World Cup to boost investment

As the final preparations are put in place for the 2010 FIFA World Cup in South Africa, it is more than just football on the minds of top business executives around the world as they sit up and take notice of the investment potential of a post-World Cup South Africa.

A recent study by Deloitte (Partnering for value) has revealed that 77 per cent of senior business executives surveyed in the United States believe that, over the next five years, infrastructure – both public and private – will become a more important factor in determining where they locate their operations to accommodate for expected growth.

And with the massive infrastructure investment that has been poured into South Africa ahead of the World Cup, the picture is far larger than a 30 day football tournament.

In a meeting with influential business leaders in New York this week, the Chief Executive Officer of the 2010 FIFA World Cup Organising Committee South Africa, Dr Danny Jordaan, reflected on the enormous business and investment potential in South Africa as a result of Africa’s first World Cup.

"This is one of the fundamental reasons why we pursued the idea of hosting the World Cup. It is about further investment in the country and growth in trade and economic opportunities. And the way in which you do that is by demonstrating that you have the infrastructure and the capability to warrant serious consideration for such investment,” said Jordaan who referred to the massive infrastructure investment in South Africa ahead of the World Cup. This includes the six new stadiums and the R20 billion infrastructure boost to South Africa’s airports and resultant increase in capacity which will see the country’s main airport – OR Tambo International – able to now handle 28 million passengers a year.

Other developments related to the World Cup, such as the Gautrain rapid rail system which will connect the Gauteng province via a high speed network, the R96 billion being spent on South Africa’s road infrastructure improvements, an R18 billion upgrade to the rail system as well as the massive boost in tourism infrastructure with close to 30 hotels going up in Johannesburg alone, will work hand in hand with South Africa’s profile boost from the World Cup to vastly increase its investment potential.

“It is also about your reputation. It's the country's ability to deliver on what it promises,” said Jordaan of the 30 day global advertisement for South Africa in June and July this year.

“Our job as the Organising Committee was to set up the infrastructure and the logistics for the World Cup and now that this is largely done it is up to business and the Government to make sure that, as a country, we can leverage off this platform. And it is exciting to see that business leaders around the world do wish to leverage off the tournament,” continued Jordaan.

Jordaan was speaking at the Global Forum in a meeting attended by some of America’s top business leaders, including film executives, investment bankers, property developers and bankers who all have an interest in investing in South Africa in response to the hosting of the World Cup.

This week’s meeting in New York will be followed by a gathering in Cape Town during the World Cup in another Global Forum event in conjunction with the Motsepe Foundation and the Nelson Mandela Foundation. It will bring together Fortune 500 company CEO’s, heads of state and selected members of the Time Magazine 100 – the World’s most influential people from diverse fields – to tap into the extraordinary promise of the developing world and discuss the potential of the African continent.

There are already a number of powerful business leaders confirmed for the Cape Town event, which include South African President Jacob Zuma, Motorola Co-CEO, Gregory Brown, Former Coca-Cola CEO Neville Isdell, Chairman of African Rainbow Minerals Patrice Motsepe and Chairman of Deutsche Bank Josef Ackerman.
source:fifa