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HIV/AIDS Business Must Do More Prepared for the HIV/AIDS Colloquium Hosted by Eskom Holdings Ltd By Carol O’Brien.

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Presentation on theme: "HIV/AIDS Business Must Do More Prepared for the HIV/AIDS Colloquium Hosted by Eskom Holdings Ltd By Carol O’Brien."— Presentation transcript:

1 HIV/AIDS Business Must Do More Prepared for the HIV/AIDS Colloquium Hosted by Eskom Holdings Ltd By Carol O’Brien

2 The Global AIDS Crisis AIDS is the worst health crisis in all of human history 30 million people have died

3 Source: UNAIDS, AIDS Epidemic Update 2005 Total: 40 million Adults and Children living with HIV/AIDS at the end of 2005 Western Europe North Africa & Middle East Sub-Saharan Africa 25.4 million Eastern Europe & Central Asia 1.4 million South & South-East Asia 7.1 million Australia & New Zealand North America 1 million Caribbean Latin America 1.7 million East Asia & Pacific 1.1 million Global Epidemic Overview

4 The Global AIDS Crisis Over 13,000 people are infected every day

5 The Global Business Coalition on HIV/AIDS The GBC is perhaps the most important coalition that we have operating on the face of the earth today. -Colin Powell, Former U.S. Secretary of State

6 Mission: To harness the power of the international business community to end the HIV/AIDS pandemic Membership: The GBC is a coalition of almost 210 International companies from a diverse range of industries Leadership: Ambassador Richard Holbrooke, CEO Mark Moody-Stuart, Chairman Anglo American Bertrand Collomb, Chairman Lafarge Cyril Ramaphosa, Chairman, Shanduka South Africa GBC Overview

7 Helen’s Legacy

8 Prevention is Failing Over 90% of people do not know they have the virus

9 The Global AIDS Crisis Women and children make up over 50% of infections Aids creeps up on you slowly and silently.. it can take up to 7 years to manifest …….

10 HIV/AIDS Affects Business Why should business take action against HIV/AIDS? Macro-economic Socio-economic Your company : direct and indirect costs

11 AIDS Decimates Economies HIV Prevalence Rate (%) Reduction in growth rate GDP per capita (%, per year) Source: R. Bonnel (2000) Economic Analysis ofHIV/AIDS, ADF2000 Background paper, World Bank. Slide adapted from UNAIDS: “Socio-Economic Impact of HIV/AIDS in Africa,” presented by Anita Alban and Lorna Guiness, ADF Growth Impact of HIV ( ) for 80 developing countries

12 Health consumes more of government budget Declines in family savings and disposable income Shorter Horizons reduce investment information and networks Foreign investment and tourism decline Tax revenues fall Skilled workers & professionals die or flee: brain drain Decrease in demand for specific products Socio-Economic Impact

13 group life cover and disability cover medical benefits retirement benefits cost of absenteeism (usually significant) cost of recruitment and training to replace employees who retire due to ill-health or died in service cost of compassionate leave, including time to attend funerals of colleagues and family members Credit risk for those businesses providing credit to customers and employees Your Company Increase in Direct Costs

14 (More difficult to quantify as these costs increase expenditure and reduce revenues) Include: Business risk Legal risk Reputation risk Accounting risk Your Company - Indirect Costs

15 BUSINESS RISK Reduction in staff productivity / loss of workforce morale Increased supervision required (higher levels of absenteeism and less experienced staff) Increases in the cost of salaries where skilled staff lost Loss of ‘institutional memory’ or intellectual capital Loss of client relationships especially where the disease affects key persons Potential increase in non-Aids infectious diseases such as tuberculosis or influenza - may infect HIV negative staff Your Company - Indirect costs

16 LEGAL RISK Increased litigation – discrimination Risk of vicarious liability for managers/fellow employees falling foul of HIV/AIDS laws ACCOUNTING RISK Financial statements inaccurate - lack of information on HIV/AIDS exposure or risks inaccurately disclosed REPUTATION RISK Bad publicity - inappropriate treatment of an HIV+ employee Public concerns about prevalence in certain sectors Your Company - Indirect Costs

17 Is a mechanism to utilise existing business infrastructure to provide expanded access to HIV prevention, testing and treatment to the communities in regions heavily impacted by HIV/AIDS Global Business Coalition on HIV/AIDS Co-Investment

18 Combine Business interests of private sector with development goals of country or region Key Elements Long term economic engagement in partner countries Substantial contribution by private partners Efficient distribution of tasks between different partners Achievement of developmental benefits Sustainability and long term effects

19 Private Sector contribution Expertise in running Work Place Programmes Existing infrastructure Business expertise Management expertise Public sector contribution Policy development and regulation Leadership Financing Access to various development partners Overall co-ordination of HIV response

20 Accessing Financial Resources Global Fund to fight AIDS, Tuberculosis & Malaria proposals via CCMs World Bank Multi-country HIV/AIDS Programme for Africa (MAP) $1 Billion to 32 countries in Sub-Saharan Africa Apply through NACS but process differs per country

21 PEPFAR (President Bush’s Emergency Plan for AIDS relief) $15 Billion Bilateral Development Agencies GTZ (German Technical Co-operation) USAID DFID Other

22 Antagonism between public and private actors Lack of information / best practices Complexity of donor procedures Fear of financial liabilities (limited time horizon of donor support) Lack of trust (main barrier on part of government) Barriers to co-investment

23 Business must do more “Our company does not have any AIDS related products, therefore we have decided not to be involved in the issue” “Our local stores and employees are involved in a variety of important causes but HIV/AIDS does not fall within our focus areas” “Our company does not have employees in Africa, India or China” “We employ primarily white collar workers so its not an issue for us”

24 Thank you! Presentation Source : Making Co-Investment a Reality (Dec 2005) Published by the GTZ and GBC


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