Mainstreaming HIV/AIDS – Approaches and experiences

1. Mainstreaming HIV/AIDS –Approaches and experiences Addis Abbeba, March, 2006 Tobias Gerster, Partnership for Economic Growth (PEG), Namibia

2. Content • Profile of Partnership for Economic Growth (PEG) • Impact chains considering risks by HIV/AIDS • Examples for measures to minimize risks by HIV/AIDS • Challenges

3. 1. Profile Namibia in a nutshell: Land area: 824.269 km2 Population: 2.03 mil., growth rate 1.09% GDP: 6.13 bil. USD (2005), average growth rate by 4% GNI per capita: 2‘990 USD (no. 4 in Africa), but Gini Coeff. at 0.6 Unemployment: ca.35% HIV/AIDS PANDEMIC: HIV prevalence: 19.7%,est. 230-250.000 Namibians HIV pos., 60% women Life expectancy: 58.8 (1995) – 43.0 (2000),with AIDS being the leading cause of death since 1996 Economic impact: est. 1.3 bil. USD p.a. ART: 16.000 of 58.000 in need receive ART (Anti retroviral therapy) already (2005)

4. 1. Profile PEG strives to improve the general conditions for shared economic growth and employment in Namibia. General conditions that promote private sector growth and employment are improved (esp. in Northern Namibia) Overall objective • Positive assessment of regional/local economic and employment policies by public-private stakeholders • Survey among SMEs shows link between improvement in their economic situation and the improvement of general conditions influenced by the program • Increase of employment in the private sector in Northern Namibia Com-ponents 1. Microfinance 2. BDS 3. Enabling Environment Supply of adjusted financial services in rural areas by a Microfinance bank Improved supply of demand oriented consulting and training services for SME Active participation of private and public players in the improvement of SME promotion policies Duration 04/2005 – 07/2008 (1st phase), planned until 2014

5. Directlink to HIV/AIDS! 1. Profile Improvements shall mainly be monitored on meso and macro level. Com-ponents 1. Microfinance 2. BDS 3. Enabling Environment Supply of adjusted financial services in rural areas by a Microfinance bank Improved supply of demand oriented consulting and training services for SME Active participation of private and public play-ers in the improvement of general condition for SME promotion • Net credits: +70% p.a. • Savings deposits: +80% p.a. • Credit portfolio on risk: < 3% • At least 2 new products dealing with difficult general conditions (HIV/AIDS, small plots, crop failure, population density) • Increase of innovative services for the private sector in the form of PPP of local authorities and private sector • Continuously increasing usage of services • Increased Turnover of Business Service Providers with products for SME • Identification of at least 2 impediments for deve-lopment of SME and pro-posal of strategies for improvement • Realization of at least 3 joint activities of government and private sector to promote SME • Increase in number of measures to promote SME along value chains Indicators

6. Input/Beitrag Activities/Aktivitäten Output/Leistungen Use of output/Nutzung Outcome/Direkter Nutzen Impact/Indirekter Nutzen 2. Impact chain To develop suitable mainstreaming activities it is necessary to understand the impact chain: 1. Microfinance: Pilot scheme • Consulting services • Procurement • Backstopping • Continuation and expansion of pilot project • Training of loan officers • Product development • Demand oriented products are developed and offered by the pilot project • Loan and savings products are in demand • Active parti-cipation of private and public players in the improvement of general conditions for SME promotion • General conditions that promote private sector growth and employment are improved

7. 2. Impact chain On many steps of this chain HIV/AIDS poses a substantial threat to achieve the objectives. 1. Microfinance: Pilot scheme Input/Beitrag Activities/Aktivitäten Output/Leistungen Use of output/Nutzung Outcome/Direkter Nutzen Impact/Indirekter Nutzen • Decreasing productivity of trained loan officers due to compassio-nate leave, sickness, death • Higher trans-action cost for training due to absence of key Loan and Savings Asso-ciation (LSA) members • Decreasing interest in offered products due to financial constraints • Lack of demand in higher value products due to set backs in asset building • Higher default rates • Less people have access to financial services • Slower ex-pansion of the Microfinance scheme ?

8. Input/Beitrag Activities/Aktivitäten Output/Leistungen Use of output/Nutzung Outcome/Direkter Nutzen Impact/Indirekter Nutzen 2. Impact chain To develop suitable mainstreaming activities it is necessary to understand the impact chain: 3. Enabling Environment: Policy Development • Long-/ short-term experts supporting the development of a Private Sector Deve-lopment Policy • Drafting Priv. Sector Deve-lopment Policy • Presentation to/discussion with stake-holders • Policy is formulated and submitted to partner • Policy is adopted by cabinet/par-liament • Active participation of private and public players in the improvement of general conditions for SME promotion • General conditions that promote private sector growth and employment are improved • Long-/ short-term experts supporting the implemen-tation of the policy • Preparation • Communica-tion • Assessments/studies • Facilitation of process/ stakeholder workshops • Participatory developed implementa-tion plan is available • Especially Mi-nistry of Trade and Industry involves pri-vate sector player in their support measures

9. 2. Impact chain On many steps of this chain HIV/AIDS poses a substantial threat to achieve the objectives. 3. Enabling Environment: Policy Development Input/Beitrag Activities/Aktivitäten Output/Leistungen Use of output/Nutzung Outcome/Direkter Nutzen Impact/Indirekter Nutzen • Implementa-tion plan is not relevant as it does not address the main problem • Thus, little interest in implemen-tation • Interest in dis-cussion/ dialogue is reduced as time/money is spent on sick-ness, change of personnel, loss of key players • Due to high mortality policy is not effec-tive, as target group’s pro-ductivtity is re-duced • Process of improvement of general conditions is delayed ?

10. 3. Examples In the first year of the program only a few measures have been identified: Com-ponents 1. Microfinance 2. BDS 3. Enabling Environment PlannedActivities • Training of Loan officers in prophylactic measures • Training of LSA members in prophylactic measures and treatment of AIDS • Offering a facility to reduce default risk (solidarity fund) • Select and train BDS providers in the appli-cation of the Cost Be-nefit Analysis (CBA) and the training mo-dules on workplace programs. • Inclusion of HIV/AIDS issues in policy development and implementation • Conduct study on options/preconditions for tailor made financial products Status • First trainings of loan officers and LSA members conducted • Field test of solidarity fund • Still in planning status • Still in planning status

11. 4. Challenges The threat not to achieve the project objectives due to HIV/AIDS can only be minimized. • Impact chains based on straight cause and effect relationships vs.complex impact networks with a lot of uncertainty/lack of information • Long-term effects of many measures: • Change of behavior is a very long process. • Sometimes project will not benefit immediately. • Sustainability of measures - is sustainability achievable/necessary? • Highly diversified partner structure • Inefficient Policy implementation – changes in policy might not effect many people

12. Thank you very much!

13. Annex

14. 1. Profile PEG has three components and cooperates with many different partners on different levels. 1. Microfinance 2. BDS 3. Enabling Environment Macro level MoF MTI MRLGHRD PEAC DBN Bank of Namibia NAMFISA Meso level JCC NCCI HRDC ALAN NMA UTN Team Namibia Micro level Regional/LocalAuthorities Bank Windhoek Other partners KfW FIDES DED BGR Owners and employees of formal and informal SME and start ups,also in rural areas Target group