Mitigating the effects of HIV on SMEs

 Impact of HIV/AIDS on SMEs

Whenever the matters of business advisory services given to SMEs are talked about, they are mainly centred on business management principles. No much importance is attached to the healthy issues, particularly HIV/AIDS, which have equally devastating effects on the operations of SMEs.  A study of 209 small businesses by the University of Port Elizabeth identified HIV/AIDS as one of the three main factors that cause nearly 80% of South African start up SMEs to fail every year. Surprisingly, according to the report by Business Action for Africa, the majority of companies operating in Africa, in particular SMEs (who employ a large proportion of the workforce) have no HIV/AIDS programme in place, despite the clear need for them to safeguard a healthy workforce and enjoy long term success. HIV/AIDS has more devastating effects on SMEs than on big companies as the critical SME staff members (the owner, that honest driver, that innovative manager and that receptionist who plays multiple roles etc) are often lost to HIV/AIDS. If a HIV-positive forklift driver is sick, 20 other people slow down. Production can even grind to a halt if it is really a critical part of the SME team. HIV/AIDS increases funerals, death benefits and other expenses, recruitment costs as well as causing operational disruptions through increased absenteeism, higher labour turnover and loss of experienced personnel. Most SMEs’ operations are anchored on the support of families; when the same relatives are sick, all the extra business funds are channeled towards taking care of them, thereby indirectly affecting the financial position of the small institutions.

Why is such an important aspect often overlooked? What should SMEs do to avoid and mitigate the effects of the disease?

Most SME HIV/AIDS responses start and end with simple awareness or prevention activities like the distribution of condoms and awareness materials and this is not enough! There are many reasons for the lack of action. A first challenge for SMEs is developing an appropriate program for the size of the company. Secondly, a survey of 80 SMEs in South Africa found that 42% did not actively partake in dealing with HIV because they did not expect HIV/AIDS to impact their operations. The third reason is that there is also lack of information on HIV/AIDS amongst SME managers/owners to enable them to deal with the virus. Lastly and more importantly, there is generally lack of pressure among SME, government and donors to act on this matter.

It has to be acknowledged that SMEs may not adopt healthy policies which resemble what big corporates have in place. However, the important fact remains; SMEs employ majority of the population in developing countries, making it necessary and a worthy cause to fight HIV from the domains of SMEs. Donor community and Government are quite active in educating every citizen, through public media, about HIV and AIDS but the support structures lack in the SMEs, where most of the working class spend more time. In big corporates, the induction contains the HIV educational material and in some cases that companies have comprehensive HIV prevention and management programmes. In contrast, among SMEs, there is little concern about what happens to the workers as long as they still turn up for work every day. For instances, SMEs hire drivers for cross border transport operations without educating them internally; the same drivers fall prey to the vagaries of commercial sex workers along the route and at the border posts.

Taking Action to Implementing HIV/AIDS Programme

IFC advises that in order to adopt a good HIV/AIDS programme, the management of the SME should do the following: -

• Draft company HIV/AIDS policy statement
• Adopt the policy
• Promote the company policy
• Establish an HIV/AIDS committee
• Select a focal point/coordinator

• Provide information and referrals to locally offered services
• Select a service provider to assist with implementation
• Craft an HIV/AIDS action plan for specific interventions with time frames
• Contact public health facilities for free condoms

• Contact local government to access information on community and public health resources
• Survey employees knowledge of HIV/AIDS
• Target prevention messages to dispel myths
• Launch a company HIV/AIDS slogan

• Make awareness materials available in the workplace…e.g. display posters
• Have a group of employee volunteers

Important Notes in Implementation

1.        SMEs management should appeal to local clinics/NGOs for some free HIV workshops for their small staff compliment. It is worthy it to stop work for few hours of the working day to save at least one life rather than to be obsessed by drive to make short term profit at the expense of long-term benefits. Where clinics may not be forthcoming it is necessary to help get help from any resourceful outsider to run at least a short HIV/AIDS Peer education programme for staff.

2.          The SMEs staff should be encouraged at institution level to get tested for HIV and get timely medical attention for a prolonged life.

3.        The staff working for SMEs should be given resources to support the fight for HIV; time is a very important resource with is quite constrained given the long hours which SME staff tend to pull. They should be given time to be with their families, time for engaging to enhance their spiritual well-being through perhaps participating in church activities. They should have some leave days to participating in sports of their choice. If SME staff would have time for these aspects of life, it may assist in fighting HIV/AIDS.

4.            There is an urgent need for the national government and NGOs to try to help small businesses become more proactively engaged in fighting HIV and AIDS more importantly in coming up with the best practice through which SMEs can implement comprehensive HIV/AIDS prevention, treatment and care programmes. 

Conclusion

It is important to note that collaboration or partnerships play an integral role in HIV/AIDS mitigation efforts for SMEs, as collaboration assists in identifying resources in the wider community which can help avoid duplication and save companies both time and money. It is imperative that these SME businesses collaborate closely with the national governments and NGOs in order to support a form of welfare system for staff affected by HIV/AIDS.

Event Calendar for Upcoming Trade Shows in Zimbabwe 2010 & 2011

Intershop

Date: 26 November 2010 to 27 November 2010

Intershop is an end of year showcase for all consumer products. Immediate sales can be made to a large pool of ready-to-buy public for the local and foreign market. Very ideal for product launches, cottage industries and established marketers in every type of consumer product from novelties to food. Local and foreign exhibitors can participate in this trade show, before the Christmas rush strikes. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue: Zimbabwe International Exhibition Centre, Bulawayo, Zimbabwe

Zimbabwe International Trade Fair (ZITF 2011)

Date: 03 April 2011 to 07 April 2011

Zimbabwe International Trade Fair (ZITF 2011) is a multi-sector, multi-national trade exhibition. Participate in the growing markets of Africa by exhibiting at this fair which is central to Sub-Saharan Africa . Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue: Zimbabwe International Exhibition Centre, Bulawayo, Zimbabwe

African Tour & Travel Expo (A’Sambeni 2011)

Date: 03 April 2011 to 07 April 2011

African Tour & Travel Expo (A’Sambeni 2011) is a tourism showcase (which runs concurrent with the main showcase, ZITF 2011) for sub-Saharan Africa: it is a country-neutral exhibition, not tied to any specific national tourist association. A'Sambeni 2011 is a full-scale, regional, info-rich tourism exhibition held in Zimbabwe which accommodates large and small operators and includes specialised suppliers to the tourism industry. The emphasis is on Adventure, Cultural and Eco-tourism. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue: Zimbabwe International Exhibition Centre, Bulawayo, Zimbabwe

Pakprint
Date: 03 April 2011 to 07 April 2011

Pakprint (which also runs concurrent with the main showcase, ZITF 2011) attracts exhibitors from the printing and packaging sectors and associated industries. The exhibition is meant for corporate buyers of printing and packaging equipment and accessories for enhancement of quality and visual presentation of their products and services. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue: Zimbabwe International Exhibition Centre, Bulawayo, Zimbabwe

Scholastica
Date: 03 April 2011 to 07 April 2011

Scholastica (which also runs concurrent with the main showcase, ZITF 2011)  is Zimbabwe's only international education and training expo with products and services covering every aspect of the sector.. Exhibitors can display and demonstrate the latest technologies and developments in their speciliased areas. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue: Zimbabwe International Exhibition Centre, Bulawayo, Zimbabwe

Mine Entra

Date: 20 July 2011 to 22 July 2011

Mine Entra is a specialised international exhibition which caters for the mutually compatible sectors of mining, engineering and transport and their associated industries. Mid-year timing is for maximum convenience and corresponds to the industry's main buying and tendering period. The event is only open to traders and business visitors. Find out more on this from the organiser, Zimbabwe International Trade Fair Company, Hillside Road, Famona, Zimbabwe, Tel: +263-9-884911, +263-9-884912-5, Fax: +263-9-884921 or email zitf@zitf.co.zw, zitfmktg@zitf.co.zw or visit website http://www.zitf.co.zw/.

Venue: Zimbabwe International Exhibition Centre, Bulawayo, Zimbabwe

Harare Agricultural Show 2011

Date: 22 August 2011 to 27 August 2011

Harare Agricultural Show is an annual international exhibition which caters mainly for the agricultural sectors (i.e. agriculture, livestock & horticulture), commerce and industry. The mid-year timing is for maximum convenience to farmers and corresponds to the industry's main buying and tendering period. The event is only open to traders and business visitors. Stand preparation can start on 01 Aug 2011 until 21 August 2010 and dismantling should be done on 28 August 2010. Find out more on this from the organiser, Exhibition Park Harare, Zimbabwe, P.O. Box 442, Harare, Zimbabwe Phone: +263 (0)4/780963 Fax: +263 (0)4/780967.

Venue: Exhibition Park Harare, Zimbabwe

Sources of funding for SMEs in Zimbabwe

While the specific sources of SME funding come and go, this article seems to keep the micro-institutions and SMEs aware of the antecedent institutions which are assisting funding for working capital and venture capital. The specific terms and conditions for such loans may be obtained from the institutions. I shall try to keep this page updated each time I get new information so the contents of this page do not become outdated. Here are some of the institutions who offer funding to SMEs and micro-institutions;

(a) Micro Finance

Many institutions support micro-institutions (e.g. cross borders traders & vendors etc), SMEs and groups with working capital and order finance for exports. The loans are secured by way of a pledge over business & household assets plus a guarantor. The tenor of the loans ranges from a minimum of 2 months for order/retail finance to a maximum of 6 for manufacturing and agriculture business. The qualifying businesses should be at least one year old (proven business record) – i.e. usually no venture capital is provided.

(b) Reserve Bank Funded Revolving Facilities

Through registered commercial banks and other finance institutions like Homelink, the Reserve Bank instituted some revolving facilities with an aim of providing pre- and post shipment export finance at reasonable interest rates.These revolving facilities include: -

• Gold Development Facility US$40 million;
• Horticulture Facility, US$10 million;
• Business Linkages Facility US$10 million;
• Cross Border Facility US$15 million;
• Women Empowerment Fund, US$15 million;
• Export Finance Facility, US$50 million;
• Tourism Support Facility, US$15 million;

Export of Scrap Metal & Removal of Import Duty on Solar Energy Products

The most recently announced Mid-Term Budget Statement announced by Minister of Finance on 14 July 2010 opened some opportunities for Zimbabwean SMEs in the field of international trade.

Export of Scrap Metal

As you may remember from my previous article ‘Passports for Export’, all scrap metal exports from Zimbabwe were banned starting 1 August 2004 in order to promote their use in the local production.

On 14 July 2010, in the Mid-Term Budget Statement, the Minister of Finance announced that, with effect from 1 August 2010, scrap metal generated as a by-product of the production process shall be exempted from the aforementioned export ban. However, export licences of such scrap metal shall still be required and these are issued by the relevant Ministry on a case by case basis.

SMEs who have access to such scrap metal can now have a better business opportunity to export the by-product scrap metal to their clients. The SMEs should approach Ministry of Mines for the export licence of such scrap metal.

Removal of Import Duty on Solar Energy Products

In support of investment in solar energy, on 14 July 2010, in the Mid-Term Budget Statement, the Minister of Finance announced the removal of import duty customs duty on solar panels, inverters, batteries, regulators, geysers, lanterns, water pumps & heaters and energy saving bulbs with effect from 1 August 2010.

Some Zimbabwean SMEs may fall through World Cup cracks

The glamour of the 2010 FIFA World Cup windfall for Zimbabwean SME businesses is likely to fall dramatically short of the expectations. Some SMEs, mostly those who export tourism services, may have borrowed some decent funds to renovate their accommodation, buy taxis and cars for hire, hoping tourists will flock the country and demand such services. From the onset, the Zimbabwean SMEs could have been aware that they would not benefit directly form the FIFA World Cup but hoping to cash in on some spill-over of FIFA world cup benefits. Now these spillovers may be too small for the kind of investments which could have been laid down. The fact is that many small businesses now stand to lose out as money spent on expansions and upgrades of hotels, lodges and restaurants may not be recouped during the month-long tournament Even in the hosting nation, South Africa, the hotel bookings are a little bit less than what was expected perhaps because the World Cup is coming in the wake of a global recession, among other reasons.

When faced with the reality of having sunk borrowed funds in anticipation of cashing in on World Cup spillovers, don’t despair. The first thing you need to do is to engage your Bank or the lender and explain the problem. Do not try to be elusive or difficult; rather engage the Bank management with constructive proposals to reschedule the repayment of the loan in line with what you may afford. The banking relationship has to be managed very well when your company is in financial distress.

Zimbabwean SMEs should not stay local

Exporting of goods and services gives Zimbabwean small businesses better chances to reach new markets and increase sales, as well as opening up to more than 99.9% of the world's consumers! The world's population is currently about 6.8 billion. Zimbabwe population of about 12 million is by far very negligible (approximately 0.18%) compared to the world population. Therefore, when one thinks of where the next significant group of customers is going to come from,  its likely to be coming from outside the territory of Zimbabwe. Inversely, it is more likely that the local customers are also increasingly not going to be loyal to local suppliers.

It may look a daunting and expensive to export goods and services, but it will actually help small businesses in both current and future economic downturns. Dealing with diversified foreign markets would assist the Zimbabwean SMEs to manage the risk associated with concentrating on local sales only. As a crucial stepping stone, Zimbabwean SMEs should perhaps start by serving the neighbouring foreign markets like Zambia, South Africa, Mozambique etc as these may tend to have less barriers in terms customer information availability, short distances involved, language and culture commonalities, as well as familiar regulations, bilateral and multilateral trade agreements.

Are you a Zimbabwean SMEs or micro-institution who has a product which you feel can do well in the foreign market? Feel free to network with trade facilitators (ZIMRA, ZimTrade, Commercial Banks, Ministry of International Trade etc) to find the best way to assess your export capability and initiate export of your product/s or engage a consultant to assist you in preparing to penetrate foreign markets, including getting that very first order you need to move the first shipment and assistance in export documentation. Call Dennis +263 772 948 419 for some support services.