~~~ Economic Factors ~~~

The AIDS epidemic poses a great challenge to the economic stability of businesses and communities of Africa. Not only are industries losing workers and businessmen to AIDS, but they are also spending large portions of their profits on health care for AIDS related illnesses.

In Zimbabwe, for example, life insurance premiums have quadrupled in the past two years as a direct result of AIDS related deaths.

Increases in life insurance premiums mean decreases in net profit for companies providing health insurance. AIDS is developing into such a prevalent disease that companies can not support their workers and maintain profitable businesses*.

 

Government budgets for health care will soon become overwhelmed by the costs of AIDS treatments in the near future.

As shown by the graph to the left, over 30% of Ethiopia's Ministry of Health budget will be spent on AIDS alone in 2014.

This amount is minimized by the predicted expenditures of more than 50% and 60% in Kenya and Zimbabwe in 2005, respectively.

With such high expenditures for AIDS treatments alone, governments will not have enough funding for other necessary medical treatments including STD treatments which decrease HIV infection rates and vaccinations which prevent tuberculosis.

 


 

 

The Gross Domestic Product is a measure of the value all of the final goods produced annually in a given country. It is a strong measure of the economic state of a country.

As illustrated in this graph, the Gross Domestic Product of Kenya is greatly affected by AIDS.

In terms of economics, the predicted growth of Kenya will be dramatically stunted by the AIDS epidemic.

The decrease in economic growth is due in part to decrease in demand through deaths and a decrease in productivity and output due to sick and dying workers.

 


 

 

Just as the national GDP is affected by the HIV/AIDS epidemic, the family unit's economic stability is also affected.

This chart on Cote d'Ivoire, illustrates that families living with AIDS make significantly less income than the general population.

Additionally, while these families spend less than the general population, their income can not support their consumption.

Families living with AIDS are in debt, spending more money per month than they are making.

Learn more about the affects of HIV/AIDS on the Sub-Saharan family structure.

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Page created by Natasha Segool, '01.