The recorded number of Somali pirate attacks has declined, according to the European Union Navel Force Somalia.
A report by the United Nations Monitoring Group on Somalia reported that $7 out of every $10 in government revenue goes missing, a loss of 70 percent of all revenue. Back in 2009, the World Bank found that 68 percent of all government revenue went missing.
The cost of piracy in Somalia was estimated to be between $6.6 Billion to $6.9 Billion in 2011. The cost of piracy was over 110 percent of Somalia’s GDP in 2011.
The Security Association of the Maritime Industry (Sami) reported to the BBC that there were over 200 companies providing security services in the north-west region of the Indian Ocean. 139 companies are members of the association, with almost half of the members being companies based in the United Kingdom. The companies provide a range of services, from ransom negotiation to armed guards to prevent kidnappings. An armed guard working in a group of three can make up to $634 (500 British Pounds) in a 5-day tour.
Pirates in Somalia earned around $170 Million in ransom payments in 2011, according to the United Nations Office on Drugs and Crime. In 2010, the pirates made $110 Million. The UNODC reported that 1,116 Somali men face criminal trials in 20 countries for piracy.
In 2011, the average ransom paid out to pirates holding hostages off the coast of Somalia increased 25 percent to $5 Million. Pirate activities cost shipping companies and governments up to $6.9 Billion in costs in 2011, according to a report by One Earth Future Foundation.
There were 439 reported attacks of piracy at sea in 2011, down from the 445 cases reported in 2010. A total of 802 crew members were held hostage and 45 vessels were hijacked in 2011. The figures from 2011 were lower than the 1,181 hostages and 53 vessels hijacked in 2010. Pirates from Somali accounted for 237 attacks, or 54 percent of all pirate attacks in 2011.
According to the International Maritime Bureau’s Piracy Reporting Center, there has been 352 pirate attacks around the world in the first 9 months of 2011. The number of attacks is a record.
In 2008, the United Nations estimated that up to 80 percent of all arms, ammunition and supplies that were supplied to the transnational government of Somalia was diverted to the black market. The firearms ended up in the hands of private individuals, opposition groups and arms traffickers.
Human smuggling in the Horn of Africa could generate over $20 million a year in revenue.