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South AfricaSoccer World Cup 2010
Compiled by:
Swiss Business Hub South Africa
Pretoria, July 2007
 
2010 FIFA World Cup –South Africa
Official Logo, unveiled on7 July 2006
 Soccer World Cup 2010 – South Africa
South Africa was chosen to host the 2010 world Cup in May, 2004 and the resultingexcitement at this decision caused a great deal of optimism, both, in South Africa andabroad. The forecast figures (see statistics below) that were an integral part of SA’sdecision to enter the bid indicated that the gains for the country would be significant interms of revenue and increased employment.Come June 2010, an estimated 2.7 million spectators will watch the FIFA WorldCup
TM
’s 64 matches played around the country. And when the final is shown, a televi-sion audience of up to 2.8 billion people will have their eyes glued on South Africa.
 
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World Cup Statistics
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2.72 million tickets will be sold for the event generating a total ticket revenue ofR4.6 billion.
Summary of costs and benefits
Costs BenefitsR2.3 billion upgrade of stadiums andinfrastructure
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ZAR7.2 billion paid in taxes
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ZAR21.4billion contribution to GDP
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159,000 new jobsExpenditure due to increased demand
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ZAR12.7 billion in revenuesearned from spectator spends
(Source: Grant Thornton, Kessel Feinstein – SA 2010 Soccer World Cup Bid – Economic Im-pact Report)
Economic Opportunities
Certain areas are limited to FIFA and its sponsors and there will be sales restrictionson sales, marketing and advertising in designated areas such as stadiums.There will, however be significant opportunities for business generally, particularly intourism, stadium construction, infrastructure (planning, technology, construction, etc.),IT and telecommunications, security and insurance.
Construction
All in all, ten stadiums in nine cities around South Africa have been selected. Thevarious venues will have to either be built from scratch or, where already in existence,upgraded to meet the standards required by FIFA.
Stadium Capacity Building requirementsFNB Stadium, Johannesburg 94,000 Partial demolishment – com-plete renovation
Budget
 – ZAR1.56 billionEllis Park Stadium; Johan-nesburg60,051 Increase in seating facilities,extension of parking facilities,modernisation of surroundingarea.
Budget
 – ZAR 2 billionMoses Mabhida Stadium,Durban70,000 New stadium
Budget
 – ZAR 1.83 billionLoftus Versfeld, Pretoria 45,000 Modernisation of floodlight,sound and electronic score-board systems
Budget
 – ZAR 99 million
 
Green Point Stadium , CapeTown70,000 New Stadium
Budget
 – ZAR 2.7 billionVodacom Park, Bloemfontein 40,000 Increase in capacity, renova-tion of changing facilities,Media centre construction
Budget
 – ZAR 221 millionRoyal Bafokeng, Rustenburg 40,000 Partial demolishment, com-plete renovation
Budget
 – ZAR 1.56 billionPeter Mokaba Stadium,Polokwane45,000 New Stadium
Budget
 – ZAR 716 millionMbombela Stadium, Nelspruit 45,000 New Stadium
Budget
 – ZAR 875 millionNelson Mandela Stadium,Port Elizebeth55,000 New Stadium
Budget
 – ZAR 981 million
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Infrastructure
A massive upgrade in infrastructure has also been planned from upgrades in the roadsystems to increased public transport systems and new commuter services such asthe much lauded Gautrain project.All intended to be able to cope with what is seen as a huge influx of visitors for thisprestigious event. A great deal of emphasis has also been placed on the high qualityof South Africa’s tourist industry. However, negotiations have been and are takingplace to increase the available accommodation in most of the cities chosen to host thevarious games.The Gautrain is being built by a Canadian-French-South African consortium (Bom-bela) which will cost something in the region of ZAR25 billion. It will link Johannes-burg, Pretoria and OR Tambo International Airport. Government is to foot ZAR21.9billion with a further ZAR3.5 billion coming from the private sector. The first link in thenetwork started on 28 September, 2006 and it is estimated that it will take 45 monthsto be completed. Work is progressing and I was assured by members of BombardierInc. (the Canadian part of the consortium) at the recent RailAfrica exhibition that thisfirst part should be in place for the World Cup.About R6 billion has been spent to date which equates to about ZAR3 million everyhour. Approximately 2,500 South Africans are currently employed on the project, plusabout 200 from other countries and this is expected to rise to 6,500.By the end of April 2007 the project reported significant impact on socio-economicdevelopment in the following areas:
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25% Black persons’ shareholding in the Bombela concession companythrough the Strategic Partners Group (SPG) – its BEE partner.
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About ZAR246 million has been spent on the procurement from, and sub-contracting to, BEEs.
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About ZAR48 million has been spent on procurement from, and sub-contracting to new BEEs.
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About ZAR75 million has been spent on procurement from and sub-contractingto SMMEs.
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South African materials, plant and equipment to the value of about ZAR79 mil-lion have been purchased.Another interesting aspect of the project, particularly from a South African point ofview is the skills and development programme initiated by the Bombela concession.More than 2,000 people have already passed through this training programme, provid-ing much needed skills that are sadly lacking in South Africa.Furthermore the Department of Transport has also let it be known that there are threemore Gautrain-type rapid-rail proposals on the cards. One each for Cape Town, Dur-ban and Pretoria.Bus transport improvements are also planned in all of the cities where the stadiumsare based, and those plans are well underway in Johannesburg and Pretoria. But Nel-spruit and Durban are following suit.
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