Financial sums lost through ransoms are a small share of the total costs suffered by African nations in the world’s maritime piracy hotspot.
Piracy costs African countries in the Gulf of Guinea over $500 million annually in what is currently the world’s maritime piracy hotspot.
With several attacks and kidnappings each year, much of that cost is tied not to the value of stolen ships or cargo but related to anti-piracy measures, according to a study by Stable Seas, a transnational maritime security research organisation.
“For every $1 pirates steal or extort from African victims, Gulf of Guinea governments spend around $524 on counter-piracy efforts,” the report says.
Meanwhile, piracy gains are considerably lower, estimated at only about $5 million a year. The vast majority – $4 million – comes from ransoms paid by non-African entities seeking the release of non-African hostages.
Oil theft was a lucrative business model that netted pirates up to $25 million a year in the early 2010s, but far more difficult to pull off versus the swift raids being conducted now.
“Direct losses due to ransoms paid for local hostages and the value of goods and oil stolen at sea probably sum to $1 million to $1.2 million per year,” the study said. “This number is significantly lower than it was a decade ago when oil theft at sea was more common and a greater share of hostages taken by kidnappers were West and Central Africans.”
Ransoms for non-African seafarers have climbed sharply in recent years, more than doubling from an average of $15,000 per non-African hostage in 2014, to as much as $40,000 in 2019. In comparison, West African fisher and oil worker ransoms have remained between $3,000-4,000 or as low as $1,000 per person.
“These low direct costs to African nations have created the perception among some that Gulf of Guinea piracy and armed robbery are greater problems for international shipping companies and foreign seafarers than they are for African nations,” Stable Seas noted.
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https://www.trtworld.com/magazine/500-million-spent-annually-to-keep-piracy-at-bay-in-the-gulf-of-guinea-52817