The economic impact of HIV and AIDS in South Africa.

Abstract

The SADC region has felt the impact of HIV/AIDS more than any other region in sub-Saharan Africa and the world. South Africa is the home of the largest number of people living with HIV/AIDS in the world. Historically, South Africa is one the countries that had a very disorderly past and this history is relevant to the explosive spread of HIV/AIDS in the region. The first cases of HIV were diagnosed in 1982 and that is when the first death from this disease was recorded. In 2004 over 5 million people out of a total 46 million South Africans were HIV positive, giving a total prevalence rate of 11%. HIV/AIDS has affected societies in many ways. Individuals, households and enterprises have all been affected by the pandemic. For individuals, incomes are lost as a result of HIV/AIDS. When individuals fall sick due to the disease, they loose their jobs and incomes. In most cases, these individuals are breadwinners in their households. The available money is then spent on medical services at the expense of other household investments. For example, the loss of a breadwinner inevitably affects rural households investments on farm inputs such as fertiliser, seeds etc. The result is low agricultural output and thus poverty. Dependent members of the households suffer immensely from the loss of income. Those at school are likely to drop out. When children drop out of school, they are more likely to be unemployed or underemployed. This makes them more vulnerable to being poor and other vices, such as crime or even HIV/AIDS. Poverty is another social and health issue that has a two-way relationship with HIV/Aids. Poverty increases individuals’ vulnerability to HIV/AIDS especially for females. Through its impact on productivity and loss of life of the economically productive members of the society, the disease condemns many to poverty. Households affected by the disease, are poorer than non-affected households.