Approximately two months ago we highlighted in this post the escalating security challenges faced by many companies in Ethiopia as a consequence of internal conflicts. Citing an article published on Semafor that reported frequent hijackings of truck drivers for ransom in this nation, we also underscored that this in not an isolated case in Africa. Other countries, like South Africa, grapple with similar road-related crimes such as truck hijackings and robberies. Our previous post concluded that political instability and high rates of criminality create a climate of uncertainty that severely undermines the conditions necessary to attract both international and local investment in Africa. However, these are not the only consequences. These two factors also significantly escalate transportation costs. Regions across Africa afflicted by armed conflicts, banditry, violence, terrorism, and piracy—such as the Sahel, the Horn of Africa, the Great Lakes, and the Gulf of Guinea—consistently face higher trade and transport expenses that stifle economic growth.
Friday, May 30, 2025
