World Cup to entice investors

Johannesburg - The 2010 FIFA World Cup has had many direct infrastructure benefits, but some of the leading business icons globally have also expressed massive confidence in South Africa as an investment destination.   
   
This is one of the key points to emerge from a briefing held on Thursday in Sandton. It was attended by the CEO of the Local Orgnising Committee (LOC) Danny Jordaan, Gauteng Premier Nomvula Mokonyane and MEC for Transport Bheki Nkosi.
   
Jordaan was adamant that the mega-event would prove to be a boon for investment and growth going forward.
   
"News out of the global economic forum that took place in Cape Town recently is that some of the leading business icons globally have expressed massive confidence in South Africa as an investment destination," he said.
   
When asked about the economic impact of the World Cup on the Gauteng economy, Mokonyane said: "The greatest impact that the World Cup will have on economic performance is that it has exposed the government to new and faster ways of working. The experience of the World Cup has improved the ability of government to govern and to deliver services at an even faster rate.
  
"Government will not be the same again. In partnership with the private sector we have realised that we can deliver services and infrastructure. This I believe will be the lasting legacy of the World Cup for South Africans," she said.
  
Reports calculating the economic impact of the competition have abounded. Just a month before the World Cup kicked off, Grant Thornton projected that about 370 000 foreign visitors would flock to South Africa for the tournament. The month-long competition was expected to add R93bn to the national economy.
   
A recent report by credit card company Visa shows that spending by Visa cardholders increased to about $566m - or about R4.28bn - in the first quarter of the year, a sharp increase over the same period in 2009.
   
The increase in inbound tourism spend is likely to increase because of the World Cup, which is proving to be a big gain for the tourism sector. Between kick-off on 11 June and 20 June, about 45 000 Visa transactions were recorded.
   
There are expectations that the economic impact will not be limited to tourism spend, and the global PR for brand South Africa will have a knock-on effect on investor perceptions.
   
Jordaan then gave advice to the Brazilian journalists gathered at the hearing.
  
"In four years time this mega-event will be coming to your country, these questions will be asked of you as well, you need to build infrastructure, not only to so deliver a successful event but so that you secure economic growth for the future."
   
Addressing the performance of the transport system, Nkosi said: "In the beginning we had some glitches; however, as time went on we had time to iron out any niggles and we believe the system is performing satisfactorily."
   
He added that government invested more than R40bn rand to ensure a safe, efficient and reliable public transportation system for the World Cup.

- I-Net Bridge