The growing 'tax' of insecurity: how much more will it cost companies to operate in the country?
Robberies and extortions impact merchants. Photo: iStock
TL;DR
- Businesses are experiencing increased operational costs due to widespread insecurity and escalating terrorism.
- Higher rates of extortion, kidnapping, and theft necessitate greater spending on security measures.
- Companies are hiring private security and escorts, especially in regions like Santa Marta, Malambo, Soledad, Cartagena, and Bogotá.
- The transportation of raw materials and finished goods is impacted by the presence of violent armed groups.
- There is a noted increase in demand for private security services, including executive escorts and facility protection.
- Regions most affected by increased security demands include Cauca, Valle, Antioquia, Bogotá, and parts of the coast.
- Private security is seen as crucial for mitigating the economic impact of insecurity, which costs the country 3.46% of its GDP.
- In Medellín, authorities have launched a specialized anti-extortion group to combat organized crime's control over commercial dynamics and product distribution.
- The success of security initiatives requires continuity and collaboration with business associations to facilitate reporting and judicial action.