This archive report was first published on 22 August 2020.
Africa: Violent Extremism Costs African Countries $97 Billion Each Year ¶
Published on August 22, 2020, a report by the United Nations Development Programme (UNDP) and the Institute for Economics and Peace (IEP) highlights the devastating economic impact of violent extremism in Africa.
The report, titled 'Measuring the Economic Impact of Violent Extremism Leading to Terrorism in Africa', estimates that 16 of the 18 focus countries - Nigeria, Tanzania, Central African Republic, Niger, Uganda, Kenya, Ethiopia, Senegal, Mali, Burkina Faso, Chad, Cameroon, Tunisia, Morocco, Mauritania, and Libya - have lost an average $97 billion per year in informal economic activity since 2007.
According to the report, the global economic impact of terrorism between 2007 and 2018 was approximately $135 billion, increasing by 1700% since 2007. This figure is a conservative estimate, with many costs unaccounted for and spill-over effects challenging to capture in dollar terms.
Violent extremism causes both direct costs (costs of deaths and injuries) and indirect costs (lost productivity and earnings). Key findings from the study revealed that behavioural changes created fear and reduced risk-taking, increased informalization of the economy forced cross-border trade to go underground, and business costs changed in response to investing in security and rebuilding after loss of public infrastructure.
Panelists at the virtual event included Mallam Bashir Ahmad, Secretary to the Government, Adamawa State, Nigeria; Andrea Abel, Researcher, IEP; David Hammond, Research Director, IEP; Ojijo Odhiambo, Regional Economic Advisor, UNDP; and Nirina Kiplagat, Preventing Violent Extremism (PVE) Project Manager, UNDP.
Ms. Kiplagat emphasized the importance of a development approach to addressing violent extremism, with a strong focus on prevention. She noted that investing heavily in security response measures diverts funding from key sectors such as health and education.
The report aims to equip key stakeholders and policymakers to make evidence-based decisions and choices to address violent extremism from a sustainable development and inclusive livelihood support perspective.
