Piracy in Somalia, its Contribution to Instability, and its New Path Forward

For decades, stability in Somalia has been a distant memory. After years of internal conflict, including resource scarcity, Somalia is currently experiencing one of the worst droughts in four decades, triggering a famine that is affecting over six million people  and has displaced over one million people. Exacerbating this instability is the long and continued presence of piracy in the country. 

When the government of Somalia collapsed in the 1990s, the country became open to chaos. In the absence of a stable government, education, and healthcare, some have turned to piracy and criminal gangs in order to have some semblance of an income. Alongside its economic state, Somalia is situated along a key trade route, making piracy even more lucrative. Roughly a third of all daily shipping in the world passes the north-east edge of Africa, between Yemen and Djibouti through to the Suez Canal and the Red Sea. 

Not only has violence engulfed the nation and its waters, but the financial impact has also been staggering. Ransom costs alone have accounted for $177 million in 2009 and $238 million in 2010 often paid by insurance companies for the shipping industry. Additionally, insurance premiums, the task of re-routing ships, anti-piracy security, and the overall impact on regional economies has amounted to $7 to 12 billion in annual costs. Attacks on food aid have also hurt the country, given the aforementioned famine further impact on an already weak economy. 

With high stakes and the opportunity to make millions, the prospect of great wealth from raids on shipments has also contributed to the growth of piracy. It has driven the expansion and local support from the public for pirate organizations. Funds collected from ransoms have also expanded into local economies. A UN report constructed how profits are shared amongst those involved: 30 percent to hijackers, 10 percent to the ground militia controlling the area, 10 percent to community elders and officials, 20 percent to financiers, and 30 percent to sponsors of their operations. 

Additionally, piracy has been allowed to flourish mainly because of the lack of policies and infrastructure to mitigate the damage. In the areas of Somalia with notable piracy, there has been no functional government to make or enforce regulations to reign in pirate activity. Without a functioning government, these crimes have remained relatively unchecked within the last few decades.

But there are signs of progress. There has been a steady drop in piracy since 2011 – just 14 attacks have occurred between 2015 and 2020, thanks to a joint counter-piracy effort to reduce its influence in the country. The new government has also taken major steps to reduce the influence of piracy. It has made progress in improving its own security, both offshore and onshore. Lack of proper law enforcement had previously been one of the main barriers to solving the issue. In August 2021, its Maritime Directorate started to revise its maritime resource and security strategy. It began a series of mapping all maritime activities, including international support, as well as building out law enforcement agencies.There is also international support in helping deal with piracy. Djibouti hosts multiple foreign military bases, including from the US, France, and China. Their presence has also helped contribute to the slowdown of piracy in the area.
Not only has the current government taken responsibility for handling security, but the shipping industry itself seems to believe that piracy is no longer a threat. Recently, the UN Security Council reported no successful piracy attacks off the coast of the country last year, a far cry from what had occurred decades ago. It remains to be seen if this trend is expected to continue or if the instability will breed chaos and cause a resurgence in activity. Should Somalia succeed in its efforts to combat piracy, it could be one step closer to achieving stability.

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