P.O.Box 785436, Sandton, 2146, South Africa
Visiting address: 14th floor Sandton Office Tower, Sandton City, Sandton
Phone: +27 11 784 8150
Fax: +27 11 784 8153
In a recent Business Breakfast a presentation was made by the CEO of SARFA (South African Rugby & Football Association) and key role player in the 2010 World Cup Bid Committee, Mr Danny Jordaan.
His presentation focussed on the challenges facing South Africa and on what was required by business and potential investors to make the tournament a success.
This report has been compiled to address the following audiences, namely:
· Norwegian companies involved in the 1994 Olympics/other major events and who think they have skills and competence of relevance to make this tournament a success. Important areas of focus are in the high end technology sector like systems for access control (ticketing), monitoring and security.
· Companies interested in these business opportunities, should do that through partnership with a South African business partner.
Impact on South Africas Economy
According to a local consulting firm the tournament will generate R21.3 billion for South Africas economy, bringing in an estimated R12.7 billion in direct spending and creating 159 000 new jobs.
SA's booming tourism industry will benefit from the 235 000 visitors expected during the tournament, while construction and engineering companies can look to a slice of the R2.3 billion to be spent on infrastructure building and upgrades in the lead-up to the tournament.
The private sector will be expected to provide most of the R2.3 billion needed for infrastructure upgrades for 2010 in expectation of substantial returns, with any outstanding infrastructure needs being covered by government.
The tourism industry, must work out strategies to turn one-time World Cup visitors into "repeat customers", while other elements of business should be looking for ways to create permanent jobs.
Challenges for South Africa
The challenge for South Africa is to cater and invest in a tournament based on solid infrastructure and skills in order to deliver a world class event. Areas of focus include:
· Media: the immediacy of the news so journalists can have access to the Internet and Broad Band width which will be in place in all the stadia.
· Security: surveillance, monitoring systems and insurance cover (war and terror)
· City development in terms of infrastructure, including the areas of public transport: new rail road from business centre to arena in Johannesburg.
· Skills transfer and training: learning from other countries who have been involved in previous tournaments and ensuring that the necessary skills and training is passed on to those involved.
Mr Jordaan confirmed the following projected statistics in terms of the World Cup turnout for the tournament.
· 32 teams who would be arriving 2/3 weeks prior to the tournament
· 64 matches to be played around the country
· 43 day duration of the World Cup
· 10 stadia to be built or upgraded
· 3 million spectators to view the actual tournament
· 40 billion television audience
City Development Plans
The following cities in South Africa have been selected as possibilities where stadia will either be built or upgraded:
· Cape Town
· Orkney / Potchefstroom
In order to determine the feasibility of whether the city has the capacity to handle an event (est. 40 000 spectators per match), each city will have to submit development plans along with implementation deadlines as well has having to undergo an audit. FIFA will run ongoing inspections until June 2008. The following priority areas will be examined:
· Hotels capacity and selection (3, 4 or 5 star)
· Transport Options rail, road and air. (In Gauteng the high speed train (Gardemo-bane), known as the Gautrain, a R7 billion Government investment, aims to link Johannesburg International to major sectors in Johannesburg, Midrand and Pretoria. For more information go to www.corporate.gautrain.co.za)
· Airport size and capacity
· Telecommunication (Internet Access & Broad Band Width in each stadium)
· Construction in terms of building or upgrading the stadium
In addition, each city needs to include what it plans to do with its stadium.
The financial partners involved in this tournament are the IDC (International Development Committee) and the DBSA (Development Bank of South Africa). Nordic institutions are already working with the banks.
South Africas Stadia
SA has approached expenditure in terms of stadia in a cost effective manor by adopting the following approaches:
· R250 million has been budgeted for each new stadium and these will be built in Port Elizabeth, Pretoria, Kimberley, Nelspruit and Peter Makaba.
· Upgrades to the two existing stadia amounts to R464 million.
The total amount invested in these stadia amounts to R2.2 billion.
World Cup Exhibition 2005
In November 2004 an announcement will be made regarding the date of an exhibition which will be held early in 2005 to focus on what issues need to be faced and dealt with prior to the tournament. This will be an opportunity for South African businesses to network and come up with ideas as well as for overseas companies to get involved in the tender process.
Norwegian companies looking for business opportunities related to the upcoming 2010 event and/or who would like to get involved in the exhibition in 2005 can contact:
Tel: +27 11 784-8150
Commercial Counsellor: Knut Ringstad
Market Advisor: Beverley Lewis