Uruguay – Gang violence and homicide rates likely to remain elevated, posing security risks for companies and staff
Our new Uruguay report assesses organised crime and its implications for business. Find out more ??
Torchlight Predictions
Developments
Insights
Homicide rates in 2022 are up by 40% compared to the previous year. The Ministry of the Interior indicates at least 45 gangs are fighting for control in Uruguay, a situation that will continue to pose a security threat to business operations and staff.?Some of the most notable gangs include Los Puglia, Los Caldera, Los Segales, La Puglia, and Los Vallejos. The armed clashes between Pibitos and Albin gangs in the Villa Espa?ola neighbourhood of Montevideo have led to voluntary night curfews by local residents. Increased violence is also reported in the Pe?arol area of the capital city, a trend that will intensify as these groups continue to fight over control of micro-trafficking.?
The violence and formation of multiple gangs has been fuelled by transnational organised crime that sees Uruguay as an increasingly pivotal drug trafficking hub.?The Port of Montevideo provides criminal groups a geographical outlet to African and European markets. Large cocaine seizures here suggest there is a major risk of such activity spreading to other ports. In 2018, between 700 and 800 irregular landing strips were detected across the country, often used by transnational drug cartels, reflecting a diversification of transport routes for trafficking. According to Alfredo Rodriguez, director of anti-drug trafficking for Uruguay’s police, illicit groups are also using land and river routes to expand operations in the country.?
Minister of Interior Luis Alberto Heber says the country is establishing more local strategies to confront threatening violence in the capital. Authorities indicate the increase of homicides is due to a criminal power vacuum effect triggered by the anti-trafficking operations being conducted by the National Police of Uruguay.?In a meeting last week with other Mercosur leaders, Heber emphasised the need to increase regional security cooperation to combat transnational crime. Leaders agreed to create a commission which will focus on expanding current security partnerships. This posture will lead to broader security operations at a local and national level, but benefits are likely to be limited in the short term.
Implications for Business
Stability: In comparison to other South American countries, Uruguay has maintained relatively low levels of organised crime-linked violence. However, the situation has gradually deteriorated over the past decade and the emergence of criminal groups is now posing an increased threat to security and political stability. A higher perception of insecurity will be a key issue for voters leading to the 2024 presidential election, and risks undermining the prospects of the incumbent administration.?
Security: Security vulnerabilities at cargo transport centres will create new challenges for future projects, including Port Yeguas, which has been on halt since 2019. Ongoing infighting between criminal groups will lead to an escalation of violence and possibly record-setting homicide rates. This will in turn pose a particular risk to staff operating in the capital as they could be caught in the middle of clashes or be targeted for extortion.
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