Dear Members, 

This past year has been an eventful year for the Scheme and for our members. There have been many challenges and changes but also cause for celebration.

We have faced issues such as severe load shedding, water supply challenges in certain communities and a shortage of eggs and affordable fresh chicken due to a severe outbreak of bird flu. Our local economy has puttered along, with the increased volatility of the South African rand, an unpredictable fuel price and decaying infrastructure (especially our road and rail networks), together with low growth in the global economy impacting negatively on the cost of living for people. This forced families to make difficult choices on an ongoing basis. However, amid these challenges, we also need to celebrate the resilience of our people and the victories crafted through hard work and dedication. In this regard, our national rugby team has led the way in becoming world champions for a record fourth time. We are definitely 'stronger together'!

From an industry perspective, the National Health Insurance (NHI) Bill was passed by the National Assembly, despite much uncertainty around funding, ongoing opposition and legal challenges. The critical issue regarding the funding for the NHI has not yet been finalised, with an estimated R200bn in tax revenue required to be raised every year. The role of medical schemes is currently restricted to only offer cover for services not provided by the NHI and industry is working to have this reviewed. So, when will the NHI be fully implemented? Some commentators estimate that it could take more than ten years to implement as opposed to Government's timeline of not less than five years. We will stay fully engaged with our industry bodies and will be watching these developments closely to ensure that the interests of our members are protected as far as possible.

As Scheme, we have managed to realise a positive return on investment at 11.1%, comfortably outperforming the benchmark of CPI + 3.5% in the first nine months of 2023, but the results over the last two months are indicating a negative real return. As communicated in the year-end sessions, certain Scheme benefits have been considerably improved and contribution increases are lower than most of our peer group - improving the value of the Scheme to its members! And lastly, while there is no overall change in the direction that the Scheme is taking, you will have noted a change in leadership, with a new chairperson after Colleen Elliott stepped down at the beginning of the year, and a new Principal Officer after the retirement of Fiona Robertson.

Looking ahead, Trustee elections are coming up next year. I urge your active participation, either as a nominee or by ensuring that you cast your vote for the nominee of your choice.

In closing, I would like to thank the AMS team, management and service providers for their diligent approach and hard work in this past year.

Happy holidays!
Sincerely
Joe Coetzer
Chairman

Published December 2023