ECONOMY-ZAMBIA: Business Closes its Eyes to the Dangers of AIDS

By IPS Correspondents Reprint | | Print |

Zarina Geloo

LUSAKA, Jan 16 2004 (IPS) - A report by international auditing company PricewaterhouseCoopers says Zambia’s economy may lose about 50 million dollars annually if the current rate of HIV infection continues unchecked.

The report was commissioned to look into the business community’s response to HIV/AIDS in Zambia, and three East African countries.

According to the World Health Organisation (WHO), 20 percent of Zambian adults are infected with the HI-virus that causes AIDS.

Speaking at the launch of the report this week, Pricewaterhouse Chief Executive Richard Mazombwe said the WHO had established than when a fifth of the adults in a country were HIV-positive, then the gross domestic product of that state could be reduced by one percent.

– Translated into our (Zambian) economy, this means 225 billion kwacha (50 million dollars) will be lost annually. This is a colossal amount of money for a poor country like Zambia to lose, just because it has let a situation get out of control,” he told journalists.

Mazombwe said the survey was conducted in Zambia, Kenya, Tanzania and Uganda from July to September 2003, amongst companies that represented various sectors of the economy.

Researchers interviewed managers at 216 firms. Of these, only 88 organsations had estimated how much HIV/AIDS would cost them in terms of added health care costs, absenteeism, poor on-the-job performance and added recruitment costs.

Most companies had not tried to find out – either by direct inquiry or other interview methods û what percentage of their workforce was infected with HIV. Those who had investigated HIV incidence put it at less than 5 percent.

ôThis is hardly consistent with the WHO epidemiology figures, and one would expect the workplace profile to mirror the national profile,” Mazombwe said, adding ôOur survey showed that ignoring HIV/AIDS is exactly what a majority of business in these countries (is) doing.”

Researchers also found that only 39 percent of the organisations surveyed had a formal policy in place for dealing with HIV/AIDS in the workplace. Eighty percent of companies were aware of the need to avoid discriminating against HIV-positive people when hiring new employees. However, 20 percent still conducted mandatory HIV tests when recruiting.

The survey highlights areas where companies could play a bigger role in fighting the pandemic. These include establishing formal HIV/AIDS policies, setting up education programmes and analysing the costs of HIV.

A few firms have already taken the lead in this respect, notably Standard Chartered Bank Zambia which employs about 400 people.

About 40 in-house counselors provide assistance to people at Standard Chartered who are affected by HIV/AIDS. The bank also encourages staff who have the virus to plan for their future, by showing them ways of investing so that they can look after themselves and their families if they are forced to leave work.

Interestingly, the bank is quite clear about the fact that it is û first and foremost û a business, and that ôan employee will be discharged on medical grounds” if necessary.

The findings of the survey have been received with some apprehension by other sections of the business community.

Entrepreneur Michel Gondwe told IPS that small companies simply couldn’t afford elaborate HIV/AIDS policies.

ôThis survey was conducted by a big organisation for big corporations. (How) is a small or burgeoning business like mine going to be able to pay for antiretrovirals for its employees?” he asked.

Gondwe currently employs ten people on a hope and a prayer that they do not have the HI-virus. He believes that government should support the business community with tax incentives and rebates for hiring HIV- positive people.

Coercing companies to come up with medical schemes might not be in the interests of workers, Gondwe added. ôEmployers…will hire people on a casual basis with no contracts. The people who will suffer, actually, are the ordinary workers.”