Socio-economic effects of HIV/AIDS on small and medium sized enterprises in Oshakati, Namibia
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Date
2008
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Abstract
Southern Africa has the highest HIV prevalence rates among adults in the world. Namibia has not been spared the scourge of this pandemic. In Oshakati, where this study was conducted, the HIV prevalence rate is 25.2, the second highest in Namibia. There are not many large industries in Oshakati. The greater part of the labour force is employed in the informal sector. Small and medium sized enterprises (SMEs) provide a social safety net for the poor, the uneducated, for women and children and as such have not been spared the effects of the pandemic. In fact, they appear to be the worst hit by the pandemic
It is against this background that an explorative and descriptive analysis of the socio-economic effects of HIV/AIDS on small and medium sized enterprises in Oshakati, Namibia, was undertaken as a foundation for developing HIV/AIDS prevention programmes
Specific objectives of the study can be described as follows: · To explore and describe the socio-economic effects of HIV/AIDS on small and medium-sized enterprises in Oshakati, Namibia. · To analyse HIV prevention programmes already in place in small and medium sized enterprises in Oshakati, Namibia. · To provide guidelines for small and medium sized enterprises that wish to develop HIV prevention programmes
It has been established that HIV/AIDS primarily affects women and children. SMEs in Oshakati employ almost an equal number of males and females, thereby increasing the risk of these enterprises to HIV/AIDS. The size of an organisation influences how many cases of death occur among its employees, with medium sized SMEs hit worse, followed by small and then very small SMEs. This study discovered that frequent illness, resignations and employee deaths due to HIV/AIDS increased SMEs expenditures on medical care and funerals. Almost all SMEs surveyed reported that HIV has had a negative impact on business profits. The direct causes of reduced profits were identified as increased absenteeism, frequent illness on the job, loss of customers and loss of suppliers. Other causes included a high rate of staff replacements, the need to hire temporary labour to stand in for sick staff and escalating demands for higher wages
It goes without saying that illness, resignation and death have socio-economic effects on the livelihood of employees themselves. In the course of the study, managers of SMEs reported that the most common effects of HIV on their employees included reduced personal savings, increased drain of their income, increased expenditure on health care and a rising incidence of premature death among employees. It was also discovered through the study that stigmatisation and discrimination against employees living with HIV/AIDS still exists in some SMEs. Prejudice still exists because some employees believe they can easily become infected by colleagues living with HIV/AIDS
One of the findings of the study is that HIV/AIDS prevention programmes are not yet established in the workplace of most SMEs in Oshakati. For those enterprises that do provide programmes, there is no evidence that they are applied consistently or in a coordinated manner. These programmes have not been formalised and are implemented haphazardly. Most SMEs have neither an HIV/AIDS policy nor a trained employee who focuses on the HIV/AIDS problem in the context of the company, as required by the MTP III. According to that regulation, SMEs are supposed to act in partnership with the community to fight the pandemic
In conclusion, this study makes recommendations and suggestions that should help SMEs establish comprehensive HIV/AIDS prevention programmes in the workplace. Some of the recommendations include a workshop for SMEs in Oshakati to discuss the effects of HIV/AIDS on the business community and to come up with an adhoc committee to oversee the establishment and sustenance of workplace HIV prevention programs. This study further recommends SMEs to prolong life and strength of their employees by providing medical insurances, ARVs and strengthening HIV education in SMEs and the community. Partnership between large enterprises and SMEs is recommended to ensure access to resources and expertise by SMEs.
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AIDS Namibia, AIDS economic aspects