The Business Response to HIV/AIDS: Impact and lesson learned

FIGURE 4 Medical expenditure of an agro-estate in Kenya, with and without AIDS
30
25
20
15
S10
5
~ 0
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
* With AIDS
* Without AIDS
Source: Rugalema, G (1999), "HIV/AIDS and the commercial agricultural sector of Kenya", The Institute of Social Studies, The Hague.
Crucially the impact on individual companies will vary depending on a number of factors, primarily:
the nature of the company/sector (i.e. organisational structure/activities), the nature of the labour
market, and the policies initiated by the company. For example, markets in which there is a scarcity of
labour, particularly skilled labour, may incur higher costs through higher wage demands. It is worth
noting that significantly high HIV/AIDS prevalence rates have been observed amongst skilled and
managerial level employees. In addition, those companies which offer health services, pensions, life
insurance and other benefits to their employees will incur varying levels of costs directly dependent on
levels of such benefits.
3. LOW PREVALENCE RATES AND INACTION
Probably one of the most important lessons to be learned by all sectors is the consequence of inaction
or complacency. To deny the risks for current and future economic development in the face of an
emerging epidemic and a refusal to act accordingly has serious ramifications. Low prevalence rates, if
left unchecked, rapidly transform into high rates of infection with consequent social and economic
costs.
On a more macro level, early and comprehensive responses in Senegal, West Africa, through HIV/AIDS
education and prevention, have resulted in one of the lowest rates of infection in sub-Saharan Africa.
Through political leadership and the maximisation of existing information and service structures,
Senegal mounted a rapid prevention response, particularly towards high-risk groups such as commercial
sex workers and encouraging the use of condoms.
The World Bank has shown that once the HIV prevalence rate exceeds 4-5 percent it escalates rapidly, as
demonstrated in Figure 5, which shows a typical trajectory of HIV rates in Southern African countries.
Early investments such as education and prevention campaigns and health care provision, while initially

costly, have long-term cost benefits. Not responding may result in related costs increasing exponentially
in association with rising HIV/AIDS rates (through rising production costs and declining productivity).

THE BUSINESS RESPONSE TO HIV/AIDS: Impact and lessons learned

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