Text: AIDS Deaths Hurting African Businesses, USAID Says

10 December 2001

Text: AIDS Deaths Hurting African Businesses, USAID Says

Agency Announces Two Books on Impact of AIDS In Africa

AIDS deaths are negatively affecting the competitiveness of African businesses, says the U.S. Agency for International Development (USAID).

One in 12 workers in sub-Saharan Africa is infected with HIV -- the human immunodeficiency virus that is the precursor of AIDS -- and most of those infected will die in seven to 10 years of becoming infected, according to a December 10 USAID press release announcing the publication of two books on the economic impact of the HIV/AIDS pandemic in Africa.

The reduced workforce impacts business profits by increasing production costs and decreasing worker productivity, said the release. In addition, it said, the high prevalence of HIV/AIDS among young people is likely to affect the future number of laborers and managers entering the workforce. Uncertainty caused by HIV/AIDS makes investors reluctant to put money into projects in countries with declining economies, the release added.

USAID is assisting community initiatives to address HIV/AIDS by sponsoring prevention programs and developing non-discrimination policies to improve the workplace environment for people living with AIDS, said the release.

The books -- "How Does HIV/AIS Affect African Businesses?" and "How Are African Businesses Responding?" -- were released at a USAID press conference at the International Conference on AIDS and STDs (sexually transmitted diseases) in Ouagadougou, Burkina Faso.

(Note: In the following text "billion" equals 1,000 million.)

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December 10, 2001

OUAGADOUGOU, Burkina Faso -- AIDS deaths are reducing the number of workers available to African businesses and negatively affecting their competitiveness, according to information released by the U.S. Agency for International Development (USAID). Two documents describing the economic impact of the HIV/AIDS pandemic in Africa, "How Does HIV/AIDS Affect African Businesses?" and "How Are African Businesses Responding?", were released at a USAID press conference at the International Conference on AIDS and STDs in Africa.

The reduction in workforce due to AIDS deaths reduces the profitability of African businesses by both increasing the cost of production and decreasing worker productivity. An estimated one in 12 workers in sub-Saharan Africa is infected with HIV, and most infected workers will become ill and die within seven to 10 years of becoming infected. The high prevalence of HIV/AIDS in young people is likely to affect the future supply of laborers and managers entering the workforce. The loss in revenue attributable to HIV/AIDS occurs with increased expenditures on benefits such as health care, sick leave, and death benefits, as well as the additional costs of training new employees.

In addition to the direct impact on individual businesses, HIV/AIDS affects national economies. A study of African countries in 2000 suggests that HIV/AIDS has reduced the growth of per capita income by 0.7 percent per year. The uncertainty of the impact of HIV/AIDS on businesses makes investors reluctant to invest in countries with declining economies.

To respond to the HIV/AIDS crisis, African businesses have implemented workplace and community-based interventions. HIV workplace policies address confidentiality, stigma and discrimination, work disruption, education, prevention, care, and treatment. Private sector organizations are implementing policies that frequently involve collaboration with government and community organizations.

Community initiatives to address HIV/AIDS are targeting the source of the labor supply. Communities and businesses have worked together to educate the media and public, create materials and activities targeting youth, as well as provide diagnosis and treatment of sexually transmitted infections at no cost.

USAID is assisting these efforts by sponsoring prevention programs, and developing non-discrimination policies to improve the workplace environment for people living with AIDS. For example, USAID and the South African insurance company Metropolitan Life recently teamed up with the South African government to share information on workplace policies for people living with HIV/AIDS and their families. Other private-sector groups like Daimler-Chrysler and Coca-Cola also participated.

The International AIDS Trust prepared "How Does HIV/AIDS Affect African Businesses?" on behalf of USAID, and "How Are African Businesses Responding?" was prepared for USAID by the Policy Project.

USAID has provided more than $1.7 billion toward fighting the AIDS pandemic since 1986. Currently, the agency has programs in over 50 countries, including 21 in sub-Saharan Africa. USAID's HIV/AIDS programs combine an interrelated strategy of prevention, care, treatment and support; assistance to orphans and vulnerable children; surveillance of the pandemic; and encouraging the support of donors and national leaders in the fight against HIV/AIDS. More information on USAID's HIV/AIDS program is available at http://www.usaid.gov/pop_health/aids/

USAID is a sponsor of the bi-annual International Conference on AIDS and STDs in Africa. USAID is the government agency providing humanitarian assistance and economic development worldwide for 40 years.

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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)