ECONOMY
HIV/Aids hitting mine sector hardest
Posted Thu, 01 Dec 2005
A substantial number of South African companies are already suffering the consequences of the HIV/Aids epidemic, with 40 percent of the manufacturers and transport companies and 60 percent of the mines reporting that HIV/Aids has led to a loss of experience and vital skills in their organisations.
This is according to the latest in-depth survey on the impact of HIV/Aids on selected business sectors in South Africa by the South African Business Coalition on HIV and Aids (Sabcoha).
The survey results suggest that the mining sector, followed by the transport and manufacturing sectors, are the worst affected among the sectors surveyed.
When asked how HIV/Aids is affecting company profits, 55 percent of the mines, 46 percent of the transport companies, and 38 percent of the manufacturers surveyed reported that profitability has already been adversely affected by HIV/Aids.
However, most of these companies indicated that the impact on their profits had been small
(i.e. between zero percent and 2.5 percent).
The results also suggest that, whereas mines, manufacturers and transport companies are relatively more alarmed by the impact of HIV/Aids on their labour force, and hence, productions costs, financial services companies are more concerned about the impact of HIV/Aids on their client base and on the JSE listed companies in which they invest.
The survey was conducted by the Bureau for Economic Research (BER) between July and September 2005 among respondents in eight economic sectors, namely the mining, manufacturing, transport & storage, retail, wholesale, motor trade, building & construction and financial services sectors.
With 1032 companies participating in the survey, it is the largest survey on the impact of HIV/Aids on business in South Africa to date.
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