Select Committee on International Development Written Evidence


Memorandum submitted by Business Action for Africa

SUMMARY

  1.  DFID's new strategy acknowledges that business has a role to play in helping achieve universal access, but gives no indication of how the private sector's contribution could be leveraged. There is also no provision for encouraging and facilitating more employers, especially small and medium-sized enterprises, to take action on HIV and AIDS at the workplace, which represents a significant missed opportunity.

  2.  The new strategy recognises the importance of strong and effective partnerships in tackling the HIV/AIDS crisis in developing countries. However, the strategy fails to make any provision for active pursuit of partnerships and strategic collaboration with the private sector. This omission is in stark contrast with DFID's stated policy objective of working more closely with the private sector in scaling up efforts to reach the Millennium Development Goals.

  3.  Many members of the Business Action for Africa network have extensive experience of dealing with HIV and AIDS in the workplace and the community, in sub-Saharan Africa in particular but also in other regions where infection rates are on the increase. These companies are eager to work with governments and donors to ensure that all resources are optimised in responding to the pandemic.

  4.  Business Action for Africa urges DFID to develop practical policy measures designed to better harness the strengths of the private sector and to encourage more public-private partnerships. Specific recommendations on how to achieve these objectives are set out at the end of this document.

A BRIEF INTRODUCTION TO BUSINESS ACTION FOR AFRICA

  5.  Business Action for Africa is an international business network focused on utilising the core strengths of the private sector to support Africa's development. The network was created during the consultation phase of the Commission for Africa in 2005, and today has close to 200 members, including companies, business organisations, multilateral and bilateral donors, government departments, NGOs and academics. 80% of members are from the business sector, ranging from small businesses to large multinational corporations and from national chambers of commerce to international business organisations. Members have extensive knowledge of and a deep commitment to Africa.

  6.  Business Action for Africa works towards three objectives: to positively influence policies needed for growth and poverty reduction; to promote a more balanced view of Africa; and to develop and showcase good business practice. These objectives are pursued with action in a number of areas:

    —  collective advocacy, by mobilising a business voice for policies to end poverty;

    —  collective action, through catalysing business-led partnerships across Africa; and

    —  sharing good practice, by harnessing latest thinking and showcasing best practice.

  7.  Secretary of State Douglas Alexander remarked in March 2008 that "Business Action for Africa ... demonstrates the knowledge and the commitment that many businesses—from large multinational corporations to small businesses—have to the continent of Africa ... And I pay tribute to its work—an example of exactly the kind of effort we will need to see more of from across the private sector, governments, civil society and faith groups if we are to meet the Millennium Development Goals by 2015".[3]

  8.  The network's strategic direction and range of activities are determined by an Oversight Group, which consists of 10 multinational companies and four non-company members. Oversight Group members also sponsor the network's modest costs (membership is free for all other members). DFID has been a member of the Oversight Group since the inception of the network.

  More information is available at www.businessactionforafrica.org.

RECOGNISING THE ROLE OF THE PRIVATE SECTOR

  9.  Selected members of Business Action for Africa have been engaging for some time with the UK government on the role of business in fighting HIV and AIDS. They contend that the private sector has accumulated a range of skills, resources and experience in various methods of intervention. There is a growing understanding of which policies are the most effective in reducing infection rates and ensuring access to treatment for all those who need it. Given the severe public resource constraints faced by the most heavily affected countries, it is crucial that ways be found of leveraging the private sector's strengths. These arguments were captured in a submission to DFID during the consultation phase on Updating Taking Action[4] in August 2007.

  10.  Business Action for Africa therefore welcomes the new strategy's acknowledgement that the private sector has an important role to play in helping achieve universal access.[5] Whilst the reference to the role of the private sector in the strategy document is cursory, it is underpinned by a longer description in the Evidence paper of the many ways in which the private sector is contributing to tackling the impacts of HIV and AIDS.[6] However, this section comes across as a list of "some good things the private sector is doing" without placing enough emphasis on the importance of finding ways to optimise this contribution. There is an urgent need to help ensure that more employers become effectively engaged in fighting HIV and AIDS in the workplace and beyond.

  11.  In September 2007, Business Action for Africa invited three MPs to South Africa to learn more about what companies are doing to help address the effects of HIV and AIDS. The MPs reported that they found a clear and unique role for the private sector due to its responsibility for the occupational health programmes for employees, its capacity in health systems and the social investment which it undertakes in the community.[7] The businesses showcased—in particular, SABMiller and Anglo-American—are having a strong positive impact through comprehensive prevention, treatment and care programmes that reach beyond their workplaces into the broader community. In addition, many pharmaceutical and medical research companies such as Merck, who also participated in the Business Action for Africa project, are playing a vital role through conducting leading-edge research and developing new medicines and vaccines; accelerating access to medicines, for example through their pricing policies; and engaging in public-private partnerships to help ensure sustainable improvements in healthcare delivery for people living with HIV and AIDS.

  12.  However, it became clear during the visit that these large companies are not representative or typical. Many others lack the resources, know-how or conviction to implement effective programmes. The MPs made a strong argument that good practice needs to be extended to more employers, in particular the small and medium-sized enterprises (SMEs) who employ such a large proportion of the workforce in a typical developing country. They pointed out that dynamic and pro-active business associations have a key role to play in facilitating the sharing and wider implementation of good practice through strategic partnerships.

  13.  In their report, the MPs therefore recommend that the government should encourage more companies in high-prevalence countries to adopt HIV/AIDS policies based on a human rights framework and to implement robust workplace intervention programmes. The report also recommends funding and supporting pro-active business associations that provide a platform for sharing good practice and initiate partnerships with key stakeholders. Business Action for Africa fully supports these recommendations.

PARTNERSHIP

  14.  On partnership, there is recognition in DFID's new strategy that achieving universal access requires "deep, broad partnerships between national governments, international partners and civil society ... as well as the private sector".[8] Business Action for Africa strongly endorses this approach. In many of the African countries most seriously affected by AIDS, government resources are insufficient to meet the enormous demands of dealing with the epidemic. If DFID is to realise its goal of achieving universal access, it will be crucial to ensure that it works efficiently with all its potential partners—and this includes the private sector.

  15.  However, in the experience of our members, partnership is often talked about but not usually pursued as actively as it could be. This was confirmed during the Business Action for Africa visit to South Africa in 2007. MPs reported a strong sense of a "missed opportunity" regarding partnership, with less evidence than had been expected of productive cooperation between the public and private sectors in fighting AIDS.

  16.  Disappointingly, DFID's new strategy makes no provision for active pursuit of partnerships and strategic collaboration with the private sector. This omission is in stark contrast with government's stated policy objective of working more closely with the private sector in scaling up efforts to reach the Millennium Development Goals. It is also out of step with the pro-active approaches of other donor organisations such as PEPFAR and GTZ who have committed vast resources to identifying and facilitating public-private partnerships. According to USAID:

    "There are certain activities whose successful implementation is central to the success of enterprises. They include marketing, recruiting, training, logistics, manufacturing, and policy and advocacy. Because these are core competencies in business, many companies have personnel who excel in these areas. With the right guidance and assistance, companies can apply their in-house expertise to enhancing the HIV/AIDS response—and they often do so in innovative ways. USAID partners with many companies on a broad range of initiatives".[9]

  17.  Many members of the Business Action for Africa network have been addressing the impacts of HIV and AIDS on their workforce for over a decade, in sub-Saharan Africa in particular but also in other regions where infection rates are now on the increase. They have invested substantial resources of time, money and expertise to finding ways to minimise the impact of AIDS on their workforce. They have a long planning horizon and a finite number of people that they are responsible for, and they are in a position to collect longer-term health data on their workforce. As a result, they can pioneer new strategies and test new techniques, and observe their results, with much greater speed and ease than government. They are keen for government to recognise this strategic advantage and to explore ways in which it could be optimised for the benefit of the rest of the population through innovative partnerships.

  18.  Businesses report that they still perceive a limited view in many quarters of the potential contribution that business could make to government's efforts. Companies expressed a strong desire to work more closely with government as a true strategic and delivery partner.

  19.  Business Action for Africa urges DFID to actively pursue closer cooperation with business in formulating and delivering policies for addressing HIV and AIDS in developing countries. DFID should look beyond traditional perceptions of business as providers of money for programmes and build relationships based on strategic partnership. Business could be called upon for strategic input into policy design, drawing on their experience from developing and implementing workplace programmes; find ways to leverage their health infrastructure; and utilise their management skills to help deliver services.

  20.  Part of the problem, as perceived by our members, is a lack of understanding on the part of DFID of precisely what the private sector could contribute to its own programmes, while businesses for their part do not always know how to access the right officials within DFID with ideas for partnering opportunities. It is vital that a conversation be started to address these obstacles to productive collaboration.

  21.  As a first step in addressing these issues, Business Action for Africa has offered to DFID to arrange a workshop with a number of HIV/AIDS practitioners selected from among our members, to create a platform for exchanging ideas and exploring opportunities.

  22.  In addition to collaborating with Business Action for Africa, DFID could also convene business leaders along with other organisations such as the Global Business Coalition on AIDS, tuberculosis and malaria (GBC) and the World Economic Forum's Global Health Initiative (GHI) with the goal of providing clear entry points for partnership within the DFID initiatives to maximize impact and effectiveness.

RECOMMENDATIONS

  Business Action for Africa recommends that DFID:

  23.  Encourage more employers in developing countries to implement workplace programmes; and facilitate the implementation of such programmes for small and medium-sized enterprises (SMEs) or employers with limited resources, through direct support as well as support for proactive and well-run business associations.

  24.  Advocate internationally for the effective harnessing of private sector resources in the global fight against AIDS.

  25.  Urgently arrange a meeting with private sector representatives to discuss practical ways in which more strategic partnerships with the private sector can be promoted in the design and implementation of programmes covering prevention, access to treatment and care, provision and distribution of drugs and action to tackle stigma and discrimination.

  26.  Develop specific guidelines for DFID and for businesses on how partnerships could be pursued, at the departmental as well as country level.

Business Action for Africa

www.businessactionforafrica.org

1 October 2008







3   "Growth at the heart of development"-Speech by Douglas Alexander, Secretary of State for International Development, on Monday 31 March 2008, at the Institute of Directors, London, available online at http://www.dfid.gov.uk/news/files/Speeches/alexander-growth-fulltext.asp Back

4   Business Action for Africa (2007)a. Submission for DFID consultation on "Updating Taking Action-the UK's strategy for tackling AIDS in the developing world", available online at http://www.businessactionforafrica.org/documents/BAAHIVAIDSSubmissiontoDFID.pdf. A copy of the submission is attached for reference. Back

5   DFID (2008)a. Achieving Universal Access-the UK's strategy for halting and reversing the spread of HIV in the developing world, Executive Summary p4, and Chapter 4 p55. Back

6   DFID (2008)b. Achieving Universal Access-evidence for action, p86. Back

7   Business Action for Africa (2007)b. Business and HIV/AIDS: What have we learnt? Report on fact-finding trip to South Africa, September 2007, available online at http://www.businessactionforafrica.org/documents/BAABusinessandHIVAIDS.pdf. A copy of the report is attached for reference. Back

8   DFID (2008)a. Ibid. Back

9   For more information on PEPFAR's approach to public-private partnerships, see the brief at http://www.usaid.gov/our_work/global_health/aids/Partnerships/partnerships_brief.html Back


 
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