IFC Against AIDSProtecting People and Profitability

04/20/23 Total: 38 million [35-42 million]

Western Europe580 000580 000

[460 000 – 730 000][460 000 – 730 000]

North Africa & Middle East

480 000480 000[200 000 – 1.4 million][200 000 – 1.4 million]

Sub-Saharan Africa25.0 million25.0 million

[23.1 – 27.9 million][23.1 – 27.9 million]

Eastern Europe & Central Asia1.3 million 1.3 million [860 000 – [860 000 – 1.9 million]1.9 million]

South & South-East Asia

6.5 million6.5 million[4.1 – 9.6 million][4.1 – 9.6 million]

Oceania32 00032 000

[21 000 – 46 000][21 000 – 46 000]

North America1.0 million1.0 million

[520 000 – 1.6 million][520 000 – 1.6 million]

Caribbean430 000430 000

[270 000 – 760 000][270 000 – 760 000]

Latin America1.6 million1.6 million

[1.2 – 2.1 million][1.2 – 2.1 million]

East Asia900 000900 000

[450 000 – 1.5 million][450 000 – 1.5 million]

The HIV/AIDS epidemicThe HIV/AIDS epidemic

Number of adults and children living with HIV in 2003 (UNAIDS estimates)

04/20/23

Feminization of the epidemicFeminization of the epidemic

Since 1985, the percentage of women among adults living with HIV/AIDS has risen from 35 to 48 percent

Young women: 1.6 times more likely to be infected than young men

Sub-Saharan Africa: close to 60% of those infected are women, and 75% of young people infected are girls aged 15-24

Caribbean: young women are 2.5 times more likely to be infected than young men

Why IFC Takes AIDS SeriouslyWhy IFC Takes AIDS Seriously

A priority for the development community 95% of people infected live in developing

countries Most companies not aware of risks Companies don’t know where to start An integral part of IFC’s commitment to

sustainable development

Reputation risk Financial impact Threat to company’s viability

The Business CaseThe Business Case

The Reputation RiskThe Reputation Risk

AIDS: Impact On Bottom LineAIDS: Impact On Bottom Line

Medical and other benefits costs Absenteeism and lower productivity Labor turnover, recruitment and training

costs Experienced personnel Enabling environment Shrinking markets

Global Manufacturing and Global Manufacturing and ServicesServicesBenefits vs. CostsBenefits vs. Costs

A South African sugar mill found that HIV-positive employees took, on average, 55 additional sick days during the last two years of their lives, incurring economic costs of nearly 8,500 ($1,320) Rand per worker. Costs to the industry were projected to increase 10-fold in the next 6 years.

Source: Morris et al. 2000

DaimlerChrysler – South Africa estimated that averting one new HIV infection among its employees saves the equivalent of three to four annual salaries.

Source: AmfAR - Treatment Insider Newsletter, January 2003

SMEsSMEsViabilityViability

A study of 209 small businesses in South Africa identified HIV/AIDS as one of the three main factors that cause nearly 80% of South African start-up SMEs to fail every year (the other two factors are crime and inadequate management expertise)

Source: Xinhua News Agency, 11 July 2001

Vulnerability and risk factorsVulnerability and risk factors

The company relies on a workforce separated from their families for long periods of time Mining, construction, shipping, trucking, and other industries employing migrant labor

Employees’ salaries tend to be higher than in the surrounding community

The sector can be a target for activists Extractive industries, companies with a strong brand name, companies sensitive on their “license to operate”

The company relies on key jobs/individuals The loss of one of those key individuals can prove catastrophic

Large workforce / prevalence The magnitude of direct and indirect costs will be stronger

IFC Against AIDSIFC Against AIDS

Awareness Guidance

Training

Financing

Goal: Accelerate the involvement of private sector in fight against AIDS

What does the private sector What does the private sector bring?bring?

Efficiency, skills and resources Access to people and groups Processes Impact on stigma and discrimination Partnership opportunities

ODEBRECHT in AngolaODEBRECHT in Angola

Program ImplementationProgram Implementation

Op

e ra tio

na l Co m m itte e

Med

ica l

Ma

na

ger

ial

Com m un ity

Fo ca l Po in t

ODEBRECHT in AngolaODEBRECHT in Angola

Senior management engagement Focal point AIDS committees across operations Awareness campaign Education and training efforts Prevention: STDs, peer education, condom

distribution, VCT Medical and counseling capacity ARV Treatment

ODEBRECHT in AngolaODEBRECHT in Angola - -

HIGHLIGHTSHIGHLIGHTS Women health program Outreach:

Reach to contractorsReach to risk groupsPartnerships with municipalities for peer educationPartnerships with local NGOs for awareness,

counseling and medical capacity Estimated reach: 100,000 people Post-conflict country

“It is inevitable that a firm doing business in the developing world will pay for AIDS. It is just a question of when and how much.”

Lee Smith

Former President, Levi Strauss International

IFC Against AIDSIFC Against AIDS

Sabine Durier - Program Leader Tel: (1-202) 473-4176, Email: sdurier@ifc.org

Gillette Conner - Program Officer Tel: (1-202) 473-4040, Email: gconner@ifc.org

Tish Enslin - Program Officer (South Africa Office) Tel: +27-11-731-3062, Email: LEnslin@ifc.org

Vlassis Tigkarakis - Program AnalystTel: (1-202) 473-1394, Email: vtigkarakis@ifc.org

http://www.ifc.org/ifcagainstaids