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Africa Economic Brief - Economic Impact of Maritime Piracy
Increased maritime piracy off the coast of Somalia is affecting the delivery of food aid to war torn Somalia. It is also creating a challenge to maritime trade and other maritime economic opportunities.
• Rerouting tankers carrying oil from the Gulf of Aden to the Cape of Good Hope costs around $3.5 billion in annual fuel costs.
• Increased insurance costs are passed on to consumers, making African products less competitive.
• Maritime piracy is also affecting tourism and fishing. Reports indicate that for Seychelles the cost of piracy alone stood at 4 percent of GDP in 2009.