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

FIGURE 5 Typical growth of HIV in a southern
African country
%
40
35
30
25
> 20
15
& 10
<0
1 5 10 15 20
Years
Source: World Bank (2000), "HIV/AIDS in Africa", World Bank Africa Region
Quarterly Newsletter, Vol II, February/March 2000.

FIGURE 6 Conceptual business cost curves of
responses to HIV/AIDS
no responses.o
V) late responses
early responses
Time in years
Source: Based on Aventin, L & Huard, P (1998) "HIV/AIDS and business in
Africa", Discussion Paper No 19, Management of Social Transformations,
UNESCO.

Delays in responding have the effect of increasing the initial intervention and ongoing costs, as shown
in Figure 6. In such a scenario the return on investments in the prevention of HIV/AIDS far exceeds
that of standard capital investments. Studies have indicated that these returns, in terms of cost savings
through preventing HIV/AIDS, are as high as 3.5 to 7.5 times the cost of intervention.?
The availability of specific evidence of the effectiveness of intervention programmes by business is
limited, given the general unwillingness of companies to reveal confidential data on economic impact
and prevalence rates. However, Profile 11 on the education and prevention programmes and monitoring
process of Eskom, a utility company of South Africa, provides some evidence. Well into its established
education and prevention programmes an anonymous and voluntary HIV surveillance survey,
undertaken in 1999, covered 15 percent of the workforce and results showed a lower HIV prevalence
rate than the earlier prediction of 11 percent. In addition, monitoring surveys observed high levels of
awareness and knowledge amongst the workforce. Both of these facts provide some evidence of the
effectiveness of Eskom's long running education and prevention programmes, and thus long-term cost
savings.
Sections 1-3 above draw the clear conclusion that it is imperative that business responds to HIV/AIDS
for its own benefit and that of its broader stakeholders. Where there are still opportunities in a number
of countries and regions to prevent HIV/AIDS reaching epidemic proportions it is important that
business becomes involved in a multi-sectoral response. Early action will reap tremendous savings in
both economic and human terms. Ultimately, individual company responses to HIV/AIDS will vary
according to the HIV/AIDS prevalence levels, the policy options available and their investment capacity.
The next section of this report looks at the various ways businesses can and have responded.
1. Binswanger, H & Ayres, W (1999), "HIV/AIDS Action in developing countries", EU HIV/AIDS Programme in Developing
Countries, Issue 5, Dec 1999.
2. Financial Times, Counting the economic cost of Aids, 17 April 2000.
3. Stover, J & Bollinger, L (1999), "The Economic Impact of AIDS", The Policy Project, The Futures Group International.
4. Whiteside, A (1999), "The Economic Impact of AIDS in Africa", Mini Review Article: Canadian Journal of Gastroenterology.
5. Loewenson, R (1999), "Best Practices: Company Actions on HIV/AIDS in Southern Africa", Health & Safety and Environment
Programme, Organisation of African Trade Union Unity.
7. Loewenson, R (1999), Ibid.

18 THE BUSINESS RESPONSE TO HIV/AIDS: Innovation and Partnership