In addition to running their own stock exchange, it seems that Somali pirates might be getting into real estate in neighboring countries as well:
Even as housing prices have dropped sharply in the United States,
prices in Nairobi have seen two- and three-fold increases the last half
decade.
"There is suspicion that some of the
money that is being collected in piracy is being laundered by purchase
of property in several countries, this one being one of them," said
government spokesman Alfred Mutua. "Especially at this time when we are
facing global challenges of security such as terrorism and others, it
is very important for us to know who is where and who owns what." [...]
Pirates in Somalia say they invest their ransom money outside their
war-torn country, including in Kenya. One pirate who gave his name as
Osman Afrah said he bought three trucks that transport goods across East Africa. A second pirate, who only gave his name as Abdulle, said he's investing in Kenya in preparation for leaving the pirate trade.
"Pirates
have money not only in Nairobi but also other places like Dubai,
Djibouti and others," said Abdulle. "I have invested through my
brother, who is representing me, in Nairobi. He's got a big shop that
sells clothes and general merchandise, so my future lies there, not in
the piracy industry."
My colleague Elizabeth Dickinson has argued that pirates' financing is the achilles heel, and by investing in highly visible sectors like real estate, they seem to be sticking that heel pretty far out. Also, the fact that the AP's Tom Odula was able to get not one, but two pirates to tell him about their investment strategies, suggests that these guys might be getting a little overconfident.
Hat tip: Marginal Revolution
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