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Private Sector Engagement for HIV Outcomes Policy Options for Mozambique to Expand Public-Private Partnerships POLICY Brief March 2021 Background Although Mozambique’s gross domestic product (GDP) is still chiefly generated by smallholder Mozambique is reported to have the sixth highest farming, the country’s economic growth has prevalence of HIV of all countries in the world, been diversifying, particularly through mining, with approximately 12.4 percent of the population manufacturing, electricity generation, water living with HIV (Statista, 2021). The estimated resources, and construction (Cruz et al., 2016). In number of new HIV infections per year decreased particular, the extractive sector (minerals mining, from 160,000 in 2010, to about 130,000 by 2019, petroleum, and natural gas) contributed 7.4 percent with 60 percent of people living with HIV accessing of GDP in 2018 (EITI, 2020). Although currently a antiretroviral therapy (ART) (UNAIDS, 2021a). small share, this contribution has been increasing However, the country has continued to have poor and may offer opportunities for increased private retention in care, resulting in mortality rates higher sector engagement in the health sector. than would be expected for the size of the epidemic An exploration of options to engage the private (U.S. Department of State, 2019). sector to support HIV services in the country may Mozambique is experiencing programmatic help address the reliance on external funders. By challenges in its HIV response and, in addition, investing in employee health schemes, companies remains dependent on development partners. Most can also reduce the direct burden on the public funds for the HIV response in 2019 came from sector. The Health Policy Plus (HP+) project, funded external funders (96 percent), with an estimated 4 by the U.S. Agency for International Development percent of the funds coming from domestic public (USAID), conducted an assessment of private expenditures and 0.1 percent coming from domestic sector companies located in high-HIV burden private expenditures (UNAIDS, 2021b). The areas in Mozambique to identify opportunities and Government of Mozambique has evaluated several challenges to private sector engagement in the HIV financing options, including a cell phone tax, a “sin” response. This brief summarizes current corporate tax on tobacco and alcohol consumed in night clubs social responsibility (CSR) trends in Mozambique or bars, and a mandate for formal sector employers and highlights the individual contributions and to pay for HIV treatment for employees, but none of perspectives of nine companies. HP+ provides these are currently being implemented. In addition, here various policy options and recommendations the government’s recent fiscal crisis limits its that may enable Mozambique to increase private budgetary space for HIV response funding. Urgent sector engagement and investment for HIV. These action is needed to identify alternative and feasible recommendations are informed by interviews financing solutions to increase internal resource with the companies and a review of the global mobilization and thus help Mozambique achieve its CSR landscape. 95-95-95 goals by 2030.1 1 95-95-95 refers to the Joint United Nations Programme on HIV/AIDS (UNAIDS)’s target for countries to reach by 2030: 95 percent of people living with HIV know their HIV status, 95 percent of people who know their status are on treatment, and 95 percent of people on treatment have suppressed viral loads.
2 Role of Corporate Social select companies. Prior to the interviews, HP+ reviewed industry lists and selected Responsibility in Private a short list of companies to engage. These Sector Contribution companies were selected based on evidence of sustained health interventions for employees, Some companies across sub-Saharan Africa CSR programs, or community engagement; are investing in HIV services for their and on an estimation of their capacity for workforce, thereby providing valuable services involvement in HIV programs, based on to a number of formal workers (Deane et size (revenue and number of employees) and al., 2018). The broad motivation for firms strategic alignment of company missions and to invest in health and social programs values. The proposed short list was shared includes innovation, cost savings, bottom- with the Conselho Nacional de Combate ao line sustainability, customer and/or employee HIV e SIDA (CNCS). HP+ and CNCS jointly engagement, and brand differentiation agreed on a final set of 15 companies. Among (ASH, 2014). CSR is an expression of a the 15, 47 percent were from the extractive company’s desire to create value by investing sector, 27 percent from the agriculture sector, in its workforce, their families, and the and 26 percent from the industrial and communities where it operates. In 2014, the beverage sectors. In November and December government of Mozambique mandated (by of 2020, HP+ conducted nine semi-structured law) CSR in the mining sector (Kaufmann and key informant interviews with human Simons-Kaufmann, 2016). However, beyond resources and CSR professionals within the the stipulation that revenue will be allocated companies. Topics covered included workplace to local communities, there is no national health and CSR programs, associated strategy to steward and engage the private benefits and challenges, and the companies’ sector to fully leverage their support above experiences and interest in partnering with and beyond compliance to this law (Kaufmann the government in the future. Because of and Simons-Kaufmann, 2016; ThinkWell, challenges due to COVID-19-related lockdown 2019). policies, 6 of the 15 selected companies were Aside from the law, many companies in not available for interviews. Mozambique are motivated to invest in HIV services because HIV poses health and Results socioeconomic risks to their workforce and their host communities. Workers living with Summary of Health-Related HIV may face stigma and discrimination Corporate Social Responsibility in their communities, which can affect morale and productivity. HIV can have Programs and Workplace Health broader effects on the sustainability and Activities resilience of private sector workforces and Among the nine companies assessed, CSR production overall. While CSR can open the programs focused on 16 topics, including door to improved workplace health, efforts health. The three types of health-related CSR in Mozambique so far have been limited in programs most often described during the scale. As the government considers various interviews were: (1) disease-specific programs public-private engagement options for the for HIV, malaria, and tuberculosis; (2) health sector, assessment of the sustainability infrastructure support, e.g., funding directed of potential options for the HIV program and at labs and hospitals; and (3) donations of the magnitude of impact possible through medical equipment and personal protective partnerships will be necessary. equipment related to the COVID-19 pandemic. With respect to companies’ workplace health Method for Company Selection programs, HIV was a frequently cited focus area. Of the key HIV services across the HP+ assessed the landscape of private sector care continuum, prevention, testing, and CSR through a combination of mapping, treatment were covered by most companies, desk review of literature, and interviews with and counseling was covered by some.
Table 1. Company Characteristics and HIV Activities 3 Total # of Company Revenue Company Employees HIV Activities Type (Mozambique)* (Mozambique) HIV prevention and awareness, US$146.4 million testing, and treatment. Coca-Cola Multinational 1,100 (2014) Treatment covered for employees and their families. Companhia HIV prevention and awareness Moçambicana US$88.4 million Mozambican 25 campaigns. Treatment covered de Hidrocar- (2020) for employees and families. bonetos (CMH) €3.4 billion (Africa, Middle East, and HIV prevention and treatment Eastern Europe, Heineken Multinational 200 to employees and direct 2019; Mozambique family members. revenue is not disaggregated) 883 permanent Induction programs (including Mozambican workers (3,484 broader health education); subsidiary of US$44 million Maragra Açúcar seasonal agri- HIV testing, counseling, and Illovo Sugar (2017) cultural workers treatment; and food baskets to Africa at peak periods) people living with HIV. Mozambican; HIV education, counseling, owned by and community engagement. South32, an US$508 million Mozal 1,250 HIV prevention and treatment Australian (2020) to employees and direct mining and family members. metals company Mozambican 1,600 HIV treatment, condom distri- Mozambique subsidiary US$273.2 million permanent bution, voluntary counseling Leaf Tobacco of Universal (2014) workers and testing, peer educator pro- (MLT) Corporation (7,100 seasonal) gram, and HIV drama group. HIV prevention and treatment US$307.5 million Sasol Multinational 73 to employees and direct (2014) family members. HIV community awareness, US$214.6 million counseling, and testing. HIV Total Multinational 78 (2014) prevention activities among sex workers and their clients. HIV prevention and treatment US$25.95 million Vale Multinational 200 to employees and direct (2019) family members. * Revenue is based on the most recent data available. If not available through interviews, public sources were used. Most companies also covered dependents’ they value giving back to the community treatment but rarely were any of these and take pride in enabling the community benefits offered to local communities. A to implement locally developed solutions. summary of HIV activities and other company These activities, in turn, result in community characteristics can be found in Table 1. acceptance of the company, which was also mentioned as a benefit for companies. Benefits and Challenges Workplace health activities differed in their When asked about the benefits of CSR and value to companies; they were explained to workplace programs, companies said that have a more direct benefit to the bottom line.
4 Companies generally cited the importance with their current implementing partners of workplace health activities for boosting (chiefly with NGOs) that are engaged in productivity and increasing morale—good for similar activities. Government has an employees and for the business. opportunity to play a role in helping partners avoid duplication of efforts and in identifying However, there were significant challenges coverage gaps for communities. for CSR and workplace programs. Budget constraints and dependence on donations Limitations of the Research from company headquarters often threatened sustainability of the interventions This research had several limitations. implemented. For example, several companies First, data collection during the COVID-19 mentioned the difficulty of sustaining pandemic was a challenge. Because most previous infrastructure investments, such company representatives were working as sponsorship of health facilities or medical remotely, there was limited ability for equipment. For workplace programs, financial in-person visits and contact information for constraints were cited as well. Companies individuals working remotely was not easily providing direct healthcare to workers also obtained. In addition, some companies judged highlighted the instability of supply chains the information requested to be sensitive, (e.g., difficulty accessing medications) and non-public information that could not be limited access to specialty care (e.g., high-level shared. Some interviewees did not want to care needs often required medical evacuation misrepresent company priorities, especially if to Maputo or outside Mozambique). Overall, representing a large multinational company. companies faced challenges in scaling Several of these factors may have influenced support to meet high demand in many an individual’s ability and willingness to places, with programs and services only engage. available for individuals in areas where the company operates. Policy Options and Private Sector Experiences Recommendations Working with the Government and Implications for Partnerships Mozambican firms across industries can and do address the health concerns of their Companies cited largely positive experiences employees and families to mitigate social working with the government, although risks and maintain productivity. However, their engagement was primarily at the local the interviews conducted made apparent that level. Several companies worked with district health and HIV efforts are typically small and provincial governments when building in scale and that a path to working with local infrastructure, such as schools and the national government to bolster these hospitals. Most companies’ interactions with government, however, were indirect. efforts has yet to be defined. Additionally, Companies mostly worked directly with only companies offering the most active CSR nongovernmental organizations (NGOs) and programs were selected and interviewed for multilateral or international organizations. this effort. Many medium-sized companies Although most companies did not work with have yet to devise a strategy to contribute to the national government, they expressed the HIV response. To evaluate the potential to openness and interest in engaging at the standardize any national strategy for engaging national level around health programming. the private sector, it would be beneficial to However, company representatives frequently look at engagement models among a wider expressed that such engagements were ecosystem of private sector efforts. In this likely to be more fruitful if the government section, HP+ highlights various approaches approached them with specific, concrete and case studies for a private sector response proposals for partnership. Companies also to HIV that may provide insight into what cited difficulties in coordinating initiatives may be possible in Mozambique.
or intermediary, such as an NGO, join the Option 1. Corporate Fundraising for 5 partnership or receive and manage the funds. Philanthropy Implementing a more complex mechanism, Corporate fundraising for philanthropic such as establishing an AIDS trust fund, purposes largely consists of fundraising would require a broad level of government among employees, corporate matching of support. Given that companies may require employee donations, and annual corporate a tangible recipient for fundraising, the donations. Fundraising may be done annually Ministry of Health should identify where the as part of an ongoing agreement/partnership funds will be targeted and earmark those or as a one-off donation. Donations are often funds accordingly. Continuing to engage and earmarked to a specific recipient or to a motivate the company’s senior management to broader cause (e.g., children’s health). fund the donation over time will be important to the sustainability of this approach. Example: The Brazilian mining company, Vale, has contributed funds to improve health indicators for malaria and HIV in Moatize, Recommendations to move Mozambique. The company donated US$3 forward million to the Global Fund to Fight AIDS, To encourage private sector donations to Tuberculosis and Malaria, demonstrating support HIV services, the government can a willingness to use its private financial identify ways to directly channel corporate resources to improve the lives of communities donations for such services. For instance, (Vale, n.d.). the government can identify a number of public health outposts that provide HIV Opportunities and challenges for services to communities in high-burden implementation: Corporate fundraising areas near corporate operations and offers the Ministry of Health an opportunity propose them for corporate sponsorship. to increase revenue provided to public The government can stimulate a sense of HIV services. However, it is not customary long-term “ownership” over these clinics for companies to donate directly to the through co-branding. government. Straightforward solutions involve having a third-party stakeholder Diagram of Option 1. Corporate Fundraising Company Company contributes funds in line with its corporate values to the government or an intermediary, such as an NGO. Government OR Intermediary Government or NGOs determine how the funds are to be used and implement programs accordingly.
92 percent of those identified as positive were 6 Option 2. Direct Service Provision for receiving ART. This program has been studied Workers and Communities and has demonstrated a positive impact on Direct service provision to employees is the health and well-being of employees and a common model in which companies, on business performance (Anglo American, either through on-site clinics or medical aid 2020, 2021). packages, finance healthcare for employees and sometimes for their families. Significant Opportunities and challenges for health and productivity results can be implementation: Generally, companies can achieved for companies with large workforces act on their own terms to operationalize this who receive prevention, testing, counseling, model and set their own workplace policies and/or treatment for HIV. and investment levels in the workplace program. This requires less balancing of Example: In southern Africa, including priorities and coordination than a multi- in Mozambique, several multinational partner arrangement, but also puts the companies are supporting and operating HIV onus on the individual company to define services for their workforces. Anglo American its priority interventions and develop and is a British mining company operating in operationalize its own program. Although 15 countries (not including Mozambique), minimal coordination is needed with external employing around 90,000 people worldwide. stakeholders, there is also a downside to Within its safety and health program, Anglo working alone. Typically, a finite number of American operates a long-established HIV staff and families are reached year after year, program and is recognized as a leader in HIV and it can be difficult to scale up. Companies management. It launched its HIV program will vary in terms of the investments they in 2002 when it became one of the first can make up front. However, the national companies in southern Africa to offer free impact would be significant if HIV prevention antiretrovirals to its employees. This benefit services were offered by most mid-to-large was later expanded to include employees’ sized companies across Mozambique. dependents. In 2011, more than 110,000 Anglo American employees and contractors Companies that want to invest to achieve in southern Africa (90 percent) received HIV larger impacts in their communities could testing. Anglo American additionally offers a leverage their corporate workforces to scale wellness program for employees living with prevention activities to nearby communities HIV, plus education and awareness programs, through outreach programs, campaigns, or condom distribution, and early diagnosis and peer educator programs or they could invest treatment of sexually transmitted infections. in more comprehensive testing and treatment The company stated in 2019 that 94 percent programs, such as Anglo American’s. Rather of its employees knew their HIV status and than viewing these programs as donations or Diagram of Option 2. Direct Service Provision for Workers and Communities Company obtains government support informally to provide HIV services for its employees. Company Government Company finances the intervention (e.g., prevention, testing, and/or treatment). Individual company efforts boost private sector contributions to the HIV response but may be limited in scale.
CSR initiatives, companies could consider this in the workplace can multiply their impact 7 an investment in their core business. While through co-financing initiatives—for example, calculating return on investment can take extra experienced companies with high-quality time and resources, sharing the social and programs might find donors to co-finance financial benefits to employees, community activities so they can expand their reach more members, and the company’s bottom line with deeply into communities. corporate decisionmakers helps make the case for continual re-investment in employee and Example: The recent US$10 million community health. agreement between USAID and Total to improve adolescent health and women’s Recommendations to move empowerment in Cabo Delgado is a powerful example of multiplying impact through forward co-financing. Total’s global social responsibility The government can influence the program already focused on sustainable reach of each individual workplace HIV development of the communities where they program and/or expand the number of work, especially on health, education, and companies involved in such programs youth. They leveraged their existing capabilities by promoting them via success stories; and their US$5 million commitment to by making the business case known to community health to mobilize an additional employers that may be hesitant to make US$5 million from USAID for greater impact the upfront investment in employee (USAID, 2020). Together, USAID and Total health; and by disseminating guidelines to advise organizations on how to introduce are taking an integrated health programming these types of programs. For employee approach to do more than would have been engagement programs, the government possible otherwise, working in additional can share approved information, education, sectors— such as economic, social, and and communication materials with education—that enable better health and companies to vet key messages that would well-being. be shared with staff and communities. Opportunities and challenges for implementation: Existing programs can be Option 3. Co-financing for Scale used to mobilize additional funds from donors Company HIV programs typically serve and foundations, which can cover difficult- employees and their dependents even as to-reach communities surrounding mines, the broader community may experience other production sites, and beyond. While gaps in coverage for key health services. increased funding will allow companies to Companies currently providing HIV services generate greater impact, companies seeking Diagram of Option 3. Co-financing for Scale Company and donor agree upon desired outcomes and sign a formal agreement (MoU) with the government’s support. Company Government Company and donor co-create the intervention, leveraging each others’ unique capabilities to develop an Donor integrated approach. Co-financing allows for expanded access into communities.
and mobilizing additional funds to grow 8 Option 4. Systemic Private Sector their programs will need to balance their objectives and preferred approaches with Engagement those of the co-funder. Both parties will A systemic approach to driving sustainable benefit from formalizing expected roles and engagement in the response to HIV involves responsibilities. In order to maintain program a third-party organization—typically a scale beyond the original contract period, worker’s union, professional association, companies will want to have a sense of the or federation—leading an engagement with potential for the co-financing to continue the goal of driving a common private sector and, if not, what the strategy will be to secure agenda. Leveraging a market-leading industry additional funding to sustain their expanded association to catalyze corporate engagement efforts. in the HIV response can leverage the full power of the private sector to accelerate and Recommendations to move sustain positive impact. forward Example: In 2008, the global union of The government can provide technical International Federation of Chemical, Energy, recommendations and help steward a Mine and General Workers’ Unions worked successful programmatic approach for in India through its affiliate, the Indian this model. It can serve as a matchmaker National Mineworkers’ Federation, to form between programs and funders, a comprehensive response to HIV and AIDS identifying communities with a high (ILO, 2013). They sought technical assistance need for HIV services and highlighting from the International Labour Organization the credibility of the private sector in (ILO) to develop a strategic plan, design a delivering quality HIV services. It may training of trainers program, and support the also choose to evaluate potential gaps in engagement of employers and India’s State otherwise strong company programmatic AIDS Prevention and Control Societies. They operations and can suggest co-funders co-designed the strategy with people living that will help round out an approach or with HIV and representatives from Coal India bring a complementary perspective to Ltd, the National AIDS Control Organization, drive impact. and the Delhi State AIDS Control Society. Diagram of Option 4. Systemic Private Sector Engagement Technical assistance and strategy co-design. Intergovernmental Industry association/ organization federation Technical assistance to unify, improve, and/or standardize HIV efforts. Company Company Company Whole system operates with the same Government guiding HIV policies and delivers more coordinated, consistent, and quality care.
Opportunities and challenges for HP+ has recommended four options for the 9 implementation: This approach involves Mozambican government’s consideration. driving systemic change across a sector These aim to stimulate a broader private without a requirement of long-term financing. sector involvement in HIV response efforts It requires limited operational engagement of while not requiring considerable time the government beyond the start-up phase. investment by the government. The options Furthermore, ILO technical guidelines are range from increasing funds from the available to guide a step-by-step approach for private sector (either directly or indirectly formulating HIV policies and programs for the through trust funds); expanding efforts mining sector (ILO, 2013). It is, however, the already underway by a number of companies; most complex of the four options and poses leveraging an enhanced level of private sector challenges to kick-start implementation. That engagement through external investment; is because it requires a concerted focus from a and catalyzing systemic change through lead organization that has the full support of various market actors. The four options span the government, requires targeted technical the spectrum of opportunity to engage the assistance, and relies on continued motivation private sector and to leverage its experience in and engagement from the private sector. operating and supporting HIV services. The options are accompanied by recommendations Recommendations to move on how to move them forward in alignment with the government’s desired objectives for forward private sector engagement in HIV. The government can conduct a series of discussions with key stakeholders involved in the mining and other sectors References to determine how corporate engagement can be modeled with participation African Strategies for Health (ASH). 2014. A from industry associations, federations, Review of Health-Related Corporate Social unions, and domestic and multinational Responsibility in Africa. Arlington, VA: African companies. They can then identify the key Strategies for Health. stakeholder who will drive the approach Anglo American. 2020. “World AIDS Day 2020: and garner technical assistance and Global Solidarity, Shared Responsibility.” Available government support. at: https://www.angloamerican.com/about-us/ our-stories/world-aids-day-2020. Conclusions and Next Steps Anglo American. 2021. “HIV/AIDS Policy & Workplace Programmes.” Available at: https:// All the companies interviewed for this effort www.angloamerican.com/sustainability/ safety-and-health/hiv-aids. were involved in HIV activities to some extent. Beyond the efforts that companies were Cruz, A.S., D. Guambe, C.P. Marrengula, and A.F. already driving, primarily within their own Ubisse. 2016. Mozambique’s Industrialization. workforces, there are realistic opportunities Washington, DC: Brookings Institution. for companies to make changes that benefit Deane, K., S. Stevano, and D. Johnston. 2018. both the community and the business. While “Employers’ Responses to the HIV Epidemic in multinational-led HIV services and efforts to Sub—Saharan Africa: Revisiting the Evidence.” raise funds have undoubtedly helped sensitize Development Policy Review, Overseas communities and increase access to ART Development Institute, 37(2): 245–259. services, these efforts are predominately designed and operated at the enterprise Extractive Industries Transparency Initiative level and focus on the employee base. These (EITI). 2020. EITI Progress Report 2018. Oslo, Norway: EITI. factors limit the extent to which they can drive community-level responses that could lead International Labour Organization. 2013. HIV to systemic improvement in access to these and AIDS: Guidelines for the Mining Sector. services. Switzerland, Geneva: ILO.
Joint United Nations Programme on HIV/ U.S. Agency for International Development AIDS (UNAIDS). 2021a. “Country Factsheets: (USAID). 2020. “U.S. Government Signs $10 Mozambique 2019.” Available at: https://www. Million Agreement with Total to Improve unaids.org/en/regionscountries/countries/ Adolescent Health and Women’s Empowerment in mozambique. Cabo Delgado.” Available at: https://www.usaid. gov/mozambique/press-releases/us-government- Joint United Nations Programme on HIV/AIDS signs-10-million-agreement-total-improve. (UNAIDS). 2021b. “HIV Financial Dashboard.” Available at: https://hivfinancial.unaids.org/ U.S. Department of State. 2019. “Information hivfinancialdashboards.html#. Memo for Chargé D’Affaires, Bryan Hunt, Mozambique.” Subject: FY 2019 PEPFAR Planned Kaufmann, F. and C. Simons-Kaufmann. 2016. Allocation and Strategic Direction. January Corporate Social Responsibility in Mozambique. 16, 2019. Available at: https://www.state.gov/ Berlin, Germany: ResearchGate. wp-content/uploads/2019/08/Mozambique.pdf. Statista. 2021. “Ranking of Countries Vale. n.d. “Promoção de Saúde e Segurança: with the Highest Prevalence of HIV in Combate à Malária.” Available at http://www.vale. 2000 and 2019.” Available at: https:// com/mozambique/PT/initiatives/health-safety- www.statista.com/statistics/270209/ promotion/Paginas/default.aspx. countries-with-the-highest-global-hiv-prevalence/. ThinkWell for Management Systems International. 2019. Overview of Private Actors in the Mozambique Health System and Rapid Assessment of the Supply Chain. Washington, DC: ThinkWell. Health Policy Plus (HP+) is a seven-year cooperative agreement funded by the U.S. Agency for CONTACT US International Development under Agreement No. AID-OAA-A-15-00051, beginning August 28, 2015. The project’s HIV activities are supported by the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR). HP+ is implemented by Palladium, in collaboration with Avenir Health, Health Policy Plus Futures Group Global Outreach, Plan International USA, Population Reference Bureau, RTI 1331 Pennsylvania Ave NW, Suite 600 International, ThinkWell, and the White Ribbon Alliance for Safe Motherhood. Washington, DC 20004 This publication was produced for review by the U.S. Agency for International Development. www.healthpolicyplus.com It was prepared by HP+. The information provided in this document is not official U.S. policyinfo@thepalladiumgroup.com Government information and does not necessarily reflect the views or positions of the U.S. Agency for International Development or the U.S. Government.
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