Should terrorism be considered a fact of life in South Africa?
Myra Knoesen, FAnews Journalist
Following the terrorist attacks across Paris on Friday November 13, leaving more than 129 people dead and 352 people injured, the tourism, leisure and insurance sectors were expected to take the biggest hit.
Gunmen and bombers divided themselves into three groups and attacked six sites targeting a concert hall, stadium and several restaurants and bars.
The terrorist attacks shocked the world and served as a notice to companies across the world of the urgent need to beef up security.
Increased threat levels
According to the 2015 Allianz Risk Barometer, an annual survey of over 500 risk experts worldwide, in 2016, political violence may increase in a number of countries such as Burundi, South Sudan, Mauritania and others.
Threat levels in the US and Europe have been elevated for some time. Other areas, such as North Africa, the Middle East, Asia, Australia and China are exposed to terrorism.
According to Christof Bentele, Head of Crisis Management at Allianz Global Corporate & Specialty (AGCS) SE,International terrorism, in particular the type driven by political, ethnic, religious or ideological motives, has blazed a trail through Africa to spread fear and terror especially in countries such as Nigeria, Niger, Cameroon, Somalia, Kenya and Sudan.
“The risk of kidnapping has increased drastically in terms of frequency and brutality with Nigeria, Mali, Chad, Algeria, Libya, South Sudan, Central Africa Republic and others being hot spots in Africa. Kidnappers target frequent male business travellers and then seek ransom from the organisations they work for,” continued Bentele.
The inevitable truth
While it is unpreventable in some instances, companies need to re-evaluate their security measures and terrorism insurance coverage to be prepared for targeted attacks. The question is, should terrorism be considered a reality in South Africa?
The latest attacks are a warning that this risk is a global threat. With the tensions visibly rising in 2014, including the rise and spread of the Islamic State, Boko Haram in Nigeria and the Ukraine crisis, this trend is likely to continue in the future.
“The rapid growth of multinational and South African companies within the African continent means that they are increasing their exposure to new risks and threatssuch as terrorism, political violence and kidnapping,”said Bentele
With regards to the question on South Africa, Allianz sees South Africa below medium risk in terms of terrorism, so the situation in France does not change Allianz’s current view on South Africa.
In terms of proactive strategies in place, Bentele said many, but far from all, companies already have contingency plans in place so they can respond in the event of a crisis caused by political violence. However, it is important to remember that the political situation is always in a state of flux – 24 hours a day, seven days a week, 365 days a year.
“Businesses need comprehensive crisis management coverage fortailored solutions in the area of crisis management, terrorism and political risk insurance. Companies should prepare themselves for a crisis during peace time,” concluded Bentele.
Editor’s Thoughts:
As a heightened awareness among risk managers and investors grows, we are likely to see political risk insurance increase but do you think South Africa is a hot spot for terrorism in the near future? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts myra@fanews.co.za
