demand for care is rising due to demographic and epidemiological trends, while access to private healthcare remains limited to a relatively small portion of the population.
Within the private healthcare environment, modest membership growth and an ageing beneficiary profile are translating into higher utilisation and escalating costs. At the same time, industry solvency remains above regulatory minimums, reflecting underlying financial resilience despite sustained cost pressures.
Policy developments aimed at expanding access form an important part of this context. While NHI is intended to broaden access over time, ongoing uncertainty regarding its design, sequencing and implementation continues to affect the medical schemes industry. In parallel, recent Council for Medical Schemes (CMS) recommendations regarding Low-Cost Benefit Options (LCBOs) and exempt Primary Health Insurance (PHI) products have introduced further uncertainty for affordability-focused funding models.
For AfroCentric, these dynamics reinforce the need for a diversified and adaptable healthcare services model, supported by strong governance and operational resilience, to support access, affordability and continuity of care across evolving funding arrangements.
Material matters
- Access to healthcare and medicine
- Business continuity and adaptation
- Sustainable financial performance
- Member satisfaction
- Ethical business conduct and good governance
- Economic, transformation, political, geopolitical and societal risk
Strategic levers
Technology and data
Technology is increasingly central to how healthcare is administered and how value is delivered through insight, monitoring and more integrated care pathways. At the same time, system resilience, cyber risk and data governance have become non-negotiable operational foundations.
The disruption to the National Health Laboratory Service operations following a cyber-attack in June 2024 highlighted the critical dependency of healthcare delivery on secure, resilient information systems. In parallel, national policy direction continues to emphasise interoperability and safe health information sharing, as reflected in South Africa’s National Digital Health Strategy.
Material matters
- Access to healthcare and medicine
- Business continuity and adaptation
- Digital transformation and resilience
- Cybersecurity and information security
Strategic levers
Workforce
Workforce constraints remain a material challenge for the healthcare system, influencing service capacity, quality of care and the pace of reform implementation. Nursing shortages for example, present a risk to system resilience and the delivery of universal health coverage objectives.
For the Group, this context reinforces the importance of attracting, developing and retaining critical skills across clinical, digital and operational domains to support sustainable service delivery and system resilience.
Material matters
- Access to healthcare and medicine
- Employee wellbeing and retention
- Ethical business conduct and good governance
Strategic levers
