It was with this type of forward and inspirational thinking that the possibility of establishing a company like Sizwe became a reality 25-years ago during the tumultuous apartheid years. From its humble beginnings when medical aid assistance was virtually non-existent for black people in South Africa , Sizwe emerged as a beacon of hope for the disadvantaged black community, geared especially at those communities exposed to the political and socio-economic exploitation of the time.

Against this backdrop a group of black doctors took a stand to oppose these disparities by joining the SA Medical Discussion group in the early 70s.

Members of this discussion group would meet at each other’s homes as blacks were by law not allowed to meet in public places at that time. This group set up a Medical Bursary Fund by each donating a set amount into the fund every month. Through this bursary fund, the group managed to educate a number of black medical students. Meanwhile, however, political unrest continued and medical aid assistance was geared almost exclusively at the white market. Even those black staff members who were part of a medical aid through their company did not have access to the services offered by the medical aid.

In reaction to the inequalities in health care, members of the discussion group came together to discuss a means of levelling the playing fields by forming their own company which would look at establishing a medical scheme and a private clinic which would operate hand-in-hand for the disadvantaged black community. The idea of starting a black healthcare group was first planted by Drs P.B. Loots and C.P.N. Mokgesi, who had met at a clinical meeting at Wits Medical School . Dr Loots then pursued the idea to promote it among members of the Medical Discussion Group. It was then due to the innovation and determination of these doctors that Kwacha was founded in 1976, made up of, Mr G.M. Pitje, a lawyer, Mr Richard Maponya, a businessman, and 36 doctors – including SMS’ current chairman Dr Abner Tlakula, Fund chairman Dr Ntatho Motlana and Medical Advisor Dr Jubilee Kgomo. Dr Loots was the only white person among these shareholders. The first Kwacha board of directors comprised of: Dr P.B. Loots, Dr C.P.N. Mokgesi, Dr N.H. Motlana, Dr A.E. Tlakula, Dr A.J. Kgomo and Mr G.M. Pitje. Now that the founding company had been established, it had to find a means of raising funds in order to get the medical fund and clinic off the ground. This was no easy feat as scepticism of a black-owned and run medical fund was high. An offer of a Swiss loan gave the group a glimmer of hope, but the cost of paying back the loan, taking the exchange rate into consideration, would have been too expensive and so the search continued. Another stumbling block encountered along the path was the fact that while the doctors had extensive medical knowledge and expertise, their business know-how was minimal at that time. In addition, the group found that it was unable to start the scheme in an urban setting without a white partner. By law, black people were only allowed to start companies in their homelands, not in South Africa .

Several companies were approached, but it was Keith Hollis from Medscheme came on board as a 49% shareholder, allowing Sizwe to get off the ground. While the problem of finding a partner had been solved, the problem of financing fund still remained. It was when Bob Aldworth, the then Managing Director of Barclays Bank (now National Bank) and author of the book, Towering Inferno, was approached for a by Dr Motlana, that the group finally achieved some success by being offered amount requested. With a letter in hand confirming that Barclays had given loan, Dr Motlana approached two other banks, asking them to match the The banks were happy to match the loan thanks to the initial money given by Barclays. With this cash in hand, Sizwe Medical Services and Sizwe Medical Fund were registered in September 1978. SMS’ first board of directors comprised of Dr Loots, Mokgesi, Dr Motlana, Dr Tlakula and Dr Kgomo, who were also Sizwe Medical first board of trustees.

Getting Sizwe up and running

As a means of getting the Fund up and running through an established Sizwe partnered with Medscheme, which was responsible for the administration Fund for the first 10 years, during which time SMS remained a silent partner. To get the Fund off the ground was no easy feat because, despite it being a registered company, people were still sceptical of a black-owned medical aid, typical reflection of the times. Despite these hitches, however, the fund stalwarts continued with their establish a fund for mainly blue-collar workers. With this in mind, various companies with a large blue-collar worker base, especially the mining industry, were approached. It was already at this early stage that Sizwe built up important relationships with unions, which are still nurtured today. The first company to take the leap of faith and join Sizwe was the sizeable Group, which included such substantial companies as PPC Cement, Rand Mines Rand Coal. With such a large group to start up with, Sizwe was well on its way to establishing and sustaining itself. It was several years later that the then CEO of Kwacha, Joe Neshehe, decided Sizwe should administer its own Fund and so staff were identified within who would be trained up to move across to Sizwe Medical Services. In 1988, SMS became operational under its first CEO, Charles Ngoma-Zulu, who been headhunted from Stannic. The first Board of Directors was set up with a board consisting of both Kwacha and Medscheme members, including Keith Les Hollis and Andrew Jackson. The handful of staff identified at Medscheme moved across to their new offices Allied Building in Rissik Street . Within two years the office moved to its current office at 56 Von Wielligh where it took up half of the sixth floor.

During the time that Sizwe was being set-up, the dream of establishing a corresponding private clinic was also eventually realised in 1985. This was especially in reaction to the disparities that were still being found in practice because while blacks were now being admitted to white hospitals approved by the provincial administrator), discrimination prevailed and blacks put into private wards to keep them separated from whites – at a greater cost those who could least afford it. The formation of Lesedi was also not without its problems due to the fact that were unable to purchase land in the Republic of South Africa . When Dr Motlana originally approached the City Council, he was informed that he may not set up clinic in South Africa , but should rather set it up in his homeland.

It was thanks to his relationship with Mr Mahuhushi, the mayor of the West Rand Administration board, that the piece of land in Soweto , which had been earmarked for an abattoir, was approved as a clinic through Mahuhushi’s influence with the Council. Dr Beau Loots, a medical doctor sympathetic to the need of establishing a clinic in Soweto , was another moving force behind the purchasing of land and remains a Kwacha shareholder today.