OSAC's Top 5 Security Trends in 2006 for the U.S. Private Sector in Africa

Contact: Kendal Smith 
571-345-2509
FAX 571-345-2527
SmithLK2@state.gov

OSAC Says Kidnapping, Sabotage, Corruption Among Growing Threats

Kidnapping and industrial sabotage in the Niger Delta, widespread crime and corruption, and political instability were among the top security challenges of 2006 confronting U.S. businesses, nongovernmental organizations, and academic institutions operating in Africa, according to a year-end analysis by the Overseas Security Advisory Council (OSAC).

"2006 was a defining year for the American private sector abroad," said Doug Allison, a Special Agent with the Department of State's Bureau of Diplomatic Security and Executive Director of OSAC. "The threats from traditional sources - such as crime, terrorism and political instability, as well as from non-traditional, non-routine sources - such as acts of nature and potential global pandemics, have demonstrated that firms must incorporate security and risk management into their core business operations if they are to overcome these threats."

"Corporations that develop an internal culture of resiliency are better prepared than their international competitors to deal with predictable and catastrophic challenges," he said. "Such firms are better able to exploit opportunities in riskier environments and in the aftermath of a major event."

Over the past year, OSAC analysts noted increased costs and financial losses to U.S. businesses due to bribery at ports, product counterfeiting, theft and violent crime against employees.

"Some African governments, such as those in Sudan and Guinea, were rated by the international watchdog organization Transparency International as being among the most corrupt in the world," the analysis said.

OSAC also cited increased violence in the Niger Delta, where "Westerners were kidnapped, oil pipelines sabotaged, facilities overrun and production severely restricted."

OSAC analysts noted that the Niger Delta violence has reached Western personnel and facilities as far as 50 miles off the African coastline, into the Gulf of Guinea.

OSAC's regional specialists analyze information and develop informational products on security abroad that are then delivered to its private-sector members, explained Allison.

"By working with our OSAC partners, sharing our analysis, and pushing out our information, we aim to help the U.S. private sector better prepare for, respond to, and recover from the security challenges that may arise in 2007," said Allison.

The following is OSAC's list of the past year's top security challenges to the American private sector in Africa.

OSAC's Top 5 Security Trends for the U.S. Private Sector in Africa Violence in the Niger Delta Local populations in the Niger Delta have begun taking their frustrations with the Nigerian federal government out on resident western interests in this oil-producing region, as Westerners and local staff were kidnapped, oil pipelines sabotaged, facilities overrun, and production severely restricted. The violence does not stay onshore either, as attacks are now taking place as far as 50 miles into the Gulf of Guinea. Corruption and Crime Some African governments, such as those in Sudan and Guinea, were rated by the international watchdog organization Transparency International as being among the most corrupt in the world. U.S. businesses experienced bribery at some ports of entry, delaying shipments of goods and raising costs. They also experienced high rates of loss due to internal and external theft, and suffered from sophisticated counterfeiting operations, especially due to increased trade with Asia. Additionally, many African cities were rated "critical" for crime by the State Department, subjecting employees to violent crimes such as carjacking and armed robbery. Election-Related Instability Although peaceful and democratic elections took place in most African nations this year, some problems did surface. Some U.S. organizations reported having their compounds overrun and their employees threatened by protesters. Apart from this outburst of violence, Congolese elections, the first in over forty years, were remarkably peaceful. Elections in other countries ran more smoothly, but incidents against the private sector were reported in certain countries, such as Mauritania and Madagascar. Decaying Infrastructure Transportation into Africa is becoming much easier, with dozens of direct flights now available from the U.S. onto the continent. But travel in many parts of Africa remains hazardous. Africa has a high proportion of the world's airline accidents due to poor maintenance and aging fleets. Outside of roads in some major cities, Africa's highway systems are generally in poor condition, and that, combined with the state of disrepair for many African vehicles, frequently led to a high number of traffic-related fatalities and an extremely high cost for overland shipping. Escalating Anti-NGO Violence in Darfur The Darfur crisis initially brought a large number of Western nongovernmental organizations (NGOs) to the Sudan-Chad border region, but it appears that NGOs were increasingly being targeted and threatened, and their staff members harassed, hurt, or killed. Implicit intimidation and overt acts of physical violence stem from all conflicting parties.

About OSAC

The Overseas Security Advisory Council was established in 1985 as a Federal Advisory Committee with a U.S. Government Charter to promote security cooperation between the U.S. Department of State and American business and private sector interests worldwide.

With a constituency of more than 3,500 U.S. companies and other private-sector organizations with overseas interests, OSAC operates a Web site (www.osac.gov), which offers its members the latest in safety- and security-related information, public announcements, warden messages, travel advisories, significant anniversary dates, terrorist group profiles, country crime and safety reports, special topic reports, foreign press reports, and much more.

The OSAC staff includes international security research specialists dedicated solely to serving the U.S. private sector. Additionally, OSAC has a network of 100 country councils around the world that brings together U.S. embassies and consulates with the local U.S. community to share security information.

OSAC is co-chaired by the Director of the Diplomatic Security Service (DSS) and a selected representative of the private sector. The OSAC Executive Director is a Diplomatic Security Special Agent.

About The Bureau of Diplomatic Security

The Bureau of Diplomatic Security is the U.S. Department of State's law enforcement and security arm. The special agents, engineers, and security professionals of the Bureau are responsible for the security of 285 U.S. diplomatic facilities around the world.

In the United States, Diplomatic Security personnel investigate passport and visa fraud, conduct personnel security investigations, and protect the Secretary of State and high-ranking foreign dignitaries and officials visiting the United States. More information about the U.S. Department of State and the Bureau of Diplomatic Security may be obtained at www.state.gov/m/ds.