IFC Against AIDS Protecting People and Profitability

Total: 38 million [35-42 million] Western Europe [ – ] North Africa & Middle East [ – 1.4 million] Sub-Saharan Africa 25.0 million [23.1 – 27.9 million] Eastern Europe & Central Asia 1.3 million [ – 1.9 million] South & South-East Asia 6.5 million [4.1 – 9.6 million] Oceania [ – ] North America 1.0 million [ – 1.6 million] Caribbean [ – ] Latin America 1.6 million [1.2 – 2.1 million] East Asia [ – 1.5 million] The HIV/AIDS epidemic Number of adults and children living with HIV in 2003 (UNAIDS estimates)

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

Why 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 Case

The Reputation Risk

AIDS: 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 Services Benefits 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  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

Extractive industries Benefits vs. Costs  In 2000, Debswana tallied the cost of AIDS care to be 10.7% of its payroll. Source: UNAIDS, 2002  Gold Fields – South Africa’s second-largest gold producer estimated that HIV/AIDS was costing the company US$3.22 per ounce of gold produced. The company estimated that the cost of inaction would have been more than US$10 per ounce by Source: AmfAR - Treatment Insider Newsletter, January 2003  A petroleum refinery in Zambia found that 84% of worker deaths from were AIDS-related. Medical expenses were approximately US$225 per patient. Source: Bloom et al. 2001

SMEs Viability  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 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 AIDS  Awareness  Guidance  Training  Financing Goal: Accelerate the involvement of private sector in fight against AIDS

What does the private sector bring?  Efficiency, skills and resources  Access to people and groups  Processes  Impact on stigma and discrimination  Partnership opportunities

ODEBRECHT in Angola

Program Implementation

ODEBRECHT 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 Angola - HIGHLIGHTS  Women health program  Outreach:  Reach to contractors  Reach to risk groups  Partnerships with municipalities for peer education  Partnerships 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 AIDS Sabine Durier - Program Leader Tel: (1-202) , Gillette Conner - Program Officer Tel: (1-202) , Tish Enslin - Program Officer (South Africa Office) Tel: , Vlassis Tigkarakis - Program Analyst Tel: (1-202) ,