2010 ... And then?
June 11 saw South Africa step onto the world stage as host nation
of the 2010 FIFA World Cup. South Africa
was selected as the first African country to host the world cup six years ago,
and has been preparing ever since. This
preparation has included building five new stadiums, upgrading five existing
stadiums and building up public transportation, including a new rapid transit
railway. In recent weeks, the 32 qualifying teams and their legions of fans
have begun arriving, and it is estimated that by the time of the closing
ceremony on July 11, the event will have drawn more than
250 000 foreign tourists to South Africa.
from economic impacts, it is widely recognised amongst South Africans that the
2010 FIFA World Cup is about much more than “just economics” for the
country. At the same time, many people
have raised important questions about the economic well-being of South Africa
once the tournament has ended:
How has hosting the 2010 FIFA World Cup impacted
on the South African economy? Will the
event have brought about faster economic growth or do the negatives, such as
the lower labour productivity experienced during the tournament, mean slower
Has the spending on stadiums and infrastructure
been well considered, or will we experience a fiscal hangover as tax rates are
raised and future government spending is diverted to pay for the event?
What impact has the event had on tourism? Has the international community’s view of
South Africa been altered?
What about the implications for the Rand? Can we expect a sharp fall in the Rand
exchange rate given that tourists will be leaving and foreign operators will be
remitting the profits they earned?
Given the answers to these, and other questions,
where do opportunities reside for individual investors? And how should
businesses be positioned to best negotiate the post-World Cup economy?Adrian Saville, Chief
Investment Officer at Cannon Asset Managers and Visiting Professor of Economics
and Finance at the Gordon Institute of Business Science, will tackle the above
issues and provide answers to the important questions raised in a talk dealing
with the post-World Cup South Africa.