SA's $70bn Aids price tag

2004-07-13 13:24

Johannesburg - The HIV/Aids pandemic ravaging South Africa cost the economy more than $70bn in the 10 years to 2002, according to a report by the International Labour Organisation (ILO).

The ILO, in an analysis released in Bangkok at the weekend during the 15th international Aids conference, said South Africa lost a staggering $72bn between 1992 and 2002 mainly due to deaths, absenteeism and lower productivity.

"HIV/Aids destroys the human capital built up over years, and weakens the capacity of workers to produce goods and services for the economy," said the ILO analysis, entitled "HIV/Aids and Work, Global Estimates, Impact and Response" and covering 50 countries.

"Employees living with HIV/Aids tend to suffer more work-related injuries while still working, particularly in heavy industrial work such as mining," it said.

Aids activists say about 600 people die every day of the disease in South Africa, where HIV affects one in nine people, or 5.3 million, one of the highest rates in the world.

The ILO said the direct costs of the pandemic included expanded employee benefit packages to support dependents of sufferers or those who cannot work due to ill health.

"In South Africa, benefits usually include group life insurance, pensions and medical coverage," it said, adding that fresh recruitment and the training of new employees was an additional strain.

The report cited a survey conducted by the South African Business Coalition (SABCOHA) of more than 1 000 companies which found that 9% of them had felt the impact of HIV/Aids on their business.

"Nearly one in five companies surveyed by SABCOHA indicated that they foresaw appointing extra employees to compensate for the impact of HIV/Aids on labour productivity, absenteeism and mortality," the analysis said.

- AFP