Some 30 million people in Africa live with HIV

The British-based group, whose brands include Guinness and Smirnoff vodka, has taken the decision for commercial and humanitarian reasons, says the newspaper.

No one from Diageo's UK HQ was available for comment, though a staff member at its offices in Nigeria told BBC News Online he was aware of the move.

The UN estimates 30 million people in Africa are infected with HIV - the virus that causes Aids - and some 15 million have already died from the disease.

As many of those infected are active members of the workforce, the impact of the disease on local businesses has been devastating.

There are also commercial reasons, because these people are our employees and our consumers John Kemp, Diageo

"Some of our colleagues have died from this disease and frankly that is sufficient stimulation for us to take action," the newspaper quoted John Kemp, head of Diageo Africa as saying.

"There are also commercial reasons, because these people are our employees and our consumers," said Mr Kemp.

Diageo has 5,000 staff in more than 25 African countries working in breweries, marketing and sales.

Life-long pledge

The continent accounts for 10% of the company's annual sales.

Diageo says it does not know how many of its African staff are infected with HIV, but that the figure probably mirrors local rates - 1% in Senegal, 7% in Nigeria, 25% in South Africa and 39% in southern African countries.

UN targets drawn up three years ago envisaged having three million HIV-positive people in the developing world taking Aids drugs by 2005, and halting and reversing the epidemic by 2015.

But only 300,000 people in developing nations now have access to drugs, although the UN estimates that between five million and six million people have full-blown Aids and need them.

Diageo makes 10% of sales in Africa

The pledge by Diageo is set to cost the company millions.

The cheapest anti-retrovirals costs $300 (�181) per person per year.

Diageo has reportedly promised to treat its employees for life, regardless of whether they are sacked or made redundant.

The anonymity of staff participating in the scheme would be protected, with independent health organisations running HIV testing and the administering of the drugs.

Diageo is not the first company to tackle the disease by providing drug treatment to staff.

South Africa's mining giant AngloGold began providing anti-retroviral drugs to HIV-positive employees last year.

AngloGold estimates that up to 30% of its 40,000 workforce is infected with the virus.

A study by the company suggested that treatment would add between $4 and $6 - or up to 2% - to the cost of producing an ounce of gold.

But if the disease was not treated, the cost of gold would rise by $9 per ounce, it estimated.