Benefits of SWC 'incalculable'

Benefits of SWC 'incalculable'

2010-06-28 09:03

Johannesburg - It’s still too early to estimate the net monetary injection or opportunity costs of the 2010 FIFA World Cup for the South African economy.

Trade and Industry Minister Rob Davies and influential businesspeople nevertheless believe that the billions the government has spent on the soccer spectacle will bring incalculable benefits to South Africa.

Some estimates indicate that the tournament has already brought the private sector R100bn.

Davies believes the true advantage is that South Africa's reputation has received an enormous boost.

Davies and businesspeople agree this fillip has laid a critical foundation for future direct investment in South Africa and the rest of Africa.

Politicians and business leaders attending Fortune, Time and CNN Global Forum’s meeting in Cape Town - its first in Africa - believe it is of the utmost importance to up the tempo of driving South Africa's reputation.

The fact that the forum is being held here shows that South Africa is an important part of the African success story, said Davies.

But that of course means that South Africa cannot rest on its laurels. Davies believes the momentum has to be carried forward.

The ingredients that worked for the infrastructure development and soccer tournament investment need to be repeated. Davies said it is important to guard against delays in infrastructure investment.

Few people (including investors) visit South Africa only once, he said.

This country is at an important crossroads: global economies are experiencing serious problems and South Africa will be affected by richer countries' fiscal collaboration and the possible withdrawal of stimulus packages.

Sanlam CEO Johan van Zyl believes the World Cup does not change the status of our economy, but that it creates opportunities.

Iqbal Survé, deputy chairperson of Sekunjalo Trust, does not believe there will be a hangover. He believes the tournament is laying a foundation for greater economic growth.

Last week Sake24 reported that government had been responsible for holding up 161 infrastructure projects. These plans form a large part of the planned R846bn infrastructure spend over the next three years.


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  • Shams - 2010-06-28 09:25

    Incalculable! I agree, as there are no benefits to SA. The only one to benefit is FIFA (more than $3billion). SA will pay the costs for years to come.

  • Investor - 2010-06-28 10:04

    A few issues here: 1. SAFA execs rake in millions while there is no money for soccer development; not even schhols have soccer balls to play with. 2. It doent matter if the country makes billions, if the money made is simply transferred to ANC BEE companies who make millions for directors and fail to deliver services.

  • ARI - 2010-06-28 10:15


  • AngryJ - 2010-06-28 10:15

    I am sure we could reap great benefits from the SWC. The ground work has been layed, lets just hope its not undone by Xenophobic violence, talk of nationalization and hate speech from the ancyl.(the raving of Julius I reckon still has the ability to scare off much needed investors) Lets all band together and make it work :)

  • Len - 2010-06-28 10:36

    I want some of whatever he's smoking!

  • mike - 2010-06-28 10:42

    I agree, the positive image projected abroad is immeasurable. I have attended games in PE and the FIFA organisation is outstanding. It might be an African World Cup, but the event organisation is certainly first world. The direct cost may take a while to offset, but sometimes you have to spend a bit to make people sit up and take notice. Lets hope we can keep it together going forward.

  • mike - 2010-06-28 11:01

    Len you are just a chop. Get with the program. We all know the many, many problems and pitfalls of Africa and South Africa. But for once the country has produced a fantastic event, broadcast worldwide. So far only one English fan arrested. Check out how many were arrested in Germany. The guys (with a lot of help from our Fifa robbers) have so far put on a great show. Give credit where credit is due.

  • SP - 2010-06-28 11:20

    Who is going to pay the millions of rands per year to maintain those white elephant stadiums?

  • Observah - 2010-06-28 11:38

    Ahem. It seems exhortations to focus on the basics first, and to take a less emotive view of SWC "benefits" etc does not please the moderators here. Really, kids, it didn't work under the Nats, and it won't work now either ... tsk.

  • ARI - 2010-06-28 11:45


  • William - 2010-06-28 12:25

    I think the benefit will be great. Sure it's expensive to host but South Africa needed the image boost and so far the World Cup has been run brilliantly (as hard as that is to believe). Being negative for negative sake, or because you somehow think it makes you seem intellectual, is lame. And please stop using the term "White elephant" people. It doesnt make you look cool, it makes you look like someone with so little intelligence that you had to repeat arguments that have already been used 100 times. Its happened already, the spendings been done, we've hosted a great cup so far, stop being so negative. And by the way, all you people (alot of them on Fin24 who now seem to have disappeared) who said no one (tourists) were gonna come and that SA would mess it up: You've been proved wrong so far, so suck it up and shut up...

  • Peter - 2010-06-28 12:28

    The only person who makes money is Blatter, $2m per month...nice and he plays our politicians so well that they even start to believe how much money SA makes. Smart man, bafoon politicians

  • Realist - 2010-06-28 12:57

    These politicians need to learn to keep their mouth shut. The INCALCULABLE will be the money that the SA taxpayer has to shell out over the years to pay for the (BEE) Black Elephant Extravaganza. FIFA DID NOT PAY ONE CENT IN TAXABLE REVENUE TO SA.

  • Bobby - 2010-06-28 13:42

    People don't be so down beat. I have attended 5 games in Durban so far and they were run beautifully. I got into the stadium for each game very quickly and left very quickly.It was such a pleasure. i have befriended many foreigners and they all agree that we are very friendly and this is a beautiful country and they want to come back here.My problem with that is the security being offered to us now, must not stop,because it won't be the same SA that these foreigners will revisit.Secondly, these stadiums will be full every week as all local PSL matches will be played there.The recovery of the money will not be an overnight thing but at least we will have world class stadiums to use and this could help to inspire more people to be prfessional footballers.I also see that the local take aways etc are making a killing.These guys selling flags etc on street corners are making money that they did not have and they should use this to start a small business like going door to door cutting peoples lawns, tree etc.It will help give them something to do.Use your imagination and stopping looking at everything so negatively.I have never seen so many White people loving soccer like I do when I visit the stadia or fan park.

  • mike turner - 2010-06-28 13:49

    God save us !! We've got another bloody Alec Erwin on our hands !

  • Mike Turner - 2010-06-28 13:56

    "Let's all band together and make it work": what planet are you from? Here, take some of this carefully distilled and priceless snake oil and rub it on this brass lamp...... IDIOT!!! WE'VE BEEN HAD, BY THE SNAKE OIL SALESMEN FROM SWITZERLAND!!!!!!!

  • mike - 2010-06-28 14:19

    @ari sigh.. I refer: "Davies believes the true advantage is that South Africa's reputation has received an enormous boost." "that the billions the government has spent on the soccer spectacle ". Without the successful spectacle you can bet there would be no benefit or reputation enhancement. Anyway I was only responding to Lens mindless comment which mirrors yours.

  • William - 2010-06-28 15:04

    @ Mike Turner... You know smoking marujuana is bad for your health? If the argument that the world cup is too expensive and bad for a country is true, then the same should be true for the olympics (far more expensive) and msot other big sporting events. The Rugby WC cost us a fair penny in 1995 but no one b*tched then... Saying that world cups and the olympics etc are bad for countries because they are expensive is a tired argument that has been floating around for ages now. All the other countries are willing to pay for the best PR any country could hope for, we should be willing too. I believe the positive exposure South Africa is getting, as well as the improvement in inter-racial relationships, is worth every cent. Well done to all involved, now please keep up the level of service in the future (not just for the WC).

  • Piet - 2010-06-28 15:30

    @Len and Ari, My Gardener is going on leave next month, are you guys looking for a job...on second thought don;t bother, i dont think you have the necessary IQ to hold a spade..duds

  • Justin - 2010-06-28 15:31

    @ARI The infrastructure that was put in place was by the private sector. It was perhaps paid for by our tax money but when it gets paid to the contractors it goes back into the economy. Saying that there is no benefit to the economy is what is utter trash.

  • mike - 2010-06-28 15:43

    Man, just as the benefits of the SWC are incalculable, our BEEEE brilliant air crews at SAA have shown the true colours of Africa. SAA cabin crew (Dlamini) caught with 3 odd kg of cocaine at London Airport. This is the third time in 1,5 years. Man do they know how to trash peoples hard work

  • STEVE - 2010-06-28 15:43


  • cooldog - 2010-06-28 16:48

    with Mike Turner.I absolutely agree the WCS is another scam for certain organizations to rake in Billions. We are left holding the baby with an empty bath.How many manufacturing jobs,hospitals,schools,houses etc,could have been built with the money.Once the fans have left,thats it,those who have enjoyed the stay (lets face it SA is a great country fro a holiday) will say they will return but how many actually do. The numbers of visitors statistics put out by Home Affairs are mind boggling.Jumbo jets would have had to land at an incredible rate to achieve these numbers,so it must be the wealthy Zims,etc who were strolling across for a sight seeing tour or two. Its great to be positive like talking ourselves into the belief that because we had a world class soccer coach,the team would become world class.

  • Tsunami - 2010-06-28 16:51

    There is no need to entertain and even justify to naysayers and prophets of doom of what benefits will the world cup bring to South Africa. Firstly, we wouldn’t have generated sustained growth in excess of 4% for a long period. Furthermore, many people were able to feed their families and not rely on state grant for survival. There were skills transfers ranging from architectural design to project management etc. People were part of creating and building world arts stadiums which is fulfilling. Also, government confidence to deliver on bigger projects was enhanced by hosting successfully at least for now this biggest tournament event. The crisis of service delivery non delivery would probably evaporate in no distant future. Importantly, the infrastructure will remain after the world cup, trains, buses improved roads and government demonstrated the ability to reign over tough taxi industry. Finally, the extreme perception about South Africa will change from that created by tabloid newspapers in Britain which even armed people with bullet vest. Finally, investments and tourism would translate into economic benefits that will outweigh all the cost.

  • mike - 2010-06-28 18:32

    @STEVE (big Steve) If you read the comment "I agree, the positive image projected abroad is immeasurable." I never agreed with the 100 billion. I was only pointing out the success of the event, and we should be thankful that after spending all the billions it was not a botch up. What Zuma his Nephew and their cronies get up to after the event will more than likely paint the correct picture. But for now the image created abroad and the benefit is immeasurable, big chop. I believe the resources utilised have protected SA from the recession and kept the wolf from many a door of the average contractor/worker. That the resources could have been better spent.....well I am sure they could of.... but they could of also ended up down a black hole, but now at least we might have white elephants.

  • mike - 2010-06-28 18:35

    @ Tsunami... Better written than I, but effectively what I was trying to get through to STEVEie wonder.

  • AJ - 2010-06-29 05:55

    This is rubbish, as another article on the same web site points out, we have brought in just a fraction of what we spent. (VISA have noticed an extra 154 million spent on their cards! WOW! NOT.) People seem to be expecting 'downstream effects', to bring in the billions. This will not happen either. Sure various policies can increase investmemnt which is what SA needs, but that is not due to WC spending. We will NOT recoup 40 billion rand spent on the WC because of the WC. This 100 billion is just laughable - why not write a trillion .

  • Alan Parsons - 2010-06-29 07:23

    @Tsunami - if growth was the imperative as you state then it was totally misplaced by building white elephants. hospitals, rail and road networks etc should have been the focus!!! @LITTLE mike - the biggest chop is what's in your mouth.

  • Justin - 2010-06-29 08:30

    @STEVE - Yes, all those involved in the stadia (including all the casual workers that now had employment) as well as ALL those workers involved in all the other infrastructure projects. This same infrastructure does not actually belong to FIFA and will still be around after the world cup.

  • William - 2010-06-29 09:57

    @ Mike, Don't worry about the rants by the likes of Steve. They like to point out what we supposedly "said". It's been made very clear by the numerous comments here that we think the benefit is not about the WC profit (ie WC revenue - WC cost). Obviously a chimp could tell you the short term revenue is well below the cost. We have stated numerous times (and been ignored) that it's the long term benefits from the improved image, infrastructure etc that benefit us. As I said, its the best PR campaign money can buy. You shouldn;t worry about spending R40bn to host the world cup when FDI can inject R40bm in an hour. Ignore the negative comments Mike, the pseudo-intellectuals are talking trash again. There is a reason why every country in the world wants the World Cup...

  • SAGE - 2010-06-29 15:07


  • Willliam - 2010-06-29 16:12

    @ Sage, all the stolen stuff was returned and the culprits have been sentenced. Sure, it's not great that this happened but the police took care of it and the people got their stuff back. Regardless of this incident, South Africa has received a major image boost as confirmed by numerous international newspapers and the horde of fans now flocking to get into the country and not being able to. I can confirm that my relatives in Britain, Germany and Netherlands have all remarked that the feedback etc overseas has been wonderful. Furthermore, I have spoken to no less than 100 or so tourists who have all been exceptionally positive about South Africa and none of whom have had no problem with crime whatsoever. Whilst crime remains a major problem in this country I am thankful that we have managed so well so far in the WC. If you are so unhappy with RSA I wonder why you live here or if you don't live here why do you care? Will you go to your grave with the inability to give credit where it is due? Well done South Africa and all those involved in the WC. You are doing a great job, keep it up.

  • Rubens - 2010-07-01 16:11

    All the negativity over South Africa's ability to host this has been proved wrong and here in London the press has been overwhelming positive of late with a few small exceptions from vitriolic media. There is most definitely an observable benefit! @Ari, Steve, Sage etc. There really is no need to type your comments in capital letters. You lose all crediblity that way and most people will simply not read your comment. It's very 1998!

  • Chris W - 2010-07-01 16:55

    The article does hold merit. I'm from Durban and at last out skyline is becoming recognisable and the city has undergone a much needed facelift. It take time to become an international destination, this will speed up the process. Not everything can be measured in Rands and cents!

  • Dolphin Boy - 2010-07-02 09:25

    It's interesting to note the comments by the negatives and the comments by the positives. It goes far to understand the mentality of these pessimists. It is refreshing however to note that the positives far outweigh the negatives going forward which is all that matters really.

  • Ulrich Dannecker - 2010-07-02 15:29

    In order to really evaluate the publicity South Africa received for hosting the World Cup, one must be overseas. Whilst in S.A., you only see the local side of things. I am a Capetonian, currently staying in England, and not only have I watched every match on TV, but I also read many S.A. and U.K. national newspapers on a daily basis. Fistly, comments so far have been extremely positiv, and apart from the actual matches many scenes from the host cities were shown. No advertising campaign could ever match this exposure. Travel Agents and many travel websites are already recording an increase in enquiries. These benefits will be felt for years to come, and every Rand spent for the infrastructure will stand us in good stead. Well done South Africa!

  • SAn in Saudi - 2010-07-02 16:19

    South Africa was already a popular destination for tourists from the Mideast, particularly the Gulf States before the WC. It will be even more attractive now. The image of SA has benefited from hosting. SAn's should stop bad mouthing our country. Some SAn whities here in the Mideast are notorious for this and local people as well as expats are often astonished and regard them as ridiculous morons! Countries in this region have serious crises, they have tyrants in power, people are suffering and dying daily and yet they remain proud of their country and never say a bad thing about their country to a foriegner! WTF is wrong with these whingers & whiners? They make themselves look like @ssholes.

  • @William - 2010-07-04 07:56

    Don't use the guvvement propaganda so much. It makes you sound unintelligent, as if you can't think for yourself. Let us hold judgment on this and see where we will be a year from now, when the euphoria has left.

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