HIV AND AIDS ON ECONOMICS OF AFRICAN COMPANIES

HIV and AIDS on Economics of African Companies

HIV and AIDS on Economics of African Companies

For African companies to attract fresh investors, they must demonstrate a competitive advantage. In much of Africa, companies already have a competitive advantage because labor is abundant, affordable, and productive. Countries unavoidably battle against one another to be a magnet for investors. In turn, investors search to locate their companies in a rural that has the majority effective, lowest-cost workforce.

If companies are to succeed financially, they need a steady provide of adequately experienced labor. For companies demanding experienced employees, it is possible that HIV/AIDS shall current a particularly significant problem. Professionals are in brief providing, and the expenses needed to train a fresh employee are frequently significant. One research demonstrated that firms took, on average, eight times longer to replace a deceased professional than a experienced worker.( Morris, 2001)

This illustrates that the bulk of diseases are occurring among young citizens whoever are just entering the workforce. This must be particularly worrisome to African companies, as it demonstrates that the future provides of laborers and managers are possible to be the ones majority affected via HIV/AIDS. At the same time, this figure illustrates the critical importance of consuming cash on HIV/AIDS prevention among young people. In command to safeguard the future labor provide, it is necessary to tension prevention programs for youth today.

HIV/AIDS can affect a company's profitability via either increasing expenditures or decreasing revenues. During the early stages of disease, managers may notice an unexplained increase in the figure of ill days taken. The worker, his or her spouse, and kids may incur higher health care expenses, many of which are compensated via the employer. The productivity of the employee may decrease, particularly as shortly as opportunistic diseases such as tuberculosis (TB) become more common.

As the epidemic progresses, managers may notice within their workforce an increase of diseases, such as TB, sexually transmitted diseases (STIs), skin rashes, diarrhea, and perhaps even malaria. (Some evidence advises that HIV-infected individuals are much more vulnerable to grave bouts of malaria as a consequence of their suppressed immune system.) There is possible to be a corresponding increase in health care expenses and ill days. Employees whoever are diagnosed as being infected may be retained, shifted to a fewer demanding location in the company, or flamed outright (with or without compensation) depending on corporate policy.

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