Raising Returns and Saving Lives: Malaria Control is Smart Business
In the 30-plus years I have worked to fight infectious disease across Africa as Chief Medical Officer for Anglo American and as a private sector delegate to the Global Fund, I’ve seen tremendous value at the intersection of health and business in the developing world. As international governments, non-governmental organizations and business sector entities gather for the July 13-16 Third International Conference on Financing for Development, it is imperative that corporate partners join the battle against a deadly but preventable disease – fighting malaria is not just the right thing to do, it is the smart thing to do for sustainable business.
In 2013, malaria caused approximately 198 million infections worldwide and an estimated 584,000 deaths, largely in sub-Saharan Africa. By taking on a stronger role in global malaria control, companies stand poised to not only ensure the health of employees in developing countries, but also to reduce disease burden in many markets, a factor crucial to economic growth.
We know that malaria presents a clear challenge for companies looking to operate in emerging markets. Many of the fastest growing economies are in countries where high burdens of malaria have huge economic costs – for companies, which are faced with high absenteeism and reduced productivity; for patients, whose treatment costs cut into savings; and through opportunity costs, because business cannot fully flourish in societies struggling to overcome disease.
Seventy-two percent of companies in sub-Saharan Africa report a negative impact on business from malaria. At AngloGold Ashanti’s mine in Ghana, prior to implementing malaria control efforts, the estimated cost of treating malaria-burdened employees and dependents was $2.2 million in 2004. And during the construction of BHP Billiton’s aluminum smelter in Mozambique, malaria cost $2.7 million.
The good news is that these costs can be greatly mitigated through malaria prevention and control programs.
In 2011, Roll Back Malaria (RBM) evaluated the programs of three companies operating in Zambia: Konkola Copper Mines Plc, Mopani Copper Mines Plc and Zambia Sugar Plc. From 2001-2009, these companies spent an average of $34 per employee annually on malaria control. During that period, the number of workdays lost to malaria and the number of cases diagnosed in the companies’ clinics both decreased by 94 percent, averting an estimated 108,000 cases over nine years. By analyzing the costs (amount spent on malaria control) and benefits (treatment costs and lost workdays averted), RBM found that these companies experienced a 28 percent rate of return, or a net benefit of $9 per employee annually. The program’s financial benefits began to outweigh the costs in just one year.
Private sector malaria control success stories are not exclusive to Zambia. In 2005, AngloGold Ashanti implemented a program in Ghana that extended its reach beyond the mine to include the local town and surrounding villages. Year one of the program cost $1.7 million and subsequent years cost $1.3 million. From 2005-2009, the number of monthly reported malaria cases at the mine’s hospital fell nearly 83 percent, decreasing AngloGold Ashanti’s average monthly medication costs from $55,000 to $9,800. A healthy workforce also resulted in far less absenteeism – the average number of lost workdays per month fell by a staggering 96 percent.
The Global Fund is working to increase such business partnerships and amplify the impact of innovative private sector investments in health care and health system strengthening. AngloGold Ashanti became the first private company from Africa to be designated as a Global Fund Principal Recipient, receiving $130 million over five years to oversee Ghana’s malaria reduction programs. Lessons learned through the company’s malaria program have been transferred to operations in Tanzania and Guinea, increasing investments that both benefit society and create a more sustainable business practice.
The global malaria mortality rate decreased 47 percent between 2000 and 2013, and could fall by a remarkable 55 percent by the end of 2015. While this marks significant progress, it is still fragile; to sustain and accelerate global progress, we must continue mobilizing a diverse group of stakeholders.
There is no acceptable excuse for a high burden of malaria in any region – it is simply a case of insufficient investment and technical skills. Financial innovations and partnerships among private sector partners, donor governments and civil society will make the disease’s defeat possible. The private sector’s geographic reach, efficient processes and ability to react quickly makes it an ideal partner; and, without that partnership, malaria will be an ongoing obstacle for companies operating in emerging markets. Controlling malaria saves lives, improves productivity and offers a sustainable return on investment for any business.
