South Africa’s private sector investment in training and its erosion as a result of HIV and AIDS Gavin George, Jeff Gow & Gavin Surgey Health Economics and HIV and AIDS Research Division University of KwaZulu-Natal, South Africa 20th International AIDS Conference, Melbourne, Australia, July 2014

Purpose and Method Purpose: To estimate the financial losses associated with the investment in training as a result of HIV and AIDS deaths. Method: 1.Estimated AIDS death rate in the private sector (from existing literature studies) 2.Company survey data identifying training expenditure

AIDS Death Rate Calculation Upper-bound figures ItemFigureSource Population of persons aged during ,189,700Statistics South Africa (2006) Number of HIV deaths during 2006 for persons aged ,273Statistics South Africa (2008), Dorrington et al., (2006) Upper-bound death rate0.81 Lower-bound figures National HIV prevalence for persons aged years 18.2Statistics South Africa (2006) Private sector HIV prevalence 12.7Average of Evian, et al. (2004) and Colvin et al. (2007) Lower-bound death rate0.57 Private sector HIV death rate Estimated private sector HIV death rate 0.69 Mean of upper- and lower-bound estimates

Financial Cost of HIV and AIDS per sector Estimated no. of employees lost due to AIDS Annual cost due to AIDS deaths Total cost after new employees received training in 2007 (using mean death rate of 0.69 p.a.)(ZAR) (6% inflation) (ZAR) (USD) Manufacturing84 1,806,509 1,914,900229, Community & personal social services 42 76,340 80,9209, Mining169 2,658,723 2,818,247337, Financial147 2,469,004 2,617,144313, Construction8 154, ,48219, Wholesale and retail ,850 1,055,601126, SOE88 1,152,300 1,221,438146, Total7259,312,9569,871,7331,183,660.91

Discussion Value of training HIV and AIDS deaths have a negative impact on this investment HIV and AIDS impacts

Conclusion Importance of effective HIV prevention strategies and AIDS treatment initiatives