Spend Now, Worry later - The impact of positive income shocks on HIV incidence in Northern Malawi

Abstract

In this study we examine the relationship between the establishment of the Kayelekera Uranium Mine in northern Malawi and HIV/AIDS incidence. The establishment of mining industries is on the rise in this region and the subsequent health impacts are a major concern to governments and the general public. To analyse this topic, we use both a qualitative and a quantitative approach. We find that HIV incidence peaked during 2009 and that this to a large extent is explained by higher income levels in the district. Higher incomes were shown to affect HIV prevalence through increased consumption of alcohol and subsequent risky sexual behaviour. This paper contributes to the literature of how large foreign direct investments and positive income shocks affect HIV/AIDS incidence and risky sexual behaviour in Sub-Saharan Africa.