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South African Business 2019 edition

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The 2019 edition of South African Business is the seventh edition of this annual guide to business and investment in South Africa. Regular pages cover all the main economic sectors of the South African economy and give a snapshot of each of the country’s provincial economies. Feature articles on topical issues such as Special Economic Zones and African trade provide unique insights, together with comprehensive overviews of critical economic sectors. Other special features focus on the exciting new possibilities in renewable energy, airports as engines of regional growth and the maritime sector as an entirely new prospect for South African entrepreneurs and businesses. South African Business is complemented by nine regional publications covering the business and investment environment in each of South Africa’s provinces. The e-book editions can be viewed at www.globalafricanetwork.com

SPECIAL FEATURE

SPECIAL FEATURE Healthcare Health counselling at work is a growing trend. One of South Africa’s most innovative and successful manufacturing companies signalled in 2018 that its growth path is continuing. Aspen Pharmacare sells medicines and products in 150 countries from 25 manufacturing plants at 17 sites. In 2017, revenue was R41.2-billion. The opening in May 2018 of a R1-billion specialised product facility in Port Elizabeth will add 500 jobs to the existing complement of 2 000 staff members. The new plant will make products for chronic conditions, a new departure for the company which until now has focussed on generics. Annual production is planned of about 3.6-billion tablets. South Africa has one of the world’s biggest HIV/Aids programmes. The National Department of Health’s Centralised Chronic Medicines Dispensing and Distribution programme aims to reach six-million patients on treatment by 2021: it is currently serving 4.4-million patients. In mid-2018, Pharmacy Direct, an Afrocentric business, spent R100-million on upgrading a warehouse for distributing medicines to state patients. This business is likely to grow if the state goes ahead with plans for National Health Insurance. The NHI intends to create a single fund that will buy services on behalf of all South Africans. South Africa’s pharmaceutical sector is worth approximately R20-billion annually. Although there are more than 200 pharmaceutical firms in the country, large companies dominate, with Aspen (34%) and Adcock Ingram (25%) the key players, followed by Sanofi, Pharmaplan and Cipla Medpro. A number of large pharmaceutical firms have made significant investments. The National Association of Pharmaceutical Manufacturers (NAPM) has re-branded as Generic ONLINE RESOURCES Generic and Biosimilar Medicines of Southern Africa: http://gbmsa.org National Health Insurance: www.health.gov.za/index.php/nhi Innovative Pharmaceutical Association South Africa: http://ipasa.co.za/ South African Medical Research Council: www.mrc.ac.za South African Medical Technology Industry Association: www.samed.org.za SECTOR INSIGHT National Health Insurance could be a game changer. and Biosimilar Medicines of Southern Africa. A new field opened up in the pharmaceutical industry when the South African Health Products Regulatory Authority (SAHPRA) gave the go-ahead for the production of a biosimilar drug in July 2018, the first time this has been allowed in South Africa. Teva Pharmaceutical Industries became the first company to win a licence with its version of Amgen’s filgrastim, a white blood cell booster. Taking health education and counselling into communities and the workplace is a trend that is growing. A focus on prevention, risk assessments and profiling assists people in avoiding illness or managing their health. A cheap plastic heart valve, research on radiation treatment of cancer using Gold Nano particles and posture support wheelchairs and positioning devices that allow greater independence and participation of disabled people – these are some of the inventions and innovations coming out of the Western Cape health research and manufacturing sector where provincial and national funding is available for innovation. SOUTH AFRICAN BUSINESS 2019 42

INTERVIEW Selfmed Medical Scheme Christo Becker, the Principal Officer at Selfmed Medical Scheme, outlines the advantages of a self-administered scheme. Christo Becker BIOGRAPHY Christo started his 21-year career in healthcare as a paramedic in Fire and Disaster Management Services. In 2001 he completed an MBA with the intention of moving his career towards hospital management. He has worked as hospital manager in several private facilities. His passion for people and strategy has ensured that the hospitals he has managed have grown rapidly while focusing on sustainability. With selfmotivation and a commitment to continual improvement, Christo implements positive changemanagement. How did Selfmed begin and how has it evolved? The Scheme initially formed part of the Sanlam Life Insurance stable, created in 1965 and formally registered in 1972. This makes Selfmed one of the most experienced medical aid schemes in the industry. At Selfmed we have a handson approach, and this resulted in our taking control of our own Client Services Centre, or Excellence Centre in 2006. We thereafter progressed to taking over the full administration function in 2010; also recently bringing our Managed Healthcare inhouse. What is your market? Historically membership comprised individuals and their families. The introduction of the Selfnet options in 2015 and 2016 allowed us to reach a younger audience. This was also the opportunity to branch out into corporate marketing, offering membership to blue-collar employees. We have seen great success in this area. Is there flexibility for clients? The scheme currently has five products: Selfmed 80%, Med Elite, Selfsure, Med XXI, Selfnet and Selfnet Essential. Each product is designed specifically for a life stage, as the needs of a member changes. As the person advances in life and starts a family they will move towards the Med XXI or Selfsure options, for example, which have a wider range of benefits relevant to a young family. How is Selfmed handling ever-rising costs? The biggest challenge facing the healthcare industry is the significant rise in healthcare costs, with healthcare inflation exceeding general inflation. This compels us to proactively introduce mechanisms to manage these costs. Selfmed is applying machine learning to the claims database to draw a more accurate picture of a member’s specific needs. The information can then be used to engage members on an individual basis – if we can intervene early it is to the benefit of all parties. How does SelfMed Medical Scheme differentiate from competitors? In a traditional medical aid/administrator environment all administered functions rest with an administrator. As such, a medical aid would be fully dependent on its outsourced administrator to inform it of any issues relating to its members. Being fully self-administered allows Selfmed to take total ownership of all its member interactions and can address any administrative problems or complaints immediately. We do not have an electronic routing system, you speak to an individual. This personalised hands-on approach is fundamental to our model of building a credible member experience. 43 SOUTH AFRICAN BUSINESS 2019

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